1 ISO 26000 Guidance on Social responsibility University

1 ISO 26000 Guidance on Social responsibility University of Geneva 2015 (presentation reduced in size) Staffan Söderberg, Sustainability Advisor AMAP Sustainability www. amap. se 9 years ISO 26000 (Vice Chair) 3 years with WWF (NGO, director corporate partnerships) 10 years with Skanska (MNE Construction, sustainability manager) M. Sc Biology/Nature Conservation, M. A. Human Ecology

2 Program A. ISO 26000 in context: social responsibility, sustainability, international standards, tools B. ISO 26000 in practice: 100 pages, 27 definitions, 7 principles, 7 core subjects, 7 steps of integration

3 A. ISO 26000 in context

4 International Standard? ISO? 4

We need standards 5

International standards help globalisation International European CENELEC CEN ISO IEC National 1906 1926 1947 Regulation of national markets 1961 1985 Common market 2012 Globalisation 6

Principles for ”international standards” Transparency 7 Openness Consensus & impartiality Market relevance & effectiveness Coherence Development dimension * explicit principles for the “development of international standards, guides and recommendations with relation to articles 2, 5 and Annex 3 of the WTO/TBT agreement” 7

ISO – A Global System 759 organizations in liaison 165 national members 5 000 people 98% of world GNI 97% of world population Customer Collection of 20000 ISO Standards 917+ in 2014 … Financial 230 active TCs 3 404 technical bodies 100 000 experts 1103 standards produced in 2013 Vision & Strategy Internal Process Central Learning Growth Secretariat in Geneva 138 FTE staff

ISO’s recently established committees 2011 2013 • • • • • Project, programme & portfolio management Additive manufacturing Facilities management Outsourcing Risk management Bionics Fireworks Coal bed methane Carbon capture and storage • 2012 • • • Railway applications Sustainable development in communities Plastic and rubber machines Light and lighting Compliance programs Forensic sciences Customer contact centres Sustainability for and by Information Technology Translation, interpreting and related technology Smart community infrastructures Common standards • • • Sludge recovery, recycling, treatment and disposal Biotechnology Sustainable purchasing Anti-bribery management system – Requirements Innovation process: interaction, tools and methods Management consultancy Fine bubble technology Water re-use Occupational health and safety management system – Requirements Management system for quality of private security company operations – Requirements with guidance Clean cookstoves and clean cooking solutions Chain of custody of forest-based products Collaborative business relationship management – Framework Chain of custody of forest-based products - Requirements (Provisional) Educational organizations management systems - Requirements with guidance for use 2014 • • • 9 Brand evaluation Online reputation Domestic gas cooking appliances Security (start date: 2015) Feed machinery Environment Economic Societal … most deliver on all three dimensions!

ISO standards for managing risks and opportunities Examples of ISO standards, existing or under development: - sustainable construction - anti-bribery management system - health and safety management system - environmental management system - quality management system - sustainable purchasing oint good starting p - social responsibility - societal risk - risk management - sustainability for and by information technology - energy efficiency management system - sustainability in event management - sustainability criteria for bioenergy Note: ISO Guide 82 (freely available) for integrating sustainability in standards, based on ISO 26000, giving guidance to those 100, 000 experts currently revising/developing ISO-standards 10

11 11 Corporate Social Responsibility? Social responsibility? Sustainability?

12 Sustainability § is the goal of sustainable development § i. e any state of the global system that develops without limiting future generations to develop § Note: The environmental, social and economic subsystems of the global system interact and are interdependent. They are often referred to as the three dimensions of sustainability. (the definition I use, which one do you use? )

13 Sustainable Development ISO 26000 terms and definitions 2. 23 development that meets the needs of the present without compromising the ability of future generations to meet their own needs NOTE Sustainable development is about integrating the goals of a high quality of life, health and prosperity with social justice and maintaining the earth's capacity to support life in all its diversity. These social, economic and environmental goals are interdependent and mutually reinforcing. Sustainable development can be treated as a way of expressing the broader expectations of society as a whole.

Many different CSR? CSR – Corporate Social Responsibility CR – Corporate Responsibility CA – Corporate Accountability CC – Corporate Citizenship CS – Corporate Sustainability CSR – some call it corporate sustainability reporting…. ”CSR International” defines CSR as ”Corporate Sustainability and Responsibility” ? Social Responsibility is one part of the Triple Bottom Line (1994): -“environmentally sustainable, socially responsible and economically viable”… …and on the other hand SR is core to CSR (Corporate Social Responsibility) which embraces Triple Bottom Line… 100 tools? SA 8000, AA 1000, GRI, OECD MNE, ISO 26000, FSC, UN GP BHR, UN GC, UNGP BHR, etcetera…. . ”voluntary beyond legal requirements”… 14

We need agreed definitions, structures, methods Five main examples of “sustainability standards”: § United Nations Global Compact: initiative for businesses that are committed to 10 principles in the areas of human rights, labour, environment and anti-corruption § ISO standards: e. g. environmental management (ISO 14000) and social responsibility (ISO 26000), § Global Reporting initiative: guidance on sustainability reporting § OECD Guidelines for Multinational Enterprises § UN Guiding Principles on Business and Human Rights 15

16 European Commission CSR Communication 2011 Defining CSR § The European Commission previously defined Corporate Social Responsibility (CSR) as “a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis”. § In 2011 the Commission puts forward a new definition of CSR as “the responsibility of enterprises for their impacts on society”

17 European Commission CSR Communication 2011 Defining CSR “For companies seeking a formal approach to CSR, especially large companies, authoritative guidance is provided by internationally recognised principles and guidelines, in particular the recently updated OECD Guidelines for Multinational Enterprises, the ten principles of the United Nations Global Compact, the ISO 26000 Guidance Standard on Social Responsibility, the ILO Tri-partite Declaration of Principles Concerning Multinational Enterprises and Social Policy, and the United Nations Guiding Principles on Business and Human Rights. ”

18 European Commission CSR Communication 2011 Defining CSR Action ”The Commission invites: All large European enterprises to make a commitment by 2014 to take account of at least one of the following sets of principles and guidelines when developing their approach to CSR: the UN Global Compact, the OECD Guidelines for Multinational, Enterprises, or the ISO 26000 Guidance Standard on Social Responsibility. ”

19 European Commission CSR Communication 2011 Defining CSR Follow up ”The Commission intends to: Monitor the commitments made by European enterprises with more than 1. 000 employees to take account of internationally recognised CSR principles and guidelines, and take account of the ISO 26000 Guidance Standard on Social Responsibility in its own operations. ”

UN Global Compact self-assessment? 20

Anti-corruption portal? 21 21

CSR in supply chain for SMEs? 22 22

23 European Commission CSR Communication 2011 - all member states to develop National CSR plans Example Sweden: § ”Sustainable business” § The Government’s vision for sustainable business is: that all business enterprises sustain a long-term view of value creation and pursue operations that support and promote sustainable business – economically, socially and environmentally. § Focus on: UN Global Compact, OECD Guidelines for MNE, UN Guiding Principles on Business and Human Rights § Focus areas: Government as owner/buyer/donor/catalyzer § Tools

24 Social Responsibility ISO 26000 Terms and Definitions, 2. 18 responsibility of an organization for the impacts of its decisions and activities on society and the environment, through transparent and ethical behaviour that �contributes to sustainable development, including health and the welfare of society; - takes into account the expectations of stakeholders; �is in compliance with applicable law and consistent with international norms of behaviour; and �is integrated throughout the organization and practised in its relationships NOTE 1 Activities include products, services and processes. NOTE 2 Relationships refer to an organization's activities within its sphere of influence.

It all starts to fit! Social Responsibility Performance 25 Sustainable development – current expectations from society Plan-docheck-act Social Responsibility: how the organizations contributes Sustainability Other requirements Legal International norms of behaviour, stakeholder expectations, our own requirements, standards! Different from country to country! Today Time

26 We take a break

27 B. ISO 26000 in practice

28 28 One way of working… structure, system, procedures, policies, targets Principles/values ENGINE ISO 26000 Performance/ communication/ report

29 Social Responsibility ISO 26000 Terms and Definitions, 2. 18 responsibility of an organization for the impacts of its decisions and activities on society and the environment, through transparent and ethical behaviour that �contributes to sustainable development, including health and the welfare of society; - takes into account the expectations of stakeholders; �is in compliance with applicable law and consistent with international norms of behaviour; and �is integrated throughout the organization and practised in its relationships NOTE 1 Activities include products, services and processes. NOTE 2 Relationships refer to an organization's activities within its sphere of influence.

30 Social Responsibility ISO 26000 Terms and Definitions, 2. 18 4. How do we know responsibility of an organization for the impacts of its decisions and activities what is the 1. Who are on society and the environment, through transparent and ethical behaviour sustainable level? stakeholders and that how do we know �contributes to sustainable development, including what theyhealth expect? and the welfare of society; - takes into account the expectations of stakeholders; 2. What are �is in compliance with applicable law and consistent with the international norms of behaviour; and international �is integrated throughout the organization and practised in its norms? relationships NOTE 1 Activities include products, services and processes. NOTE 2 Relationships refer to an organization's activities within its sphere of influence. 3. Our sphere of influence?

1. Stakeholders? ISO 26000: 2010 Terms and definitions 2. 20 stakeholder individual or group that has an interest in any decision or activity of an organization 2. 21 stakeholder engagement activity undertaken to create opportunities for dialogue between an organization and one or more of its stakeholders, with the aim of providing an informed basis for the organization's decisions 31

2. International norms of behaviour? ISO 26000: 2010 Terms and definitions 2. 11 international norms of behaviour Expectations of socially responsible organizational behaviour derived from customary international law, generally accepted principles of international law, or intergovernmental agreements that are universally or nearly universally recognized (hint: the bibliography of ISO 26000) 32

3. Sphere of influence? ISO 26000: 2010 Terms and definitions 2. 19 sphere of influence range/extent of political, contractual, economic or other relationships through which an organization has the ability to affect the decisions or activities of individuals or organisations Note: the ability to influence does not, in itself, imply a responsibility to excercise influence 33

4. The ”sustainable level”? Some say we need to develop a sustainable economy and sustainable social well-being before we can be motivated to act for a sustainable environmental impact Environment Society Economy 34

Is there time? Ecological Footprint Scenario 1: “Business as usual” 35

Ecological Footprint Scenario 2: 95% renewable energy and everybody eats as they do in Malaysia, i. e. more vegetarian 36

37 Population Today: 7 bn 2050? : 9 bn x consumption = planet resources x x 1 2 = = 7 18 (7 x 250%) 7 should be 5. 4 as we are already using 130 % of planet-resources…

38 Population Today: 7 bn 2050? : 9 bn x consumption = planet resources x x 1 2 = = 7 18 (7 x 250%) 7 should be 5. 4 as we are already using 130 % of planet-resources… 5. 4 compared to 18… = 330% 2050: Use 30 % less compared to to today, and produce 330% more ?

We will use ISO 26000 § Title: Guidance on Social Responsibility § Target group: To be applied by all types of organizations, not only for companies (”C”SR) § Type of standard: International Standard providing guidance, not intended for third-party certification § Not a management system but compatible with a management system § Not a substitute for legal and other requirements § 100 pages, 7 chapters, 27 definitions, 7 principles, 7 core subjects with 37 issues, 7 steps to integrate = 400+ recommendations § Developed 2005 -2010 through a rather complex and robust stakeholder dialogue Read more: iso. org/sr and iso. org/wgsr 39

Always investigate how tools/standards were developed! ISO 26000: § One national SR-expert from each of the six stakeholder categories (100 countries): § Industry, Government, Consumer, Labour, Non-governmental organization (NGO), Service/Support/Research/Others § 2 experts from each of the (40) Liaison organizations E. g. Consumers International, UN Global Compact, Global Reporting Initiative, ICC, IOE, ILO, OECD, Social Accountability Int. , UNIDO, WBCSD, WHO § Memorandum of Understanding with ILO, UN Global Compact, OECD, GRI 40

Stakeholder balance in the ISO 26000 Working Group 41

Gender Balance in the ISO 26000 Working Group 42 %

Regional Balance in the ISO 26000 Working Group 43 Twinned leaderships!

2013: 70+ adopters and 20+ on their way Have adopted In progress Algeria, Argentina, Armenia, Australia, Austria, Bahrain, Not adopted Bangladesh, Belgium, Bhutan, Bolivia, Bosnia and Herzegovina, Brazil, Bulgaria, Burkina Faso, Burundi, Canada, Chile, China, Colombia, Costa Rica, Cote D’Ivoire, Croatia, Cuba, Cyprus, Czech Republic, Denmark, Dominican Republic, Ecuador, Egypt, Estonia, Finland, France, Gabon, Gambia, Georgia, Germany, Ghana, Guatemala, Guinea Bissau, Honduras, Hungary, Iceland, India, Indonesia, Iran, Iraq, Ireland, Israel, Italy, Jamaica, Japan, Jordan, Kazakhstan, Kenya, Korea (Republic of), Kyrgyz Republic, Latvia, Lebanon, Lithuania, Luxembourg, Macau, Malawi, Malaysia, Malta, Mauritius, Mexico, Moldova (Republic of), Mongolia, Montenegro, Morocco, Myanmar, Namibia, Netherlands, New Zealand, Nigeria, Norway, Oman, Panama, Papua New Guinea, Peru, Poland, Portugal, Romania, Russia, Saint Lucia, Saint Vincent and the Grenadines, Saudi Arabia, Serbia, Singapore, Slovak Republic, South Africa, Spain, Surinam, Swaziland, Sweden, Switzerland, Tanzania, Thailand, Trinidad and Tobago, Tunisia, Turkey, Uganda, United Arab Emirates, United Kingdom, Uruguay, USA, Vietnam, Zimbabwe ”Adopted”: as national standard, translated and sold

2013: Adopted

Linkage to GRI G 4 international guidelines for sustainability reporting § Available at : iso. org about (Standards in action, at bottom of page) Sustainable Development § How the best practice examples of sustainability indicators of GRI can be used to show the recommendations of ISO 26000 are applied 46

ISO 26000, the structure 1. Scope 2. Terms and Definitions 3. Understanding SR 4. Principles of SR 5. Recognizing SR and engaging stakeholders 6. Guidance on SR core subjects 7. Guidance on integrating SR throughout an organization Annex: Examples of voluntary initiatives and tools for SR 47

ISO 26000 Guidance on Social Responsibility - the overarching objective for an organization is to maximize its contribution to sustainable development w e R e vi Society and Environment I m pr Organization strategy, action plan, communication Subjects Issues Expectations Engagement Stakeholders ov in g Contribute to SD p. 69 48

ISO 26000 summary, p. ix 49

St ak eh o ld er i np u t Contribution to sustainable development Action through training, procedures, action plan Prioritized issues for strategic improvements based on your criteria Significant issues, based on impact on sustainable development, stakeholders, societal expectations, risks from failure Relevant issues, considering legislation and impacts on sustainable development, stakeholders and their impacts on you Most important stakeholders and your sphere of influence Role in sustainable development, Principles 50

Overarching SR Principles - to be respected at all times 1. 2. 3. 4. 5. 6. 7. Accountability Transparency Ethical Behaviour Respect for stakeholder interests Respect for the rule of law Respect for international norms of behaviour Respect for humans rights + additional subject-specific principles 51

Overarching SR Principles - to be respected at all times (Clause 4) 52 1. Accountability: an organization should be accountable for its impacts on society, the economy and the environment 2. Transparency: an organization should be transparent in its decisions and activities that impact on society and the environment 3. Ethical behaviour: an organization should behave ethically 4. Respect for stakeholder interests: an organization should respect, consider and respond to the interests of its stakeholders 5. Respect for the rule of law: an organization should accept that respect for the rule of law is mandatory 6. Respect for international norms of behaviour: an organization should respect international norms of behaviour, while adhering to the principle of respect for the rule of law 7. Respect for human rights: an organization should respect human rights and recognize both their importance and their universality

Natural, Social and Economic Environment Sector association Partners Shareholders Banks / Insurance 53 Value chain Supply chain Workers Sub. Suppliers A Sub. Suppliers B Customers A Employees Industry Organization Distributors Customers B Consumers Waste services Raw material providers Government Citizens Media NGO’s Sphere of influence Example

7 core subjects - should be addressed by all organizations 1. 2. 3. 4. 5. 6. 7. Organizational governance Human rights Labour practices The environment Fair operating practices Consumer issues Community involvement and development With 37 underlying issues, not all relevant to all organizations Which of these core subjects and issues are relevant to us? Most significant? 54

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ISO 26000 – Clause 6 6. Guidance on SR core subjects 6. 2 Organisational governance 6. 3 Human rights 6. 4 Labour practices 6. 5 Environment 6. 6 Fair operating practices 6. 7 Consumer issues Each of these core subjects includes: - Overview of the subject - Its link to social responsibility - Principles and considerations - Issues Each issue includes: - Description of the issue - Related actions and expectations 6. 8 Community involvement and development 57

Example Structure for one issue: Anti-corruption § § § § 58 6. 6 Fair operating practices (core subject 5) 6. 6. 1 Overview of fair operating practices 6. 6. 1. 1 Organizations and fair operating practices 6. 6. 1. 2 Fair operating practices and social responsibility 6. 6. 2 Principles and considerations 6. 6. 3 Fair operating practices issue 1 (of core subject 5): Anti-corruption 6. 6. 3. 1 Description of the issue Corruption is the abuse of entrusted power for private gain…. . etcetera § 6. 6. 3. 2 Related actions and expectations To prevent corruption an organization should: (9 recommendations) �identify the risks of corruption and implement and maintain policies and practices that counter corruption and extortion; �ensure its leadership sets an example for anti-corruption and provides commitment, encouragement and oversight for implementation of the anti-corruption policies; �support and train…. . etcetera….

St ak eh o ld er i np u t Contribution to sustainable development Action through training, procedures, action plan Prioritized issues for strategic improvements based on your criteria Significant issues, based on impact on sustainable development, stakeholders, societal expectations, risks from failure Relevant issues, considering legislation and impacts on sustainable development, stakeholders and their impacts on you Most important stakeholders and your sphere of influence Role in sustainable development, Principles 59

Develop your sustainability strategy! Strategy Where we are going How we do it Who we are Execution What we need (market, position, competitive advantage, business model) Targets and KPIs Financing and investments Offer Sales Vision Mission Governance Delivery Culture, values, principles 60

After having used ISO 26000, the cotton shirt company found: § Key Stakeholders: owners, employees, suppliers, customers…. § Key Sustainability principles: accountability, transparency, rule of law… § Key Core subjects: Human rights, labor practices, environment… § Most relevant and significant issues: child labor, sustainable resource use, anticorruption, freedom of association, health and safety… § Most proritized issues for strategic action: 100% BCI, child labor free, A new sector initiative: Corruption Free Cotton… § Key Integration: QMS, supplier audits, training… § Key Communication: sustainability report, stakeholder engagement plan… 61

62 Thank you! Contact me if you have questions or ideas: staffan. soderberg@amap. se +46706912269