ISO/TMB/WG SR N 137© ISO 2007 – All rights reserved

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ISO/TMB WG SR – IDTF N050

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Date: 2008-03-11

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DRAFT ISO 26000 WD4.1

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Guidance on Social Responsibility

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Lignes directrices pour la responsabilité sociétale

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NOTE: This is a working document that has been developed by the Integrated Drafting Task Force(IDTF), a representative body that was established at the Vienna meeting of the ISO Working Groupon Social Responsibility. This draft has been developed on the basis of a consideration of comments
submitted by experts, and in accordance with the process agreed to in Vienna.

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This draft is presented to Working Group experts for the purposes of focused review and discussion
within stakeholder groups. Experts are invited to comment on this draft within their stakeholder groups
by responding to the specific questions on this draft contained in IDTF N052. They should do sousing the process agreed within each stakeholder group, and with consideration to IDTF N051, which
provides an explanation of, and rationale for, the changes that have been made to WD3.2.

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Collated comments from the stakeholder groups need to be submitted to the IDTF by 4 April 2008.
The submission of comments by individual experts within their groups will need to meet an earlier
deadline set by the stakeholder groups.

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Warning24
25This document is not an ISO International Standard. It is distributed for review and comment. It
is subject to change without notice and may not be referred to as an International Standard.

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Recipients of this draft are invited to submit, with their comments, notification of any relevant
patent rights of which they are aware and to provide supporting documentation.

Document type: International Standard
Document subtype:
Document stage: (20) Preparatory
Document language: E

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Copyright notice

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This ISO document is a working draft or committee draft and is copyright-protected by ISO.
While the reproduction of working drafts or committee drafts in any form for use by participantsin the ISO standards development process is permitted without prior permission from ISO,neither this document nor any extract from it may be reproduced, stored or transmitted in any
form for any other purpose without prior written permission from ISO.

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Requests for permission to reproduce this document for the purpose of selling it should be
addressed as shown below or to ISO's member body in the country of the requester:

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[Indicate the full address, telephone number, fax number, telex number, and electronic mailaddress, as appropriate, of the Copyright Manger of the ISO member body responsible for thesecretariat of the TC or SC within the framework of which the working document has been
prepared.]41

Reproduction for sales purposes may be subject to royalty payments or a licensing agreement.

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Violators may be prosecuted.

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© ISO 2007 – All rights reserved

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Contents
Page

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Foreword ...............................................................................................................................................vii

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Introduction..........................................................................................................................................viii

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1

Scope...............................................................................................................................................1150

2

Normative references ....................................................................................................................1151

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Terms and definitions....................................................................................................................1152

4

Understanding social responsibility ............................................................................................14

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4.1

The social responsibility of organizations......................................................................14

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4.2

Current trends in social responsibility............................................................................14

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4.3

Characteristics of social responsibility...........................................................................1556

4.3.1 Accountability for the organization’s impact on society .......................................................1557

4.3.2 The role of stakeholders in social responsibility ..................................................................16

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4.3.3 Relationship between social responsibility and sustainable development ..........................16

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4.4
5

Governments and social responsibility ..........................................................................16

Principles of social responsibility ................................................................................................17
General................................................................................................................................17

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5.1

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5.2
An organization should be accountable for its impacts on society and theenvironment ......................................................................................................................................17

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5.3
An organization should be transparent in its decisions and activities that
impact on others ...............................................................................................................................17

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5.4

An organization should behave ethically at all times ....................................................18

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5.5

An organization should respect and consider the interests of its stakeholders........18

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5.6

An organization should respect the rule of law..............................................................19

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5.7
An organization should recognize both the importance and the universality ofhuman rights .....................................................................................................................................19

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An organization should respect relevant international norms where these
5.8
norms are superior to national law and practice...........................................................................2073

6Practices of social responsibility .................................................................................................20

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6.1

General................................................................................................................................20

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6.2

Identifying social responsibility .......................................................................................2076

6.2.1 General ................................................................................................................................20

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6.2.2 Identifying the subjects and extent of social responsibility ..................................................2178

6.2.3 Establishing priorities...........................................................................................................21© ISO 2007 – All rights reservediii

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6.3

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Stakeholder identification and engagement .................................................................. 2280

6.3.1 General ............................................................................................................................... 22

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6.3.2 Stakeholder identification.................................................................................................... 2282

6.3.3 Stakeholder engagement.................................................................................................... 23

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6.4

Integrating social responsibility into the organization ................................................. 24

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6.5

Communication ................................................................................................................. 2485

7Social responsibility core subjects ............................................................................................. 25

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7.1

General............................................................................................................................... 25

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7.2

Organizational governance.............................................................................................. 27

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7.2.1 Overview of organizational governance.............................................................................. 27

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7.2.2 Principles and considerations ............................................................................................. 27

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7.2.3 Organizational governance issue 1: Decision making processes and structures .............. 28

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7.2.4 Organizational governance issue 2: Delegating power ...................................................... 28

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7.3

Human rights ..................................................................................................................... 29

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7.3.1 Overview of human rights ................................................................................................... 29

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7.3.2 Principles and considerations ............................................................................................. 30

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7.3.3 Human rights issue 1: Non-discrimination and concern for vulnerable groups .................. 32

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7.3.4 Human rights issue 2: Avoidance of complicity .................................................................. 33

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7.3.5 Human rights issue 3: Civil and political rights ................................................................... 34

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7.3.6 Human rights issue 4: Economic, social and cultural rights ............................................... 35

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7.3.7 Human rights issue 5: Fundamental rights at work............................................................ 36

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7.4

Labour practices ............................................................................................................... 37

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7.4.1 Overview of labour practices............................................................................................... 37

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7.4.2 Principles and considerations ............................................................................................. 37

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7.4.3 Labour practices issue 1: Employment and employment relationships.............................. 38

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7.4.4 Labour practices issue 2: Conditions of work and social protection ................................... 40

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7.4.5 Labour practices issue 3: Social dialogue .......................................................................... 41

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7.4.6 Labour practices issue 4: Health and safety at work .......................................................... 42

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7.4.7 Labour practices issue 5: Human development.................................................................. 43

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7.5

The environment ............................................................................................................... 44

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7.5.1 Overview of the environment .............................................................................................. 44

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7.5.2 Principles and considerations ............................................................................................. 45

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7.5.3 Environmental issue 1: Prevention of pollution................................................................... 46

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7.5.4 Environmental issue 2: Sustainable resource use.............................................................. 47

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7.5.5 Environmental issue 3: Climate change mitigation and adaptation .................................... 48

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7.5.6 Environmental issue 4: Protection and restoration of the natural environment .................. 49

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7.6

Fair operating practices ................................................................................................... 50

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7.6.1 Overview of fair operating practices ................................................................................... 50

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7.6.2 Principles and considerations ............................................................................................. 51

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7.6.3 Fair operating practices issue 1: Anti–corruption................................................................ 51

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7.6.4 Fair operating practices issue 2: Responsible political involvement................................... 52

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7.6.5 Fair operating practices issue 3: Fair competition .............................................................. 52

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7.6.6 Fair operating practices issue 4: Promoting social responsibility in the sphere of
influence...............................................................................................................................53

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7.6.7 Fair operating practices issue 5: Respect for property rights ..............................................53
7.7

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Consumer issues...............................................................................................................54125

7.7.1 Overview of consumer issues..............................................................................................54126

7.7.2 Principles and considerations ..............................................................................................54127

7.7.3 Consumer issues issue 1: Fair marketing, information and contractual practices ..............55

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7.7.4 Consumer issues issue 2: Protecting consumers’ health and safety ..................................56129

7.7.5 Consumer issues issue 3: Sustainable consumption ..........................................................58130

7.7.6 Consumer issues issue 4: Consumer service, support, and dispute resolution..................59131

7.7.7 Consumer issues issue 5: Consumer data protection and privacy .....................................59132

7.7.8 Consumer issues issue 6: Education and awareness.........................................................60
7.8

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Social and economic development of the community ..................................................61134

7.8.1 Overview of social and economic development of the community......................................61

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7.8.2 Principles and considerations ..............................................................................................62136

7.8.3 Social and economic development issue 1: Community involvement.................................63137

7.8.4 Social and economic development issue 2: Employment generation .................................63138

7.8.5 Social and economic development issue 3: Technology development ...............................64139

7.8.6 Social and economic development issue 4: Wealth and income ........................................64140

7.8.7 Social and economic development issue 5: Responsible Investment.................................65

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7.8.8 Social and economic development issue 6: Education and culture ....................................66

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7.8.9 Social and economic development issue 7: Health .............................................................66

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7.8.10 Social and economic development issue 8: Capacity building............................................67

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Guidance for an organization on implementing social responsibility......................................67

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8.1

General................................................................................................................................68

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8.2

Identifying social responsibility .......................................................................................68147

8.2.1 The subjects of and the extent of social responsibility ........................................................68148

8.2.2 Establishing priorities...........................................................................................................69

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8.3

Stakeholder identification and engagement ...................................................................70150

8.3.1 Stakeholder identification.....................................................................................................70151

8.3.2 Stakeholder engagement.....................................................................................................70

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8.4

Integrating social responsibility into the organization and its daily practices ...........71

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8.4.1 General ................................................................................................................................71154

8.4.2 Adopting and applying value statements and standards of ethical behavior ......................71155

8.4.3 Establishing objectives and strategies for social responsibility ...........................................71156

8.4.4 Raising awareness and building competencies...................................................................72

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8.5

Communication on social responsibility ........................................................................72

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8.5.1 General ................................................................................................................................72

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8.5.2 Identifying the purpose of communication ...........................................................................72

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8.5.3 Planning communication......................................................................................................73

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8.5.4 Selecting type and form of communication..........................................................................73

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8.5.5 Enhancing credibility............................................................................................................74© ISO 2007 – All rights reservedv

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8.6

Examining activities about social responsibility........................................................... 74

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8.6.1 General ............................................................................................................................... 74

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8.6.2 Keeping track of performance............................................................................................. 74

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8.6.3 Examining performance ...................................................................................................... 75

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8.6.4 Improving performance ....................................................................................................... 75

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8.7

Using instruments and initiatives on social responsibility .......................................... 75

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Annex A – Social Responsibility Initiatives ...................................................................................... 77

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Bibliography......................................................................................................................................... 78

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Index ..................................................................................................................................................... 79

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Foreword

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ISO (the International Organization for Standardization) is a worldwide federation of national
standards bodies (ISO member bodies). The work of preparing International Standards isnormally carried out through ISO technical committees. Each member body interested in a
subject for which a technical committee has been established has the right to be represented onthat committee. International organizations, governmental and non-governmental, in liaison with
ISO, also take part in the work. ISO collaborates closely with the International ElectrotechnicalCommission (IEC) on all matters of electrotechnical standardization.

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International Standards are drafted in accordance with the rules given in the ISO/IEC Directives,
Part 2.

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ISO 26000 was prepared by the ISO Technical Management Board Working Group on Social
Responsibility. The Draft International Standard adopted by the Working Group will be circulated
to the member bodies for voting. Publication as an International Standard requires approval by atleast 75 % of the member bodies casting a vote.

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Attention is drawn to the possibility that some of the elements of this document may be thesubject of patent rights. ISO shall not be held responsible for identifying any or all such patentrights.

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The main task of technical committees is to prepare International Standards.

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Introduction

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Note: The text of the introduction will be reviewed towards the end of the drafting process, toensure consistency with the final agreed content of the standard. Once the final clauses havebeen provided, a diagram will be included outlining the whole document. The benefits of including
a possible “road-map” (that reflects the final standard) will also be reviewed.

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Organizations around the world, as well as their stakeholders, are becoming increasingly awareof the need for socially responsible behaviour. As varying interpretations of social responsibility
exist, an internationally accepted standard may be of benefit in helping to achieve a common
perspective and understanding about the principles and practices of social responsibility. The aimof social responsibility is to contribute to sustainable development, health and the welfare ofsociety.

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Social responsibility is increasingly becoming one of the important influences on anorganization’s performance. More than ever, an organization's performance in relation to thesocial environment in which it operates, and its impact on the natural environment, has become acritical part of measuring its overall performance, and its ability to continue operating effectively.
That is, in part, a reflection of the growing recognition of the need for ensuring healthy ecosystems, social equality and organizational governance.

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Organizations are subject to greater scrutiny by their various stakeholders, including customers,
workers and their trade unions, members, the community, non-governmental organizations,students, financiers, donors, investors, companies and other commercial entities. The perceptionof an organization’s social responsibility performance may influence:212– the general reputation of the organization;213– its ability to attract and retain men and women workers and/or members;

214– the maintenance of employee’s morale and productivity;

215– the view of investors, donors, sponsors and the financial community;

216– its ability to attract and retain customers, clients, members or users; and

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– its relationship with government, the media, suppliers, peers, customers and the community in

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This international standard provides guidance on the underlying principles of social responsibility,
the core subjects and issues pertaining to social responsibility and on ways to implement social
responsibility within an organization. The standard is applicable to all type of organizations,regardless of their size or location, including governmental and non-governmental organizations
as well as business organizations, because every organization has an impact on society and theenvironment. It is intended to help an organization achieve mutual trust with its stakeholders by
improving its social responsibility performance. This International Standard does not, however,
apply to governmental organizations when exercising their executive, legislative and judicial
powers.

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This International Standard is for voluntary use and is not intended or appropriate for certification
purposes, or regulatory or contractual use. It is not intended to create a non-tariff barrier to trade,nor does it alter an organization’s legal obligations.

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Every organization is encouraged to become more socially responsible by using this International
Standard, engaging with stakeholders, complying with applicable national laws, and respecting
the principles of international norms of behaviour.

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which it operates.

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This International Standard provides guidance to organizations on the integration of socially
responsible behaviour into existing organizational strategies, systems, practices and processes,
and emphasizes results and improvements in performance.

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Although the standard is meant to be read and used as a whole, readers looking for specifictypes of information on social responsibility may find the following outline useful.

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Table 1 — Outline of contents of ISO 26000
Clause title

Clausenumber

Scope

Clause 1

Defines the subjects covered by the standard and identifies any
limitations or exclusions.

Normativereferences

Clause 2

Lists documents that must be read in conjunction with the standard.

Terms anddefinitions

Clause 3

Identifies and provides the meaning of important terms used in thisInternational Standard. These terms are of fundamental importancefor understanding the concept of social responsibility and using thestandard.

Understandingsocial responsibility

Clause 4

Describes the factors, conditions and important issues that haveinfluenced the development of social responsibility and that continue
to affect its nature and practice. It also describes the concept ofsocial responsibility itself - what it means and how it applies toorganizations.

Principles of social
responsibility

Clause 5

Introduces and explains the fundamental principles and practices ofsocial responsibility.

Practices of social
responsibility

Clause 6

Introduces and explains the practices of social responsibility

Social responsibility
core subjects

Clause 7

Explains the core subjects involved in social responsibility, namely:organizational governance, human rights, labour practices, theenvironment, fair operating practices, consumer issues, and socialand economic development of the community. For each core
subject, information has been provided, amongst other things, on thescope of the subject, its relationship to social responsibility, relevant
principles and considerations, and specific actions and/or
expectations.

Guidance for an
organization on
implementing social
responsibility

Clause 8

Provides practical guidance on how to implement practices relevant
to social responsibility

Annex on social
responsibility
initiatives

Annex A

Presents a comprehensive list of existing initiatives relating to social
responsibility. (Note: this is attached separately to this document)

Bibliography

Description of clause contents

Includes references that may be useful in understanding andimplementing social responsibility in an organization.

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Reference to any standard, code or other initiative in this International Standard does not imply
that ISO endorses or gives special status to that standard, code or initiative.

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This International Standard was developed in a multi-stakeholder process involving experts fromaround 80 countries covering six different stakeholder groups: Consumers; Government;
Industry; Labour; Non-governmental Organizations (NGOs); and Service, Support, Research andOthers. Efforts were made to achieve transparency and broad participation of the different
stakeholder groups. In addition, specific provision was made for encouraging the participation ofdeveloping countries and providing a gender balance in drafting groups.

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Bracketed numbers in the text refer to the number of the cited reference in the Bibliography.

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Guidance on Social Responsibility

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This International Standard provides guidance to all types of organizations, regardless of their size or
location, on: (Note: the following bullets may be revised to reflect the content of the final Standard)255⎯ concepts, terms and definitions relating to social responsibility;256⎯ the background, trends and characteristics of social responsibility

257⎯ principles and relating to social responsibility;258⎯ practices relating to social responsibility;259⎯ core subjects and issues relating to social responsibility

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⎯ integrating, implementing and promoting socially responsible behaviour throughout theorganization and its sphere of influence;262⎯ identifying and engaging with stakeholders;263⎯ communicating commitments and performance related to social responsibility; and hence

264⎯ contributing to sustainable development.

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This International Standard encourages an organization to undertake activities that go beyond legal
compliance, recognizing that compliance with law is a fundamental part of any organization’s social
responsibility.

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It is intended to promote common understanding in the field of social responsibility.

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It is intended to complement other instruments and initiatives related to social responsibility, and not toreplace them.

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The application of this International Standard may take into consideration societal, environmental,
legal and organizational diversity, as well as differences in economic conditions, while observing
international norms of behaviour.

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This International Standard is not a management system standard. It is not intended or appropriate
for certification purposes or regulatory or contractual use.

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2

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Note: This clause is for a list of documents, if any that must be read in conjunction with the standard.
The need for any normative references will be reviewed later in the process.

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The following terms and definitions apply to this International Standard.

Scope

Normative references

Terms and definitions© ISO 2007 – All rights reserved

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3.1
accountability
state of being accountable for decisions and actions by an organization to its governing bodies, legal
authorities, and, more broadly, its other stakeholders

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3.2
consumerindividual member of the general public purchasing or using goods, property or services for private
purposes

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3.3
customerorganization or person purchasing or using goods, property or services, for commercial or private
purposes

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3.4
environment
surroundings in which an organization operates

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NOTE 12004].

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NOTE 2 Surroundings include air, water, land, natural resources, flora, fauna, humans, and their interrelation

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3.5
environmental impact
any change to the environment wholly or partially resulting from an organization's activities[adapted from ISO 14001: 2004]

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NOTE

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3.6
ethical behaviour
behaviour that is in accordance with accepted principles of right or good conduct in the context of aparticular situation, and consistent with international norms of behaviour

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3.7
gender equality
fairness of treatment for women and men, according to their respective needs and interests

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NOTE
This may include equal treatment or treatment that is different but considered equivalent in terms ofrights, benefits, obligations and opportunities

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3.8
international norms of behaviour
norms that are universally, or nearly universally recognized, and based on customary international law,generally accepted principles of international law, or authoritative intergovernmental instruments

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3.9
issue of social responsibility
specific item that can be acted upon to seek favourable outcomes for the organization and/or its
stakeholders

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3.10
materialof sufficient relevance and significance to influence the decisions of an organization and/or theassessments of its stakeholders

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Surroundings in this context extend from within an organization to the global system [ISO 14001:

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3.11
organizational governancesystem by which an organization makes and implements decisions in pursuit of its objectives

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3.12
principle
fundamental belief that guides or influences decision-making or behaviour

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3.13
product
article or substance that is offered for sale or is part of a service delivered by an organization

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3.14
serviceaction of an organization to meet a demand or need

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3.15
social responsibility
responsibility of an organization for the impacts of its decisions and activities on society and theenvironment, through transparent and ethical behaviour that341

⎯ contributes to sustainable development, health and the welfare of society;342⎯ takes into account the expectations of stakeholders;343⎯ is in compliance with applicable law and consistent with international norms of behaviour; and344⎯ is integrated throughout the organization and practiced in its relationships.

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NOTE 1

Activities include products, services and processes

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NOTE 2

Relationships refer to an organization’s activities within its sphere of influence

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3.16
socially responsible
consistent with social responsibility

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3.17
sphere of influencespatial or functional area across which an organization has the ability to affect decisions or activities

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3.18
stakeholder
individual or group that has an interest in any activities or decisions of an organization

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3.19
stakeholder engagement
any activity or activities undertaken by an organization to create opportunities for dialogue between
the organization and one or more of its stakeholders, with the aim of providing an informed basis forthe organization’s decisions

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3.20
supply chain
system of individuals, organizations and resources involved in developing the different elements of a
product or service

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NOTE 1: In some countries, supply chain refers to stages of production, processes or activities for delivery of
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other countries it also includes activities that occur after an organization has taken major responsibility for the
product or service, and thus is seen as being interchangeable with value chain

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3.21
sustainable development
development that meets the needs of the present without compromising the ability of future
generations to meet their own needs

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NOTE
This involves addressing economic, social and environmental factors and their interdependence in an
organization’s decision-making and activities

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3.22
transparency
openness about actions and impacts, and willingness to communicate these in a clear, accurate andcomplete manner

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3.23
value chain
sequence of activities where each activity adds value to a product or service"

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4

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4.1 The social responsibility of organizations

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The term social responsibility came into widespread use in the early 1970s, although various aspectsof social responsibility were the subjects of action by organizations and governments as far back as
the late 19th century, and in some instances even earlier.

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The attention to social responsibility has in the past primarily focused on business. The term
‘corporate social responsibility’ is still more familiar to most people than ‘social responsibility’, andeven where ‘social responsibility’ or ‘socially responsible’ is used, as in ‘socially responsible
investment’, it is mostly related to activities of business.

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The view that social responsibility is applicable to all organizations has emerged as different types oforganizations, not just those in the business world, recognized that they too had responsibilities for theenvironment and the welfare of society, and for contributing to sustainable development.

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The subjects that make up social responsibility reflect the expectations of society at a particular time,and are therefore ever-changing, as society’s concerns and its expectations of organizations change
to reflect those concerns.

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An early notion of social responsibility centered on philanthropic activities of some organizations suchas giving to charity. Subjects such as labour practices and fair operating practices emerged a century
or more ago. Other subjects, such as human rights, the environment and consumer protection wereadded over time when these subjects received greater attention.

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The core subjects and issues identified in this International Standard reflect a view of good practice atthe time this International Standard is drafted. They will undoubtedly change in the future, andadditional issues may come to be seen as important elements of social responsibility.

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4.2 Current trends in social responsibility

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A number of factors are contributing to expanded interest in the social responsibility of organizations.

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Globalization, greater ease of travel, and the availability of instant communications mean that
individuals and organizations around the world are finding it easier to know about the activities oforganizations both nearby and in distant locations. This provides the opportunity for organizations to

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benefit from learning about new ways of doing things and solving problems. It also means thatorganizations’ activities are subject to increased scrutiny by a wide variety of groups and individuals.
Policies or practices applied by an organization in different locations can be readily compared.

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The global nature of some environmental and health issues and recognition of worldwide
responsibility for combating poverty mean that the issues relevant to an organization may extend wellbeyond those in the immediate area in which it is located. Documents such as the Rio Declaration on
Environment and Development, the Johannesburg Declaration on Sustainable Development and theMillennium Development Goals emphasize this worldwide interdependence.

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Over the past several decades, globalization has resulted in an increase in the power and influence ofthe private sector and a relative weakening of the role of the public sector in developed countries. Thechanging role of government has also seen the private sector and NGOs become the providers ofmany services previously offered by government. One consequence of this is that consumers, throughtheir purchasing decisions, can have an increasing impact on society and the environment. Thesechanges have led to closer scrutiny of the activities and policies of organizations. The situation in
many developing countries is somewhat different. Governments in many of these countries havehistorically faced serious and particular challenges and constraints, and private sector organizations
have often provided services in areas such as health, education and welfare. As the capability ofsome developing country governments expand, the roles of government and private sector
organizations are undergoing change.

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Community expectations about the performance of organizations continue to grow. There are growing
demands for organizations to be accountable to the community and other stakeholders. ‘Community
right to know’ legislation in many places gives people access to detailed information about theoperations of some organizations. A growing number of organizations now publish annual
sustainability reports to meet stakeholders’ requirements for information about their performance.

434
435

These factors and others form part of the context for social responsibility today and contribute to thecall for organizations to demonstrate their social responsibility.

436

4.3 Characteristics of social responsibility

437
438
439
440
441
442
443

The elements of social responsibility reflect the expectations of society. Although the expectations ofresponsible behaviour will vary between countries and cultures, organizations should recognize andaccept the universally applicable values. These expectations are reflected in international conventions
and norms of behaviour established through authoritative intergovernmental instruments such as the
Universal Declaration on Human Rights. They may be reflected in national and local laws. Respect for
the rule of law and compliance with legally binding obligations are fundamental parts of social
responsibility.

444

Important characteristics of social responsibility are:445

⎯ accountability for the organization’s impact on society;446⎯ engagement with stakeholders;447⎯ contribution to sustainable development; and448⎯ integration throughout an organization and in its relationships.

449

4.3.1

450
451
452
453
454

An essential characteristic of social responsibility is the willingness of an organization to takeresponsibility and be accountable for the impacts its activities create on society and the environment.
Clause 7 considers the core subjects of social responsibility. Within each of these subjects various
issues are described that will enable an organization to identify its most important impacts on society.
Each issue also considers expectations and actions as to how these impacts should be addressed.

Accountability for the organization’s impact on society© ISO 2007 – All rights reserved

15

WORKING DRAFT 4.1

455

4.3.2

456
457
458
459
460
461
462
463

The identification of and engagement with stakeholders is a central aspect of social responsibility.
Understanding who has an interest in the decisions and activities of an organization is necessary tounderstanding the impacts of the organization and how to address these impacts. Stakeholders canhelp an organization identify the relevance of issues to the activities of the organization. But
stakeholders do not replace broader society in determining norms of behaviour, so a particular issue
may be relevant to the social responsibility of an organization even if not specifically identified by the
stakeholders it consults. Guidance on the core subjects of social responsibility are provided in clause
7.

464

4.3.3

465
466
467

Although many people use the terms social responsibility and sustainable development
interchangeably, and there is a close relationship between the two, they are actually quite different
concepts.

468
469
470
471
472
473
474
475

Sustainable development (3.21) is a concept that was first introduced in the 1987 report “OurCommon Future” [USR1], and called “a global agenda for change.” Its challenging goals are theelimination of poverty, health for all, and meeting the needs of society while living within the planet’s
ecological limits. Although numerous international forums have reiterated the importance of theseobjectives over the years since 1987 – such as The Rio Earth Summit in 1992 and the World Summit
for Sustainable Development in 2002 – there is little evidence that we have moved much closer tothese goals. Achieving these goals will require concerted action by organizations and individuals, withparticular responsibility required from those in affluent nations.

476
477
478
479
480
481
482
483

Social responsibility (3.15) has more modest objectives and its focus is on the organization, not the
globe. Social responsibility is, however, closely linked to sustainable development because an
overarching goal of an organization’s social responsibility should be to contribute to sustainable
development. Clause 5 of this International Standard identifies the principles of social responsibility.
Clause 6 describes the practices of social responsibility. Clause 7 describes the core subjects ofsocial responsibility. These principles, practices and subjects form the basis for an organization’s
practical application of social responsibility. The actions of a socially responsible organization canmake a meaningful contribution to sustainable development.

484
485
486
487
488

It is important to note that sustainable development is a fundamentally different concept than thesustainability or ongoing viability of an individual organization. Sustainable development refers to theway in which society’s needs are met. The sustainability of an individual organization may or may not
be compatible with sustainable development, depending on the way the organization is conducted andmanaged489

4.4 Governments and social responsibility

490
491
492
493

This International Standard is applicable to governments in so far as their functions resemble otherorganizations, as producers of goods or services, employers and so on. Issues such as labour
practices, environmental protection and other core subjects described in clause 7 are applicable togovernment organizations.

494
495
496
497

This International Standard does not, however, deal with areas that are unique to the realm of public
policy (legislation, regulation and executive and judicial powers). This is the responsibility of
governments at the local, national and international levels. Only political decisions can determine
what activities should be undertaken by government or be subject to legally binding regulation.

498
499
500
501

Government is called by many names throughout this International Standard, including: publicauthorities, public sector, local and municipal governments, governmental agencies and institutions,international governmental organizations, and regulatory authorities. When the term "state" is used, it
denotes the international obligations of the country that transcend a particular government. ".

16

The role of stakeholders in social responsibility

Relationship between social responsibility and sustainable development© ISO 2007 – All rights reserved

WORKING DRAFT 4.1

502

5

Principles of social responsibility

503

5.1 General

504
505
506
507

The social responsibility of organizations involves principled behaviour, that is, behaviour based onstandards, guidelines or rules of conduct that are recognized as being moral and right. Although there
is no comprehensive list of principles for social responsibility there is widespread agreement that thefollowing principles at least should apply:

508
509

5.2 An organization should be accountable for its impacts on society and theenvironment

510
511
512

A fundamental principle of social responsibility is that an organization should accept an obligation to
be accountable for its impacts on society and the environment. This means that an organization
should accept appropriate scrutiny and also accept a duty to respond to this scrutiny.

513
514
515
516
517
518

Accountability refers to the state of being answerable to others. This state exists with the obligation ofmanagement to be answerable to the controlling interests of the organization and with the obligationof the organization to be answerable to legal authorities with respect to laws and regulations. The
state of accountability should exist for the organization with respect to those affected by its decisions
and activities as well as for the organization to society in general for the overall impact on society of its
decisions and activities.

519
520
521
522
523

Acceptance of a duty to be accountable will have a positive impact on both the organization and on
society. The degree of accountability should always correspond to the amount or extent of authority.
Those with ultimate accountability are likely to take greater care for the quality of their decisions andoversight. Accountability also encompasses accepting responsibility where wrongdoing has occurred,
and taking action to prevent it from being repeated.

524

An organization should account for:

525
526

⎯ the results of the organization’s decisions and activities, including significant consequences, even
if they were unintended or unforeseen; and527⎯ the significant impacts of the organization’s decisions and actions on stakeholders.

528
529

5.3 An organization should be transparent in its decisions and activities that impact
on others

530
531
532
533
534

An organization should disclose in a clear, balanced and truthful manner and to a reasonable andsufficient degree, the policies, decisions and activities for which it is responsible, including the actualand potential impacts on society and the environment. Transparency does not require that truly
proprietary information be made public, nor does it involve providing information that is legally
protected or that would otherwise breach legal obligations.

535

An organization should be transparent regarding:

536
537
538

⎯ the manner in which its decisions are made, implemented and reviewed, including the definition of
the roles, responsibilities, accountabilities and authorities across the different functions in theorganization;539⎯ the standards and criteria against which the organization evaluates its own performance;540⎯ its purpose, the nature of its activities and where they are conducted;

541⎯ the known or likely impacts of its decisions and activities on others; and© ISO 2007 – All rights reserved

17

WORKING DRAFT 4.1

542⎯ who it believes its stakeholders to be.

543

An organization should provide for:

544
545

⎯ information being freely available to, and directly accessible by those who have been, or may beaffected in significant ways by the decisions of the organization;546⎯ information provided being timely, factual, not omitting material information; and

547
548
549

⎯ information being presented in a clear and objective manner to enable constituents, owners,
members and other stakeholders to assess accurately the impact that the decisions or actions of
the organization have on their interests.

550

5.4 An organization should behave ethically at all times

551
552
553
554

The behaviour of organizations should reflect recognized ethical principles or rules of duty. An
organization’s behaviour should be based on principles or rules concerning honesty, equity,
stewardship and integrity. From these ethics flow a concern for others and the environment, and acommitment to address stakeholders’ interests.

555
556
557

An organization should adopt and apply standards of ethical behaviour appropriate to its purpose andactivities. Organizations should develop governance structures that help to promote ethical conduct
within the organization and in its interactions with others.

558

Organizations should actively promote ethical conduct by:559⎯ encouraging and promoting the observance of standards of ethical behaviour;

560
561
562

⎯ defining and communicating the standards of ethical behaviour required for personnel andparticularly for those that have the opportunity to significantly influence the integrity, strategy andoperation of the organization;

563⎯ minimizing conflicts of interest throughout the organization;

564⎯ establishing oversight mechanisms and controls to monitor and enforce ethical behaviour;

565
566

⎯ establishing mechanisms to facilitate the reporting of violations of ethical standards without fear of
reprisal; and

567
568

⎯ recognizing and addressing situations where local laws and regulations do not exist or conflictwith ethical behaviour.

569

5.5 An organization should respect and consider the interests of its stakeholders

570
571
572
573
574
575
576

Although an organization’s objectives may be limited to the interests of its respective owners,
members or constituents, other stakeholders may also have rights or interests that should be taken
into account. An organization should be aware of other organizations and individuals that have a“stake” or interest in its decisions or activities. Usually the interests of stakeholders will be easy tounderstand. The various interests of shareholders in a corporation, of business partners and suppliersin a business enterprise or of people who perform work for any organizations are not difficult tounderstand.

577
578
579
580
581

Stakeholders can have multiple and even conflicting interests with an organization. For example
community residents’ interests could include the positive impacts of an enterprise such as
employment, as well as the negative impacts of the same enterprise such as pollution. The interest of
most stakeholders can be related to the social responsibility of the organization. The most ordinaryinterests of stakeholders can be related to the broader interests of society. An example would be the18© ISO 2007 – All rights reserved

WORKING DRAFT 4.1

582
583

supplier who wants to be paid. Honouring debts and contract obligations is essential to the interest ofsociety.

584

An organization should:

585
586

⎯ identify its stakeholders on the basis of those who may be or have been impacted by its decisions
and activities;

587
588

⎯ be conscious of and respect the interests and needs of the organization’s stakeholders andrespond to their expressed concerns;

589⎯ take into account the relative capacity of stakeholders to contact and engage the organization;

590
591

⎯ take into account the relation of the stakeholder’s interests to the broader interests of society andof sustainable development as well as the relation of the stakeholder to the organization; and

592
593

⎯ consider the views of stakeholders that may be affected by a decision even if they have no formalrole in the governance of the organization.

594

5.6 An organization should respect the rule of law

595
596
597
598

An organization should comply with all applicable laws and regulations. This implies taking steps to beaware of applicable laws and regulations, and ensuring that these are communicated and observed
within the organization. It also means ensuring that its relationships are pursued and its activities areundertaken within the intended and relevant legal framework.

599

An organization should:

600
601

⎯ comply with legal and regulatory requirements in all jurisdictions in which the organization
operates;

602⎯ ensure that its relationships and activities fall within the intended and relevant legal framework;603⎯ comply with its own by-laws, policies, rules and procedures and apply them fairly and impartially;604⎯ recognize the legal rights and legitimate interests of stakeholders;605⎯ remain informed of all legal obligations; and606⎯ periodically review its compliance.

607
608

5.7 An organization should recognize both the importance and the universality ofhuman rights

609

An organization should:

610⎯ respect the rights set out in the Universal Bill of Human Rights;

611
612

⎯ accept that these rights are universal, that is, they are applicable in all countries, cultures andsituations;

613
614
615

⎯ in situations where human rights are not protected, take steps to the best of its ability to respecthuman rights and not seek to take advantage or be directly or indirectly complicit of thesesituations; and

616
617

⎯ in situations where the rule of law is absent, or where the law is either inadequate to protect
human rights or where the law is not applied, take action to influence laws and regulations and© ISO 2007 – All rights reserved

19

WORKING DRAFT 4.1

their application in order to make them consistent with respect for internationally recognizedhuman rights.

618
619
620
621

5.8 An organization should respect relevant international norms where these norms
are superior to national law and practice

622
623

Note: it is anticipated that a box will be provided that gives practical guidance on what the nature andscope of international norms. The following text is subject to further discussion.

624
625
626
627

International norms are principles, expectations or standards of behaviour that are universally, or
nearly universally, recognized, and that are based on or derived from customary international law,generally accepted principles of international law, or from sources of public international law such astreaties.

628

An organization should:

629
630

⎯ in situations where an international norm is not respected or followed by the State, avoid
becoming directly or indirectly complicit in any breach of the norm;

631
632

⎯ in countries where an international norm is not respected, or is conflicting with national law, strive
to respect the norm;

633
634
635

⎯ where it has operations in more than one country and in situations of irreconcilable conflict
between complying with national law and being consistent with an international norm, review theiroperations in the country concerned; and

636
637
638

⎯ use available means of association with peer and other organizations in order to convince andstrengthen their position to influence authorities in the direction of compliance with international
norms.

639

6

640
641
642

Note: Some of the text that appeared in clause 7 of WD3.2 has now been transferred to clause 6 ofthis document. This clause should be read with clause 8 when seeking to make a comparison with theold version of clause 7).

643
644

Note: Provision will be made in this clause and/or in clause 8 for a diagram (or diagrams) that
present/s a graphical representation of the guidance relating to implementation.

645

6.1 General

646
647
648

The practices of an organization include its activities, the processes it uses and the way in which itorganizes its work. This clause considers some of the most common practices associated withorganizations seeking to address their social responsibility

649

6.2 Identifying social responsibility

650

6.2.1

651

An organization should understand:652⎯ how its decisions and activities impact on society and the environment;653⎯ how these impacts affect specific stakeholders; and20

Practices of social responsibility

General© ISO 2007 – All rights reserved

WORKING DRAFT 4.1

654
655

⎯ what the expectations or best practices are with respect to responsible behaviour concerningthese impacts.

656

6.2.2

657
658
659

An organization identifies its social responsibility by understanding how its decisions and activities
actually impact on others and by also understanding the expectations of responsible behaviour
concerning these impacts.

660
661

An effective way of identifying an organization’s social responsibility is by becoming familiar with theissues concerning social responsibility in the following core subjects:

662⎯ organizational governance;663⎯ human rights;

664⎯ labour practices;665⎯ the environment;666⎯ fair operating practices;667⎯ consumer issues; and668⎯ Social and economic development of the community.

669
670
671
672
673
674
675

These subjects cover the most likely economic, environmental and social impacts that should be
addressed by organizations. Each of these core subjects is considered in clause 7. Within eachsubject, specific issues are described that an organization should take into account when identifying
its social responsibility. For each issue a number of actions and expectations relating to anorganization’s social responsibility are provided. In determining its social responsibility an organization
should identify each issue relevant to its activities together with the related actions and expectations
for an organization. Of course, not all issues may be relevant for a specific organization.

676
677

There are other ways to organize these issues. Some important issues, including health and safetyissues and economic issues, are addressed under more than one subject in clause 7.

678
679
680

The essence of identifying its social responsibility involves identifying the issues raised by theorganization’s decisions and actions and the way these decisions and actions can be related tosustainable development, health and the welfare of society.

681
682
683
684
685
686

The social responsibility of an organization is not necessarily limited to its own activities. An
organization will have responsibility with respect to the behaviour of other organizations over which it
has control or reasonable influence. The sphere of influence of an organization would include parts ofor even the whole value chain. It would also include the formal and informal associations in which anorganization is a member or in which it participates. Under some circumstances, it would also include
peer organizations or organizations that are considered competitors.

687

6.2.3

688
689
690
691
692

Compliance with law and applicable regulations constitutes a fundamental aspect of the social
responsibility of all organizations. Beyond this, and for a variety of reasons, organizations shouldmake decisions concerning their responsibilities with respect to society and the environment. The
purpose of establishing priorities is to ensure that the most important responsibilities receive theattention they deserve.

Identifying the subjects and extent of social responsibility

Establishing priorities© ISO 2007 – All rights reserved

21

WORKING DRAFT 4.1

693
694
695

Generally the approach should be based on the significance and extent of specific impacts on society
or on the physical environment and the relationship of these specific impacts to sustainable
development and the welfare of society.

696
697
698
699
700
701
702
703
704

There are various considerations in establishing priorities. The impacts of an organization’s decisions
and activities will be both positive and negative and will have different consequences for society or fordifferent elements of society. Moreover, not all issues will be of equal importance for an organizationor those impacted by it. Some issues will be of greater importance to society at large than to theorganization. The interests of stakeholders will not be the same, and some stakeholders will be ofgreater importance to the organization or to society than others. The capacity of an organization
meaningfully or effectively to address an issue should be taken into account. Neverthelessconsideration should be given to those issues of greatest potential impact or stakeholder concern
even if the issue involves other organizations over which the organization has only limited influence.

705

6.3 Stakeholder identification and engagement

706

6.3.1

707
708
709

Identifying and engaging stakeholders are effective ways for an organization to consider its social
responsibility. These activities have become central among the practices associated with social
responsibility.

710

6.3.2

711
712
713

The identification of impacts will make it easier to identify the most important of an organization’s
stakeholders. Who will be positively or negatively affected by the organization’s activities? In somecases the location and time of impacts can also be useful in identifying stakeholders.

714
715
716

Stakeholders will have various and sometimes competing interests. These interests should beweighted against the interests of other stakeholders taking into account other responsibilities that anorganization will have with respect to society or the environment.

717
718

Stakeholders are individuals or organizations whose interests establish a relationship with anorganization. In weighing the importance of specific stakeholders, an organization should understand:719⎯ the relationship between the stakeholder and the organization; and

720
721

⎯ the relationship of the stakeholder’s interest to the broader interests of society and to sustainable
development.

722
723
724
725

An understanding of each of these relationships can be used to determine the relative importance ofan organization's social responsibility with respect to any specific stakeholder. Of course it should berecognized that individuals and organizations may have various interests with respect to the decisions
and activities of a specific organization.

726
727
728
729
730

Some stakeholders will be more important then others. In some cases this will be because theirinterests are closely related to those of the organization. Some stakeholders should be considered as
an integral part of the organization. These could include employees or the shareholders or otherowners of the organization. It should be recognized that these stakeholders will share a common
interest in the purpose of the organization and in its success.

731
732
733
734

A stakeholder does not need to have an interest in the success of the organization in order to beconsidered important. From the standpoint of social responsibility, a stakeholder’s importance is best
determined by the relationship of the stakeholder’s interest to sustainable development and thewelfare of society.

735
736

An organization should not confuse organizations with stakeholders. Not all stakeholders of anorganization will belong to organizations whose purpose is to represent their interests with respect to22

General

Stakeholder identification© ISO 2007 – All rights reserved

WORKING DRAFT 4.1

737
738
739
740
741

specific organizations. An organization should weigh the representativeness and credibility of thoseclaiming to speak on behalf of groups of stakeholders. In some cases it will not be possible forimportant interests to be formally represented. For instance, neither wildlife nor children will own orcontrol organizations. In this situation an organization should give attention to the views of credible
groups seeking to protect their interests.

742

6.3.3

743
744
745

The objective of stakeholder engagement is dialogue between the organization and one or more of its
stakeholders. Although it is important for an organization to know who its stakeholders are, it will not
be necessary for an organization to engage with all of its stakeholders.

746
747
748
749
750
751

In most situations the expectations concerning an organization’s responsibility for its impacts onsociety will already be known or can be learned by the organization itself. Such expectations arefound in laws or regulations, widely accepted social or cultural expectations, and established bestpractices with respect to specific issues. Expectations concerning stakeholders’ interests can be foundin the “Related actions and/or expectations” sections following the description of various issues inclause 7. In these cases it will not always be necessary to engage stakeholders for this purpose

752
753
754
755
756
757

There are, however, other important reasons for an organization to engage with some of its
stakeholders. Stakeholder engagement may be necessary to fulfill legal obligations – for instance toshareholders or to employees. It can be used to determine how best to increase the beneficial effectsof the organization’s decisions and activities or how to decrease any harmful effects. An organization
can use stakeholder engagement to address conflicting interests – either between the organizationand the stakeholder or between various stakeholders.

758
759
760
761
762

Stakeholder engagement can inform an organization’s decisions by helping it acquire a better
understanding of the likely consequences of its actions and of its impacts that it would not otherwise
have. It can be part of continuous learning. Stakeholder engagement can be linked to anorganization’s social responsibility where the purpose of the stakeholder engagement addresses thelink between the stakeholders’ interests and the responsibilities of the organization to society at large.

763
764
765
766

Stakeholder dialogue can be a means for an organization to review its performance in order toimprove it. It can also be a way in which an organization can increase its transparency and thecredibility of its communications. In some cases the stakeholder relationship can become the basis forcooperative activity such as partnerships.

767
768
769
770
771

An organization should not use stakeholder engagement as a way of avoiding already establishedexpectations concerning its behaviour. To the extent possible the organizations or individuals
identified as stakeholders should have genuine interests and, where appropriate and practical, be themost representative of these interests. Genuine stakeholder engagement is not a public relations
exercise and should be based on good faith.

772
773
774
775
776

Stakeholder engagement can be used to change the relationship between the organization and one ormore of its stakeholders. This is true where the organization enters into a partnership with one ormore of its stakeholders in order to achieve mutually beneficial goals. Such “win-win” relationships will
not be possible with all stakeholders. As with all genuine partnerships all parties need to be truly
independent.

777

An organization should:

778⎯ recognize the value of stakeholder engagement in addressing its social responsibility;

779
780

⎯ use stakeholder engagement to reconcile conflicts involving its interests, those of its stakeholders
and those of society as a whole;781⎯ be responsive to its stakeholders; andStakeholder engagement© ISO 2007 – All rights reserved

23

WORKING DRAFT 4.1

782
783

⎯ be conscious of and respecting the interests and needs of the organization’s stakeholders andtheir relative capacity to contact and engage with the organization.

784

6.4 Integrating social responsibility into the organization

785
786
787
788
789
790
791

The social responsibility of an organization should not be addressed through isolated, occasional or
irregular actions. Although giving to charities can be a socially responsible act, philanthropy is not analternative to taking responsibility for the impacts of an organization’s decisions and activities onsustainable development and the welfare of society. Social responsibility requires ongoing effort and,to be genuine, should become an integral part of an organization’s governance, structure, culture andidentity. This means that social responsibility should be integrated into an organization's purpose,values, goals, strategies as well as its decisions and processes.

792
793
794
795
796
797
798

The most important and effective means of integrating social responsibility into the organization isthrough an organization’s governance, that is in the system by which decisions are made andimplemented. When making decisions, including with respect to new activities, an organization should
consider the likely impacts of these decisions on others. In doing so an organization should consider
how best to minimize the harmful impacts and increase the beneficial impacts of its behaviour onsociety and the environment. The resources and planning required for this purpose should be taken
into account when decisions are made.

799
800
801
802

An organization should be confident that the principles of accountability, transparency and ethicalbehaviour are applied in its governance and reflected in its structure. Organizations should
periodically review procedures and processes to make sure that the social responsibility of theorganization is taken into account.

803
804
805
806
807

Organizations should also apply established management practices to addressing their
responsibilities. Planning, assessing strengths and weaknesses, developing strategies, setting targets,allocating resources, developing competencies and the regular examination and evaluation ofactivities can be used to increase the performance of an organization related to addressing its social
responsibility. Management processes such as continual improvement can be applied to this purpose.

808

6.5 Communication

809
810
811
812
813
814

Many practices related to social responsibility will involve, in one form or another, communication.
Within the organization, this can include communication to ensure that the social responsibility of theorganization is understood and properly addressed. Communication raises awareness within theorganization of its strategies and objectives and motivates employees. It is the means by which bothchallenges and performance are recognized. Communication is important to the learning process andto continuous improvement.

815
816
817
818

Communication is the essential activity in applying the principles of accountability and transparency.
It can address legal and other requirements for the disclosure of information related to social
responsibility. It can show the extent of conformity with its commitments and to the expectations ofsociety or of specific stakeholders.

819
820
821
822

An organization should regularly and publicly communicate information about the impacts of its
operations, products, services and other activities. In doing so it should address all relevant andsignificant issues involved in the organization’s impacts that relate to the core subjects of social
responsibility. And it should do so in ways that are accessible to the relevant stakeholders.

823
824
825
826

Communication concerning an organization’s social responsibility will likely affect an organization’s
reputation and even its performance. However, communications should not be treated as just public
relations or advertising. Information concerning an organization’s impacts and its efforts to addressthese impacts should have the following characteristics:

827
828

⎯ it should be understandable: this means the information should be provided with regard for theknowledge that the persons using the information will possess. Both the language used, and the24© ISO 2007 – All rights reserved

WORKING DRAFT 4.1

829
830

manner in which the material is presented, including how it is organized, should be accessible forthe stakeholders intended to receive the information;

831
832

⎯ it should be truthful and accurate: this means that the information should be factually correct andto a sufficient level of detail as to suitable for its purpose;

833
834

⎯ it should be balanced: this means that there should be both positive and negative information
concerning the impacts of the organization’s activities;

835
836
837
838
839

⎯ it should include all of the material information about the relevant issues. The term material in thissense refers to information that should not be withheld if a true picture is to be provided. In thiscontext information would be considered material if it would influence the decisions orunderstanding of stakeholders concerning their interests with respect to the decisions or activitiesof the organization;

840
841
842

⎯ it should be timely. Out of date information can be misleading. Understanding the period of time
being reported on will enable the performance of the organization to be compared against its
earlier performance and even with other organizations; and

843
844
845
846

⎯ it should be comparable where appropriate. Information should be provided that will make itpossible to compare an organization’s impacts and actions over time or to compare impacts andactions with those of similar organizations. However not all information that is important foraccountability will be usefully comparable with similar information from other organizations.

847
848
849
850

Communication over various issues should be targeted at all of the relevant stakeholders. The
relevant stakeholders will not be the same for each issue. For some issues a wider sphere of
influence of the organization should be taken into account and it may be important to communicate
with a wide range of stakeholders.

851
852
853
854
855
856
857
858

Some organizations seek to increase the credibility of any claims they make concerning their social
responsibility. Measures to enhance credibility usually cannot be taken by the organization acting
alone but will involve it engaging others. For instance, an organization may involve stakeholders inverifying the claims that it makes. For some activities an organization may seek certification withrespect to the application of a specific standard. In some situations an organization may engage
others to issue statements attesting that the organization’s claims or statements are true or that its
claims are the result of valid processes. This practice and the statement issued are referred to as
assurance.

859

7

860

Note: Bibliography and references have not yet been completed, but will be addressed by the IDTF.

861

7.1 General

862
863

To identify and to address the nature of its responsibilities to society and the environment, anorganization should consider the following core subjects:

864⎯ organizational governance;865⎯ human rights;

866⎯ labour practices;867⎯ the environment;868⎯ fair operating practices;

Social responsibility core subjects© ISO 2007 – All rights reserved

25

WORKING DRAFT 4.1

869⎯ consumer issues; and870⎯ social and economic development of the community.

871
872
873

Each of these core subjects includes a range of issues of social responsibility (3.10) that aredescribed in this clause including the corresponding principles and considerations, and expectations
and/or related actions.

874
875

Economic aspects, as well as aspects relating to health and safety and the supply chain, are dealt
with throughout the seven core subjects, where relevant.

876
877

NOTE
Other issues can appear in the future as social responsibility is dynamic and reflects the evolution of
the social and environmental concerns.

878
879

Dealing with these core subjects should be based on the principles of social responsibility (SeeClause 5).

880
881
882

An organization should identify and address all those core subjects and issues that have a bearing or
relevant influence on its decisions and activities. However, there is no pre-determined order in which
an organization should address them; this will vary with the organization and its strategy.

883
884
885

Although most of the core subjects are interrelated and complementary, it is recognized that thenature of organizational governance is different. Organizational governance describes the decisionmaking and oversight processes that facilitate action on the other core subjects.

886
887
888
889

An organization should look at the core subjects and issues holistically; that is, it should consider all
core subjects and issues, and their interdependence, rather than just concentrate on a single issue.
Particular improvements targeted at a specific issue should not adversely affect other issues or create
adverse impacts in the value chain or the life cycle of its products/services.

890

891
892

Figure 1 —The Seven core subjects at a glance

893
894

Note: various proposals for a new diagram have been suggested. These will be considered in the next
round of drafting.

26© ISO 2007 – All rights reserved

WORKING DRAFT 4.1

895

7.2 Organizational governance

896
897
898

Note: The IDTF did not reach agreement on whether and in what format this sub-clause should beincorporated in Clause 7. Questions have been raised as to what this sub-clause should be about andwhether Clause 7 is the right place to address organizational governance.

899

7.2.1

900

7.2.1.1

901
902
903

Organizational governance is the system by which an organization makes and implements decisions
in pursuit of its objectives. Depending on the type of organization, these objectives may be defined by
the organization's members, owners, constituents or others.

904
905
906
907
908
909

Governance systems may vary, depending on the size and type of organization and the economic,
political, cultural and social contexts in which it operates. Although, governance processes andstructures take many different forms, both formal and informal, all organizations make and implement
decisions within a governance system. The governance system within an organization is directed by
the person or group of persons having the authority and responsibility for pursuing the organization’s
objectives.

910

7.2.1.2

911
912
913
914

Organizational governance in the context of social responsibility has the special characteristic of beingat the same time a core subject on which organizations are expected to act, and a means to increase
the organization’s ability to implement social responsibility and act accordingly on all its other core
subjects.

915
916
917
918
919
920

This special characteristic arises from the fact that an organization aiming to be socially responsible
should set a decision making system that incorporates, in practice, the principles of accountability,transparency, compliance with law, ethical conduct and consideration to stakeholders, as described in
Clauses 5 of this International Standard. Some other principles and practices of good and/or socially
responsible organizational governance might be suitable for particular organizations, and thus this list
should not be taken as exhaustive or as a limit.

921

7.2.1.3

922
923

By following this guidance, an organization can improve the effectiveness of its organizational
governance, and this will:924⎯ enable the organization to take into account its impacts on society and sustainable development;925⎯ enable better decisions that are more easily implemented;

926⎯ improve the organizations performance in relation to its objectives;

927⎯ allow better identification and management of risks and opportunities;928⎯ improve the organization’s relationship with its stakeholders; and

929
930

⎯ by fostering legitimacy, lead to decisions that are more likely to have the support and confidenceof those implementing them and those who may be affected.

931

7.2.2

932
933

Effective governance is based on incorporating the principles and practices from clauses 5 and 6 into
decision-making and implementation. An organization should develop specific governance processes

Overview of organizational governance
Organizations and organizational governance

Organizational governance and social responsibility

Benefits to an organizations of socially responsible organizational governancePrinciples and considerations© ISO 2007 – All rights reserved

27

WORKING DRAFT 4.1

934
935

and structures to apply those principles and practices, including the development of a set of values tobe applied across the organization.

936

7.2.3

937

7.2.3.1

938
939

Decision making processes and structures conducive to social responsibility are those that promote
the practical use of the principles and practices mentioned in clauses 5 and 6.

940
941
942
943
944
945
946

Every organization has some kind of decision making process and structures. In some cases – suchas with multinational companies and governmental bodies – these systems are very formal,
sophisticated and even subject to laws and regulations. In other cases – such as in smallorganizations – such systems are frequently informal and do not clearly define the level of authority
and responsibility of the person that make decisions on behalf of the organization. However, in any
case, there is room for the application of the social responsibility principles and practices in suchprocesses and structures.

947
948
949
950

Setting decision making processes and structures accordingly will help the organization to implement
its social responsibility practices and to fulfill expectations regarding its actions on all social
responsibility core subjects, It will also enable the organization to benefits from socially responsibleorganizational governance practices.

951

7.2.3.2

952
953
954

An organization should periodically review its decision making processes and structures and takesteps to improve their ability to inform the decision of an organization. The following should beconsidered:

955
956

⎯ to create and nurture an environment in an organization such that transparency may getestablished and practiced as outlined in clause 5;

957
958

⎯ to create and nurture an environment in an organization for the ethical conduct of business as
specified in clause 5;

959
960
961
962
963

⎯ an organization not only should practice the principle of accountability as outlined in clause 5, butshould be confident that there is proper and efficient use of human, financial and natural
resources that the decisions and actions within the scope of the organization's authority are
consistent with its objectives; and it understands its responsibility to account for the performanceof the organization;

964
965

⎯ directing the organization towards a long-term perspective, balancing the immediate needs andobjectives of its current stakeholders with the interests of future generations;966⎯ balancing the organization's objectives against the impacts on and risks to all its stakeholders

967
968
969

⎯ engaging stakeholders who may be, or have been, affected by its decisions; and giving them due
consideration, even if they don't have a formal role in the governance process of the organization;
and

970

⎯ further guidance on this issue is provided in clauses 5 and 8 of this International Standard.

971

7.2.4

972

7.2.4.1

973
974

Every organization faces dilemmas and conflicts in its decision making process. Usually theseconflicts and dilemmas are a consequence of the process for delegating power. For power to be

28

Organizational governance issue 1: Decision making processes and structures
Description of the issue

Related actions and/or expectations

Organizational governance issue 2: Delegating power
Description of the issue© ISO 2007 – All rights reserved

WORKING DRAFT 4.1

975
976
977
978
979
980

delegated there must be a "holder" that has the power and delegates it, and a "receiver" that receives
the delegated power. This relationship will change its form from one type of organization to another.
Examples are: shareholders and CEO in an open capital enterprises, deliberative boards anddirectors in NGOs or even owners and managers in a small and medium businesses. It can also takemany forms within the same type of organization, as power can be delegated in several instances ofan organization's hierarchy.

981
982
983

A structured process for power delegation will make decision making more effectively and willcontribute to the fulfillment of the organization's mission. It will also contribute to the success of theorganization in any activity, including social responsibility implementation.

984

7.2.4.2985
986

An organization should periodically review its decision making processes and structures and takeaction to prevent any conflict from delegating power, by:

987
988

⎯ aligning the objectives of the "holder" and the "receiver", in order to avoid that personal views
deviate decisions;

989
990

⎯ clearly defining the mandate and responsibilities, in order to, create clear internal accountability
and assure autonomy and independence of the decision makers; and

991
992
993
994

⎯ implement decentralized decision making processes with the aim of avoiding authoritariandecisions and assuring better alignment of decisions with the organization's mission. Manyorganizations use committees and other forms of decision making as a means for promoting
decentralization.

995

7.3 Human rights

996

7.3.1

997

7.3.1.1

998
999
1000
1001
1002
1003
1004
1005

Human rights are the basic rights to which all human beings are entitled, irrespective of their race,
colour, sex, age, marital status, pregnancy, language, religion, political or other opinion, national,
ethnic or social origin, property, birth, disability, sexual orientation, HIV/AIDS-status or any otherstatus and to live in freedom from want and fear, and with dignity. The Universal Declaration of
Human Rights (UDHR), adopted at the United Nations in 1948, is the most widely recognized
instrument setting out these rights, being the foundation for the International Bill of Human Rights. It is
supplemented by conventions, customary and international law, and by bills of rights adopted byindividual states or groups of states.

1006
1007
1008
1009
1010
1011

States assume obligations and duties under international law, and often in terms of their own
constitutions or basic laws, to respect, to protect and to fulfill human rights within their jurisdiction. The
obligation to respect means that states should refrain from interfering with or curtailing the enjoymentof human rights. The obligation to protect requires states to protect individuals and groups against
human rights abuses. The obligation to fulfill means that states should take positive action to facilitate
the enjoyment of basic human rights.

1012
1013
1014

International law binds states. However, there are some fundamental principles of international lawthat are binding on all individuals and entail legal liability. These include the prohibition of torture,crimes against humanity, slavery and genocide.

1015
1016
1017
1018
1019

Most human rights instruments are intended primarily to regulate relationships between states andindividuals. However, it is also widely recognized that private organizations and individuals can affecthuman rights and have a responsibility and ability to advance the achievement of human rights,
wherever possible and within their sphere of influence. The UDHR itself states that “every individualand every organ of society, keeping this Declaration constantly in mind, shall strive by teaching andRelated actions and/or expectations

Overview of human rights
Organizations and human rights© ISO 2007 – All rights reserved

29

WORKING DRAFT 4.1

1020
1021

education to promote respect for these rights and freedoms and by progressive measures, national
and international, to secure their universal and effective recognition and observance.’’

1022
1023

The concept of sphere of influence denotes that an organization has the ability to affect human rights
both directly and indirectly. An organization’s human rights obligations apply:

1024
1025
1026

⎯

in the workplace, such as provision of safe and healthy working conditions, freedom of
association, and non-discrimination (an organization’s human rights obligations apply in theworkplace, outside the workplace, and in the wider community);

1027
1028

⎯

outside the workplace, such as respect for standards on use of force in relation to individuals andgroups; and

1029
1030

⎯

in the wider community, such as protection of the livelihood of local communities and contribution
to public debate.

1031
1032
1033
1034
1035
1036
1037

Human rights may be categorized into civil and political rights; and economic, social and cultural rights.
This sub-clause briefly outlines some elements typical to the rights in these two broad categories, witha particular focus on how users of this International Standard might incorporate respect for and thepromotion of human rights in their own activities and sphere of influence, in a manner relevant andsuitable to their own circumstances. It does not provide an exhaustive or definitive list of human rights,
nor is it intended to provide legal guidance. It may never be interpreted to undermine any existing
human rights instruments.

1038

7.3.1.2

1039
1040

Even if it is the states that carry the primary responsibility for the fulfillment of human rights, allorganizations have the potential to affect the enjoyment of human rights, directly or indirectly.

1041
1042
1043
1044
1045
1046
1047
1048
1049

There are some fundamental principles of international law that are binding on all individuals andentail legal liability. The International Criminal Tribunals have better developed the notion of individual
criminal responsibility and its case practice is becoming an important guide in this matter. As a matterof fact, some international obligations are obligations towards the whole international community suchas the prohibition of torture, crimes against humanity, slavery and genocide (sometimes called
peremptory norms of international law). Some countries have adopted national legislation in order toprosecute legal entities in national courts with regard to certain international crimes. In some countries,
individuals and organizations may be liable to pay compensation in respect of harm caused bybehaviour that is linked to breaches of international law by state organizations.

1050
1051

7.3.1.3
Benefits to organizations of implementing socially responsible behaviour in thearea of human rights

1052
1053
1054
1055
1056
1057
1058
1059

Respect for human rights is the subject of increased public attention and the trend is to recognize
greater responsibilities for private organizations in this area. The perception that an organization does
not respect human rights would cause serious damage to the organization’s reputation. In somesituations this damage can be so severe as to make it difficult for the organization to achieve its
purpose. Insensitivity with respect to human rights issues is likely to be seen as a grave moral lapse.
Among the consequences could be severe weakening of employee loyalty and the loss of public trust.
Alternatively, an organization that recognizes its responsibilities in this area will be more likely to enjoy
an enhanced public reputation and the benefits that come with this kind of reputation.

1060

7.3.2

1061

7.3.2.1

1062

One of the primary principles governing human rights is that rights are universal and indivisible.

1063

Human rights are considered to be inherent, inalienable, universal, indivisible and interdependent:

30

Human rights and social responsibility

Principles and considerations
Principles© ISO 2007 – All rights reserved

WORKING DRAFT 4.1

1064⎯ they are inherent, in that they belong to everyone because of their common humanity;

1065
1066

⎯ they are inalienable, in that people cannot consent to giving them up or be deprived of them bygovernments or any other institutions;

1067
1068
1069
1070

⎯ they are universal, in that they apply to all people irrespective of their race, colour, sex, age,marital status, pregnancy, language, religion, political or other opinion, national, ethnic or social
origin, property, birth, disability, sexual orientation, HIV/AIDS-status or any other status, property,
birth, disability, sexual orientation, HIV/AIDS-status or any other status; and

1071
1072

⎯ they are indivisible, in that the rights carry equal importance ; and they are interdependent, in thatrealization of one right contributes to the realization of other rights.

1073

7.3.2.2

1074
1075
1076
1077
1078
1079

There are certain human rights risk situations where an organization will specifically benefit frommaking a risk analysis. At times, organizations may face challenges and dilemmas in dealing withissues related to the promotion and observance of human rights. Certain contexts may provide
particular difficulties and high risk situations of violating or being complicit in human rights abuses.
Challenges and dilemmas may be likely to be most pronounced when operating in circumstances andenvironments characterized by:1080⎯ conflict or extreme political instability, or situations of poverty, drought or natural disasters;

1081
1082

⎯ involvement in extractive activities or activities that significantly affect natural resources such as
water, forests or the atmosphere and often disrupt communities;1083⎯ proximity of operations to communities of indigenous peoples;1084⎯ activities that can affect or involve children;1085⎯ a culture of corruption;

1086
1087

⎯ complex supply chains that involve work performed on an informal basis without legal protection;
and

1088

⎯ a need for extensive measures to ensure security of premises or other assets.

1089
1090
1091
1092
1093

Contexts in which human rights have been abused or are being abused are often extremely complex
for organizations. Organizations should never be involved in activities that can violate or contribute toviolations of human rights. In contexts in which abuses do occur, the response should be consideredvery sensitively and carefully. In particular, it is important not to compound abuse, or create otherabuses.

1094
1095
1096
1097
1098
1099
1100
1101

Responding to an ongoing human rights abuse situation requires sensitive action. Particularly when
operating in environments in which one or more of these circumstances apply, organizations are likely
to be faced with the need to make difficult and complex judgments on whether and how to conduct
themselves. While there are no simple formulas or solutions, any judgment should be based on
promoting and defending the overall advancement of the human rights (including all referred to in thisdocument). The organization should also give thought to the potential consequences of its actions
taken, so that the desired objective is actually achieved, while not using the complexity of somesituations in which human rights violations occur as an excuse to not act.

1102
1103
1104
1105
1106

There are no simple nor general solutions to human rights challenges facing an organization in agiven situation and context. However, adopting a (human) rights-based approach could help anorganization to identify and better manage risks and challenges. A rights analysis may expose
priorities and interests and enable the conception of procedures and strategies for responding tochallenges and resolving conflicts.

Considerations© ISO 2007 – All rights reserved

31

WORKING DRAFT 4.1

1107
1108
1109
1110
1111
1112
1113
1114

A ‘(human) rights based approach’ means that an organization accepts that all people in the societiesin which they operate or in other ways come in contact with have universal rights and that anorganization takes into consideration the impact that its actions can have on the enjoyment of humanrights. Any decisions made by an organization should strive to respect these universal rights. Using arights analysis can highlight risks to facilitate decision making before taking action. It also enables anorganization to understand challenges and dilemmas from the perspective of humans surrounding it..
An organization may also face ‘competing rights’ where the interests of one stakeholder group orother group might be in conflict with the interests of another group.

1115
1116

A (human) rights-based approach takes as its starting point the rights of the individual or group. It
entails:1117⎯ identifying the right at stake or under threat;1118⎯ identifying the organization’s responsibilities in terms of international human rights standards;

1119⎯ formulating an appropriate set of actions following a thorough assessment of the situation, and1120⎯ implementation and follow-up.

1121
1122
1123

The implementation of this approach may involve developing both general policies and specificmanagement practices. The commitment and policies may inform the practices of the organization. In
addition, the organization may also try to promote this approach even through its sphere of influence.

1124

7.3.3

1125

7.3.3.1

1126
1127
1128
1129
1130
1131
1132

Non-discrimination is one of the most fundamental principles of international human rights law. The
principle means that everyone is entitled to enjoy human rights without distinction of any kind to race,
colour, sex, age, marital status, pregnancy, language, religion, political or other opinion, national,
ethnic or social origin, property, birth, disability, sexual orientation, HIV/AIDS-status or any otherstatus. Organizations should respect this principle and give practical effect to non-discrimination in
their activities and equal treatment for all individuals. An organization’s relationships with its
stakeholders should also be applied without discrimination.

1133
1134
1135
1136

Certain groups or categories of people are more vulnerable than others to human rights abuse.
Groups that have suffered persistent discrimination, leading to entrenched disadvantages, are more
vulnerable to further discrimination. Particular attention should be given to the human rights ofvulnerable groups, including women, children, indigenous peoples and, minority groups.

1137
1138
1139
1140
1141
1142
1143
1144

The application of the principle of non-discrimination, and giving special attention to the advancementof vulnerable individuals and groups, offers benefits to those organizations and society as a whole, in
addition to, obviously, benefiting those individuals and groups. Organizations that are able to benefit
from using the talents of the entire spectrum of society will enjoy higher performance in pursuit of theirobjectives. And society, and its components, will benefit through the maximum participation of all
citizens and individuals in society's mainstream activities though the achievement of greater social
harmony and the reduction of levels of stratification and the social tensions which are invariably theirconsequence.

1145

7.3.3.2

1146

Organizations should:

1147
1148
1149

⎯ not discriminate against anyone on the basis of race, colour, sex, age, marital status, pregnancy,
language, religion, political or other opinion, national, ethnic or social origin, property, birth,
disability, sexual orientation, HIV/AIDS-status or any other status;

32

Human rights issue 1: Non-discrimination and concern for vulnerable groups
Description of the issue

Related actions and/or expectations© ISO 2007 – All rights reserved

WORKING DRAFT 4.1

1150⎯ not tolerate discrimination in direct or indirect dealings with the state or private actors; and

1151
1152
1153
1154

⎯ contribute to redressing discrimination wherever practicable, for example by making special
efforts to employ, or do business with organizations operated by people from groups historicallydiscriminated against and, where feasible, supporting efforts to increase access to education,
infrastructure or social services for groups denied full access.

1155
1156
1157

When organizations operate in unfamiliar environments, it is particularly important for them tosensitize themselves to local conditions and social dynamics, and promote due respect for culturaland other diversity including allowing people to enjoy their culture, practice their religion and language.

1158
1159
1160

An organization’s policies and activities, both its internal operations and its contributions to economic
and social development more broadly, should respect women’s rights and promote the equal
treatment of women and men in the economic, social and political spheres.

1161
1162
1163
1164

All actions with effect or potential effect on children should give primary consideration to the bestinterests of the child. The principles from the Convention on the Rights of the Child, which include
non-discrimination, a child’s right to life, survival, development and free expression, should be
respected and taken into account.

1165
1166
1167

Migrants and migrant workers are also a vulnerable group. Organizations should avoid discriminating
against migrants in their operations, and should contribute to promoting a climate of respect for thehuman rights of migrant workers and their families.

1168
1169
1170
1171
1172

People with disabilities are in part vulnerable, because of misperceptions about their skills and abilities.
An organization should contribute to ensuring that men and women with disabilities are accorded
dignity and autonomy; are not subjected to discrimination through their own employment practices,and their contribution to promoting the dignity and autonomy of people with disabilities, and their full
integration and participation in society.

1173

7.3.4

1174

7.3.4.1

1175
1176
1177
1178
1179

An organization may be regarded as complicit in human rights abuses if it in some way authorizes,
tolerates or knowingly ignores abuses committed by a related organization, or if it knowingly provides
practical assistance or encouragement that helps perpetuate the abuse of human rights abuse. Thus
complicity can be direct or indirect. This can occur by association or co-operation with state or nonstate actors that are violating human rights.

1180
1181

Avoidance of complicity in human rights abuses means that an organization does not only promote
human rights within their sphere of influence;1182

7.3.4.2

1183

To avoid being complicit in human rights violations, an organization should:

1184
1185
1186

⎯ avoid actively assisting, directly or indirectly, in human rights violations committed by others, forexample, where an organization provides information to a government that it knows will be used
to violate human rights;

1187
1188
1189

⎯ avoid entering into a partnership with a government if it knows, or should know, that the
government is likely to commit abuses in carrying out its part of the agreement, for example,
forced relocation of peoples;

1190
1191

⎯ avoid benefiting from human rights violations even if it does not actively assist or cause them, forexample, abuses committed by security forces, such as the suppression of a peaceful protest

Human rights issue 2: Avoidance of complicity
Description of the issue

Related actions and/or expectations© ISO 2007 – All rights reserved

33

WORKING DRAFT 4.1

1192
1193

against an organization’s activities or the use of repressive measures while guardingorganizational facilities;

1194
1195

⎯ speak out and not remain silent or inactive in the face of systematic or continuous human rights
violations.

1196

7.3.5

1197

7.3.5.1

1198
1199
1200
1201
1202
1203
1204
1205
1206
1207
1208

Civil and political rights include rights such as absolute rights such as right to life, right to freedom
from torture, right to security, liberty and integrity of the person, and to due process of law and a fairhearing when facing criminal charges. They further include freedom of opinion and expression,
freedom of peaceful assembly and association, freedom to adopt and practice a religion, freedom tohold beliefs, freedom from arbitrary interference with family, home or correspondence and the right toprivacy, to access to public service and to take part in elections.

1209
1210
1211
1212
1213

Organizations successfully addressing civil and political rights will tolerate and value criticism,
freedom of expression and diversity. They will benefit from improved working and business relations
with their direct stakeholders and the comparative advantages of diverse and innovative thinking,skills and cultures. And they will earn the respect of others and enhance their status as leaders in thefield of social responsibility.

1214

7.3.5.2

1215
1216
1217
1218
1219

⎯ An organization should always respect the right to life of individuals and refrain from undertaking
activities in areas of the world where the governments do not respect people’s right to life andwhere state arbitrarily takes human lives or torture persons, unless the organization can beassured after careful analysis that they can undertake their activities in such a way that they will
not be complicit in human rights abuses.

1220
1221
1222
1223
1224
1225

⎯ An organization should exercise respect and tolerance for the right to freedom of opinion andexpression; without interference and to seek, receive and impart information and ideas throughany media and regardless of national borders. This includes freedom to hold opinions andcriticize the organization internally and externally. Organizations should not aim to suppress
anyone’s views or opinions. The right to freedom of expression, peaceful assembly and of
association should be respected.

1226
1227
1228

⎯ An organization should have respect for due process and the right to a fair hearing before taking
any disciplinary measures within the organization. Any disciplinary measures should be
proportionate and not involve physical punishment or inhuman or degrading treatment.

1229
1230

⎯ An organization should exercise respect of the right of employees and others to privacy andfamily life.

1231
1232

⎯ An organization should exercise tolerance for diversity, for example. of belief and opinion among
anyone who is impacted by the activities of the organization.

1233

Box 1 Security arrangements and human rights

1234
1235
1236

All organizations should verify that security arrangements, involving either government or private
forces, associated with them respect human rights and are consistent with international UN standards
and norms for law enforcement. Procedures should include measures to prevent torture, cruel,

Human rights issue 3: Civil and political rights
Description of the issue

These rights are primarily the duty of the state to secure in national law and uphold. Contraventions byprivate persons and organizations of many of these, such as the right to life, normally carry criminal
penalties. However, these also concern and point both public and private organizations, any user ofthis International Standard, in a direction that encompasses, for example below actions.

34

Related actions and/or expectations© ISO 2007 – All rights reserved

WORKING DRAFT 4.1

1237
1238
1239
1240
1241
1242
1243

inhuman or degrading treatment and the use of excessive force. Any security personnel (employed orcontracted) should be adequately trained, including in adherence to these standards of human rights.
Organizations should develop clear rules for contracting with security forces and for not hiring security
personnel with a record of human rights violations. Complaints about security procedures or personnel
should be addressed and investigated promptly and independently. Organizations supplying military
security or police services should take measures to prevent any human rights violations. Suchmeasures could include adequate training for staff, and oversight and monitoring of staff behaviour.

1244

7.3.6

1245

7.3.6.1

1246
1247
1248
1249

The UDHR states that every person, as a member of society, has the right to economic, social andcultural rights indispensable for his or her dignity and personal development. This includes the right toan education and to a decent standard of living including adequate food, clothing and medical carethrough, among other things, a just remuneration or social security.

1250
1251
1252
1253
1254
1255
1256
1257
1258
1259
1260

The primary obligations here again fall on the state, and states are encouraged to aid thedevelopment of less developed countries. However, organizations can also contribute to realization ofthese rights including by refraining from actions that obstruct or impede the realization of such rights.
In doing so, they should base their actions on an acknowledgement of the ideals that everyone should
enjoy a standard of living adequate for the health and well-being of himself or herself and family,
including food, clothing, housing, medical care and necessary social protection, such as the right tosecurity in the event of unemployment, sickness, disability, widowhood, old age or other lack of
livelihood in circumstances beyond his or her control. An organization should also base actions on theideals that everyone should have right to education, that parents be entitled to choose the education
for their children, and that education should be directed to the full development of the humanpersonality and dignity.

1261
1262

7.3.6.2
Related actions and/or expectations [note from drafters; content under this sectionneed further work ]

1263
1264
1265
1266
1267
1268

⎯ An organization should respect everyone’s right to a standard of living adequate for the healthand well-being of himself or herself and family, including food, clothing, housing, medical careand necessary social protection, such as the right to security in the event of unemployment,
sickness, disability, widowhood, old age or other lack of livelihood in circumstances beyond his or
her control. For example, an organization should check that wages paid are sufficient for a decent
standard of living, even if the domestic law allows for lower standards.

1269
1270
1271
1272

⎯ An organization should not limit or deny access to an essential product or resource, such as
water. Special care should be taken when privatizing such goods or services in order not to limit
their accessibility. An organization should also be careful that earnings allow access to theserights.

1273
1274
1275
1276

⎯ An organization should respect everyone’s right to enjoy the highest attainable standard ofphysical and mental health. Activities, goods and services, as well as new projects, may require
an assessment of their possible impacts on human rights and health and safety, including thoseof the local population and end-users.

1277
1278
1279
1280

⎯ An organization should respect everyone’s right to education and the right of parents to choose
the education for children. An organization should bear in mind that, apart from the direct harmthat may result, the employment of children may also deprive them of education. International
standards on minimum age and young workers should be respected.

1281
1282
1283
1284

⎯ An organization should respect that adult men and women, without any limitations, have the rightto marry and to have a family. An organization should organize working conditions to beconsistent with their employees' enjoyment of family life. Required working hours should beconsistent with the ability to care for a sick child, to take time off to give birth or other family

Human rights issue 4: Economic, social and cultural rights
Description of the issue© ISO 2007 – All rights reserved

35

WORKING DRAFT 4.1

1285
1286
1287
1288

responsibilities. Respecting the right to family life entails not impeding employees’ rights to marryand start a family, not discriminating on the basis of family affiliation, providing parental leave tofamilies with a new child and promoting a work-life balance. (Discussion on moving this section to
LP)

1289
1290
1291
1292

⎯ An organization should respect everyone’s right to freedom of thought, conscience, religion andculture. This includes freedom to change his or her religion or belief, and freedom, either alone orin community with others, and in public or private, to manifest his or her religion or belief inteaching, practice, worship and observance.

1293
1294
1295
1296
1297

⎯ An organization should respect everyone’s right to own property, alone or in association withothers. An organization should fairly compensate property owners for their intellectual andphysical property. The practical knowledge of indigenous peoples may be their intellectual
property. An organization should publish the intellectual property policy for work developed by its
members.

1298

7.3.7

1299

7.3.7.1

1300
1301This subclause deals with those human rights that the International Labour Organization (ILO) (seeBox 2) has identified and designated as fundamental rights at work. These include:1302⎯ recognition of the rights of freedom of association and collective bargaining;1303⎯ the elimination of forced or compulsory labour;1304⎯ the abolition of child labour; and1305⎯ the elimination of discrimination in employment and the world of work.

1306

7.3.7.2

1307

These rights are legislated for in many societies. Additional considerations include:

1308
1309
1310
1311
1312
1313
1314
1315
1316

⎯ freedom of association and collective bargaining. Representative organizations formed orjoined by workers should be recognized for purposes of collective bargaining. Terms andconditions of employment may be fixed by voluntary collective negotiation where workers sochoose, and workers' representatives should be given facilities that will enable them to do theirwork effectively and allowed to perform their role without interference. Collective agreements
should include provisions for the settlement of disputes. Workers' representatives should be
provided with information required for meaningful negotiations. See clause 7.4 for further
information, particular how freedom of association and collective bargaining relate to social
dialogue.

1317
1318
1319
1320
1321
1322
1323

⎯ forced labour. An organization should not engage or benefit from any use of forced orcompulsory labour. No work or service should be exacted from any person under the threat ofany penalty or when that person has not volunteered for it. An organization should not engage or
benefit from prison labour, unless the prisoners have been convicted in a court of law and theirlabour is under the supervision and control of a public authority. Further, prison labour should not
be used by private organizations, unless it is performed on a voluntary basis, as evidenced by,among other things, fair and decent conditions of employment.

1324
1325
1326
1327

⎯ child labour. Organizations should respect and not engage or benefit from any use of childlabour. The minimum age for employment as determined through international instruments.
International labour standards establish a minimum age of 15 years generally, and 14 years ofage in some developing countries. Children and young persons under 18 should not be employed36

Human rights issue 5: Fundamental rights at work
Description of the issue

Related actions and/or expectations© ISO 2007 – All rights reserved

WORKING DRAFT 4.1

1328
1329

in any work that, by its nature or the circumstances by which it is carried out, is likely to harm theirhealth, safety or morals.

1330
1331
1332

⎯ non-discrimination. Organizations should check that their employment policies are free ofgender, racial or other bias and that earnings, employment conditions and hiring policies are
based on objective job evaluations.

1333
1334

7.4 Labour practices

1335

7.4.1

1336

7.4.1.1

1337
1338

The labour practices of an organization encompass all policies and practices relating to work
performed within, by or on behalf of the organization.

1339
1340
1341
1342

As such, the term extends beyond the relationship of the organization with its direct employees or the
responsibilities that the organization may have at a workplace that it owns or directly controls. Labour
practices include the responsibilities of the organization for work performed on its behalf by others,
including subcontracted work.

1343
1344
1345
1346
1347
1348

Labour practices include the recruitment and promotion of workers; disciplinary and grievanceprocedures; the transfer and relocation of workers; termination of employment; training and skills
development; health, safety and industrial hygiene; and any policy or practice affecting conditions ofwork. Labour practices also include the recognition of worker organizations and representation andparticipation by the organization in collective bargaining, social dialogue and tripartite consultation toaddress social issues related to employment.

1349

7.4.1.2

1350
1351
1352
1353
1354
1355

The creation of jobs, as well as wages and other compensation paid for work performed are among anorganization's most important economic and social impacts. Meaningful and productive work is an
essential element in human development through the improvement of standards of living through fulland secure employment. Its absence is a primary cause of social problems. Labour practices have amajor impact on respect for the rule of law and on the sense of fairness present in society: socially
responsible labour practices are essential to social justice and stability.

1356

7.4.1.3

1357
1358
1359

An organization’s labour practices can have a significant impact on its ability to recruit, motivate andretain employees and therefore on its ability to attain its objectives. Labour practices can also have asignificant impact on the reputation of the organization.

1360

7.4.2

1361

7.4.2.1

1362
1363
1364
1365
1366
1367
1368

The fundamental principle, enshrined in the ILO's 1944 Declaration of Philadelphia, is that labour is
not a commodity. This means that women and men workers should not be treated as a factor of
production and subject to the same market forces that apply to commodities. The inherent
vulnerability of workers and the need to protect their basic rights is reflected in the Universal
Declaration of Human Rights and the International Covenant on Economic, Social and Cultural Rights.
The principles involved include the right of everyone to gain a living by freely chosen work, and theright to just and favourable conditions of work.

Overview of labour practices
Organizations and labour practices

Labour practices and social responsibility

Benefits to an organization of socially responsible labour practices

Principles and considerations
Principles© ISO 2007 – All rights reserved

37

WORKING DRAFT 4.1

1369

7.4.2.2

Considerations

1370
1371
1372
1373
1374
1375
1376
1377

Many internationally recognized human rights are related to labour. The right of all workers to form or
join their own organizations and to collectively bargain with their employer, as well as to be free fromdiscrimination with respect to employment and occupation, and from child labour and forced labour
are all basic human rights: as such they are dealt with in greater detail in Clause 7.3. These rights arealso recognized by the ILO as fundamental rights at work and are expressed in eight Conventions
referred to as the Core Conventions. Many other ILO Conventions and Recommendations also givepractical meaning to the provisions in the Universal Declaration of Rights and its two covenants
mentioned in Clause 7.3.7.

1378
1379
1380
1381
1382

The primary responsibility for ensuring fair and equitable treatment for workers 1 ) lies withgovernments. This is achieved through the formulating of legislation consistent with the Universal
Declaration of Human Rights and the principles underlying relevant ILO labour standards, theupholding of those laws, and ensuring that workers and organizations have the necessary access tojustice in the event that they are not upheld.

1383
1384
1385
1386
1387

Where governments have failed to legislate, or uphold such laws, organizations operating in thoseenvironments, rather than taking advantage of any such failures, should abide by the principles
underlying to these international instruments and the spirit or intent of the law. A major considerationis that co-operation and collective bargaining should be the basis for organizations behaving in asocially responsible manner.

1388
1389
1390

It is important to distinguish between the government in its role as organ of state as considered above
and the role of government in its role as an employer. Government bodies or state owned
organizations have the same responsibilities for their labour practices as other organizations.

1391

7.4.3

1392

7.4.3.1

1393
1394
1395

The significance of employment for human development is universally accepted. As employers,organizations contribute to one of the most widely accepted objectives of society, namely the
improvement of standards of living through full and secure employment.

1396
1397
1398
1399
1400
1401

Every country provides a legal framework within which work is to be performed. Despite a range ofdifferent legal systems, the employment relationship is a universal concept, which recognizes thatmost workers in a position of subordination to and dependency on the person or organization forwhom they perform work should not be treated as if they are equal parties in a commercial
relationship with their employer. That difference is the underlying basis for labour law or employment
law.

1402
1403

The employment relationships confer rights and impose obligations on both employers and employees
in the interest of society.

1404
1405
1406
1407
1408

Not all work is performed within an employment relationship. Work and services are also performed bymen and women who are self-employed. Even here, however, the importance of the appropriate legal
and institutional framework to both society and the individual performing work should be recognized.
All parties to a contract are entitled to understand their rights and responsibilities and to have recoursein the event that the terms of the contract are not respected.

1409
1410

In this context labour is understood to be work performed for compensation and does not include
activities undertaken by genuine volunteers. However the policies and measures that all organizations

Labour practices issue 1: Employment and employment relationships
Description of the issue

1)

The term “employee” refers to an individual in a relationship recognized as an “employment relationship” innational law or practice. The term "worker" is a more general term and refers to anyone who performs work. The
term “worker” could refer to an employee or to someone who is self-employed.

38© ISO 2007 – All rights reserved

WORKING DRAFT 4.1

1411
1412

should adopt to discharge and fulfill obligations relating to such things as criminal liability and duty ofcare need to be taken into account where volunteers are involved.

1413

7.4.3.2

1414

An organization should:

1415
1416

⎯ be confident that all work performed is performed by women and men who are legally recognized
as employees or who are legally recognized as being self-employed;

1417
1418

⎯ not seek to avoid the obligation that law places on the employer by disguising relationships thatwould otherwise be recognized as an employment relationship under law;

1419
1420
1421
1422

⎯ recognize the importance of secure employment to both the individual worker and to society. Useactive workforce planning to avoid the use of work performed on a casual basis or the excessive
use of work performed on a temporary basis, except where the nature of the work is genuinely
short term or seasonal;

1423
1424
1425

⎯ provide reasonable notice, timely information and, with worker representatives where they exist,
jointly consider how to mitigate adverse effects to the greatest possible extent when consideringchanges in its operations, such as closures that affect employment;

1426
1427
1428

⎯ eliminate discrimination in employment practices and offer equal opportunities to women, workers
with disabilities and other vulnerable groups, such as young or older workers, migrants andindigenous peoples;1429⎯ not engage in arbitrary or discriminatory dismissal practices;

1430
1431
1432
1433
1434
1435
1436

⎯ contract out work only to organizations that are legally recognized or are otherwise able andwilling to assume the responsibilities of an employer and to provide decent work. This excludes
labour intermediaries who are not legally recognized and other arrangements for the performanceof work that do not confer legal rights on those performing the work. In this regard, it should takesteps to confirm that the organizations with which it deals, for instance suppliers and subcontractors, are legitimate enterprises whose labour practices require that all work be performed
within the appropriate legal and institutional framework; and

1437
1438
1439
1440
1441
1442
1443
1444
1445
1446
1447

⎯ not benefit from unfair, exploitative or abusive labour practices of their partners, suppliers or subcontractors. An organization should accept responsibility for work done on its behalf by otherorganizations commensurate with the degree of control that it exercises and with the potentialthat the rights of the workers concerned may not be respected. Depending on thesecircumstances reasonable efforts to address these responsibilities could include establishing
contractual obligations on suppliers and subcontractors; unannounced visits and inspections;
exercise of due diligence in supervising contractors and intermediaries. Where suppliers andsubcontractors are expected to comply with a code of labour practice, the code should beconsistent with the Universal Declaration of Human Rights and the principles underlying relevant
ILO labour standards. See Clause 7.6.6 for additional information about responsibilities in the
supply chain ,and

1448
1449
1450

⎯ where operating internationally give priority to the employment, occupational development,
promotion and advancement of nationals of the host country. This includes sourcing anddistributing through local enterprises where practical.

1451

Box 2 The International Labour Organization

1452
1453
1454
1455

The International Labour Organization is a United Nations agency with a tripartite structure(governments, workers and employers) that was established for the purpose of setting international
labour standards. These minimum standards are applicable to workers everywhere, and are intended
to prevent unfair competition based on exploitation and abuse. ILO standards are technically wellRelated actions or expectations© ISO 2007 – All rights reserved

39

WORKING DRAFT 4.1

1456
1457
1458
1459
1460
1461
1462
1463
1464

informed and have the support of employers, workers and governments, whose tripartite negotiation
at the global level leads to their adoption. The meaning and proper application of ILO standards havebeen elaborated through the ILO supervisory mechanisms, and this jurisprudence can be a source of
guidance and good practice. ILO Conventions and Recommendations, together with the ILO
Declaration on fundamental principles and rights at work 1998 and the ILO’s Tripartite Declaration ofprinciples concerning multinational enterprises and social policy 1977 (last revised 2006), constitutethe most authoritative guidance with respect to labour practices and some other important social
issues. The ILO seeks to promote opportunities for women and men to obtain decent and productive
work, which it defines as work performed in conditions of freedom, equity, security and human dignity.

1465

7.4.4

1466

7.4.4.1

1467
1468
1469
1470
1471

Conditions of work include wages and other forms of compensation, working time, rest periods,
holidays, disciplinary and dismissal practices, maternity protection, work-life balance and many othersubjects. Many of the conditions of work are determined by national laws and regulations or by legallybinding agreements between those for whom work is performed and those who perform work. The
employer can determine many of the conditions of work.

1472
1473
1474

Conditions of work determine quality of the life of workers and their families. They also form a base fornational economies. Fair and appropriate consideration should be given to the quality of conditions of
work.

1475
1476
1477
1478

Social protection refers to all guarantees against the reduction or loss of income in case of
employment injury, illness, maternity, parenthood, old age, unemployment, disability or any otherfinancial hardship. Social protection plays an important role in preserving human dignity andestablishing a sense of fairness and social justice.

1479

7.4.4.2

1480

An organization should:

1481
1482

⎯ confirm that the conditions of work comply with national laws and regulations and are at leastconsistent with relevant international labour standards;

1483
1484

⎯ respect higher levels of provision established through other applicable legally binding
agreements;

1485
1486

⎯ observe at least those minimum provisions defined in international labour standards asestablished by the ILO, where national legislation is silent, accordingly;

1487
1488
1489

⎯ provide decent conditions of work in respect of wages, hours of work, weekly rest holidays, healthand safety, and maternity protection and they should not be less favourable to the workers thanthose offered by other comparable employers in the country and locality concerned;

1490
1491
1492
1493
1494
1495
1496
1497

⎯ provide the best possible wages and other conditions of work in accordance with national law andpractice, for example, as included in relevant collective bargaining. Organizations should pay
wages at least adequate for the needs of workers and their families, taking into account thegeneral level of wages in the country, the cost of living, social security benefits, and the relative
living standards of other social groups, as well as economic factors, including the requirements ofeconomic development, levels of productivity and the desirability of attaining and maintaining ahigh level of employment. In reaching a balance between these concerns, the organization shouldbargain collectively with the workers;

1498
1499

⎯ pay wages directly to the workers concerned, subject only to any restrictions or deductions
permitted by law or collective agreement;

40

Labour practices issue 2: Conditions of work and social protection
Description of issue

Related actions or expectations© ISO 2007 – All rights reserved

WORKING DRAFT 4.1

1500
1501
1502

⎯ recognize that, within the context of the country in which it is operating, it has obligations
concerning the provision of social protection for workers and should not seek to evade theseobligations;

1503
1504
1505
1506
1507

⎯ respect the right of men and women workers to adhere to normal or agreed working hours
established in law, regulations or collective agreements. In any event, workers should not on aregular basis be required to work in excess of 48 hours per week. Workers should also be
provided with at least one day off for every seven-day period, and entitled to paid annual leave ofat least three weeks;

1508
1509
1510
1511
1512

⎯ compensate workers for overtime in accordance with national law and practice. When requesting
workers to work overtime, an organization should take into account the particular vulnerabilities of
the workers concerned and any hazards inherent in the work. An organization should respect laws
and regulations prohibiting mandatory and non-compensated overtime, and always respect thebasic human rights of workers concerning forced labour; and

1513
1514

⎯ wherever possible allow observance of national or religious traditions and customs with respect toweekly rest.

1515

7.4.5

1516

7.4.5.1

1517
1518
1519
1520
1521

Social dialogue includes all types of negotiation, consultation or exchange of information between or
among representatives of governments, employers and workers on subjects of common interest
relating to economic and social issues. It could take place between employer and employee
representatives, on matters affecting their interests, and could also include governments where
broader issues, such as legislation and national social policy, are at stake.

1522
1523
1524
1525
1526
1527

Social dialogue requires independent parties. Genuine worker representatives are freely elected, in
accordance with national laws, regulations or collective agreements, by either the members of theirtrade union or by the workers concerned. They are not individuals designated by the government or
the employer. Social dialogue takes various forms including enterprise-level information andconsultation mechanisms (such as Works Councils) and collective bargaining. Trade unions, as thechosen representatives of workers, have a particularly important role to play in social dialogue.

1528
1529
1530

Social dialogue is based on the recognition that employers and workers have both competing andcommon interests, and plays a significant role in the industrial relations and the governance of many
countries.

1531
1532
1533
1534
1535
1536
1537
1538

Effective social dialogue provides a mechanism for developing policy or finding solutions to problems
that takes into account the priorities and needs of both employer and workers, and thus results inoutcomes that are meaningful and sustainable for both the organization and society. Social dialogue
can contribute to establishing participation and democratic principles in the workplace and to healthylabour-management relations thus minimizing the resort to costly industrial disputes and encouraging
investment. Social dialogue can be the best means for managing change. It can be used to design
skills development programmes contributing to human development and enhancing productivity, or tominimize the negative social effects of changes in the operations of organizations.

1539
1540
1541
1542

Social dialogue can take many forms and can occur at various levels. Workers may wish to form
groups with a broader occupational, inter-occupational or geographical coverage. Employers andworkers are in the best position to decide jointly the most appropriate level, by adopting frameworkagreements supplemented by local organization level agreements.

1543
1544
1545
1546

Social dialogue may at times address contentious issues; in which case the parties can establish a
dispute resolution process. Social dialogue can also concern grievances for which a complaints
mechanism is important, particularly in countries where the fundamental principles and rights at work
are not adequately protected.

Labour practices issue 3: Social dialogue
Description of the issue© ISO 2007 – All rights reserved

41

WORKING DRAFT 4.1

1547
1548
1549

International social dialogue is a growing trend, and includes international Work Councils in Europe
and global dialogue and agreements between organizations operating internationally and international
trade union organizations.

1550

7.4.5.2

1551

An organization should:

1552
1553

⎯ recognize the importance of social dialogue institutions and applicable collective bargaining
structures including at the international level for organizations;

1554
1555

⎯ participate in relevant employers’ organizations as a means of creating opportunities for social
dialogue and extending their expression of social responsibility through such channels;

1556
1557

⎯ not oppose or discourage in any way the exercise by workers of their right to form or join their own
organizations or to bargain collectively;

1558
1559

⎯ not dismiss or otherwise discriminate against workers, threaten to relocate or outsource jobs or to
thwart workers who seek to form or join their own organizations and to bargain collectively;

1560
1561
1562
1563

⎯ provide duly designated worker representatives with access to authorized decision makers,
access to workplaces and to those they represent, to facilities necessary to perform their role andto information that will allow them to have a true and fair picture of the organization's finances andactivities; and

1564
1565
1566

⎯ not encourage governments to restrict the exercise of the internationally recognized rights of
freedom of association and collective bargaining nor participate in incentive schemes based onsuch restrictions.

1567

7.4.6

1568

7.4.6.1

1569
1570
1571
1572

Health and safety at work concerns the promotion and maintenance of the highest degree of physical,
mental and social well-being of workers and prevention of departures from health caused by working
conditions, the protection of workers from risks adverse to health and the adaptation of theoccupational environment to the physiological and psychological capabilities of workers.

1573
1574
1575
1576
1577

The financial and social costs to society of work-related illness, injuries and death are high. Pollutants
and other workplace hazards that are harmful for workers may also have impacts on communities andor the environment. For more information on environmental hazards see Clause 7.5. Health andsafety issues arise over dangerous equipment, processes, practices and substances (chemical,
physical and biological).

1578
1579

Socially responsible health and safety practices can reduce costs, improve morale and increase
productivity.

1580

7.4.6.2

1581

An organization should:

1582
1583
1584

⎯

1585
1586

⎯ analyze work accidents and diseases and problems raised by workers so as to understand and beable to advise on the different ways in which women and men are affected;

42

Related actions or expectations

Labour practices issue 4: Health and safety at work
Description of the issue

Related actions or expectations

seek to understand and control the health and safety risks involved in its activities. it should also
understand the proper procedures that should be followed and provide the safety equipment
needed for the prevention of occupational diseases, accidents and for dealing with emergencies;© ISO 2007 – All rights reserved

WORKING DRAFT 4.1

1587
1588

⎯ understand and apply principles of industrial hygiene including the hierarchy of controls, that is
substitution, engineering, work procedures, administrative and personal protective equipment;

1589
1590

⎯ recognize that psychosocial hazards in the workplace is the cause of stress and occupational illhealth;

1591
1592
1593

⎯ have a health and safety policy that clearly states that no phase of operation or administration of
the organization is more important than safety and health and that safety and health is an integral
part of all of its activities;1594⎯ provide adequate training and capacity building in all relevant subjects to all relevant personnel;

1595
1596

⎯ respect the principle that health and safety measures should not involve expenditures by workers;
and

1597
1598

⎯ adopt health and safety systems that are based on the participation of the workers concerned andthat recognize and respect the rights of workers to:

1599
1600

⎯

full and accurate information concerning the health and safety risks and the best practices
used to address these risks;

1601
1602

⎯

freely inquire into and to be consulted on all aspects of their health and safety related to their
work;

1603
1604

⎯

refuse work which is reasonably considered as posing an imminent and serious danger totheir life or health or to the lives and health of others;

1605

⎯

seek outside advice on health and safety issues;

1606

⎯

report health and safety matters to the authorities;

1607

⎯

participate in health and safety processes and decisions; and

1608

⎯

be free of reprisals for doing any of these things.

1609

Box 3 Joint labour-management health and safety committees

1610
1611
1612
1613
1614
1615
1616
1617
1618
1619

For many organizations, joint labour-management health and safety committees [can be][are] themost valuable part of the organization's health and safety program. Joint committees can perform
important roles such as information gathering, the development and dissemination of safety manuals
and training programs, the reporting, recording and investigation of accidents, inspections andresponding to problems raised by employees. Worker representatives on these committees should not
be appointed by management but elected by the workers themselves. Membership in thesecommittees should be equally divided among management and worker representatives and should
include women and men whenever possible. The committees should be of sufficient size for all shifts,
sections and locations to be represented. [They should not be considered a substitute for trade unions
or works councils.]

1620

7.4.7

1621

7.4.7.1

1622
1623
1624
1625
1626

Human development includes the process of enlarging people's choices by expanding humancapabilities and functioning, thus enabling women and men to lead long and healthy lives, to beknowledgeable and to have a decent standard of living. Human development also includes access topolitical, economic and social opportunities for being creative and productive and enjoying self-respect
and a sense of belonging to a community.

Labour practices issue 5: Human development
Description of the issue© ISO 2007 – All rights reserved

43

WORKING DRAFT 4.1

1627
1628
1629

Human development can be a labour practice because employers can use workplace policy andinitiatives to further human development by addressing important social issues, such as fighting
discrimination, balancing family responsibilities and promoting health and well-being.

1630
1631
1632
1633
1634
1635
1636

Human development can also be a labour practice because it includes increasing the capacity andemployability of individuals. Employability refers to the experiences, competencies and qualifications
that increase an individual’s capacity to secure and retain decent work. Organizations have every
interest in facilitating the education, training and lifelong learning of workers, as these things
contribute significantly to promoting the interests of the organizations themselves - as well as those of
the individual workers, the economy and society as a whole - in terms of the capacities, motivation,effectiveness, productivity and overall performance of the men and women whom they employ.

1637

7.4.7.2

1638

An organization should:

1639
1640

⎯ provide access to skills development and training and opportunities for career advancement toworkers on an equal and non-discriminatory basis;

1641
1642
1643

⎯ respect the family responsibilities of workers by providing reasonable working hours and throughother policies and facilities, such as childcare facilities and parental leave, that can help workers
achieve a proper work-life balance;

1644
1645
1646

⎯ not discriminate on the basis of race, colour, gender, sexual orientation, religion, political affiliation,nationality, social origin, age or HIV/AIDS status any basis in employment practices; this includes
recruitment, selection, access to training, promotion and termination;

1647
1648

⎯ take positive actions to provide for the protection and advancement of vulnerable groups such as
indigenous and migrant workers as well as workers with disabilities;

1649
1650

⎯ establish or participate in appropriate programmes that address issues such as youth
unemployment or the underemployment of women; and

1651
1652
1653

⎯ establish joint labour-management programmes that promote health and well-being. The impact ofinfectious disease and substance abuse, for example, affect both the performance of theorganization and the overall health of society.

Related actions or expectations

1654
1655

7.5 The environment

1656

7.5.1

1657

7.5.1.1

1658
1659
1660
1661
1662
1663

The decisions and activities of organizations invariably have an impact on the natural environment.
These impacts may be associated with the organization’s use of energy and natural resources, thegeneration of pollution and waste, and the implications of its activities, products and services onnatural habitats. Climate change presents an increasingly significant challenge for most organizations,both in terms of the need to reduce greenhouse gas emissions and to adapt to the physical impacts ofa changing climate.

1664
1665
1666

To reduce their environmental impacts, organizations need to consider an integrated approach thattakes into consideration the wider economic, social and environmental implications of their decisions
and activities.

44

Overview of the environment
Organizations and the environment© ISO 2007 – All rights reserved

WORKING DRAFT 4.1

1667

7.5.1.2

The environment and social responsibility

1668
1669
1670
1671
1672

Society is facing many environmental challenges including the depletion of natural resources, pollution,
climate change, the destruction of habitat, loss of species and the collapse of whole ecosystems. As
the population grows and our consumption increases, these issues are becoming serious threats tohuman security, and the health and wellbeing of society. Environmental issues - from local to global are interconnected, and addressing them requires a comprehensive, systemic and collective approach.

1673
1674
1675
1676

Environmental responsibility is not only a precondition for our survival and prosperity; it is also a social
responsibility to enable future generations of women and men to meet their developmental needs.
Environmental issues are closely linked to human rights, social development and other core social
responsibility issues.

1677
1678

7.5.1.3
Benefits to an organization from its socially responsible environmental
performance

1679
1680
1681
1682
1683

The adoption of sound environmental principles can lead to increased resource productivity andefficiency, lower energy and water consumption costs, decreased waste, the recovery of valuable byproducts, and the increased availability of raw materials. As awareness of the global scale of theenvironmental challenges increases, an organization’s environmental impacts can also havesignificant implications for its reputation amongst many of its stakeholders.

1684

7.5.2

1685

7.5.2.1

1686

An organization should respect and promote the following environmental principles:

1687
1688
1689

⎯ environmental responsibility: an organization should accept responsibility for the environmental
burdens caused by its activities, products and services and should act to improve its own
performance, as well as performance within its control or sphere of influence;

1690
1691
1692
1693
1694
1695

⎯ precautionary approach: an organization should support a precautionary approach toenvironmental challenges. Where there are threats of serious or irreversible damage, lack of fullscientific certainty should not be used as a reason for postponing cost-effective measures toprevent environmental degradation (Principle 15 of the Rio Declaration (Env17)). When carrying
out human health and environmental risk assessments, conservative assumptions should bemade to address uncertainties or data gaps;

1696
1697
1698
1699
1700

⎯ environmental risk management: an organization should implement programs to assess andreduce environmental risks from activities, products and services from a life cycle perspective. An
organization should develop and implement emergency response procedures to mitigate
environmental and health burdens caused by accidents and to communicate environmental
incidents to appropriate authorities; and

1701
1702
1703
1704
1705
1706

⎯ polluter pays: An organization should bear the cost of pollution caused by its activities, products
and services according to the extent of either the environmental burden to society and theremedial action required, or the degree to which the pollution exceeds an acceptable level(Principle 16 of the Rio Declaration (Env17)). An organization should use the polluter pays
principle to internalize the cost of pollution and quantify the economic and environmental benefitsof preventing pollution rather than mitigating its effects.

1707

7.5.2.2

1708

An organization should assess the relevance of the following considerations:

1709
1710

⎯ life cycle management: a life cycle approach links the economic, social and environmental
dimensions of activities, products services throughout their life cycle, from raw materials andPrinciples and considerations
Principles

Considerations© ISO 2007 – All rights reserved

45

WORKING DRAFT 4.1

1711
1712
1713

energy generation, through production and use, to end-of life disposal or recovery. An
organization should consider the environmental performance of activities, goods and services overtheir life cycle;

1714
1715
1716
1717
1718
1719
1720

⎯ cleaner production and eco-efficiency: cleaner production and eco-efficiency are strategies forsatisfying human needs by using resources more efficiently and by generating less pollution andwaste. An important focus is on making improvements at the source rather than at the end of aprocess or activity. Cleaner production and eco-efficiency approaches include: improving
maintenance practices, upgrading or introducing new technologies or processes, reducing
materials and energy use, eliminating or safely managing toxic and hazardous materials, andimproving product and service design;

1721
1722
1723
1724
1725
1726

⎯ a product-service system approach: product service systems can be used to shift the focus fromselling products to selling a system of products and services that jointly fulfill consumer needs.
Product-service systems include product lease, product renting or sharing, product pooling andpay-for-service. Such systems can reduce material use, decouple revenues from material flows,
and involve stakeholders in promoting extended producer responsibility through the life cycle ofthe product and accompanying service;

1727
1728
1729

⎯ use of environmentally sound technologies and practices: an organization should seek to adopt,
and where appropriate, promote the development and diffusion of environmentally soundtechnologies and services (Principle 9 of the Rio Declaration (Env17)); and

1730
1731
1732

⎯ environmental procurement: in its purchasing decisions, an organization should take into accountthe environmental and social performance of the product or service being procured, over its entire
life cycle, and where possible should prioritize performance based on eco-labelling criteria.

1733

7.5.3

1734

7.5.3.1

1735
1736
1737
1738

An organization can improve its environmental performance by preventing pollution including
emissions to air, discharges to water, the generation of solid or liquid waste, contamination of landand soils, the use and disposal of toxic and hazardous chemicals, and other pollution from its activities,
products and services.

1739
1740
1741
1742
1743

⎯ Preventing emissions to air: An organization’s emissions to air of pollutants such as lead, mercury,volatile organic compounds (VOCs), sulfur dioxide (SO2), nitrogen oxides (NOx), particulates andozone depleting substances can cause environmental and health burdens on society. Theseemissions may come directly from an organization’s facilities, or be caused indirectly by the use of
its products or services or the generation of the electricity it consumes.

1744
1745
1746

⎯ Preventing discharges to water: An organization may cause water to become polluted throughdirect, intentional or accidental discharges into surface water bodies, or unintentional runoff tosurface water or infiltration to ground water.

1747
1748
1749
1750

⎯ Preventing waste: An organization’s activities, products and services may lead to the generationof liquid or solid waste that, if improperly managed, can cause contamination of air, water land andsoils. Responsible waste management follows the waste reduction hierarchy of: source reduction;
reuse; recycle and reprocess; waste treatment; and waste disposal.

1751
1752
1753

⎯ Preventing the release of toxic and hazardous chemicals: An organization utilizing or producing
toxic and hazardous chemicals (both naturally occurring and anthropogenic) may adversely affectecosystems and human health through acute (immediate) or chronic (long-term) impacts.

1754
1755
1756

⎯ Preventing all identifiable forms of pollution: An organization’s activities, products and services
may cause other forms of pollution including; noise, visual, vibration, radiation, infectious agents(for example, viral or bacterial) or biological hazards (for example, invasive species, uncontrolled

46

Environmental issue 1: Prevention of pollution
Description of the issue© ISO 2007 – All rights reserved

WORKING DRAFT 4.1

1757
1758

spread of genetically modified organisms) that negatively affect the health and wellbeing ofcommunities.

1759

7.5.3.2

Related actions and/or expectations

1760

To improve performance in the prevention of pollution an organization should:

1761
1762
1763

⎯ identify the sources of pollution and waste associated with its activities, products and services,
including emissions to air, discharges to water and land, waste disposal, release of toxic andhazardous chemicals and other forms of pollution;

1764
1765

⎯ measure, record and report on any relevant and significant sources of pollution associated with its
activities, products and services;

1766
1767

⎯ implement measures aimed at preventing pollution and waste, using the waste reduction hierarchy,and ensure proper management of unavoidable pollution and waste;

1768
1769
1770

⎯ publicly disclose the amounts and types of relevant and significant toxic and hazardous materials
used and released as part of its activities, including the known human health and environmental
risks of these materials; and

1771
1772
1773
1774
1775
1776
1777
1778

⎯ implement a program to systematically identify and prevent the use of banned chemicals and,
where possible the use of chemicals identified as being of concern to the public, from all activities,
products and services within its control or sphere of influence. Chemicals to avoid include (but are
not limited to); ozone-depleting substances (the Montreal Protocol (Env15)), persistent organic
pollutants (the Stockholm Convention (Env19)) and Rotterdam Convention (Env18)), hazardous
pesticides (as defined by the World Health Organization), and chemicals defined as carcinogenic(including tobacco), mutagenic, toxic to reproduction, persistent and bio-accumulative, (PBTs andvPvBs), and endocrine disrupting.

1779

7.5.4

1780

7.5.4.1

1781
1782
1783
1784
1785
1786
1787
1788

Sustainable resource practices are necessary to ensure that current production and consumption
patterns can be continued into the future. The sustainable use of renewable resources (such as fishstocks), requires that the resource is used at rate that is less than or equal to its rate of natural
replenishment. For a non-renewable resource (such as fossil fuel), long-term sustainability requiresthat its rate of use is less than the rate at which a renewable resource can be substituted for it. An
organization can ensure more sustainable resource use by using electricity, fuels, raw and processedmaterials, land and water more responsibly, and by switching from non-renewable to renewable
resources.

1789
1790
1791

⎯ Energy efficiency: An organization can implement energy efficiency programs to save money andreduce the energy demand for buildings, transportation, production processes, appliances andelectronic equipment, and the provision of services.

1792
1793
1794
1795
1796

⎯ Water conservation: Water is a fundamental human need and a basic human right. The
Millennium Development Goals include the provision of safe, reliable drinking water and sanitation
services to all people. An organization can improve its social responsibility by conserving waterand making decisions that protect fair and sustainable access to freshwater resources within its
local watershed.

1797
1798
1799
1800

⎯ Materials efficiency: Materials use causes numerous direct and indirect environmental burdensfrom the impact on ecosystems of mining, forestry and other extractive operations, to emissions
resulting from the use, transport and processing of materials. An organization can implement
materials efficiency programs to save money and reduce the environmental burden caused by theEnvironmental issue 2: Sustainable resource use
Description of the issue© ISO 2007 – All rights reserved

47

WORKING DRAFT 4.1

use of raw materials for production processes or finished products used in its activities and thedelivery of services.

1801
1802
1803

7.5.4.2

1804

An organization should:

1805
1806

⎯ identify the sources of energy, water and other material usage for all its activities, products andservices;

1807
1808

⎯ measure, record and report on any relevant and significant uses of energy, water and othermaterials associated with its activities, products and services;

1809
1810

⎯ implement resource efficiency measures to reduce its use of energy, water and other materials,
considering best practice indicators and other benchmarks;

1811
1812

⎯ identify feasible opportunities for non-renewable resources with alternative renewable and low
impact sources; and1813⎯ manage water resources to ensure fair access for all users within a watershed.

1814

7.5.5

1815

7.5.5.1

1816
1817
1818
1819
1820
1821

It is recognized that greenhouse gas (GHG) emissions from human activities are the very likely causeof global climate change, which is having significant impacts on the natural and human environment(Env5). Among the trends observed and anticipated are: rising sea levels, changes in rainfall patterns,
more frequent occurrences of extreme weather events, and changes to ecosystems, agriculture andfisheries. It is anticipated that climate change may pass a tipping point, after which changes would befelt far more widely and acutely and would be much more difficult to address.

1822
1823
1824
1825
1826

Every organization is responsible for some GHG emissions (either directly or indirectly) and will be
impacted in some way by climate change. There are implications for organizations both in terms ofminimizing their own GHG emissions (mitigation), as well as planning for a changing climate(adaptation). Adapting to climate change has social implications in the form of effects on health,prosperity and human rights.

1827

7.5.5.2

Expectations and/or related actions

1828

7.5.5.2.1

Climate change mitigation

1829

To mitigate climate change, an organization should:1830⎯ identify the sources of direct and indirect GHG emissions for its activities, products and services;

1831
1832
1833

⎯ measure, record and report on its relevant and significant GHG emissions for all activities,
products and services, preferably using methods defined in internationally agreed standards (seeAnnex *);

1834
1835

⎯ implement measures to reduce the direct and indirect GHG emissions associated with its activities,
products and services and those within its control and sphere of influence;

1836
1837
1838

⎯ strive to reduce its dependence on fossil fuels, and make use of low-emission technology andrenewable energy sources with the aim of reducing the life cycle GHG emissions for its activities(including transportation), products and services;

48

Expectations and/or related actions

Environmental issue 3: Climate change mitigation and adaptation
Description of the issue© ISO 2007 – All rights reserved

WORKING DRAFT 4.1

1839
1840

⎯ prevent the release of GHG emissions (particularly those also causing ozone depletion) fromprocesses or equipment including heating, ventilation and air conditioning (HVAC) units;

1841
1842

⎯ consider measures to offset remaining GHG emissions through carbon sequestration or emissions
reduction programs striving for carbon neutrality; and

1843
1844

⎯ consider relevant opportunities for emissions trading, such as the Clean Development Mechanism
under the Kyoto to the UN Framework Convention on Climate Change (Env13).

1845

7.5.5.2.2

1846

To reduce vulnerability to climate change, an organization should:

1847
1848
1849

⎯ consider future climate predictions (with particular attention to extreme weather and increasing
variability and uncertainty) to identify risks and integrate climate change adaptation into its
decision making;

1850
1851

⎯ identify opportunities to avoid or minimize damage from climate change and take advantage ofopportunities, where possible, to proactively adjust for changing conditions;

1852
1853
1854

⎯ plan for land use, zoning and infrastructure design and maintenance taking account of theimplications of a changing climate and greater climatic uncertainty and the possibility ofincreasingly severe weather including floods, high winds or intense heat; and

1855
1856
1857

⎯ develop agricultural, industrial, medical and a range of other technologies and techniques andmake them accessible to those in need, ensuring the security of drinking water, sanitation, foodand other resources critical to human health.

1858

7.5.6

1859

7.5.6.1

1860
1861
1862
1863

Over the past 50 years, human activity has changed ecosystems more rapidly and extensively than in
any comparable period in history. Rapidly growing demand for food, fresh water, fiber, fuel andmineral resources has resulted in a substantial and often irreversible loss of habitat and the diversityof life on earth (Env14).

1864
1865

An organization can become more socially responsible by acting to protect and restore the naturalenvironment and the social and economic services provided.

1866
1867
1868
1869
1870
1871
1872

⎯ Valuing, protecting and restoring ecological services: Ecosystems contribute to the wellbeing ofsociety by providing services such as fresh water, food, fuel, flood control, soil, pollinators, natural
fibers, recreation, and the absorption of pollution and waste. As ecosystems are degraded or
destroyed they lose the ability to provide these services. Organizations should strive to protect
ecosystem integrity in order to retain natural resilience and adaptive capacity. Where necessary,
restoration efforts should be implemented, followed by compensation to replace services that havebeen depleted.

1873
1874
1875
1876

⎯ Valuing and protecting biodiversity: Biodiversity is the variety of life in all its forms, levels andcombinations. This includes ecosystem diversity, species diversity, and genetic diversity (Env2).
Protecting biodiversity includes terrestrial and aquatic species, genetic variability, and natural
ecosystems.

1877
1878
1879

⎯ Using land and natural resource sustainably: An organization’s land use projects may protect ordegrade habitat, water, soils, and ecosystems ultimately affecting human health and the wellbeingof society.

Climate change adaptation

Environmental issue 4: Protection and restoration of the natural environment
Description of the issue© ISO 2007 – All rights reserved

49

WORKING DRAFT 4.1

1880

7.5.6.2

1881

An organization should:

1882
1883

⎯ identify the potential adverse impacts of its activities, products and services on ecosystemservices and biodiversity and take measures to eliminate or minimize them;

1884
1885
1886

⎯ where feasible and appropriate, participate in market mechanisms to internalize the cost ofenvironmental burdens caused by its activities, products and services and create economic value
in protecting ecosystem services;

1887
1888

⎯ strive first to avoid loss of natural ecosystems and then to restore ecosystems, and finally tocompensate for losses leading to a net gain in ecological services over time;

1889
1890

⎯ consider an integrated strategy for the administration of land, water and ecosystems that
promotes conservation and sustainable use in a socially equitable way;

1891
1892

⎯ take measures to preserve any endemic or endangered species or habitats that may be adversely
affected by its activities, products or services;

1893
1894

⎯ adopt sustainable development, design, agricultural and operating practices considering thepossible environmental burdens resulting from its land use decisions;

1895
1896

⎯ incorporate the protection of natural habitat, wetlands, forest, wildlife corridors, protected areas
and agricultural lands into the planning of the built environment expansion and development;

1897
1898

⎯ adopt sustainable agricultural, fishing and forestry practices as defined in leading standards andcertification schemes; and

1899
1900

⎯ avoid activities or approaches that lead to the extinction of species, or the distribution or
proliferation of invasive species.

1901

7.6 Fair operating practices

1902

7.6.1

1903

7.6.1.1

1904
1905
1906
1907

Fair operating practices concern ethical conduct in an organization’s dealings with other organizations.
This includes relationships between organizations and government agencies, as well as between
organizations and their partners, suppliers, contractors, competitors and the associations of which
they are a member.

1908
1909
1910

Fair operating practice issues arise in the areas of anti-corruption, responsible involvement in the
public sphere, fair competition, promoting social responsibility in relations with other organizations;and respect for property rights.

1911

7.6.1.2

1912
1913
1914
1915

In the area of social responsibility, fair operating practices are about how organizations use theirrelationship with other organizations to promote positive outcomes. Positive outcomes can beachieved by providing leadership and promoting the adoption of social responsibility more broadly
throughout its sphere of influence.

50

Expectations and/or related actions

Overview of fair operating practices
Organizations and fair operating practices

Fair operating practices and social responsibility© ISO 2007 – All rights reserved

WORKING DRAFT 4.1

1916

7.6.1.3

Benefits to an organization of fair operating practices

1917
1918
1919

Fair operating practices improve the social and economic environment in which organizations function
by: encouraging fair competition, improving the reliability and fairness of transactions, preventing
corruption and promoting fair political processes.

1920

7.6.2

1921
1922
1923
1924
1925
1926

Adherence to ethical standards is fundamental to establishing and sustaining legitimate and productive
relationships between organizations. Therefore, observance, promotion and encouragement ofstandards of ethical behaviour underlie all fair operating practices. Preventing corruption andresponsible political involvement depend on respect for the rule of law, adherence to ethical standards,
accountability and transparency. Fair competition and respect for property rights cannot succeed if
organizations do not deal with each other honestly, equitably and with integrity.

1927

7.6.3

1928

7.6.3.1

1929
1930
1931
1932

Corruption is the abuse of entrusted power for illegitimate gain. Corruption has two aspects, active
and passive, for example offering a bribe and accepting a bribe. Corruption can take many forms, forexample bribery of domestic and foreign public officials, bribery in the private sector, conflict ofinterest, fraud, money laundering and trading influence.

1933
1934
1935
1936

Corruption undermines an organization’s ethical environment, and can put it at risk for criminal
prosecution as well as civil and administrative sanctions. Amongst other effects corruption can also
violate human rights, erode political processes, damage the environment, distort competition and
impede the redistribution of wealth and economic growth.

1937

7.6.3.2

1938

To prevent corruption and bribery, an organization should:

1939
1940

⎯ implement, apply and improve policies and practices that counter corruption, facilitation payments,
bribery and extortion;

1941
1942

⎯ support workers and agents in their efforts to eradicate bribery and corruption and provide
incentives for progress;

1943
1944

⎯ train and raise the awareness of employees and agents about corruption and how to counter
corruption;

1945
1946

⎯ confirm that the remuneration of its employees and agents is appropriate and for legitimate
services only;

1947
1948

⎯ encourage employees and agents to report violations of the organization’s policies by adopting
mechanisms that enable reporting without fear or reprisal;1949⎯ bring violations of the criminal law to the attention of the relevant law enforcement authorities; and1950⎯ work to oppose corruption by influencing others to adopt similar practices.

Principles and considerations

Fair operating practices issue 1: Anti–corruption
Description of the issue

Related actions and/or expectations© ISO 2007 – All rights reserved

51

WORKING DRAFT 4.1

1951

7.6.4

1952

7.6.4.1

1953
1954
1955

Organizations can support the political process and encourage the development of public policy that
benefits society at large. Organizations should avoid behaviour that can erode the political process
such as manipulation, intimidation, and coercion.

1956

7.6.4.2

1957

An organization should:

1958
1959

⎯ train and raise the awareness of employees and agents about responsible political involvement
and contributions;

1960
1961

⎯ be transparent regarding its activities related to lobbying, political contributions and politicalinvolvement;

1962
1963

⎯ establish policies and guidelines to control the activities of people retained to advocate on theorganization’s behalf;

1964
1965

⎯ avoid political contributions that amount to an attempt to control policymakers in favour of a
specific cause; and1966⎯ avoid lobbying activities that involve misinformation, misrepresentation, threat or compulsion.

1967

7.6.5

1968

7.6.5.1

1969
1970
1971
1972
1973
1974

Fair and widespread competition stimulates efficiency, reduces the costs of goods and services,
promotes innovation, ensures all organizations have equal opportunities, encourages thedevelopment of new or improved products or processes and, in the long run, enhances economic
growth and living standards. Anti-competitive risks harming the reputation of the organization with its
stakeholders; and may create legal problems. When organizations refuse to engage in anticompetitive behaviour they help to build a climate of zero tolerance, which benefits everyone.

1975
1976
1977
1978

There are many forms of anti-competitive behaviour, some examples include practices such as: pricefixing where parties collude to sell the same product or service at the same price; bid rigging, whereparties collude to fix a competitive bid; and predatory pricing, selling a product at very low price with
the intent of driving competitors out of the market.

1979

7.6.5.2

1980

To promote fair competition, an organization should:

1981
1982

⎯ conduct its activities in a manner consistent with competition legislation and co-operate withcompetition authorities;

1983
1984

⎯ establish procedures and other safeguards to prevent engaging in or being complicit in anticompetitive behaviour;

1985
1986

⎯ promote employee awareness of the importance of compliance with competition legislation andfair competition; and

1987
1988

⎯ support public policies that encourage competition, including anti-trust and anti-dumping practices
and local regulations.

52

Fair operating practices issue 2: Responsible political involvement
Description of the issue

Related actions and/or expectations

Fair operating practices issue 3: Fair competition
Description of the issue

Related actions and/or expectations© ISO 2007 – All rights reserved

WORKING DRAFT 4.1

1989
1990

7.6.6 Fair operating practices issue 4: Promoting social responsibility in the sphere of
influence

1991

7.6.6.1

1992
1993
1994
1995
1996
1997

An organization, including public organizations, can influence other organizations through the exercise
of its procurement and purchasing decisions and more broadly in the value chain, as well as throughleadership and mentorship to promote broader-scale adoption and support of principles and practiceof social responsibility. It can also stimulate demand for socially responsible goods and services.
These actions should not be viewed as replacing the role of authorities to implement and enforce laws
and regulations.

1998

7.6.6.2

1999

An organization should:

2000
2001

⎯ incorporate ethical, social, environmental, and gender equality criteria, including health and safety,
in its purchasing, distribution and contracting policies;

2002⎯ encourage other organizations to adopt similar policies;

2003
2004
2005

⎯ carry out relevant and appropriate investigations and monitoring of the organizations with which
they have relationships so that their actions do not compromise the organization’s commitments
to social responsibility;

2006
2007

⎯ promote fair sharing of the costs and benefits of implementing socially responsible practices
throughout the value chain; and

2008
2009

⎯ actively participate in raising the awareness of organizations with which they have relationships onsocial responsibility issues and principles.

2010

7.6.7

2011

7.6.7.1

2012
2013
2014
2015

Property rights cover both physical property and intellectual property and include interest in land,
copyrights, patents, moral rights and other rights. They also extend to rights that may not berecognized in law, such as traditional knowledge of specific groups or the intellectual property of
employees.

2016
2017

Recognition of property rights promotes investment, economic and physical security as well as
encouraging creation and invention.

2018

7.6.7.2

2019

An organization should:

2020⎯ implement policies and practices that promote respect for property rights;

2021
2022

⎯ conduct proper investigations to be confident it has legitimate ownership to use or dispose ofproperty;

2023
2024

⎯ not engage in activities that violate property rights, including counterfeit and piracy, or otherwise
infringe consumer interests; and2025⎯ pay fair compensation for property that it acquires or uses.

Description of the issue

Related actions and/or expectations

Fair operating practices issue 5: Respect for property rights
Description of the issue

Related actions and/or expectations© ISO 2007 – All rights reserved

53

WORKING DRAFT 4.1

2026

7.7 Consumer issues

2027

7.7.1

2028

7.7.1.1

2029
2030
2031
2032

Organizations that provide goods or services to consumers have responsibilities to those consumers.
These include use of fair, transparent and helpful marketing, information and contractual processes.
They also involve minimizing risks from the use of the products or services through design,
information provision, support services and recall procedures.

2033
2034

Many organizations collect personal information and have a responsibility to protect the privacy of
consumers’ information.

2035
2036

Organizations have significant opportunities to contribute to sustainable consumption and sustainable
development through the products and services they offer and the information they provide.

2037

7.7.1.2

2038
2039

An organization’s products and services as well as its relationship to consumers are often among themost apparent aspects of its social responsibility.

2040

7.7.1.3

2041
2042
2043
2044

Consumer decisions have a strong influence on the success of organizations. Through engagementwith consumers, organizations can prevent or reduce potential conflicts about their products orservices. Demonstration of social responsibility in relations with consumers can enhance theorganization’s reputation.

2045

7.7.2

2046

Box 4 United Nations Guidelines for Consumer Protection

2047
2048
2049
2050
2051
2052
2053

The United Nations Guidelines for Consumer Protection is the most important international
document in the realm of consumer protection. The UN General Assembly adopted these Guidelines
in 1985 by consensus. In 1999 they were expanded to include provisions on sustainable consumption.
They call upon states to protect consumers from hazards to their health and safety, promote andprotect the economic interests of consumers, enable them to make informed choices, provide
consumer education, make available effective consumer redress, guarantee freedom to form
consumer groups and promote sustainable consumption patterns.

2054

7.7.2.1

2055

There are a number of principles that should guide socially responsible consumer issues:

2056
2057

⎯ principles based on the eight consumer rights that underpin the United Nations Guidelines for
Consumer Protection:

Overview of consumer issues
Organizations and consumer issues

Consumer issues and social responsibility

Benefits to an organization of socially responsible consumer issues

Principles and considerations

Principles

2058
2059

⎯

2060
2061

⎯ the right to safety – the right to be protected against products, production processes andservices that are hazardous to health or life;

2062
2063

⎯ the right to be informed – the right to be given facts needed to make an informed choice, andto be protected against dishonest or misleading advertising or labelling;54

the right to satisfaction of basic needs – the right to have access to basic essential goods
and services, adequate food, clothing, shelter, health care, education and sanitation;© ISO 2007 – All rights reserved

WORKING DRAFT 4.1

2064
2065

⎯ the right to choose – the right to be able to select from a range of products and services,offered at competitive prices with an assurance of satisfactory quality;

2066
2067

⎯ the right to be heard – the right to have consumer interests represented in the making andexecution of government policy, and in the development of products and services;

2068
2069

⎯ the right to redress – the right to receive a fair settlement of just claims, including
compensation for misrepresentation, shoddy goods or unsatisfactory services;

2070
2071
2072

⎯ the right to consumer education – the right to acquire knowledge and skills needed to makeinformed, confident choices about goods and services while being aware of basic consumer
rights and responsibilities and how to act on them; and

2073
2074

⎯ the right to a healthy environment – the right to live and work in an environment which is nonthreatening to the well-being of present and future generations.

2075⎯ additional principles:

2076
2077
2078
2079

⎯ the right to privacy, from the Universal Declaration on Human Rights, Article 12 – no one
shall be subjected to arbitrary interference with their privacy, family, home or correspondence,
nor to attacks upon their honour and reputation. Everyone has the right to the protection of
the law against such interference or attacks; and.

2080
2081
2082

⎯ a precautionary approach – acting to avoid serious or irreversible potential harm to health or
the environment, despite lack of scientific certainty as to the likelihood, magnitude orcausation of that harm.

2083

7.7.2.2

2084
2085
2086
2087

Vulnerable consumers have special needs because they may not know their rights and responsibilities
or may be unable to act on their knowledge. They may also be unaware of or unable to assess
potential risks associated with products or services. Vulnerable consumers include children and young
people, the aged, the illiterate and people with disabilities, including intellectual impairment.

2088
2089
2090
2091
2092

Even if adequate government frameworks are not in place to guide suppliers of the essential servicesof electricity, gas, water and telephone, these organizations should not disconnect the essential
services for non-payment without providing the consumers with the opportunity to seek financial relief.
They should also operate in a transparent manner, providing information related to the setting ofprices and charges.

2093

7.7.3

2094

7.7.3.1

2095
2096
2097
2098
2099

Fair marketing, information and contractual practices allow consumers to make informed decisions
about purchases and to compare the characteristics of different products and services. They provide
information about products and services in a manner that can be understood by consumers. Fair
contractual processes aim to protect the legitimate interests of both suppliers and consumers to
overcome imbalances in negotiating power between the parties.

2100
2101
2102
2103

Details of products and services provided by suppliers play an important role in purchasing decisions
because this information may provide the only data readily available to consumers. Unfair ormisleading marketing and information can result in purchase of products or services that do not meet
consumer needs and result in waste of money, resources and time.

2104
2105

Use of fair marketing, information and contractual practices may make a substantial positive
contribution to the reputation of an organization.

Considerations

Consumer issues issue 1: Fair marketing, information and contractual practices
Description of the issue© ISO 2007 – All rights reserved

55

WORKING DRAFT 4.1

2106

7.7.3.2

Related actions and/or expectations

2107

When communicating with consumers, an organization should

2108
2109

⎯ not engage in any practices that are deceptive, misleading, fraudulent or unfair, including criticalomissions of information;

2110⎯ clearly identify advertising and marketing;

2111
2112

⎯ openly disclose total prices, eventual taxes, terms and conditions of the products and services aswell as any accessories or delivery costs;

2113⎯ substantiate claims or assertions by providing underlying facts and information;

2114
2115

⎯ avoid using images that could perpetuate negative stereotypes of people, in particular gender andethnic stereotypes

2116⎯ provide complete, accurate understandable and comparable information on:

2117
2118

⎯

2119
2120

⎯ the key quality aspects of products and services using standardized test procedures,compared, when possible, to average performance or best practice;

2121
2122

⎯

health and safety aspects of products and services, such as hazardous materials andchemicals contained in or released by products; and

2123

⎯

the organization’s physical address including phone number, when using distance selling.

all relevant aspects of products or services, including financial and investment products,
ideally taking into account the full life cycle;⎯ use contracts that:

2124
2125
2126
2127

⎯

do not include unfair contract terms, such as the exclusion of liability, the right to unilaterally
change prices and conditions, the transfer of risk of insolvency to consumers or unduly longcontract periods; and

2128

⎯

provide clear and sufficient information about prices, terms, conditions and costs.

2129

7.7.4

2130

7.7.4.1

2131
2132
2133
2134

Protection of consumers’ health and safety involves the provision of products and services that aresafe and that do not carry risk of harm when used or consumed by consumers as directed, indicatedor when misused in a reasonably foreseeable way. Clear instructions for safe use are also an
important part of the protection of health and safety.

2135
2136
2137
2138
2139
2140

Regulatory authorities and standards writing bodies have the primary responsibility for developing
safety provisions to protect consumers from being injured or suffering adverse health effects from use
and misuse of products and services. However the rapid pace of change in product design,
construction and materials means that products and services may be in use before appropriate safety
requirements are in place. Globalization has led to the increase in cross-border movement of products
and sourcing of services, which puts strain on regulatory and testing resources.

2141
2142

An organization’s reputation may be directly affected by the health and safety of its products andservices.

56

Consumer issues issue 2: Protecting consumers’ health and safety
Description of the issue© ISO 2007 – All rights reserved

WORKING DRAFT 4.1

2143
2144
2145

Whether or not legal safety requirements are in place, products and services should be safe. Safetyincludes anticipation of potential risks to avoid harm or danger. As not all risks can be foreseen,
measures to protect safety include mechanisms for product recall.

2146

7.7.4.2

2147
2148
2149

In protecting the health and safety of consumers an organization should take the following actions andpay special attention to vulnerable groups that might not have the capacity to recognize or assess
potential dangers. It should:

2150
2151

⎯ provide products and services that, under normal and reasonably foreseeable conditions of use,are safe for users, their property, other persons and the environment;

2152
2153
2154
2155
2156
2157

⎯ assess the adequacy of health and safety laws, regulations, standards and other specifications toaddress all health and safety aspects. Organizations should go beyond these minimum safety
requirements where there is evidence that these requirements do not achieve the best possible
protection level, as indicated by the occurrence of accidents involving products or services that
conform to the requirements, or the availability of products or product designs that can reduce thenumber and/or severity of accidents;

2158⎯ minimize risks in the design of products:

Related actions and/or expectations

2159

⎯

identify the likely user group(s) and give special care to vulnerable groups;

2160
2161

⎯

identify the intended use and the reasonably foreseeable misuse of the product, process orservice and hazards arising in all the stages and conditions of use of the product or service,;

2162
2163

⎯

estimate and evaluate the risk to each identified user/contact group, including pregnant
women, arising from the hazards identified; and

2164
2165

⎯

reduce the risk. When reducing risks, the order of priority should be: inherently safe design,protective devices and information for users.

2166
2167

⎯ avoid the use of products that may be carcinogenic, mutagenic, toxic for reproduction, or that are
persistent and bio-accumulative. If such products are used, they should be clearly labelled;

2168
2169

⎯ perform a human health risk assessment of products and services before the introduction of newmaterials and/or production methods, and make all relevant documentation publicly available;

2170
2171

⎯ convey vital safety information to consumers, wherever possible using symbols, preferablyinternationally agreed ones, in addition to the textual information;

2172
2173

⎯ instruct consumers in the proper use of products and inform them of the risks involved in intended
or normally foreseen use;

2174
2175

⎯ adopt measures that prevent products from becoming unsafe through improper handling or
storage while in their care;

2176
2177
2178
2179

⎯ if a product, after having been placed on the market, turns out to present an unforeseen hazard,
has a serious defect or contains misleading or false information, an organization should recall all
products that are still in the distribution chain, using appropriate measures and media to reachpeople who purchased the product.

© ISO 2007 – All rights reserved

57

WORKING DRAFT 4.1

2180

7.7.5

Consumer issues issue 3: Sustainable consumption

2181

7.7.5.1

2182
2183
2184
2185
2186

Sustainable consumption is consumption of products and resources at rates consistent withsustainable development The concept was promoted by Principle 8 of the Rio Declaration on
Environment and Development, which states that to achieve sustainable development and a higher
quality of life for all people, states should reduce and eliminate unsustainable patterns of production
and consumption and promote appropriate demographic policies.

2187
2188

Organizations’ role in sustainable consumption arises from the products and services they offer, theproduction processes they use and the nature of the information they provide to consumers.

2189
2190
2191
2192

Current rates of consumption are clearly unsustainable, particularly in the developed world,
contributing to environmental damage and resource depletion. Consumers play a pivotal role infostering sustainable development through the incorporation of social and environmental performanceof products and services in purchasing decisions.

2193
2194

Benefits to organizations from contributing to sustainable consumption may include cost savings,
enhanced sales and improved reputation.

2195

7.7.5.2

2196

To contribute to sustainable consumption, organizations should:

2197
2198

⎯ offer consumers socially and environmentally beneficial products and services and reduce
adverse impacts on the environment and society by:

Description of the issue

Related actions and/or expectations

2199
2200

⎯

offering products and services that operate as efficiently as possible, considering the full life
cycle;

2201
2202

⎯

eliminating where possible or minimizing any negative health and environmental impacts ofproducts and services, such as noise and waste;

2203

⎯

designing products so that they can be easily reused, repaired or recycled;

2204
2205

⎯

reducing waste by minimizing packaging material and if appropriate, offer recycling anddisposal services; and

2206

⎯

providing and informing consumers about reuse, recycling and safe disposal of products.

⎯ enable consumers to consume in a sustainable manner by:

2207
2208
2209
2210

⎯

providing consumers with information about the environmental and social factors related to
production and delivery of their products or services, including information on resource
efficiency where relevant, taking the value chain into account;

2211
2212
2213
2214
2215

⎯

providing consumers with information about the sustainability of products and services.
including performance, country of origin, energy efficiency (where applicable), contents or
ingredients (including where relevant, use of GMOs), impact on health, safe use,maintenance, storage and disposal of the products and their packaging. This should bebased on average performance or best practice; and

2216
2217

⎯

making use of eco-label schemes and/or other benchmarks to communicate theenvironmental and social qualities of products and services.(CP1. CP2, CP3)

⎯ give all consumers access to products and services, using the principles of universal design, forexample, by:

2218
2219

58

© ISO 2007 – All rights reserved

WORKING DRAFT 4.1

2220
2221

⎯

2222
2223

⎯ providing information about products and services that is accessible to people withdisabilities, for example, people with low or no vision.

designing products that can be used flexibly by people with different tools, access or abilities
and providing information on their accessibility; and

2224

7.7.6

Consumer issues issue 4: Consumer service, support, and dispute resolution

2225

7.7.6.1

2226
2227
2228
2229

Consumer service, support, and dispute resolution are the mechanisms an organization uses toaddress the needs of consumers after products and services are bought or provided. Suchmechanisms include warranties and guarantees, technical support regarding use, as well as
provisions for return, repair and maintenance.

2230
2231

Products or services that do not provide satisfactory performance, either because of flaws or
breakdowns or as a result of misuse, may result in a waste of money, resources and time.

2232
2233
2234
2235

Providers of products or services can increase consumer satisfaction and reduce levels of complaints
by offering clear advice to consumers on appropriate use and recourse or remedies for faulty
performance. They can also monitor the effectiveness of their after-sales services, support anddispute resolution procedures by periodic surveys of their users.

2236

7.7.6.2

2237

An organization should:

2238
2239
2240

⎯ engage in precautionary measures to prevent complaints (CP4) by offering consumers, including
those who obtain the products through distance selling, the option to return products within a
specific time period or obtain other appropriate remedies;2241⎯ offer warranties that exceed periods guaranteed by law;

2242
2243

⎯ clearly communicate to consumers how they can access after-supply services and support aswell as dispute resolution and redress mechanisms (CP5, CP6);2244⎯ offer adequate and efficient support and advice systems;

2245
2246

⎯ offer maintenance and repair at a reasonable price and make information readily accessible on
the expected availability of spare parts for products; and

2247
2248
2249

⎯ make use of alternative dispute resolution, conflict resolution and redress procedures that are
based on national or international standards, are free of charge to consumers (CP6) and that do
not require consumers to waive their rights to seek legal recourse.

2250

7.7.7

2251

7.7.7.1

2252
2253
2254

Consumer data protection and privacy are intended to safeguard consumers’ rights of privacy bylimiting the types of information that is gathered and the ways in which such information is used andsecured.

2255
2256
2257

Increasing use of electronic communication, including for financial transactions, as well as growth inlarge scale databases raises concerns about how consumer privacy can be protected, particularly withrespect to personally identifiable information.

Description of the issue

Related actions and/or expectations

Consumer issues issue 5: Consumer data protection and privacy
Description of the issue© ISO 2007 – All rights reserved

59

WORKING DRAFT 4.1

2258
2259

Organizations can help to maintain their credibility and the confidence of consumers through the useof rigorous systems for obtaining, using and protecting consumer data.

2260

7.7.7.2

2261
2262

To prevent personal data collection and processing from infringing on privacy, an organization shouldtake the following actions:

2263
2264
2265

⎯ limit the collection of personal data to information that is either essential for the provision of
products or services or provided with the informed and voluntary consent of the consumer, andobtain data by lawful and fair means;

2266
2267

⎯ specify the purpose for which personal data are collected, either before or at the time of datacollection;

2268
2269
2270

⎯ not disclose, make available or otherwise use personal data for purposes other than thosespecified, including marketing, except with the informed and voluntary consent of the consumer orby the authority of law;

2271
2272
2273

⎯ provide consumers with the right to confirm whether the organization has data relating to themand to challenge this data. If the challenge is successful, the data should be erased, rectified,completed or amended;2274⎯ protect personal data by reasonable security safeguards; and

2275
2276
2277
2278
2279

⎯ be open about developments, practices and policies with respect to personal data and provide
readily available ways of establishing the existence, nature and main uses of personal data.
Disclose the identity and usual location of the person responsible for data protection in theorganization (sometimes called the data controller), and hold this person accountable forcomplying with the above measures;

2280

7.7.8

2281

7.7.8.1

2282
2283
2284
2285

Education and awareness initiatives enable consumers to be well-informed, conscious of their rights
and responsibilities, able to make knowledgeable purchasing decisions and consume responsibly.
Disadvantaged consumers in both rural and urban areas, including low-income consumers and thosewith low or non-existent literacy levels have special needs for education and increased awareness.

2286
2287
2288
2289

The aim of consumer education is not only to transfer knowledge, but also to provide practice in acting
on this knowledge, including developing skills for assessing products and services and for making
comparisons. It is also intended to raise awareness about the impact of consumption choices onothers, including the environment.

2290

7.7.8.2

2291

In educating consumers an organization should address:2292⎯ health and safety, including product hazards;

2293
2294

⎯ information on appropriate regulations, ways of obtaining redress and agencies and organizations
for consumer protection;

2295⎯ product labelling;

2296
2297

⎯ information on weights and measures, prices, quality, credit conditions and availability ofessential services;

60

Related actions and/or expectations

Consumer issues issue 6: Education and awarenessDescription of the issue

Related actions and/or expectations© ISO 2007 – All rights reserved

WORKING DRAFT 4.1

2298⎯ financial and investment products;

2299⎯ environmental protection;2300⎯ efficient use of materials, energy and water;

2301⎯ sustainable consumption; and2302⎯ disposal of packages and products.

2303

7.8 Social and economic development of the community

2304

7.8.1

2305

7.8.1.1

2306
2307
2308

The need for contributions to social and economic development in order to reduce poverty andimprove poor social conditions is universally accepted. The critical need to address issues of socialand economic development is reflected in the United Nations Millennium Declaration.

2309
2310
2311
2312

Economic development is the process by which economic activities increase and become diversified
in order to better satisfy the needs of the society. Achieving higher levels of income and wealth shouldbe accompanied by a balanced distribution of the outputs of the economic development process inorder to reduce poverty and benefit society as a whole.

2313
2314

Social development refers to those conditions that constitute a decent standard of living, such as
health, education and housing and the overall wellbeing of society.

2315
2316
2317

The social and economic dimensions of the development process are interrelated and mutually
reinforcing. One does not occur in the absence of the other. In this clause they are explained as
specific issues but they remain interconnected and should be considered as such.

2318
2319
2320
2321

Although public policies guide and give impulse to the social and economic development of thecommunity, this process must be complemented by the contributions of individual organizations.
Every organization, regardless of size, has the possibility to contribute to the social and economic
development of its community.

2322
2323
2324
2325

Organizations operate within the context of communities, taken here as the people living in one place,
district or country, considered as a whole. Establishing relationships with various members of thecommunity where an organization operates for the purpose of identifying partners and priorities is
integral to maximizing an organization's positive contribution to social and economic development.

2326

7.8.1.2

2327
2328
2329
2330
2331

Social and economic development, together with environmental protection, forms the basis for asustainable society. The development of the community is a pre-condition for the reduction of poverty
and the attainment of a higher quality of life. Although the primary responsibility for social andeconomic development belongs to governments, all organizations have a responsibility to contributeto social and economic development.

2332
2333
2334
2335
2336
2337
2338

The contribution that an organization can make to social and economic development is generally mostsignificant in its local community but may also reach out to other communities. While smallorganizations will probably be in a position to contribute to their immediate local community, largeorganizations may be in a position to contribute to a broader community, one that could encompass awhole country or group of countries. In this sense the word community must be taken as a relative
concept, and it should be understood that both small and large organizations, operating within theirmeans, have the potential to make some contribution to development.

Overview of social and economic development of the community
Organizations and social and economic development of the community

Social responsibility and social and economic development of the community© ISO 2007 – All rights reserved

61

WORKING DRAFT 4.1

2339
2340

7.8.1.3
Benefits to an organization of socially responsible contributions to social andeconomic development

2341
2342
2343
2344
2345

When an organization contributes to the social and economic development of the community where it
is located it can benefit from a better environment in terms of social stability, economic growth, higher
levels of education and wellbeing of the local population. Social and economic development areinterdependent and an organization's influence and contribution should be shaped by community
involvement processes.

2346
2347
2348

An organization that contributes to the social and economic development of its community will create
better relations with its stakeholders, an enhanced reputation, improved employee morale andimproved risk and opportunity management.

2349

7.8.2

2350

7.8.2.1

2351
2352
2353
2354
2355
2356
2357
2358

International declarations such as the Millennium Declaration and the Copenhagen Declaration
expresses basic principles concerning contribution to the community and society. One of the values ofthe Millennium Declaration is that “no individual and no nation must be denied the opportunity tobenefit from development”. The Copenhagen Declaration recognizes the “urgent need to address
profound social problems, especially poverty, unemployment and social exclusion”. Both documents
invite all organizations to contribute to the development goals to which nations have agreed.

2359
2360

The following are considerations that an organization should take into account when addressing socialand economic development:

2361
2362

⎯ organizations should recognize the rights of men and women to decide over the life of theircommunity and in doing so to maximize their own capabilities, resources and opportunities;

2363
2364
2365
2366
2367

⎯ partnership: combining capabilities in a partnership, such as the exchange of experience,resources and efforts among organizations, makes the combined economic and social
development actions more effective than actions taken by an individual organization; partnerships
can include many different types of organizations and can operate at international, national,
regional or local level; and

2368
2369

⎯ reduction of poverty and inequality: promotion of income and wealth generation and its fair
distribution are priorities for nations and civil society at all levels.

2370
2371
2372
2373
2374
2375
2376
2377
2378

⎯ In most cases engagement with the community improves the potential of organizations tocontribute to the social and economic development of the community where they operate.
Engagement helps an organization to define objectives, outcomes and proceedings considering
the needs and priorities of the community. Organizations engage with community stakeholders tobuild trust, learn to respect their different roles, visions and interests and identify common
priorities. This is a continuous process based on mutual respect and cooperation. Two of the
major challenges of community involvement are to secure fair and equitable representation forcommunity members and be confident that they have the skills to negotiate and to express theirinterests.

2379
2380
2381
2382

⎯ Understanding the characteristics and composition of communities affected by the organization iscentral to ascertaining the organization's impacts and designing appropriate measures to addressthese impacts. The result of this process is co-operation for social and economic development,with justice and equity as its core elements

7.8.2.2

62

Principles and considerations
Principles

Considerations© ISO 2007 – All rights reserved

WORKING DRAFT 4.1

2383

7.8.3

Social and economic development issue 1: Community involvement2384

7.8.3.1

2385
2386
2387
2388

Contributing to social and economic development includes organizations being involved in thecommunity where they operate. Community involvement is an organization's proactive outreach to thecommunity. It is an approach aimed at problem-solving, fostering partnerships with local organizations
and stakeholders and aspiring to be a good organizational citizen of the community.

2389
2390
2391
2392
2393

Organizations contribute to civil society through their participation in, and building of, civil institutions.
The formation of a network of organizations can increase the capacity of communities to takecollective actions that promote their development and the attainment of objectives and goals. Whenorganizations are involved in collective actions for the benefit of the community, then values likedemocracy, legality, participation, justice and fairness are extremely important.

2394
2395
2396
2397

The increase of a community’s collective capacities does not depend exclusively on organizations but
also on individuals. All organizations, both large and small, can also contribute through awarenessraising activities to mobilize the public for social development. Organizations have a central role inspreading to citizens the importance of their actions in achieving social development.

2398

7.8.3.2

2399

An organization should:

2400
2401

⎯ participate in local associations with the objective of contributing to the local development ofcommunities;

2402
2403
2404

⎯ contribute to democratic processes related to the setting up, implementation, monitoring andevaluation of development programs. In some cases this involves knowledge, skills, humanresources or even material resources;2405⎯ comply with the law at all times;

2406
2407

⎯ communicate information in relation to their contributions to social and economic development andthe rights and duties of citizenship; and

2408
2409

⎯ maintain transparent relationships with government officials free from bribery or improper
influence.

2410

7.8.4

2411

7.8.4.1

2412
2413
2414

Employment is an internationally recognized goal related to economic development. By creating
employment, all organizations, both large and small, can make an important contribution to reducing
poverty and promoting economic development.

2415

7.8.4.2

2416

An organization should:

2417
2418

⎯ consider the impact of its investment decisions on employment creation, and where economically
viable, direct investments to areas with high levels of poverty; and

2419
2420

⎯ consider the impact of technology choice on employment, and where economically viable, selecttechnologies that maximize employment opportunities.

Description of the issue

Expectations and/ or related actions

Social and economic development issue 2: Employment generation
Description of the issue

Expectations and/ or related actions© ISO 2007 – All rights reserved

63

WORKING DRAFT 4.1

2421

7.8.5

2422

7.8.5.1

2423
2424
2425
2426

To overcome under-development and its associated problems, countries need, amongst other things,
access to modern technology. Organizations can contribute to the development of the communities inwhich they operate by applying specialized knowledge, skills and technology in such a way aspromote human resource development and technology diffusion.

2427

7.8.5.22428

To contribute to the technological development of the community an organization should:

2429
2430
2431
2432

⎯ consider engaging in partnerships with local organizations (for example universities or researchlaboratories), and where mutually beneficial and where appropriate, engage in scientific andtechnological development with partners from the local community, employing local people in thiswork; and

2433
2434
2435

⎯ where economically feasible, adopt practices that allow technology transfer and diffusion. Where
applicable the organization should set reasonable terms and conditions for licenses or technology
transfer so as to contribute to long term local development.

2436

7.8.6

2437

7.8.6.1

2438
2439
2440
2441
2442
2443

The process of economic development is critically important towards freeing men, women andchildren from the abject and dehumanizing conditions of extreme poverty, to which more than one
billion people around the world are subjected. Fundamental to this process is the creation ofincreased incomes for broad sectors of society. Access to goods and services provided by higher
incomes tends to improve life expectancy, allow the achievement of higher levels of education andhealth, and contribute to gender equality, child welfare and the protection of human rights.

2444
2445
2446
2447
2448
2449

Income from taxes provides the means for a community’s authorities to manage and develop
infrastructure, for example transportation, and public services. Governments play an important partwhen establishing and managing tax systems and in the effective use of revenues. All organizations
can contribute to the proper functioning of a tax system and to the efficient use of resources bycomplying with all applicable laws and regulations, and by scrutinizing the functions of a tax system toensure transparency and conformance with applicable laws and regulations.

2450
2451
2452
2453
2454

One important consideration for the contribution of organizations to wealth and income generation is
the need to conduct activities under a legal framework. Many enterprises conduct operations on an
informal basis often to avoid taxes or regulation. These activities can impose costs that are unfairly
born by all of society. Additionally, such practices contribute to the erosion of legal frameworks andrespect for laws and government institutions.

2455
2456
2457
2458

Poverty devastates society and destroys human dignity, causing instability and conflict. Many socialand economic problems that have direct impacts on organizations have their root causes in poverty.
All organizations, both large and small, should contribute within their means, and based on their corecompetencies, to poverty and hunger eradication initiatives.

2459

7.8.6.2

2460
2461

To contribute to an increase in the wealth and income of the community where it operates, anorganization should:

2462⎯ seek to maximize its value added to the economy;

64

Social and economic development issue 3: Technology development
Description of the issue

Expectations and/ or related actions

Social and economic development issue 4: Wealth and income
Description of the issue

Expectations and/ or related actions© ISO 2007 – All rights reserved

WORKING DRAFT 4.1

2463⎯ ensure compliance with all applicable laws and regulations;

2464
2465

⎯ engage in commercial relations only with suppliers that operate under legally recognizedframeworks;

2466
2467

⎯ encourage and assist informal organizations to become formal organizations operating under legal
frameworks;

2468
2469

⎯ consider the impact of outsourcing decisions on employment creation, both within the organization
making the decision and within external organizations affected by such decisions;2470⎯ endeavour to use natural resources in a way that helps to alleviate poverty;

2471
2472
2473

⎯ obtain prior informed consent of the local community for the use of local natural resources andrespect the traditional use of natural resources by local populations, in particular indigenous
people;2474
2475⎯ give preference to local suppliers of goods and services and contribute to local supplierdevelopment;

2476
2477
2478

⎯ contribute to programs that provide access to food and other basic necessities for vulnerable
groups of low income people, taking into account the importance of contributing to their increased
capabilities, resources and opportunities. Special attention should be given to child nutrition;

2479
2480

⎯ support social entrepreneurship ventures and the development of low cost social technologies thatare easily replicable and have a high social impact on poverty and hunger eradication; and

2481
2482

⎯ fulfill its tax responsibilities as described in law and related regulations, and provide the authorities
with the necessary information to correctly determine its taxes.

2483

7.8.7

2484

7.8.7.1

2485
2486
2487
2488
2489

Economic development depends largely on investments. Responsible investment is a means by whichinvestors may better align their activities with broader objectives of society. This includes
consideration of the economic, social, environmental and governance dimensions of an investment, in
addition to the traditional financial dimensions. Where financially sustainable, preference should begiven to activities which can be viewed as a contribution to the present and future welfare of society.

2490

7.8.7.2

2491
2492

To orient its investments to reflect sound social and economic development priorities, in addition tofinancial considerations, an organization should:

2493
2494

⎯ incorporate economic, environmental, social and governance issues into investment analysis anddecision-making processes;

2495⎯ develop and disclose an active ownership policy consistent with principles of social responsibility;

2496
2497

⎯ seek appropriate disclosure on economic, environmental, social and governance issues by theorganizations in which it has invested

2498
2499

⎯ engage with organizations on their economic, environmental, social and governance practices,with a view to improving the social performance of organizations in which it has invested; andSocial and economic development issue 5: Responsible Investment
Description of the issue

Expectations and/ or related actions© ISO 2007 – All rights reserved

65

WORKING DRAFT 4.1

2500
2501

⎯ seek to maximize positive social and economic contributions to communities when making
investment decisions.

2502

7.8.8

2503

7.8.8.1

2504
2505
2506
2507

Education is an imperative for the progress of civilization. Education is the foundation for all social andeconomic development. Culture is an important component of a community and society’s identity.
Organizations should be aware that the promotion and preservation of education and culture has apositive impact in social cohesion and development.

2508

Expectations and/ or related actions

2509

An organization should:

2510
2511
2512

⎯ promote cultural activities, respect and value the local culture and cultural traditions. Actions to
support cultural activities that strengthen the identity of historically disadvantaged groups areespecially important as a means of combating discrimination;

2513
2514

⎯ help conserve and protect cultural heritage, especially where its operations may have an impact
on it;

2515
2516⎯ promote and/or support education at all levels and engage in actions to improve the quality ofeducation, to promote local knowledge and to eradicate illiteracy; and

2517
2518

⎯ encourage the enrolment of children in formal education, and contribute to the elimination of
barriers to children obtaining an education, such as child labour.

2519

7.8.9

2520

7.8.9.1

2521
2522
2523
2524
2525
2526
2527

Health is an essential element of life in society and is a universally recognized human right. Threats topublic health can have severe impacts on communities and can hamper social and economic
development. Thus, all organizations, both large and small, are called to contribute, within their means,to the promotion of health. Even in communities where it is a role of the state to provide a publichealth system, all organizations can consider contributions to health in their communities. A high levelof health in the community reduces the burden on the public sector and contributes to a good
economic and social environment for all organizations.

2528

7.8.9.2

2529

An organization should:

2530
2531
2532

⎯ promote good health by, for example, contributing to access to medicines and vaccination and byencouraging healthy lifestyles, including exercise and good nutrition, and by discouraging theconsumption of unhealthy substances;

2533
2534

⎯ raise awareness about major diseases and their prevention, such as HIV/AIDS, cancer, heartdiseases, malaria and tuberculosis;

2535
2536

⎯ support access to essential health care services and to clean water and appropriate sanitation asmeans to prevent illness, especially for women and children; and

2537
2538

⎯ seek to minimize or eliminate the negative health impacts of any products or services provided by
the organization.

66

Social and economic development issue 6: Education and culture
Description of the issueSocial and economic development issue 7: Health
Description of the issue

Expectations and/ or related actions© ISO 2007 – All rights reserved

WORKING DRAFT 4.1

2539

7.8.10 Social and economic development issue 8: Capacity building

2540

7.8.10.1

2541
2542
2543
2544

Organizations frequently invest their resources in infrastructure and programs aiming at social aspectsof community life. Capacity building is a way that organizations may contribute to the social andeconomic development of the communities where they operate. This includes compensation for
negative impacts of organization's operations.

2545
2546

With respect to capacity building, the aim should be to align the organization's contribution with theneeds of the communities in which the organization operates.

2547

7.8.10.2

2548

When engaging in capacity building organizations should:

2549⎯ undertake capacity building in the community or communities that are related to its operations;

2550
2551

⎯ seek to align capacity building with the core competencies of the organization itself; this will
maximize the contribution of the organization by leveraging its existing expertise;

2552
2553
2554
2555

⎯ recognize that an organization’s capacity building activities do not preclude other social actions
and philanthropy (for example grants, volunteering and donations). These however, should bealigned with the organization’s overall capacity building aims. They should focus on giving
resources to the community through programs or projects for long-term development;

2556
2557
2558

⎯ promote sustainable capacity building projects, by involving the community in their design andimplementation. Community involvement will help projects to survive and prosper when theorganization is no longer involved;

2559
2560
2561

⎯ take into account the promotion of economic and social development in planning capacity building
projects. All actions should broaden the opportunities for citizens, for example increasing local
procurements and outsourcing to support local business development;

2562
2563
2564

⎯ within the context of social responsibility, take into account the value of aligning organizational
contributions to the community with local and national policy priorities. This will increase theprobability of a successful and sustainable capacity building;

2565
2566

⎯ avoid actions that perpetuate a community’s dependence on the organization’s philanthropic
activities; and

2567
2568

⎯ assess existing community-related initiatives, provide feedback on their success and suitability
and identify where improvements might be made.

2569

8

2570
2571
2572

Note: Some of the text that appeared in Clause 7 of WD3.2 has now been transferred to Clause 6 ofthis document. This version of Clause 8 cannot be compared with the old version of Clause 7 on its
own; it must be read after reading Clause 6).

2573
2574

Note: Provision will be made in this clause and/or in Clause 6 for a diagram (or diagrams) that
present/s a graphical representation of the guidance relating to implementation.

Description of the issue

Expectations and/ or related actions

Guidance for an organization on implementing social responsibility© ISO 2007 – All rights reserved

67

WORKING DRAFT 4.1

2575

8.1 General

2576
2577
2578
2579
2580

This clause provides guidance on how an organization might implement social responsibility. It isclosely linked to Clause 5 on the principles of social responsibility, Clause 6 which establishes what
an organization should do, and to Clause 7, which provides guidance on the core subjects and issuesof social responsibility. The guidance below on how to implement social responsibility is intended tobe applicable to organizations of any type, size or location.

2581

8.2 Identifying social responsibility

2582

8.2.1

2583
2584
2585
2586

The identification of an organization’s social responsibility is an ongoing process. From time to timethe identification should be reconsidered to account for changing activities, circumstances andimpacts. This process should include internal consultations with personnel who have an overview ofthe organization’s activities and its impacts and with the organization’s stakeholders.

2587

8.2.1.1

2588
2589
2590
2591
2592

The first step in identifying relevant core subjects and issues is to review the organization’s activities.
The purpose of this review is to establish an organization’s major operating units, activities andproducts and services. In the process of reviewing it may be helpful to draw on information about anorganization’s profile, which can be found in guidance documents, such as mission or visionstatements. It is also important to take into account major changes in policies and/or strategy.

2593

8.2.1.2

2594
2595
2596
2597
2598
2599

The next step is to understand the social, environmental and economic context in which theorganization operates. The context includes an organization’s interactions with other organizations,
including its suppliers, customers, partners and society at large. Information that may be helpful inunderstanding the organization’s context is its market situation and major competitors in a region, andcurrent and likely future major trends in the field of work or sector. This information may not always bepresent within an organization and may need to be collected elsewhere.

2600

8.2.1.3

2601
2602
2603
2604
2605

An organization does not only have a responsibility for its own activities but also with respect to otherorganizations in its value chain over which it has control or reasonable influence. The closer thecontractual relationship between the organization and other organizations and entities, the more
influence it can exercise on them. A very close relation exists, for example, between an organizationand its contractors.

2606

An organization’s value chain includes activities:2607⎯ backward in the chain (that is in the supply chain, such as suppliers);

2608⎯ forward in the chain (such as distributors, customers and consumers); and2609⎯ parallel to the organization (such as sector associations and partners).

2610
2611

Note: It might be helpful to create a Help Box with criteria (or factors) on how to determine the sphereof influence.

2612

8.2.1.4

2613
2614

Once the organization has reviewed its activities and understands its context, it should assess theimpacts its activities have on others and the environment. This means what core subjects are relevant

68

The subjects of and the extent of social responsibility

Reviewing the organization’s activities

Understanding the organization’s context of social responsibility

Defining the organization’s responsibility with respect to other organizations

Identifying core subjects by assessing an organization’s impacts© ISO 2007 – All rights reserved

WORKING DRAFT 4.1

2615
2616
2617

to the organization, including its sphere of influence. In doing so, an organization should draw on thecore subjects of social responsibility as described in Clause 7 to determine whether the organization’s
activities have a bearing or relevant influence on them. Examples for questions are:2618

⎯ does the organization employ people? If so, then the labour practices core subject is relevant.

2619
2620

⎯ does the organization have impacts on the environment? If so, then the environment core subject
is relevant.

2621
2622

⎯ does the organization interact with consumers or does it have a relevant influence with its
products and services on consumers? If so, then the consumer issues core subject is relevant.

2623
2624

If a core subject is relevant to the organization, the organization should assess whether all or only
some issues of a core subject are relevant to the organization.

2625

Further information that could inform the identification process might be found in:

2626
2627
2628

⎯ the social responsibility codes and instruments (for example, sector association codes, or specificproduct codes) to which an organization subscribes, and any general policies (for example,
ethical code or code of conduct) of the organization about social responsibility;

2629
2630

⎯ the social responsibility requirements for suppliers issued by the organization’s key customers,
and those imposed on the organization by parties that provide it funding; and2631⎯ activities of peers related to social responsibility.

2632
2633

As a result of this identification process the organization will know what its relevant core subjects andissues of social responsibility are and what the extent of its social responsibility is.

2634

8.2.2

2635
2636
2637
2638
2639
2640

To ensure that the relevant core subjects and issues receive the attention they deserve, anorganization might want to establish priorities. To do so, the organization should set up a structured
decision-making process that relies on both internal and external consultations with its stakeholders.
Since compliance with all applicable laws, regulations [and international norms of behaviour]
constitutes a fundamental aspect of social responsibility, the organization’s priorities should address
all subjects and issues that are part of its legal obligations.

2641
2642
2643

Beyond compliance with law [and international norms of behaviour] there might be a need forestablishing priorities. In this prioritization process stakeholders should be engaged. In establishingpriorities the following criteria might be considered:

2644
2645

⎯ significance: the greater the impact of an issue on others or the environment, the more important
it is to take action;

2646⎯ stakeholder concern: the greater the stakeholder concern, the more important it is to take action;

2647
2648

⎯ cost/benefit: the greater the potential effect of the related action in relation to the resources
needed, the more important it is to take action; and

2649
2650

⎯ ease of controlling threats or applying opportunities in contributing to sustainable development,
health and welfare of society.

2651
2652

As a result of the process of prioritization an organization will know what core subjects and issues toaddress with what priority.

Establishing priorities© ISO 2007 – All rights reserved

69

WORKING DRAFT 4.1

2653

8.3 Stakeholder identification and engagement

2654

8.3.1

2655
2656
2657
2658
2659
2660
2661

Stakeholder engagement is regarded as a central element of social responsibility. Since organizations
might have many stakeholders, they should seek to identify their stakeholders and prioritize them.
Since stakeholder engagement will usually be an ongoing process, the organization should consider
establishing a method of stakeholder identification that can be used and re-used on an ongoing basis.
In some cases, it may be helpful to develop a list of stakeholders, which should be reviewed
periodically and updated to reflect changes in the organization and/or changes in identified
stakeholders.

2662
2663

Organizations review the full range of stakeholders in order to identify those stakeholders that mightneed to be engaged. To identify stakeholders, an organization might ask itself the following questions:2664⎯ to whom do legal obligations exist?

2665⎯ who might be positively or negatively affected by the organization’s activities?

2666⎯ who has been involved in similar matters in the same region in the past?

2667
2668

⎯ who has expertise that could be helpful in improving the organization’s approach to social
responsibility?

2669⎯ who would be disadvantaged if they were excluded from the engagement?

2670⎯ who said they would like to be involved?

2671
2672
2673
2674
2675
2676

Having identified a range of potential stakeholders, an organization should determine whichstakeholders should be engaged on a priority basis and to what extend. The aim of this process is tomake the engagement process effective and manageable. The most important criterion forestablishing priorities is the extent to which the stakeholder is impacted by an organization’s decisions
and activities and whether the stakeholder interest is in line with the broader interest of society andsustainable development. Further considerations that should guide stakeholder prioritization include:

2677⎯ whether there exist any legal obligations to engage the stakeholder;2678⎯ whether the stakeholder is the most representative and credible of the interest; and

2679
2680

⎯ whether the whole range of identified core subjects and issues can be addressed by the
stakeholders.

2681

8.3.2

2682
2683
2684
2685
2686

Organizations should engage stakeholders for a variety of reasons as noted in Clauses 5 and 6. The
main aim of stakeholder engagement is to better address an organization’s social responsibility.
Consulting with stakeholders can assist the organization to fulfill legal obligations, establish priorities,
integrate social responsibility into the organization, enhance transparency and the credibility ofcommunications, and examine activities about social responsibility.

2687
2688
2689
2690

Meaningful stakeholder engagement is not an isolated activity and it should not be used as a public
relations exercise. It is an ongoing consultation process that can involve a degree of cultural andprocedural change within both an organization and stakeholders and that has the potential to result incontinuous learning on both sides. To achieve this, an organization should:

2691
2692
2693

⎯ establish an engagement mechanism that is based on a constant cycle of dialogue between theorganization and its stakeholders. feedback to stakeholders is important so that they canunderstand how the organization has responded to their views;

70

Stakeholder identification

Stakeholder engagement© ISO 2007 – All rights reserved

WORKING DRAFT 4.1

2694⎯ match the engagement process with the capacity of the different stakeholder to use it; and

2695
2696
2697
2698

⎯ consider providing stakeholders who do not have the capacity to engage with the organization
with some support. Yet, there is a danger that by doing so, the independence of the stakeholder
will be compromised and thus may not any more constitute a genuine representative of the
stakeholders concerned.

2699

8.4 Integrating social responsibility into the organization and its daily practices

2700

8.4.1

2701
2702
2703

Social responsibility should be an integral part of an organization’s structure, culture and identity. Thismeans that an organization should integrate social responsibility into its objectives, strategies andprocesses and awareness and competency within the organization should be raised.

2704
2705

Such an integrated approach to social responsibility requires the support of an organization’s
leadership, adequate resources and dialogue with stakeholders.

2706

There are a number of steps that help an organization in the integration process:

2707

8.4.2

2708
2709
2710
2711
2712
2713
2714

One way of integrating social responsibility within an organization is to link social responsibility withthe purpose of the organization. This is sometimes done through “mission statements” or “visionstatements”. These statements express the purpose of the organization, but also how the organization
wishes others to see it. Integrating social responsibility can be fostered by recognizing contributions
to sustainable development as a goal or value of the organization. Mission and vision statements canbe a way to motivate employees and to make social responsibility a part of an organization’s official“culture”.

2715
2716
2717
2718
2719
2720
2721
2722

Another means for integrating social responsibility is through the application of ethical standards. This
is often done through codes of conduct addressing specific issues and applied to employees. Theseissues can include some of the most important issues of an organization’s social responsibility suchas fair operating practices and consumer relations. Codes of conduct do not have to be limited to
employees however. In recent years organizations have been adopting codes of conduct addressing
the labour practices of their suppliers and sub-contractors. Such codes and the measures that are
taken to give them effect are often the principle means for an organization to address its social
responsibility in its supply chain.

2723

8.4.3

2724
2725
2726
2727

While Clause 8.2 on the identification of social responsibility guides an organization to its social
responsibility and helps it to establish priorities, an organization should seek to translate thesepriorities into manageable objectives, to design strategies and to set up a process to achieve them.
The organization should consult its stakeholders in this process.

2728
2729
2730

In establishing objectives an organization should consider its core subjects and issues of social
responsibility and define for each of them at least one objective. It should also define a budget andtargets so that movement towards objectives can be traced.

2731
2732
2733
2734
2735
2736
2737

For each objective an organization should then establish a strategy that describes the actions thatshould be taken within a timeline. An organization should define procedures for achieving objectives.
To match means to ends, an organization might take into account best practices and it might consider
joining with peers. In designing strategies an organization should take into account its culture as well
as local customs to decide whether a centralized or decentralized process is most suitable. It is also
important that an organization identifies people and determines their authorities and responsibilities tointegrate social responsibility into the organization.

GeneralAdopting and applying value statements and standards of ethical behavior

Establishing objectives and strategies for social responsibility© ISO 2007 – All rights reserved

71

WORKING DRAFT 4.1

2738

8.4.4

2739
2740
2741
2742

Without the support of its employees, an organization will not be able to integrate social responsibility
into the organization and its daily practices. An organization should therefore raise awareness about
the social responsibility priorities and objectives and their consequences for the organization’s mission,
vision, code of conduct and policies and it should build competencies.

2743
2744
2745

A success factor for the support of the social responsibility objectives and strategies is that the seniorleadership of the organization is itself committed to them. The following action can also help anorganization to raise awareness about social responsibility:

2746
2747
2748

⎯ encourage participation and stimulate the involvement of employees from all levels in theidentification of relevant social responsibility subjects and issues and in the integration of social
responsibility in daily practices;2749⎯ communicate regularly about the organization’s efforts and results;

2750⎯ organize information sessions with internal or external experts or stakeholders;2751⎯ inform designers, whose work typically occurs at the start of service or product life cycles; and

2752
2753

⎯ determine rewards and recognition for successful implementation or for innovative and valuableideas and integrate rewards into existing human resource system.

2754
2755
2756
2757

Integrating social responsibility requires building internal competencies. A simple way of increasing
competencies is by identifying people within the organization who already have knowledge of andexperience with the core subjects and let them work together. Other means by which to increase
competencies include:2758⎯ study best and worst practices of other peer organizations, industries or sectors; and2759⎯ share and discuss ideas with stakeholders, for example in workshops.

2760

8.5 Communication on social responsibility

2761

8.5.1

2762
2763
2764
2765

An organization will, in one form or another, communicate about its practices related to its social
responsibility. All kinds of communication should be understandable, truthful and accurate. Balanced,
material information about the core subjects and issues should be provided, and communication
should be timely and comparable where appropriate – as highlighted in Clause 6.5.

2766
2767
2768

To communicate effectively, an organization should clearly identify the purpose of the communication,plan the communication, select the most appropriate type and form of communication and apply
methods to enhance the credibility of its communications.

2769
2770

To set priorities for communication and to assess the adequacy of the communication the organization
should periodically discuss its communications about social responsibility with its stakeholders.

2771

8.5.2

2772
2773

Organizations should identify the main purposes of its communications. Communication can servevarious purposes. It can be used to:

2774
2775

⎯ raise awareness within an organization about its strategies, plans, performance and challenges
for social responsibility;2776⎯ engage and motivate employees to support the organization’s activities in social responsibility;

72

Raising awareness and building competencies

GeneralIdentifying the purpose of communication© ISO 2007 – All rights reserved

WORKING DRAFT 4.1

2777
2778

⎯ help meet the reasonable requests of stakeholders for information that can be used to assess theorganization’s performance on social responsibility;

2779
2780

⎯ facilitate benchmarking among peer organizations, which can stimulate improvements inperformance on social responsibility;

2781
2782

⎯ address legal and other requirements concerning the disclosure of social responsibility
information;

2783
2784

⎯ show the extent of conformity with commitments to social responsibility to which the organization
subscribes; and

2785
2786

⎯ enhance an organization’s reputation for responsible action, openness, integrity andaccountability to strengthen stakeholder trust and confidence in the organization.

2787

8.5.3

2788
2789
2790
2791

In planning its communication, the organization should consider the purpose, audience, content,
extent, time/sequence, type and form of communication. It might also identify the people who will dothe communication and to what extent internal and external personnel and other resources areneeded. In planning its communication, the organization should consider the following factors:

2792
2793

⎯ the cultural, social, educational and economic background of those stakeholders who make up
the primary audience for the communication;

2794⎯ the necessity to communicate regularly or on an ad hoc basis;2795⎯ the budget and other resource limits; and2796⎯ the value of using multiple forms of communication.

2797

8.5.4

2798
2799

The appropriate type of a communication is closely related to its purpose and audience. The following
forms of communication can be distinguished.

2800
2801
2802
2803

⎯ Internal communication: This type of communication is used within an organization to raise
general awareness about social responsibility and the objectives and strategies of theorganization relating to social responsibility. This type of communication can be made on aregular or ad hoc basis.

2804
2805

⎯ Communication with stakeholders: This type of communication is a vital element in facilitating
genuine dialogue between an organization and its stakeholders.

2806
2807
2808
2809
2810
2811

⎯ Periodic public reports: This type of communication is used to inform stakeholders and the wider
public on a regular basis about the whole range of activities and performance of the organization
relating to its social responsibility. Such reports should address all relevant subjects and issues ofsocial responsibility and provide information that is material about them. Since such reports are in
most cases regularly provided they should be as comparable as possible both over time and incomparison with peer organizations.

2812
2813

⎯ Communication with suppliers: This type of communication can be used to inform suppliers about
the organization’s code of conduct and to engage them to fulfill those requirements.

2814
2815
2816

There are many different forms and media that may be used for communication. These include, forexample, reports, newsletters, magazines, posters, advertising, letters, voicemail, live performance,
video, websites, podcasts (website audio broadcast), blogs (website discussion forums), product

Planning communication

Selecting type and form of communication© ISO 2007 – All rights reserved73

WORKING DRAFT 4.1

2817
2818

inserts and labels. It is also possible to communicate through the media using press releases,
interviews, editorials and articles.

2819

8.5.5

2820
2821
2822
2823
2824
2825
2826
2827
2828
2829
2830

Successful communication, among other things, will be dependent on the credibility of both theorganization and the message. For various reasons an organization’s messages concerning its own
social responsibility will not always be considered true or accurate. In itself this can make it moredifficult for an organization to address its social responsibility. There are various ways in which anorganization establishes its credibility. One is stakeholder engagement. Dialogue with stakeholders is
one means of ensuring that the interests and intentions of the parties are understood. This dialogue
can build trust, and hence enhance credibility. Dialogue provides a means to correct the wrong
impressions. Stakeholder engagement can be a basis for involving stakeholders in the verification ofan organization’s claims concerning its performance. Arrangement can be made for stakeholders toperiodically review an organization’s performance or otherwise monitor aspects of an organization’s
performance.

2831
2832
2833
2834
2835
2836

Another means of enhancing credibility is through even greater transparency. Providing information ofa kind and in a form that can be easily checked by others will increase credibility. For instance,
instead of reporting some statistics concerning performance, the sources of the information and theprocesses used to develop the statistics could also be made available. Revealing the places where anorganization conducts its activities or the names and locations of all of its suppliers or partners can bea means of increasing the credibility of claims an organization makes about its supply chain.

2837
2838
2839
2840
2841
2842
2843
2844
2845
2846
2847

Credibility with respect to certain issues can sometimes be enhanced through participation in specificcertification schemes. Initiatives have been developed to certify product safety or to certify processesor products with respect to their environmental impact and other aspects of social responsibility. Such
schemes must be credible in themselves. Any “certifiers” must be truly independent. This requires thatthey work to a rule-driven process and that an effective means to prevent or address conflicts ofinterest is in place. In some situations organizations have sought to involve independent parties toprovide credibility. An example of this is the creation of “advisory committees” or “review committees”
consisting of persons who are selected because they will be considered credible. A new industry ofself-styled professional “assurance providers” has emerged in recent years to provide written
conclusions concerning public reports of organizations. These conclusions can concern either theprocesses or the information in the report.

2848
2849
2850
2851

Organizations sometimes join associations of peer organizations in order to establish or promotesocially responsible behaviour within their area of activity or within their respective communities.
Membership in these associations can be another means of enhancing the credibility of anorganization’s claims concerning its responsibility.

2852

8.6 Examining activities about social responsibility

2853

8.6.1

2854
2855
2856
2857
2858
2859

The effectiveness of an organization’s activities and practices can be enhanced by regular evaluationand examination. To evaluate and examine performance an organization should measuring its
performance, examine whether objectives are met and review what should be done to improve
performance. In the examination process stakeholders should be involved. Engaging stakeholders is
likely to strengthen the relationship between the organization and its stakeholders and stakeholders
might give valuable feedback on what lessons to learn and how to improve performance.

2860

8.6.2

2861
2862
2863

An organization should continuously track its performance by measuring its performance in certain
areas over time. The measurement over time can point to developments and shed light on whether
objectives are achieved.

74

Enhancing credibility

GeneralKeeping track of performance© ISO 2007 – All rights reserved

WORKING DRAFT 4.1

2864
2865
2866

When deciding on the areas where an organization plans to measure and track its performance, theorganization should seek to make the measurement easy to understand, suitable for benchmarking,reliable and timely, and addresses stakeholders concerns.

2867

There is a range of sources that might be used to assist keeping track of performance:

2868⎯ results of environmental, health, safety or supply chain audits;2869⎯ complaints from employees, customers, consumers, neighbours, citizens and others;

2870⎯ records of training;

2871⎯ employee and customer satisfaction surveys; and

2872
2873

⎯ results of assessments of compliance with other specifications, codes, guidelines, best practice
documents and benchmarks to which the organization subscribes.

2874
2875
2876
2877

One way of systematically using these sources is by using indicators. An indicator indicates a state ata particular point in time. Indicators can potentially be a powerful tool when quantitative data – such asdata on CO2 emissions – is used. In most cases qualitative data will not be suitable to be expressed inform of indicators – such as information about labour conditions or human rights violations.

2878

8.6.3

2879
2880
2881

At appropriate intervals, an organization should use the results from measuring its performance toexamine its performance on social responsibility in relation to its objectives on social responsibility.
This examination should focus both on achievements and failures.

2882

In the examination process an organization should ask the following questions:2883⎯ Were objectives achieved as envisioned?

2884⎯ Did the strategies and processes suit the objectives?

2885⎯ What worked and why? – What did not work and why?

2886

⎯ Were the objectives appropriate?

2887⎯ What could have done better?

2888

8.6.4

2889
2890
2891
2892

Based on the results of the examination, the organization should consider activities that should be
improved. It should also assess whether new objectives relating to social responsibility need to be
developed, whether changes to strategy and processes need to be implemented and whether the
mission and vision statements or the code of conduct need to be updated.

2893

8.7 Using instruments and initiatives on social responsibility

2894
2895
2896
2897

In implementing social responsibility, an organization might find it useful to draw on or apply aparticular social responsibility instrument or initiative. Given the great amount of instruments andinitiatives in the field of social responsibility, organizations might find it difficult to identify and select anappropriate instrument and initiative.

2898
2899
2900

In identifying and selecting instruments and initiatives an organization might find it helpful to consider
two key factors: the purpose of engagement and the appropriateness of an instrument or initiative.
Consequently, in a first step an organization should consider the following questions:Examining performance

Improving performance© ISO 2007 – All rights reserved75

WORKING DRAFT 4.1

2901⎯ Is the initiative seen as useful by the organization?

2902⎯ Does the initiative help the organization address a problem?

2903⎯ Does the initiative help the organization reach an important stakeholder group?

2904⎯ Does the initiative provide the organization with useful information or tools?

2905⎯ Is the initiative locally relevant?

2906⎯ Is the initiative designed for this particular type of organization?

2907
2908

In a second step the organization should identify the appropriateness of an instrument or an initiative.
The following factors might be worth considering:

2909
2910
2911
2912
2913

⎯ nature, reputation and profile of the entity or entities developing or supporting the development of
the instrument or initiative (for example, whether the entity developing or supporting thedevelopment of the instrument or initiative is an inter-governmental or governmental body, amulti-stakeholder non-governmental non-profit body, single stakeholder non-profit body, or a forprofit commercial body);

2914
2915
2916
2917

⎯ nature of the process for development and implementation of the instrument or initiative (forexample, whether the instrument or initiative is developed and/or implemented through a multistakeholder, transparent, open, accessible with developed and developing country participants, ordoes not have some or all of these characteristics);

2918
2919

⎯ scope of application of the instrument or initiative (for example, global, regional or local
application; and

2920
2921

⎯ access to the instrument or initiative (for example, whether the instrument or initiative is available
at no cost, available at a cost).

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WORKING DRAFT 4.1

2922

Annex A – Social Responsibility Initiatives

2923
2924

Note: Please see the document NIDTF N053 which provides a suggested Annex and set of questions
on SR initiatives.

2925
2926
2927
2928

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77

WORKING DRAFT 4.1

2929

Bibliography

2930
2931
2932

Note: The Bibliography is currently being finalized and updated to reflect the revised text and toensure that all references are provided in proper ISO reference format. Because of time constraints
this task has not yet been completed.

2933

78

© ISO 2007 – All rights reserved

WORKING DRAFT 4.1

2934

Index

2935
2936
2937

Note: The Editing Committee believes that an index would increase the usability of ISO 26000 andthat it should be provided in the final document. This is something that could be undertaken by ISO at
the end of the process.

2938© ISO 2007 – All rights reserved

79