© ISO 2007 – All rights reserved

1

ISO/TMB WG SR N 143

2

Date: 2008-06-02

3

DRAFT ISO 26000 WD4.2

4
5

Guidance on Social Responsibility

6

Lignes directrices pour la responsabilité sociétale

7
8
9
10
11
12
13

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. Experts are invited tocomment on this draft using the official comments template. Comments should be submitted to the
WG Secretariat by 11 July 2008.

14
15
16
17

Warning18
19This 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.

20
21

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

WORKING DRAFT 4.2

22
23

Copyright notice

24
25
26
27
28

This ISO document is a Draft International Standard and is copyright-protected by ISO. Except
as permitted under the applicable laws of the user's country, neither this ISO draft nor any
extract from it may be reproduced, stored in a retrieval system or transmitted in any form or by
any means, electronic, photocopying, recording or otherwise, without prior written permission
being secured.

29
30

Requests for permission to reproduce should be addressed to either ISO at the address below
or ISO's member body in the country of the requester.

31
32
33
34
35
36

ISO copyright officeCase postale 56 • CH-1211 Geneva 20
Tel. + 41 22 749 01 11
Fax + 41 22 749 09 47
E-mail copyright@iso.org
Web www.iso.org

37

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

38

Violators may be prosecuted.

39
40

II

© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

41

Contents

42

Page

43

Foreword ...................................................................................................................................... 544

Introduction.................................................................................................................................. 645

1

Scope...................................................................................................................................... 946

2

Terms and definitions ........................................................................................................... 947

3

Understanding social responsibility ................................................................................... 12

48

3.1

The social responsibility of organizations ................................................................... 12

49

3.2

Current trends in social responsibility......................................................................... 13

50

3.3

Characteristics of social responsibility........................................................................ 13

51

3.4

Governments and social responsibility ....................................................................... 15

52

4

Principles of social responsibility....................................................................................... 15

53

4.1

General ....................................................................................................................... 15

54

4.2

Accountability.............................................................................................................. 15

55

4.3

Transparency .............................................................................................................. 16

56

4.4

Ethical behaviour ........................................................................................................ 16

57

4.5

Stakeholder................................................................................................................. 17

58

4.6

Rule of law .................................................................................................................. 18

59

4.7

International norms ..................................................................................................... 18

60

4.8

Human rights............................................................................................................... 1961

5

Recognizing social responsibility and engaging stakeholders ....................................... 19

62

5.1

General ....................................................................................................................... 19

63

5.2

Recognizing social responsibility ................................................................................ 19

64

5.3

Stakeholder identification and engagement ............................................................... 21

65

6

Guidance on social responsibility core subjects .............................................................. 24

66

6.1

General ....................................................................................................................... 24

67

6.2

Organizational governance......................................................................................... 25

68

6.3

Human rights............................................................................................................... 27

69

6.4

Labour practices ......................................................................................................... 35

70

6.5

The environment ......................................................................................................... 42

71

6.6

Fair operating practices .............................................................................................. 49© ISO 2007 – All rights reserved

III

WORKING DRAFT 4.2

72

6.7

Consumer issues ........................................................................................................ 52

73

6.8

Community involvement and development................................................................. 60

74

7

Guidance on implementing practices of social responsibility ......................................... 68

75

7.1

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

76

7.2

The relationship of the organization's characteristics to social responsibility............. 69

77

7.3

Understanding the social responsibility of the organization........................................ 69

78

7.4

Integrating social responsibility throughout the organization...................................... 72

79

7.5

Communication on social responsibility...................................................................... 75

80

7.6

Enhancing credibility regarding social responsibility .................................................. 77

81
82

7.7
Reviewing and improving the organization’s actions and practices related to social
responsibility .............................................................................................................................. 78

83

7.8

Selecting initiatives on social responsibility ................................................................ 81

84

Annex A – Social Responsibility Initiatives .............................................................................. 83

85

Bibliography................................................................................................................................. 84

86

Index ............................................................................................................................................. 91

IV© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

87

Foreword

88
89
90
91
92
93
94

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 on thatcommittee. 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.

95
96

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

97
98
99
100

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.

101
102
103

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.

104

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

© ISO 2007 – All rights reservedv

WORKING DRAFT 4.2

105

Introduction

106
107
108
109
110
111

Organizations around the world, as well as their stakeholders, are becoming increasingly aware of
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.

112
113
114
115
116
117

Social responsibility is becoming one of the important influences on an organization’s
performance. More than ever, an organization's performance in relation to the social environment
in which it operates, and its impact on the natural environment, has become a critical part ofmeasuring 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 eco-systems, social
equality and organizational governance.

118
119
120
121

Organizations are subject to greater scrutiny by their various stakeholders, including customers or
consumers, workers and their trade unions, members, the community, non-governmentalorganizations, students, financiers, donors, investors, companies and other commercial entities.
The perception of an organization’s social responsibility performance may influence:122the general reputation of the organization;

123
124



its ability to attract and retain men and women workers and/or members, but also customers,clients or users;125

the maintenance of employee’s morale and productivity;126

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

127
128



its relationship with government, the media, suppliers, peers, customers and the community
in which it operates.

129
130
131
132
133
134
135
136
137
138
139

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 is not intended toapply to governmental organizations when exercising their executive, legislative and judicial
powers. ISO has no authority or mandate to dictate, judge or imply what are the obligations ofStates and their governments. However, governmental authorities may wish to use the guidance
to inform their policies in the area of social responsibility.

140
141
142

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.

143
144
145

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.

146
147
148

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.

vi© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

149
150

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

151

Table 1 — Outline of contents of ISO 26000
Clause title

Clausenumber

Scope

Clause 1

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

Terms anddefinitions

Clause 2

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 3

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 4

Introduces and explains the fundamental principles of social
responsibility.

Recognizing social
responsibility andengaging
stakeholders

Clause 5

Addresses two fundamental practices of social responsibility: anorganization’s recognition of its social responsibility and its
identification and engagement of its stakeholders.

Guidance on social
responsibility core
subjects

Clause 6

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

Guidance on
implementing
practices of social
responsibility

Clause 7

Provides guidance on putting social responsibility into practice in an
organization

Annex on social
responsibility
initiatives

Annex A

Presents a comprehensive list of existing voluntary initiatives relating
to social responsibility.

Bibliography

Description of clause contents

Includes references to authoritative international instruments thathave been referenced in the body of the standard as source
material.

152
153
154

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.

© ISO 2007 – All rights reservedvii

WORKING DRAFT 4.2

155
156
157
158
159
160

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 and Others.
Efforts were made to achieve transparency and broad participation of the different stakeholder
groups. In addition, specific provision was made for encouraging the participation of developing
countries and providing a gender balance in drafting groups.

161

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

viii© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

162

Guidance on Social Responsibility

163

1

164
165

This International Standard provides guidance to all types of organizations, regardless of theirsize or location, on:166

concepts, terms and definitions relating to social responsibility;167

the background, trends and characteristics of social responsibility;168

principles and practices relating to social responsibility;169

core subjects and issues relating to social responsibility

170
171



integrating, implementing and promoting socially responsible behaviour throughout theorganization and its sphere of influence;172

identifying and engaging with stakeholders;173

communicating commitments and performance related to social responsibility; and hence174

contributing to sustainable development.

175
176
177

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.

178

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

179
180

It is intended to complement other instruments and initiatives related to social responsibility, andnot to replace them.

181
182
183

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.

184
185

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

186

2

187

The following terms and definitions apply to this International Standard.

188
189
190
191
192

2.1
accountability
state of an organization accepting responsibility for its decisions and actions and being
answerable to its governing bodies, legal authorities, and, more broadly, its other stakeholders
regarding these decisions and actions

193
194
195
196

2.2
consumerindividual member of the general public purchasing or using goods or services for private
purposes

Scope

Terms and definitions© ISO 2007 – All rights reserved

9WORKING DRAFT 4.2

197
198
199
200

2.3
customerorganization or person purchasing or using goods, property or services, for commercial or private
purposes

201
202
203
204

2.4
environment
natural surroundings in which an organization operates, including air, water, land, natural
resources, flora, fauna, humans, and their interrelation

205

NOTE

206
207
208
209

2.5
ethical behaviour
behaviour that is in accordance with accepted principles of right or good conduct in the context ofa particular situation, and consistent with international norms of behaviour

210
211
212

2.6
gender equality
fairness of treatment for women and men, according to their respective needs and interests

213
214

NOTE
This may include equal treatment or treatment that is different but considered equivalent interms of rights, benefits, obligations and opportunities

215
216
217
218

2.7
impact of an organization
any positive and negative change to society or the environment, wholly or partially resulting froman organization's activities and decisions

219
220
221
222
223

2.8
international norms of behaviour
norms that are universally, or nearly universally recognized, and based on customaryinternational law, generally accepted principles of international law, or authoritativeintergovernmental instruments

224
225
226
227

2.9
issue of social responsibility
a specific item of social responsibility (2.18) that can be acted upon to seek favourable outcomes
for the organization and/or its stakeholders

228
229
230
231

2.10
materialof sufficient relevance and significance to influence the decisions of an organization and/or theassessment of its stakeholders

232
233
234

2.11
organizational governancesystem by which an organization makes and implements decisions in pursuit of its objectives

235
236
237

2.12
principle
fundamental belief that guides or influences decision-making or behaviour

238
239
240

2.13
product
any goods or service offered to members of the public either by sales or otherwise

241
242
243

2.14
serviceaction of an organization to meet a demand or need10

Surroundings in this context extend from within an organization to the global system© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

244
245
246
247
248

2.15
social dialogue
all types of negotiation, consultation or simply exchange of information between, or among,representatives of governments, employers and workers, on issues of common interest relating
to economic and social policy

249
250
251
252
253

NOTE It can exist as a tripartite process, with the government as an official party to the dialogue or it may
consist of bipartite relations only between labour and management (or trade unions and employers'organizations), with or without indirect government involvement. It can be informal or institutionalised, andoften is a combination of the two. It can take place at the national, regional or at enterprise level. It can beinter-professional, sectoral or a combination of all of these.

254
255
256

2.16
social investment
investment of an organization aimed at improving social aspects of community life

257
258
259

2.17
socially responsible
consistent with social responsibility (2.18)

260
261
262
263

2.18
social responsibility
responsibility of an organization for the impacts of its decisions and activities on society and theenvironment, through transparent and ethical behaviour that264

 contributes to sustainable development, health and the welfare of society;265

 takes into account the expectations of stakeholders;266

 is in compliance with applicable law and consistent with international norms of behaviour; and267

 is integrated throughout the organization and practiced in its relationships.

268

NOTE 1

Activities include products, services and processes

269

NOTE 2

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

270
271
272

2.19
sphere of influence
area across which an organization has the ability to affect decisions or activities

273

NOTE

274
275
276

2.20
stakeholder
individual or group that has an interest in any activities or decisions of an organization

277
278
279
280
281

2.21
stakeholder engagement
any activity or activities undertaken to create opportunities for dialogue between the organizationand one or more of its stakeholders, with the aim of providing an informed basis for theorganization’s decisions

282
283
284
285

2.22
supply chain
system of individuals, organizations and resources involved in developing the different elementsof a product or service before an organization takes major responsibility for it

286
287

NOTE 1The processes associated with developing a product or service before an organization takes
major responsibility for it are commonly referred to as "upstream processes".

Area can be understood in a geographic sense, as well as in a functional sense© ISO 2007 – All rights reserved

11

WORKING DRAFT 4.2

288
289
290

NOTE 2
In some countries, the term supply chain also includes activities that occur after an organization
has taken major responsibility for the product and/or service, and thus is seen as being interchangeable withvalue chain (2.25).

291
292
293
294

2.23
sustainable development
development that meets the needs of the present without compromising the ability of future
generations to meet their own needs

295
296

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

297
298
299
300

2.24
transparency
openness about actions and impacts, and willingness to communicate these in a clear, accurate
and complete manner

301
302
303
304

2.25
value chain
sequence of processes and/or activities where each process/activity adds value to a product orservice before and after an organization takes major responsibility for it

305
306
307

NOTE
The processes associated with developing a product or service before an organization takes
major responsibility for it are commonly referred to as "upstream processes", those after an organization
takes major responsibility for it as "downstream processes".

308
309
310
311
312

2.26
vulnerable group
group that lacks material resources or that has any other disadvantage that makes it less able tomaintain or improve its living conditions and to mitigate or face adverse impacts caused by others
or by the social and natural environment

313
314

NOTE
Vulnerable groups can include e.g. children and young people, ill people, the aged, the illiterate
and people with disabilities, including intellectual impairment.

315

3

Understanding social responsibility

316

3.1

The social responsibility of organizations

317
318
319

The term social responsibility came into widespread use in the early 1970s, although various
aspects of 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.

320
321
322
323

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.

324
325
326

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

327
328
329

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

330
331

An early notion of social responsibility centred on philanthropic activities of some organizations
such as giving to charity. Subjects such as labour practices and fair operating practices emerged

12© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

332
333

a century or more ago. Other subjects, such as human rights, the environment and consumer
protection were added over time when these subjects received greater attention.

334
335
336

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

337

3.2

338
339

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

340
341
342
343
344
345
346

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 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 andindividuals. Policies or practices applied by an organization in different locations can be readily
compared.

347
348
349
350
351
352

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
well beyond 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 the Millennium Development Goals emphasize this worldwide
interdependence.

353
354
355
356
357
358
359
360
361

Over the past several decades, globalization has resulted in an increase in the power andinfluence of the private sector and a relative weakening of the role of the public sector indeveloped countries. The changing role of government has also seen the private sector andNGOs become the providers of many services previously offered by government. 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 of some developing country governments expand, the roles of government andprivate sector organizations are undergoing change.

362
363
364
365
366
367
368

All of the above changes have led to closer scrutiny of the activities and policies of organizations.
Consumers, investors and donors are, in various ways, exerting financial influence overorganizations concerning social responsibility. Community expectations about the performance oforganizations continue to grow. ‘Community right to know’ legislation in many places gives
people access to detailed information about the operations of some organizations. A growing
number of organizations now publish annual sustainability reports to meet stakeholders’requirements for information about their performance.

369
370

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

371

3.3

372

3.3.1 General

373
374
375

The essential characteristic of social responsibility is the willingness of an organization to takeresponsibility and be accountable for the impacts its activities and decisions create on society
and the environment. This implies both transparent and ethical behaviour.

Current trends in social responsibility

Characteristics of social responsibility© ISO 2007 – All rights reserved

13

WORKING DRAFT 4.2

376

3.3.2 The expectations of society

377
378
379
380
381

Social responsibility requires an understanding of the broader interests and expectations ofsociety. A fundamental element of social responsibility is respect for the rule of law andcompliance with legally binding obligations. Social responsibility also requires recognition of
obligations to others that are not legally binding. These obligations may arise out of widely sharedvalues and beliefs and ethics.

382
383
384
385

Although the expectations of responsible behaviour will vary between countries and cultures,organizations should recognize and accept the universally applicable values. These expectations
are reflected in international conventions and norms of behaviour established throughauthoritative intergovernmental instruments such as the Universal Declaration on Human Rights.

386
387
388
389

Clause 6 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.

390

3.3.3 The role of stakeholders in social responsibility

391
392
393
394
395
396
397
398
399

The identification of and engagement with stakeholders are fundamental practices of social
responsibility. Understanding who has an interest in the decisions and activities of anorganization is necessary to understanding the impacts of the organization and how to addressthese impacts. Stakeholders can help an organization identify the relevance of issues to theactivities of the organization. But stakeholders do not replace broader society in determining
norms and expectations 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 expectations of behaviour and on other actions that organizations may take toaddress their social responsibility can be found n Clause 6.

400

3.3.4 The integration of social responsibility

401
402
403
404
405

Because social responsibility concerns the impacts and likely impacts of an organization’s
activities and decisions, the ongoing, regular daily activities of the organization constitute themost important behaviour to be addressed. Philanthropy (giving to charitable causes) can have apositive impact on society. However, it should not be used by organizations to avoid addressing
the impacts of the activities essential to the purpose of the organization.

406
407
408

The impacts of an organization’s activities can be greatly affected by its relationships with otherorganizations. An organization may need to work with others in order to address its
responsibilities. This can include peer organizations, competitors or parts of its value chain.

409

3.3.5 Relationship between social responsibility and sustainable development

410
411
412

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.

413
414
415
416
417
418
419
420

Sustainable development (2.23) 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 theplanet’s ecological limits. Although numerous international forums have reiterated the importanceof these objectives over the years since 1987 – such as The Rio Earth Summit in 1992 and theWorld Summit for Sustainable Development in 2002 – there is little evidence that we have moved
much closer to these goals. Achieving these goals will require concerted action by organizations
and individuals, with particular responsibility required from those in affluent nations.

421
422

Social responsibility (2.18) has as its focus the organization, not the globe. Social responsibility
is, however, closely linked to sustainable development because an overarching goal of an

14© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

423
424
425
426
427
428
429

organization’s social responsibility should be to contribute to sustainable development. Clause 4of this International Standard identifies the principles of social responsibility. Clause 5 describes
two important practices: how organizations recognize their social responsibility and how they
identify and engage stakeholders. Clause 6 describes the core subjects of social responsibility.
These principles, practices and subjects form the basis for an organization’s practical applicationof social responsibility. The actions of a socially responsible organization can make a meaningful
contribution to sustainable development.

430
431
432
433
434

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
the way 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 isconducted and managed

435

3.4

436
437
438
439

This International Standard is applicable to governmental organizations in so far as theirfunctions resemble other organizations, as producers or buyers of goods or services, employers
and so on. Issues such as labour practices, environmental protection and other core subjects
described in Clause 6 are applicable to government organizations.

440
441
442
443
444
445

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 responsibilityof governments at the local, national and international levels. Only political decisions candetermine what activities should be undertaken by government or be subject to legally binding
regulation. However, governmental authorities may wish to use the guidance to inform theirpolicies in the area of social responsibility.

446
447
448
449
450

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

451

4

Principles of social responsibility

452

4.1

General

453
454
455
456
457
458
459

The social responsibility of organizations involves principled behaviour, that is, behaviour basedon standards, guidelines or rules of conduct that are recognized as being moral and right usuallyin the context of specific situations. This behaviour should be within the context of an overarchinggoal of contributing to sustainable development and the welfare of society. Although there is nocomprehensive list of principles for social responsibility there is widespread agreement that atleast the seven principles outlined below should apply. In addition, organizations should consider
the principles specific to each core subject outlined in Clause 6.

460

4.2

461
462

The accountability principle states that: an organization should be accountable for its impacts onsociety and the environment.

463
464
465
466

The fundamental concept of social responsibility is that an organization accepts a moral
obligation to be accountable for its impacts on society and the environment. This means that anorganization should accept appropriate scrutiny and also accept a duty to respond to thisscrutiny.

Governments and social responsibility

Accountability© ISO 2007 – All rights reserved

15

WORKING DRAFT 4.2

467
468
469
470
471
472

Accountability refers to the state of being answerable to others. Accountability imposes anobligation on management to be answerable to the controlling interests of the organization andwith the obligation of the organization to be answerable to legal authorities with respect to laws
and regulations. Accountability implies that the organization is answerable to those affected by its
decisions and activities, as well as to society in general for the overall impact on society of its
decisions and activities.

473
474
475
476
477
478

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

479

An organization should account for:

480
481



the results of the organization’s decisions and activities, including significant consequences,even if they were unintended or unforeseen; and482

the significant impacts of the organization’s decisions and actions on stakeholders.

483

4.3

484
485

The transparency principle states that: an organization should be transparent in its decisions andactivities that impact on others.

486
487
488
489
490
491
492

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 theactual and potential impacts on society and the environment. This information should be readily
available and directly accessible by those who have been, or may be affected in significant waysby the organization. It should be timely, factual and presented in a clear and objective manner so
as to enable stakeholders to accurately assess the impact that the organization’s decisions or
actions have on their respective interests.

493
494
495

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.

496

An organization should be transparent regarding:

497
498
499



the manner in which its decisions are made, implemented and reviewed, including thedefinition of the roles, responsibilities, accountabilities and authorities across the different
functions in the organization;500

the standards and criteria against which the organization evaluates its own performance;501

its purpose, the nature of its activities and where they are conducted;502



the known or likely impacts of its decisions and activities on others; and503



who it believes its stakeholders to be.

504

4.4

505

The ethical behaviour principle states that: an organization should behave ethically at all times.

506
507

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 integrity, honesty,

16

Transparency

Ethical behaviour© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

508
509

equity, stewardship and integrity. From these ethics flow a concern for others and theenvironment, and a commitment to address stakeholders’ interests.

510
511
512

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

513

Organizations should actively promote ethical conduct by:514



encouraging and promoting the observance of standards of ethical behaviour;

515
516
517



defining and communicating the standards of ethical behaviour required for personnel andparticularly for those that have the opportunity to significantly influence the values, culture,
integrity, strategy and operation of the organization;518



minimizing conflicts of interest throughout the organization;519



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

520
521



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

522
523



recognizing and addressing situations where local laws and regulations do not exist or
conflict with ethical behaviour.

524

4.5

Stakeholder

525
526

The stakeholder principle states that: an organization should respect and consider the interests of
its stakeholders.

527
528
529
530
531

Although an organization’s objectives may be limited to the interests of its respective owners,
members or constituents, other individuals or groups may also have rights, claims or specificinterests that should be taken into account. Individuals or groups that have one or more interests
in any activities or decisions of an organization can be considered an organization’s
stakeholders.

532
533
534
535
536
537

An organization should be aware of individuals and groups that have “stakes” or interests in its
decisions or activities. Usually the interests of these stakeholders will be easy to understand. The
various interests of shareholders in a corporation, of business partners and suppliers in abusiness enterprise or of people, who perform work for any organizations, are not difficult tounderstand. Not all interests will be readily apparent however. Moreover, stakeholders can havemultiple interests and even interests that conflict with those of the organization.

538

An organization should:

539
540



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

541
542



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

543
544



take into account the relative capacity of stakeholders to contact and engage theorganization;

545
546
547



take into account the relation of the stakeholder’s interests to the broader interests of society
and of sustainable development as well as the relation of the stakeholder to the organization;and© ISO 2007 – All rights reserved

17

WORKING DRAFT 4.2

548
549
550



551

4.6

552

The rule of law principle states that: an organization should respect the rule of law.

553
554
555
556
557
558
559
560
561
562

The rule of law refers to the supremacy of law and, in particular, to the idea that no individual
stands above the law and that government is also subject to law. The rule of law contrasts withthe arbitrary exercise of power. Implicit in the rule of law is that laws are written, publicly
disclosed and fairly enforced according to established procedures. In the context of social
responsibility respect for the rule of law means that an organization complies with all applicablelaws and regulations. This implies that an organization should take steps to be aware ofapplicable laws and regulations, to inform those within the organization responsible for observing
them and to see that they are observed. It also means that an organization should ensure that its
relationships are pursued and its activities are undertaken within the intended and relevant legal
framework.

563

An organization should:

564
565



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

566
567



ensure that its relationships and activities fall within the intended and relevant legal
framework;

568
569



comply with its own by-laws, policies, rules and procedures and apply them fairly andimpartially;570



recognize the legal rights and legitimate interests of stakeholders;571

remain informed of all legal obligations; and572



periodically review its compliance.

573

4.7

574
575
576

The international norms principle states that: an organization should respect relevantinternational norms where these norms are more favourable to sustainable development and thewelfare of society.

577
578
579
580

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 internationallaw, generally accepted principles of international law, or from sources of public international law
such as treaties.

581

An organization should:

582
583



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

584
585



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

586
587
588



where it has operations in more than one country, review their operations in any country
where there may be situations of irreconcilable conflict between complying with national law
and being consistent with an international norm; and18

consider the views of stakeholders that may be affected by a decision even if they have noformal role in the governance of the organization or are unaware of their interest in thedecisions or activities of the organization.

Rule of law

International norms© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

589
590



use available means of association with peer and other organizations to influence authorities
in the direction of compliance with international norms.

591

4.8

Human rights

592
593

The human rights principle states that: an organization should recognize both the importance andthe universality of human rights.

594

An organization should:595respect the rights set out in the Universal Bill of Human Rights;

596
597



accept that these rights are universal, that is, they are applicable in all countries, culturesand situations;

598
599



in situations where human rights are not protected, take steps to the best of its ability torespect human rights and avoid taking advantage of these situations; and

600
601
602
603



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 their application in order to make them consistent with respect for internationallyrecognized human rights.

604

5

Recognizing social responsibility and engaging stakeholders

605

5.1

General

606
607
608
609

This Clause addresses two fundamental practices of social responsibility. These are anorganization’s recognition of its social responsibility and its identification and engagement of its
stakeholders. As with the principles described in Clause 4, these practices should be kept in mind
when reading Clause 6 on the core subjects of social responsibility.

610
611
612
613
614
615

There are two aspects of recognizing social responsibility. One aspect is that an organization
should understand how its decisions and activities impact on others and the environment. The
other aspect is that an organization should understand the society’s expectations of responsible
behaviour concerning these impacts. The recognition of responsibility involves identifying theissues raised by the organization’s decisions and actions as well as the way these issues should
be addressed so as to contribute to sustainable development and the welfare of society.

616
617
618

The recognition of responsibility involves the recognition of an organization’s stakeholders. As
described in Clause 4 a basic principle of social responsibility is that an organization should
respect and consider the interests of its stakeholders.

619

5.2

620

5.2.1 Recognizing the subjects and expectations of responsibility

621
622

An effective way for an organization to identify its social responsibility is to become familiar with
the issues concerning social responsibility in the following core subjects:623

organizational governance;624

human rights;625



labour practices;

Recognizing social responsibility© ISO 2007 – All rights reserved

19

WORKING DRAFT 4.2626the environment;627



fair operating practices;628

consumer issues; and629

community involvement and development.

630
631
632
633
634

These core subjects cover the most likely economic, environmental and social impacts thatshould be addressed by organizations. Each of these core subjects is considered in Clause 6.
The discussion of each core subject describes specific issues that an organization should take
into account when identifying its social responsibility. All of the core subjects, but not all of theissues, have some relevance for every organization.

635
636
637
638

For each issue a number of actions that an organization should take or expectations with respect
to how an organization should behave are provided. In determining its social responsibility anorganization should identify each issue relevant to its activities together with these related actions
and expectations. Additional guidance on identifying issues can be found in Clause 7.2 and 7.3.

639
640
641
642

Of course, not all issues may be relevant for a specific organization. Moreover, these subjects
and their respective issues can be described or categorized in various ways. Some importantconsiderations, including health and safety, economics and the supply chain, are dealt with undermore than one subject in Clause 6.

643
644
645
646
647
648
649

The impacts of an organization’s activities and decisions should be considered with respect tothese issues. Most of the core subjects include issues that apply to almost any organization. For
example, most organizations employ people or are dependent on other organizations that employ
people, and therefore find at least some of the issues under the subject of labour practices
relevant to their social responsibility. Similarly, most organizations will have, directly or indirectly,
various impacts on the natural environment and find at least some of the issues under the subjectof environment relevant.

650
651
652
653

The identification of relevant issues should be followed by the assessment of the significance ofthe organizations impacts. The significance of an impact should be considered both withreference to the stakeholders concerned, but also with an understanding on how the impact
affects the broader interests of society and of sustainable development.

654
655
656

Recognizing social responsibility is helped by considering interactions with other organizations.
For example, business organizations may consider the impact of their activities on customers,
suppliers, partners and competitors.

657
658
659
660
661
662

An organization seeking to recognize its social responsibility should consider both the legallybinding and other obligations that exist. Legally binding obligations include applicable laws andregulations, as well as obligations concerning social or environmental issues that may exist in
enforceable contracts. Organizations should consider the commitments with respect to social
responsibility that they have made. Such commitments could be in ethical codes of conduct or
guidelines or in the membership obligations of associations to which they belong.

663
664
665
666
667

Recognizing social responsibility is a continuous process. Determining potential impacts ofactivities and decisions and taking these into account should be done during the planning stageof new activities. Ongoing activities should be reviewed as necessary in order to be confident thatthe social responsibility of the organization is still being addressed and to determine whether newissues need to be taken into account.

668

5.2.2 The extent of social responsibility

669
670
671

The social responsibility of an organization is not necessarily limited to its own activities. There
may also be situations where an organization more broadly has the ability to influence thedecisions or behaviour of other actors within its web of activities and relationships. Such

20

© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

672
673
674
675

situations are considered to fall within an organization’s sphere of influence. In these situations
an organization should assume some measure of responsibility commensurate with its ability toexert influence. However, an organization cannot be held responsible for the social impacts ofevery entity over which it may have some influence.

676
677
678
679
680

In some cases it is both possible and appropriate for an organization to seek to influence thebehaviour of other entities, particularly those with which it has close ties (such as its partners) or
where it considers the issues to be particularly compelling or relevant to its social responsibility.
As an organization gains experience in the area of social responsibility it may grow in its capacityand desire to intervene with other entities to advocate for social responsibility.

681
682
683
684

The sphere of influence of an organization can include parts of or even the whole value chain. It
could also include the formal and informal associations of which an organization is a member orin which it participates. Under some circumstances, it would also include peer organizations ororganizations that are considered competitors.

685

An organization’s value chain includes activities:686

backward in the chain (that is in the supply chain, such as suppliers);

687

forward in the chain (such as distributors, customers and consumers); and688

parallel to the organization (such as sector associations and partners).

689

5.3

Stakeholder identification and engagement690

5.3.1 General

691
692
693
694

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 and should not be avoided by an organization that wants to be recognized for itssocial responsibility.

695

5.3.2 Stakeholder identification

696
697
698
699
700
701
702

Stakeholders are organizations or individuals that have one or more interests (or stakes) that
establish a relationship with the organization. “Interest” in this sense does not mean “curiosity”
nor does it refer to a hobby, avocation or pursuit. In this context interest refers to something thatcan be the basis of a claim. Such claims need not involve financial claims or legal rights.
Sometimes the claim can simply be the right to be heard. From the standpoint of social
responsibility, the significance or relevance of an interest is best determined by its relationship tosustainable development and the welfare of society.

703
704
705
706
707
708

Individuals or groups that are affected, or likely to be affected, by an organization are usuallyconsidered to be among its stakeholders. Understanding how individuals or groups are affectedby an organization’s decisions or activities will make it possible to identify the interests that
establish a relationship with the organization. Therefore identifying the impacts of anorganization’s activities or decisions will make it easier to identify the most important of anorganization’s stakeholders.

709
710
711
712
713

The meaning of “stakeholder” is very broad and organizations will have many stakeholders.
Moreover, different stakeholders will have various and sometimes competing Interests.
Stakeholders can have both common and 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.

714
715

Some stakeholders should be considered as an integral part of the organization. These could
include the members or employees of the organization as well as the shareholders or other© ISO 2007 – All rights reserved

21

WORKING DRAFT 4.2

716
717
718

owners of the organization. It should be recognized that these stakeholders share a common
interest in the purpose of the organization and in its success. This does not mean however that
all of their interests with respect to the organization will be the same.

719
720
721
722

The interest of most stakeholders can be related to the social responsibility of the organization.
The most ordinary interests of stakeholders can be related to the broader interests of society. An
example is the supplier who wants to be paid. Honouring debts and contract obligations isessential to the interest of society.

723
724
725
726
727

Not all stakeholders of an organization belong to organized groups whose purpose is to represent
their interests with respect to specific organizations. Many stakeholders may not be organized atall, and for this reason, may be wrongly overlooked or ignored. Organizations therefore shouldtake into account that stakeholders may not be organized. This problem may be especially
important with respect to vulnerable groups.

728
729
730
731
732

An organization should weigh the representativeness and credibility of groups claiming to speak
on behalf of specific stakeholders. In some cases it will not be possible for important interests tobe formally represented. For instance, neither wildlife nor children will own or control organizedgroups. In this situation an organization should give attention to the views of credible groups
seeking to protect such interests.

733

To identify stakeholders, an organization might ask itself the following questions:734



to whom do legal obligations exist?

735



who might be positively or negatively affected by the organization’s activities?

736



who has been involved when similar issues needed to be addressed?

737

who can help an organization address specific impacts?

738



who would be disadvantaged if they were excluded from the engagement?

739



who is affected in the value chain?

740
741
742
743
744
745

In addressing its social responsibility with respect to any stakeholder, an organization should
understand three key relationships. One is the relationship between an organization’s impact andthe expectations concerning responsible behaviour. Another key relationship is between thestakeholder and the organization. Yet another is the relationship of the stakeholder’s interest to
sustainable development and the welfare of society. (Assistance in this respect can be found in
the issues described in Clause 6)

746
747
748
749

An understanding of each of these relationships can be used to determine an organization'ssocial responsibility with respect to any specific stakeholder. Of course it should be recognizedthat individuals and organizations may have various interests with respect to the decisions andactivities of any specific organization.

750

5.3.3 Stakeholder engagement

751
752
753
754

Stakeholder engagement involves dialogue between the organization and one or more of its
stakeholders. The main aim of stakeholder engagement should be to better address anorganization’s social responsibility. Although it is important for an organization to know who its
stakeholders are, it will not be possible for an organization to engage with all of its stakeholders.

755
756
757
758
759

In most situations it will not be necessary to engage specific stakeholders in order to understandthe expectations concerning an organization’s responsibility for its impacts on society. These
expectations will already be known or can be learned by the organization itself. Such
expectations are found in laws or regulations, widely accepted social or cultural expectations, andestablished best practices with respect to specific issues. Expectations concerning stakeholders’22© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

760
761

interests can be found in the “Related actions and/or expectations” sections following thedescription of various issues in Clause 6.

762
763
764
765
766
767

There are, however, important reasons for an organization to engage with some of its
stakeholders. Stakeholder engagement may be necessary to fulfil legal obligations – for instanceto shareholders or to employees. It can be used to determine how best to increase the beneficial
effects of the organization’s decisions and activities or how to decrease any harmful effects.
Stakeholder engagement can address the link between the stakeholders’ interests and the
responsibilities of the organization to society at large.

768
769
770
771
772
773

An organization can use stakeholder engagement to address conflicting interests – either
between the organization and the stakeholder or between various stakeholders Stakeholder
engagement can inform an organization’s decisions by helping it acquire a better understandingof the likely consequences of its actions and of its impacts that it would not otherwise have. It canbe part of continuous learning and a means of providing the organization with the benefits
associated with diverse perspectives.

774
775
776
777

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

778
779
780
781
782

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

783
784
785
786
787
788
789

Organizations should not select organized groups with which to engage in a self interested way
so as to avoid engaging the most appropriate or relevant stakeholders. Instead a fair and proper
process based on engaging the most appropriate stakeholders should be developed. Whenengaging stakeholders an organization should not give preference to an organized group
because it is more “friendly” or supports its goals more than another group. An organization
should not form or support groups in order to give the appearance that it has a dialogue partner
when the “partner” is not in fact truly independent.

790
791
792
793

Stakeholder engagement is more likely to be meaningful where there is a clear purpose, thestakeholder’s interests are identified, the relationship that these interests establish between theorganization and the stakeholder is direct or important, and where these interests are relevant
and significant to the interests of society and sustainable development.

794
795
796
797
798
799
800

Stakeholder engagement can take many forms. It can be initiated by the organization or it canbegin as a response by the organization to one or more stakeholders. It can take place in either
informal or formal meetings and can follow a wide variety of formats such as individual meetings,
conferences, workshops, public hearings, roundtable discussions, advisory committees,
participation in multi-party forums, membership and participation in community groups and otherassociations, interactive web based forums, etc. Stakeholder engagement is interactive. Itsessential feature is that it involves two way communications

801
802
803
804
805
806
807

Stakeholder engagement can be used to change the relationship between the organization andone or more of its stakeholders. This is true where the organization enters into a partnership with
one or more of its stakeholders in order to achieve mutually beneficial goals. These could involve
participation in “multi-stakeholder” groups or undertaking joint projects. Such “win-win”
relationships will not be possible with all stakeholders. As with all genuine partnerships, all parties
need to be truly independent. Sometimes stakeholders are included in the formal governancestructures such as the Board of Directors or similar governing body of an organization.

808

An organization should:© ISO 2007 – All rights reserved

23

WORKING DRAFT 4.2

809

a)

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

810
811

b)

use stakeholder engagement to reconcile conflicts involving its interests, those of its
stakeholders and those of society as a whole;

812

c)

be responsive to its stakeholders; and

813
814

d)

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

815

6

Guidance on social responsibility core subjects

816

6.1

General817
818

To define the scope of its social responsibility, identify the relevant issues and to set up itspriorities, an organization should address the following core subjects:819

organizational governance;820

human rights;821



labour practices;822the environment;823

fair operating practices;824

consumer issues; and825

community involvement and development.

826
827
828
829
830

Each of these core subjects includes a range of issues of social responsibility (2.9) that aredescribed in this clause. An overview presenting the benefits for the organizations, thecorresponding principles and considerations as well as expectations and/or related actions arealso provided for each core subject. (Note: Other issues can appear in the future as social
responsibility is dynamic and reflects the evolution of the social and environmental concerns).

831
832
833
834
835
836

Dealing with these core subjects should be based on the principles and practices of social
responsibility (Clauses 4 and 5). An organization should identify and address all those core
subjects and issues that have a bearing or relevant influence on its decision and activities (seeClause 5). When assessing relevance of issues, short and long term economic objectives should
be taken into account where relevant. However, there is no pre-determined order in which anorganization should address them; this will vary with the organization and its strategy.

837
838
839

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

840
841
842
843

An organization should look at the core subjects 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 orcreate adverse impacts in the value chain; life cycle of its products/services or its stakeholders.

844

Further guidance on implementation of social responsibility is provided in clause 7.

24© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

845

Figure 1 — The seven core subjects at a glance

846
847
848

6.2

Organizational governance849

6.2.1 Overview of organizational governance

850

6.2.1.1

851
852
853

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

854
855
856
857
858
859

Governance systems may vary, depending on the size and type of organization and theeconomic, political, cultural and social contexts in which it operates. Although governanceprocesses and structures 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 [1, 2].

860

6.2.1.2

861
862
863
864

Organizational governance in the context of social responsibility has the special characteristic of
being both a core subject on which organizations should act, and a means to increase theorganization’s ability to implement socially responsible behaviour in respect of the other core
subjects.

865
866
867
868

This special characteristic arises from the fact that an organization aiming to be socially
responsible has a decision-making system that incorporates, in practice, the principles ofaccountability, transparency, ethical conduct, consideration of stakeholders’ interests and legal
compliance, as described in Clause 4.

Organizations and organizational governance

Organizational governance and social responsibility© ISO 2007 – All rights reserved

25

WORKING DRAFT 4.2

869

6.2.1.3 Benefits to an organizations of socially responsible organizational governance

870
871
872
873
874
875
876

The adoption of socially responsible organizational governance practices encourages more
informed decision-making based on an improved understanding of the expectations of society
and of the risks and opportunities associated with social responsibility. Responsibleorganizational governance can improve the organization’s relationship with its stakeholders. By
fostering legitimacy it leads to decisions that are more likely to have the support and confidenceof those implementing and/or affected by them. It can thus result in improved risk management
practices and an enhanced reputation for the organization.

877

6.2.2 Principles and considerations

878
879
880
881

Effective governance, which applies to social responsibility and other aspects of organizational
activity, should be based on incorporating the principles and practices of accountability,transparency, ethical conduct, consideration of stakeholders’ interests and legal compliance into
decision-making and implementation [1, 2].

882

6.2.3 Decision-making processes and structures883

6.2.3.1

884
885

Decision-making processes and structures conducive to social responsibility are those that
promote the practical use of the principles and practices mentioned in Clauses 4 and 5.

886
887
888
889
890
891
892

Every organization has some form of decision-making process and structures. In some cases –such as large companies and governmental bodies – these systems are likely to be formal,
sophisticated and even subject to laws and regulations. In other cases – as in small organizations– such systems are frequently informal and do not clearly define the level of authority andresponsibility of people who make decisions on behalf of the organization. However, allorganizations should put in place processes, systems and structures to make it possible for theorganizations to apply to apply the principles and practices of social responsibility [1, 2].

893

6.2.3.2894
895

An organization should periodically review its decision-making processes and structures toenhance its ability to:

896
897



create and nurture an environment where principles of transparency, ethical conduct,accountability, legal compliance and consideration of stakeholders’ interests are practiced;

898
899
900



efficiently use financial, natural and human resources, while ensuring fair representation ofhistorically under-represented groups (including women and racial and ethnic groups) insenior positions in the organization;

901
902



balance the needs of the organization and its stakeholders, including immediate needs andthose of future generations;

903
904



establish a permanent two-way communication process between the organization and its
stakeholders that takes into account the interests of stakeholders;

905
906



encourage greater participation by its employees in the organization’s decision-making onsocial responsibility issues;

907
908



delegate authority proportionately to the responsibilities assumed by each organization’s
member or employee; and

909
910



keep track of decisions to ensure they are followed through and to determine responsibilities
for the results of organization’s activities, either positive or negative.

26

Description

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

WORKING DRAFT 4.2

911

6.3

Human rights

912

6.3.1 Overview of human rights

913

6.3.1.1 Organizations and human rights

914
915
916
917
918
919

Human rights are the basic rights to which all human beings are entitled because they are humanbeings. One may divide human rights into two broad categories. The first category concerns civil
and political rights and includes such rights as the right to life and liberty, equality before the law,and freedom of expression. The second category concerns economic, social and cultural rights
and includes such rights as the right to work, the right to food, the right to education and social
security.

920
921
922

Various widely held moral and intellectual beliefs conclude that human rights transcend humanlaws or cultural traditions. The primacy of human rights has been emphasized by the international
community in the Bill of Rights and core human rights instruments.

923
924
925
926
927
928
929
930
931
932
933
934
935
936
937
938
939
940
941
942
943
944
945
946
947
948
949
950
951

Box 1 The International Bill of Human Rights and the Core Human Rights Instruments

952
953
954
955

The recognition and respect for human rights is widely regarded as essential to the rule of law, toconcepts of justice and fairness and as the basic underpinning of the most essential institutionsof societies such as the judicial system. Value placed on human rights is the measure ofcivilization.

956
957

6.3.1.3 Benefits to organizations of implementing socially responsible behavior in the areaof human rights

958
959
960

The perception that an organization does not respect human rights would cause serious damage
to the organization’s reputation, and could result in a loss of public trust and weakening of
employee loyalty, making it difficult for the organization to achieve its purpose.

The Universal Declaration of Human Rights (UDHR) [3] is a non-binding declaration adopted by
the UN General Assembly in 1948, and the most widely recognised human rights instrument. It
provides the base for human rights law and elements of it have become part of internationalcustomary law. Recognising both the universal nature of the rights, and that their realisation
requires the involvement of all, the Declaration calls on “all organs of society” to contribute tosecuring the rights contained in the Declaration. The UDHR together with the subsequentinternational conventions spelling out in more detail the content of the rights contained in the
UDHR, rests on the founding principle of the inherent dignity of all members of the humanfamily. The covenant on Civil and Political Rights and the covenant on Economic, Social andCultural Rights are treaties adopted by the General Assembly in 1966 and thereafter ratified byindividual states. The International Bill of Human Rights refers to the Universal Declaration on
Human Rights, the covenant on Civil and Political Rights [4] and the covenant on Economic,
Social and Cultural Rights [5], as well as the optional protocols to the two covenants of which
one aims to the abolition of death penalty [6].
In addition to the Bill of Human Rights, there are nine Core International Human Rights
Instruments that also form part of international human rights law and that deal with: theelimination of all forms of racial discrimination [7], elimination of all forms of discrimination
against women [8], efforts against torture and other cruel, inhuman or degrading treatment or
punishment [9], rights of the child [10], involvement of children in armed conflict [11], sale ofchildren, child prostitution and child pornography [12], protection of migrant workers and theirfamilies [13, 14, 15, 16], protection of all persons from enforced disappearances [17] and rightsof persons with disabilities [18]. Taken together these instruments form the basis forinternational standards for universal human rights. Some instruments allow for individualcomplaints to be lodged, subject to procedural rules outlined in optional protocols.
6.3.1.2 Human rights and social responsibility© ISO 2007 – All rights reserved

27

WORKING DRAFT 4.2

961

6.3.2 Principles and considerations962

6.3.2.1 Principles

963

Human rights are inherent, inalienable, universal, indivisible and interdependent:964they are inherent, in that they belong to everyone because of their common humanity;

965
966



they are inalienable, in that people cannot consent to giving them up or be deprived of themby governments or any other institutions;967

they are universal, in that they apply to all people regardless of any status;

968

they are indivisible, in that the rights carry equal importance; and

969
970



they are interdependent, in that realization of one right contributes to the realization of otherrights.

971

6.3.2.2 Considerations

972
973
974
975
976
977

States have the primary obligation to protect individuals and groups against abuse of humanrights, as well as to respect and fulfil human rights within their jurisdiction. It is widely recognizedthat organizations and individuals have the potential to and do affect human rights, directly andindirectly. Organizations have the responsibility to respect all human rights, even where the state,
for whatever reason, has been unable or unwilling to fulfil its duty to protect. In such cases anorganization may have to pay more attention to these factors than would otherwise be the case.

978
979
980
981
982

Even though international law primarily binds states, there are some fundamental principles ofinternational law that are binding on all individuals and entail legal liability. These include theprohibition of torture, crimes against humanity, slavery and genocide. Some countries haveadopted national legislation in order to prosecute legal entities in national courts with regard tocertain international crimes.

983
984
985
986
987
988

Governments and courts at the international and national level define the scope of legal
obligations of organizations concerning human rights. However, the scope of responsibility of anorganization to respect human rights is broader than its legal obligations in that this responsibility
is also shaped by social expectations. Stakeholder expectations also often extend beyond the
avoidance of harm to the belief that organizations can and should make a positive contribution to
the realization of human rights where they are in a position to do so.

989
990
991
992
993
994
995
996
997

The concept of “sphere of influence” can be used to help develop the scope of an organization's
opportunities to support human rights, including with respect to the categories of rights holders
and rights where they can have the greatest positive impact. In many situations, an organization’s
sphere of influence and opportunities to support human rights will be greatest with respect to its
own operations and workers, with its ability to act gradually declining outward to the supply chain,
local communities and beyond. In some cases, organizations may wish to increase their leverageor sphere of influence through collaboration with other organizations and individuals. Assessmentof the opportunities for action and leverage will depend on the particular circumstances, somespecific to the organization and some specific to the context in which it is operating.

998

6.3.3 Human rights issue 1: Due diligence999

6.3.3.1 Description of the issues

1000
1001
1002

Due diligence involves compliance with national laws but also managing the risk of harm tohuman rights with a view to avoiding it. It may also entail influencing the behaviour of others,
which may be the cause of human rights violations. In order to respect human rights,

28© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

1003
1004

organizations have a responsibility to conduct due diligence to become aware of, identify, prevent
and address actual or potential adverse human rights impacts related to their activities.

1005

6.3.3.2 Related actions and/or expectations

1006

An organization should:

1007



Consider in any due diligence three sets of factors;

1008
1009

a) the country context in which the organization operates or in which the organization’s
activities take place;1010b) the potential and actual human rights impacts of the organization’s own activities; and

1011
1012

c) the potential for abuse of human rights resulting from the actions of other entities whose
activities are significantly linked to those of the organization.

1013



Include, in a due diligence for it to be reliable, the following components;

1014
1015

a) a human rights policy for the organization that gives meaningful guidance to those within
the organization and those significantly linked to the organization;

1016
1017

b) means of assessing how existing and proposed activities may affect human rights, which
is appropriate to the types and location of activities;

1018c) means of integrating the human rights policy throughout the organization; and

1019
1020

d) means of tracking performance over time, to be able to make necessary adjustments inpriorities and approach.

1021
1022

In identifying potential areas for action, an organization should strive to better understandchallenges and dilemmas from the perspective of the individuals and groups potentially harmed.

1023
1024
1025
1026
1027
1028

In addition to this self-examination, an organization may find that in some cases it is both
possible and appropriate to seek to influence the behaviour of other entities in support of humanrights, particularly those with which it has closer ties or where the organization feels the issues isparticularly compelling or relevant to its situation. As an organization gains experience in the areaof respect for human rights it may grow in its capacity and willingness to intervene with otherentities to advocate for respect for human rights.

1029

6.3.4 Human rights issue 2: Human rights risk situations1030

6.3.4.1 Description of the issues

1031
1032

Organizations are more likely to face challenges and dilemmas in dealing with issues related tothe protection and observance of human rights in certain circumstances and environments.

1033

6.3.4.2 Related actions and/or expectations

1034

Organizations should take specific care when dealing with situations characterized by:

1035
1036



conflict [19] or extreme political instability, or situations of poverty, drought or natural
disasters;

1037
1038



involvement in extractive activities or other activities that might significantly affect natural
resources such as water, forests or the atmosphere and often disrupt communities;

1039



proximity of operations to communities of indigenous peoples [20, 21];© ISO 2007 – All rights reserved

29

WORKING DRAFT 4.2

1040



activities that can affect or involve children [10, 11, 12];

1041



a culture of corruption;

1042
1043



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

1044



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

1045
1046
1047
1048
1049

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 onwhether and how to conduct themselves. While there are no simple formulas or solutions, any
judgment should be based on respecting, promoting and defending the overall fulfilment of
human rights.

1050
1051
1052
1053

Contexts in which human rights have been abused or are being abused are often extremelycomplex. In responding, the organization should give thought to the potential consequences of its
actions so that the desired objective is actually achieved, - in particular it is important not tocompound or create other abuse - while not using complexity as an excuse to not act.

1054

6.3.5 Human rights issue 3: Avoidance of complicity

1055

6.3.5.1 Description of the issues

1056
1057
1058

Complicity means an organization is indirectly involved in abuse of human rights by failing to act
when an entity within its sphere of influence commits an abuse. There are three forms ofcomplicity:

1059
1060
1061
1062

a) direct complicity occurs when an organization knowingly assists a state in violating
human rights. An example of an organization which took measures to ensure that it was
not complicit was a trade union whose members refused to unload a shipment of arms
destined for a ruler to use against the country’s citizens.

1063
1064
1065
1066

b) beneficial complicity suggests that an organization benefits directly from human rights
abuses committed by someone else. Examples include an organization tolerating
security forces suppressing a peaceful protest against it’s activities or the use ofrepressive measures while guarding its facilities.

1067
1068
1069
1070

c) silent complicity might involve the failure by an organization to raise the question ofsystematic or continuous human rights violations in its interactions with the appropriate
authorities, such as not speaking out against systematic discrimination in employment
law against particular groups.

1071
1072

Organizations can become aware of, prevent and address risks of complicity by integrating thecommon features of legal and societal benchmarks into their due diligence.

1073

6.3.5.2 Related actions and/or expectations

1074
1075

A prominent area in respect of potential complicity relates to security arrangements. In thisrespect:

1076
1077

a) organizations should verify that their security arrangements respect human rights and areconsistent with international UN standards and norms for law enforcement.

1078
1079

b) procedures should include measures to prevent torture, cruel, inhuman or degrading
treatment and the use of excessive force.

30© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

1080
1081

c) security personnel (employed or contracted) should be adequately trained, including in
adherence to these standards of human rights.

1082
1083

d) organizations should develop clear rules for contracting with security forces and for not
hiring security personnel with a record of human rights violations.

1084
1085

e) complaints about security procedures or personnel should be addressed andinvestigated promptly and independently.

1086
1087
1088

f)

organizations supplying military security or police services should take measures toprevent any human rights violations. Such measures could include adequate training forstaff, and oversight and monitoring of staff behaviour.

1089

6.3.6 Human rights issue 4: Discrimination and vulnerable groups

1090

6.3.6.1 Description of the issues

1091
1092
1093
1094
1095
1096
1097
1098

Discrimination involves making a distinction in favour of or against a person to deny him or her
the same treatment or opportunities as others, where that consideration is based on prejudicerather than a legitimate ground. Illegitimate grounds for discrimination include: race, colour, sex,age, marital status, language, religion, political or other opinion, national, ethnic or social origin,sexual orientation or HIV/AIDS-status [3, 22, 23, 24, 25, 26]. Certain other grounds, such as
disability [15] or pregnancy also often form the basis for undue, prejudicial discrimination. The
prohibition of discrimination is one of the most fundamental principles of international humanrights law.

1099
1100
1101

The full and effective participation and inclusion in society for all vulnerable groups provides
opportunities for all organizations as well as the people concerned. An organization has much togain by taking an active approach to ensuring equal opportunity and respect for all individuals.

1102

6.3.6.2 Related actions and/or expectations

1103
1104
1105
1106

a) An organization should take care to ensure that it does not discriminate against anyone
on any unjustified grounds. This includes employees, business partners, customers,
stakeholders, members and anyone, which the organization has any contact with or
impact on.

1107
1108
1109
1110
1111

b) Groups that have suffered persistent discrimination, leading to entrencheddisadvantages, are more vulnerable to further discrimination, and their human rights
should be the focus of additional attention in terms of protection by the state and respect
by organizations. Vulnerable groups include the following, but there may be others in an
organization’s particular community of operation.

1112
1113
1114
1115
1116
1117
1118

c) Although women comprise half of the world population, they are almost universallydenied access to resources and opportunities on equal terms with men. Women have theright to non-discrimination in education, employment and economic and social activities
as well as the right to decide on marriage, family matters and right to make decisions
over their own reproductive health. An organization’s policies and activities should
respect women’s rights and promote the equal treatment of women and men in theeconomic, social and political spheres. [8]

1119
1120
1121
1122

d) People with disabilities are often vulnerable, in part because of misperceptions about
their skills and abilities. An organization should contribute to ensuring that men andwomen with disabilities are accorded dignity, autonomy and full participation in society.
[18]

1123
1124
1125

e) Children are vulnerable because of their dependent status. All actions with effect or
potential effect on children should give primary consideration to the best interests of thechild. The principles from the Convention on the Rights of the Child, which include non-© ISO 2007 – All rights reserved

31

WORKING DRAFT 4.2

1126
1127

discrimination, a child’s right to life, survival, development and free expression, should
always be respected and taken into account. [10, 11, 12]

1128
1129
1130
1131
1132
1133
1134

f)

1135
1136
1137

g) Migrants and migrant workers and their families are also a vulnerable group.
Organizations should contribute to promoting a climate of respect for the human rights of
migrant workers and their families. [13, 14, 15, 16]

1138
1139
1140
1141
1142

Organizations also should contribute to redressing discrimination or the legacy of past
discrimination, wherever practicable. For example, they should make special efforts to employ or
do business with organizations operated by people from groups historically discriminated against
and, where feasible, supporting efforts to increase access to education, infrastructure or social
services for groups denied full access.

1143

6.3.7 Human rights issue 5: Resolving grievances1144

6.3.7.1 Description of the issues

1145
1146
1147
1148
1149
1150

Effective grievance mechanisms play an important role in the state duty to protect human rights.
Equally, the organization’s responsibility to respect human rights requires a means for those who
believe they have been harmed to bring this to the attention of the organization and seek redress,
without prejudice to legal channels available. Non-state mechanisms must not undermine thestrengthening of state institutions, particularly judicial mechanisms, but can offer additional
opportunities for recourse and redress.

1151

6.3.7.2 Related actions and/or expectations

1152
1153

An organization should establish remedy mechanisms for use by organizations and theirstakeholders. For these mechanisms to be effective they should be:

1154
1155
1156

a) legitimate: clear, transparent and sufficiently independent governance structures should
be in place to ensure that no party to a particular grievance process can interfere with thefair conduct of that process;

1157
1158
1159

b) accessible: publicized to those who may wish to access it and provide adequate
assistance for aggrieved parties who may face barriers to access, including language,
literacy, awareness, finance, distance, or fear of reprisal;

1160
1161
1162

c) predictable: clear and known procedure with a time frame for each stage and clarify thetypes of process and outcome it can (and cannot) offer, as well as a means of monitoring
the implementation of any outcome;

1163
1164
1165

d) equitable: aggrieved parties should have reasonable access to sources of information,
advice and expertise necessary to engage in a grievance process on fair and equitableterms;

1166
1167e) rights-compatible: the outcomes and remedies should accord with internationallyrecognized human rights standards; and

1168
1169

f)

32

Indigenous rights are collective rights granted to enable indigenous peoples to continue
their distinct traditional lifestyles. Indigenous rights are established to support indigenous
peoples’ self-determination and their freedom to make decisions on issues such as
management of land that they traditionally occupy, resources, education, judicial and law
enforcement. Organizations should respect applicable indigenous rights when carryingout activities within a country and ensure that proper consideration, respect andconsultation is carried out to respect the rights.[20, 21]transparent: the process and outcome should be sufficiently open to public scrutiny andprioritize the public interest.

© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

1170

6.3.8 Human rights issue 6: Civil and political rights

1171

6.3.8.1 Description of the issues

1172
1173
1174
1175
1176
1177

Civil and political rights include 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 fair hearing
when facing criminal charges. They further include freedom of opinion and expression, freedomof peaceful assembly and association, freedom to adopt and practice a religion, freedom to holdbeliefs, freedom from arbitrary interference with family, home or correspondence and the right toprivacy, to access to public service and to take part in elections. [4, 6]

1178

6.3.8.2 Related actions and/or expectations

1179
1180

An organization should always respect the right to life of individuals. An organization should
respect the right to:

1181
1182
1183



freedom of opinion and expression, and should not aim to suppress anyone’s views or
opinions, even when the person expresses criticism of the organization internally andexternally;

1184



freedom of peaceful assembly and of association;

1185
1186



seek, receive and impart information and ideas through any media and regardless of national
borders; and

1187
1188
1189



due process and the right to a fair hearing before taking any internal disciplinary measures.
Any disciplinary measures should be proportionate and not involve physical punishment orinhuman or degrading treatment.

1190

6.3.9 Human rights issue 7: Economic, social and cultural rights

1191

6.3.9.1 Description of the issue

1192
1193
1194

Every person, as a member of society, has the right to economic, social and cultural rights
indispensable for his or her dignity and personal development. Economic, social and culturalrights include rights to health, education, food and culture. [5]1195

6.3.9.2 Related actions and/or expectations

1196
1197
1198
1199
1200
1201

In acting with respect for these rights, organizations should base their actions on an
acknowledgement that everyone has the right to an education, a standard of living adequate forthe physical and mental health and well-being of himself or herself and family, including food,clothing, housing, medical care and necessary social protection, such as the right to security inthe event of unemployment, sickness, disability, widowhood, old age or other lack of livelihood in
circumstances beyond his or her control.

1202
1203
1204

An organization should also base actions on the ideals that parents are entitled to choose theeducation for their children, and that education should be directed to the full development of thehuman personality and dignity.

1205
1206
1207

Organizations can contribute to respect for these rights by refraining from actions that obstruct or
impede the realization of such rights, and more positively by helping to secure them whenappropriate. Two such examples are given below.

1208
1209
1210



An organization should not directly or indirectly limit or deny access to an essential productor resource, such as water. For example, production processes should not compromise thesupply of scarce potable water resources.

© ISO 2007 – All rights reserved

33

WORKING DRAFT 4.2

1211
1212
1213
1214



1215
1216
1217

Economic, social and cultural rights should also be considered in the local context of the rights
holders. Further guidance on related actions and expectations is provided in subclause 6.8 on
community involvement and development.

1218

6.3.10 Human rights issue 8: Fundamental rights at work1219

6.3.10.1 Description of the issue

1220
1221

This sub-clause deals with those human rights that the International Labour Organization (ILO)(see Box 2) has identified and designated as fundamental rights at work [27]. These include:

1222



recognition of the rights of freedom of association and collective bargaining [28, 29];

1223



the elimination of forced or compulsory labour [30, 31];

1224



the abolition of child labour [32, 33, 34, 35]; and

1225



the elimination of discrimination in employment and the world of work [36, 37, 38].

1226

6.3.10.2 Related actions and/or expectations

1227

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

1228
1229
1230
1231
1232
1233
1234
1235
1236



freedom of association and collective bargaining [28, 29]: Representative organizations
formed or joined by workers should be recognized for purposes of collective bargaining.
Terms and conditions of employment may be fixed by voluntary collective negotiation where
workers so choose, and workers' representatives should be given facilities that will enable
them to do their work 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, particularly about how freedom of association andcollective bargaining relate to social dialogue.

1237
1238
1239
1240
1241
1242
1243
1244



forced labour [30, 31]: An organization should not engage or benefit from any use of forced
or compulsory labour. No work or service should be exacted from any person under the
threat of any penalty or when the work is not conducted voluntarily. An organization should
not engage or benefit from prison labour, unless the prisoners have been convicted in acourt of law and their labour 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.

1245
1246
1247
1248
1249
1250



child labour [32, 33, 34, 35]: Organizations should respect and not engage or benefit fromany use of child labour. The minimum age for employment is determined throughinternational instruments. International labour standards establish a minimum age of 15
years generally, and 14 years of age in some developing countries. Children and young
persons under 18 should not be employed in any work that, by its nature or thecircumstances by which it is carried out, is likely to harm their health, safety or morals.

1251
1252
1253



non-discrimination [36, 37, 38]: Organizations should check that their employment policies
are free of gender, racial or other bias and that earnings, employment conditions and hiring
policies are based on objective job evaluations.

34

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

© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

1254

6.4

Labour practices

1255

6.4.1 Overview of labour practices

1256

6.4.1.1 Organizations and labour practices

1257
1258

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

1259
1260
1261
1262

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.

1263
1264
1265
1266
1267
1268

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 conditionsof work. Labour practices also include the recognition of worker organizations and representationand participation by the organization in collective bargaining, social dialogue and tripartite
consultation to address social issues related to employment.

1269

6.4.1.2 Labour practices and social responsibility

1270
1271
1272
1273
1274
1275
1276

The creation of jobs, as well as wages and other compensation paid for work performed areamong an organization's most important economic and social impacts. Meaningful and productive
work is an essential element in human development through the improvement of standards ofliving through full and secure employment. Its absence is a primary cause of social problems.
Labour practices have a major 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 andstability.

1277

6.4.1.3 Benefits to an organization of socially responsible labour practices

1278
1279
1280
1281
1282
1283

Socially responsible labour practices can have a significant positive impact on an organization’s
ability to recruit, motivate and retain its employees, thereby enhancing its ability to attain its
objectives. Responsible labour practices generally encourage improved safety and heath
performance of employees, and can result in greater engagement of employees in identifyingsocial responsibility risks and opportunities. Responsible labour practices can also positively
impact on an organization's reputation.

1284

6.4.2 Principles and considerations

1285

6.4.2.1 Principles

1286
1287
1288
1289
1290
1291
1292

The fundamental principle, enshrined in the ILO's 1944 Declaration of Philadelphia [39], is thatlabour is not a commodity. This means that women and men workers should not be treated as afactor 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 andCultural Rights [5]. The principles involved include the right of everyone to gain a living by freely
chosen work, and the right to just and favourable conditions of work.

1293

6.4.2.2 Considerations

1294
1295
1296

Many internationally recognized human rights are related to labour. The right of all workers toform or join their own organizations and to collectively bargain with their employer, as well as tobe free from discrimination with respect to employment and occupation, and from child labour© ISO 2007 – All rights reserved

35

WORKING DRAFT 4.2

1297
1298
1299
1300
1301

and forced labour are all basic human rights: as such they are dealt with in greater detail in
Clause 7.3. These rights are also recognized by the ILO as fundamental rights at work and are
expressed in eight Conventions referred to as the Core Conventions [27]. Many other ILO
Conventions and Recommendations also give practical meaning to the provisions in the
Universal Declaration of Rights and its two covenants mentioned in Clause 6.3 (Box 1).

1302
1303
1304
1305
1306

The primary responsibility for ensuring fair and equitable treatment for workers 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 accessto justice in the event that they are not upheld.

1307
1308
1309
1310
1311

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
consideration is that co-operation and collective bargaining should be the basis for organizations
behaving in a socially responsible manner.

1312
1313
1314

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.

1315

6.4.3 Labour practices issue 1: Employment and employment relationships

1316

6.4.3.1 Description of the issue

1317
1318
1319

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.

1320
1321
1322
1323
1324
1325

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

1326
1327

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

1328
1329
1330
1331
1332
1333

Not all work is performed within an employment relationship. Work and services are also
performed by men 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 andresponsibilities and to have recourse in the event that the terms of the contract are not respected
[40].

1334
1335
1336
1337

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 allorganizations should adopt to discharge and fulfil obligations relating to such things as criminal
liability and duty of care need to be taken into account where volunteers are involved.

1

1
The term “employee” refers to an individual in a relationship recognized as an “employment relationship” in national 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.

36© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

1338

6.4.3.2 Related actions or expectations

1339

An organization should:

1340
1341



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;

1342
1343



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

1344
1345
1346
1347



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

1348
1349
1350



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
considering changes in its operations, such as closures that affect employment; [41, 42]

1351
1352
1353



eliminate discrimination in employment practices and offer equal opportunities to women,
workers with disabilities [43, 44, 45] and other vulnerable groups, such as young or older
workers, migrants and indigenous peoples [21];

1354



not engage in arbitrary or discriminatory dismissal practices [41, 42];

1355
1356
1357
1358
1359
1360
1361



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 forthe performance of work that do not confer legal rights on those performing the work [46, 47].
In this regard, it should take steps to confirm that the organizations with which it deals, forinstance suppliers and sub-contractors, are legitimate enterprises whose labour practices
require that all work be performed within the appropriate legal and institutional framework;

1362
1363
1364
1365
1366
1367
1368
1369
1370
1371
1372



not benefit from unfair, exploitative or abusive labour practices of their partners, suppliers or
sub-contractors. An organization should accept responsibility for work done on its behalf byother organizations commensurate with the degree of control that it exercises and with thepotential that the rights of the workers concerned may not be respected [48]. Depending onthese circumstances, reasonable efforts to address these responsibilities could include
establishing contractual obligations on suppliers and subcontractors; unannounced visits andinspections; and exercising due diligence in supervising contractors and intermediaries.
Where suppliers and subcontractors are expected to comply with a code of labour practice,
the code should be consistent with the Universal Declaration of Human Rights and theprinciples underlying relevant ILO labour standards (see Clause 7.6.6 for additional
information about responsibilities in the supply chain); and

1373
1374
1375



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 [48].

1376

Box 2– The International Labour Organization

1377
1378
1379
1380
1381
1382
1383

The International Labour Organization is a United Nations agency with a tripartite structure(governments, workers and employers) that was established for the purpose of settinginternational 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 well 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 have been elaborated through the ILO supervisory mechanisms,© ISO 2007 – All rights reserved

37

WORKING DRAFT 4.2

1384
1385
1386
1387
1388
1389
1390

and this jurisprudence can be a source of guidance and good practice. ILO Conventions andRecommendations, together with the ILO Declaration on fundamental principles and rights atwork 1998 [27] and the ILO’s Tripartite Declaration of principles concerning multinational
enterprises and social policy 1977 (last revised 2006) [48], constitute the 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.

1391

6.4.4 Labour practices issue 2: Conditions of work and social protection1392

6.4.4.1 Description of issue

1393
1394
1395
1396
1397

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 manyother subjects. Many of the conditions of work are determined by national laws and regulations orby legally binding agreements between those for whom work is performed and those who
perform work. The employer can determine many of the conditions of work.

1398
1399
1400

Conditions of work determine quality of the life of workers and their families. They also form abase for national economies. Fair and appropriate consideration should be given to the quality ofconditions of work.

1401
1402
1403
1404

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.

1405

6.4.4.2 Related actions or expectations

1406

An organization should:

1407
1408



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

1409
1410



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

1411
1412



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

1413
1414
1415
1416
1417



provide decent conditions of work in respect of wages [49, 50, 51, 52, 53], hours of work [54,55, 56, 57, 58], weekly rest holidays [59, 60, 61, 62, 63], health and safety [26, 64, 65, 66,
67, 68, 69. 70, 71, 72, 73, 74, 75] and maternity protection [76, 77, 78] and they should not
be less favourable to the workers than those offered by other comparable employers in the
country and locality concerned [46, 47];

1418
1419
1420
1421
1422
1423
1424
1425
1426



provide the best possible wages and other conditions of work in accordance with nationallaw and practice, 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 the general 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 of economic development, levels of productivity and thedesirability of attaining and maintaining a high level of employment. In reaching a balance
between these concerns, the organization should bargain collectively with the workers; [46,
47]

1427
1428



pay wages directly to the workers concerned, subject only to any restrictions or deductions
permitted by law or collective agreement; [49, 50, 51, 52, 53]

38© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

1429
1430
1431



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; [48]

1432
1433
1434
1435
1436



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 ona regular basis be required to work in excess of 48 hours per week [49, 50, 51, 52, 53].
Workers should also be provided with at least one day off for every seven-day period, andentitled to paid annual leave of at least three weeks [54, 55, 56, 57, 58];

1437
1438
1439
1440
1441
1442



compensate workers for overtime in accordance with national law and practice. Whenrequesting workers to work overtime, an organization should take into account the particularvulnerabilities of the workers concerned and any hazards inherent in the work. An
organization should respect laws and regulations prohibiting mandatory and noncompensated overtime [49, 50, 51, 52, 53], and always respect the basic human rights ofworkers concerning forced labour [30]; and

1443
1444



wherever possible allow observance of national or religious traditions and customs withrespect to weekly rest.

1445

6.4.5 Labour practices issue 3: Social dialogue

1446

6.4.5.1 Description of the issue

1447
1448
1449
1450
1451

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 andemployee representatives, on matters affecting their interests, and could also include
governments where broader issues, such as legislation and national social policy, are at stake.

1452
1453
1454
1455
1456
1457
1458

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
their trade union or by the workers concerned. They are not individuals designated by thegovernment or the employer. Social dialogue takes various forms including enterprise-level
information and consultation mechanisms (such as Works Councils) and collective bargaining.
Trade unions, as the chosen representatives of workers, have a particularly important role to playin social dialogue.

1459
1460
1461

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 ofmany countries.

1462
1463
1464
1465
1466
1467
1468
1469
1470

Effective social dialogue provides a mechanism for developing policy or finding solutions toproblems that takes into account the priorities and needs of both employer and workers, and thus
results in outcomes that are meaningful and sustainable for both the organization and society.
Social dialogue can contribute to establishing participation and democratic principles in theworkplace and to healthy labour-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 tohuman development and enhancing productivity, or to minimize the negative social effects ofchanges in the operations of organizations.

1471
1472
1473
1474

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
framework agreements supplemented by local organization level agreements.

1475
1476

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© ISO 2007 – All rights reserved

39

WORKING DRAFT 4.2

1477
1478

mechanism is important, particularly in countries where the fundamental principles and rights atwork are not adequately protected.

1479
1480
1481

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

1482

6.4.5.2 Related actions or expectations

1483

An organization should [79, 80, 81]:

1484
1485



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

1486
1487
1488



participate in relevant employers’ organizations as a means of creating opportunities forsocial dialogue and extending their expression of social responsibility through suchchannels;

1489
1490



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;

1491
1492
1493



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;

1494
1495
1496
1497



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 roleand to information that will allow them to have a true and fair picture of the organization's
finances and activities; and

1498
1499
1500



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

1501

6.4.6 Labour practices issue 4: Health and safety at work1502

6.4.6.1 Description of the issue

1503
1504
1505
1506
1507

Health and safety at work concerns the promotion and maintenance of the highest degree ofphysical, mental and social well-being of workers and prevention of departures from healthcaused by working conditions, the protection of workers from risks adverse to health and theadaptation of the occupational environment to the physiological and psychological capabilities ofworkers.

1508
1509
1510
1511
1512

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 oncommunities and or the environment. For more information on environmental hazards see Clause
6.5. Health and safety issues arise over dangerous equipment, processes, practices andsubstances (chemical, physical and biological).

1513
1514

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

1515

6.4.6.2 Related actions or expectations

1516

An organization should [26, 64, 65, 66, 67, 68, 69. 70, 71, 72, 73, 74, 75]:40

© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

1517
1518
1519
1520



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;

1521
1522



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

1523
1524
1525



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

1526
1527



recognize that psychosocial hazards in the workplace is the cause of stress andoccupational ill- health;

1528
1529
1530



have a health and safety policy that clearly states that no phase of operation oradministration of the organization is more important than safety and health and that safety
and health is an integral part of all of its activities;

1531
1532



provide adequate training and capacity building in all relevant subjects to all relevant
personnel;

1533
1534



respect the principle that health and safety measures should not involve expenditures byworkers; and

1535
1536



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

1537
1538

 full and accurate information concerning the health and safety risks and the bestpractices used to address these risks;

1539
1540

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

1541
1542

 refuse work which is reasonably considered as posing an imminent and serious danger
to their life or health or to the lives and health of others;1543

 seek outside advice on health and safety issues;1544

 report health and safety matters to the authorities;1545

 participate in health and safety processes and decisions; and1546

 be free of reprisals for doing any of these things.

1547

Box 3 – Joint labour-management health and safety committees

1548
1549
1550
1551
1552
1553
1554
1555
1556
1557

Joint labour-management health and safety committees can be the most valuable part of theorganization's health and safety programme. Joint committees can perform important roles suchas information gathering, the development and dissemination of safety manuals and training
programmes, the reporting, recording and investigation of accidents, inspections and responding
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 andshould 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.

© ISO 2007 – All rights reserved

41

WORKING DRAFT 4.2

1558

6.4.7 Labour practices issue 5: Human development1559

6.4.7.1 Description of the issue

1560
1561
1562
1563
1564

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 to political, economic and social opportunities for being creative and productive andenjoying self-respect and a sense of belonging to a community.

1565
1566
1567

Human development can be a labour practice as 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.

1568
1569
1570
1571
1572
1573
1574
1575

Human development can also be a labour practice as it includes increasing the capacity andemployability of individuals. Employability refers to the experiences, competencies andqualifications that increase an individual’s capacity to secure and retain decent work.
Organizations have every interest in facilitating the education, training and lifelong learning ofworkers, 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 – interms of the capacities, motivation, effectiveness, productivity and overall performance of themen and women whom they employ.

1576

6.4.7.2 Related actions or expectations

1577

An organization should [82, 83, 84, 85, 86, 87, 88, 89, 90, 91]:

1578
1579



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

1580
1581
1582



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

1583
1584
1585



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

1586
1587



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;

1588
1589



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

1590
1591
1592



establish joint labour-management programmes that promote health and well-being. The
impact of infectious disease and substance abuse, for example, affect both the performanceof the organization and the overall health of society.

1593

6.5

1594

6.5.1 Overview of the environment

1595

6.5.1.1 Organizations and the environment

1596
1597
1598

The decisions and activities of organizations invariably have an impact on the naturalenvironment. These impacts may be associated with the organization’s use of energy and natural
resources, the generation of pollution and waste, and the implications of its activities, products

42

The environment© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

1599
1600
1601
1602
1603

and services on natural habitats. Climate change presents an increasingly significant challenge
for most organizations, both in terms of the need to reduce greenhouse gas emissions and toadapt to the physical impacts of a changing climate. To reduce their environmental impacts,
organizations should adopt an integrated approach that takes into consideration the wider
economic, social and environmental implications of their decisions and activities.

1604

6.5.1.2 The environment and social responsibility

1605
1606
1607
1608
1609
1610

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 wholeecosystems. As the population grows and our consumption increases, these issues are
becoming increasing threats to human security and the health and wellbeing of society.
Environmental issues, at the local and global level, are interconnected. Addressing them requires
a comprehensive, systemic and collective approach.

1611
1612
1613
1614

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

1615
1616

6.5.1.3 Benefits to an organization from its socially responsible environmental
performance

1617
1618
1619
1620
1621

The adoption of sound environmental management practices can lead to savings associated withincreased resource productivity and efficiency, lower energy and water consumption, decreased
waste, the recovery of valuable by-products, and the increased availability of raw materials. Asawareness of the global scale of the environmental challenges increases, an organization’senvironmental impacts can also have significant implications for its reputation.

1622

6.5.2 Principles and considerations

1623

6.5.2.1 Principles

1624

An organization should respect and promote the following environmental principles:

1625
1626
1627
1628



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

1629
1630
1631
1632
1633
1634



precautionary approach: an organization should support a precautionary approach toenvironmental challenges. Where there are threats of serious or irreversible damage, lack offull scientific certainty should not be used as a reason for postponing cost-effective
measures to prevent environmental degradation (Principle 15 of the Rio Declaration [92].
When carrying out human health and environmental risk assessments, conservative
assumptions should be made to address uncertainties or data gaps;

1635
1636
1637
1638
1639



environmental risk management: an organization should implement programmes to assess
and reduce 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 tocommunicate environmental incidents to appropriate authorities; and

1640
1641
1642
1643



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 the remedial action required, or the degree to which the pollution exceeds an acceptablelevel (Principle 16 of the Rio Declaration [92]. An organization should use the polluter pays

© ISO 2007 – All rights reserved

43

WORKING DRAFT 4.2

1644
1645

principle to internalize the cost of pollution and quantify the economic and environmental
benefits of preventing pollution rather than mitigating its effects.

1646

6.5.2.2 Considerations

1647
1648

In its environmental management activities, an organization should assess the relevance of thefollowing considerations:

1649
1650
1651
1652
1653



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

1654
1655
1656
1657
1658
1659
1660



cleaner production and eco-efficiency: cleaner production and eco-efficiency are strategies
for satisfying human needs by using resources more efficiently and by generating lesspollution and waste. An important focus is on making improvements at the source rather thanat the end of a process or activity. Cleaner production and eco-efficiency approaches
include: improving maintenance practices, upgrading or introducing new technologies orprocesses, reducing materials and energy use, eliminating or safely managing toxic andhazardous materials, and improving product and service design;

1661
1662
1663
1664
1665
1666



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

1667
1668
1669



use of environmentally sound technologies and practices: an organization should seek toadopt, and where appropriate, promote the development and diffusion of environmentallysound technologies and services (Principle 9 of the Rio Declaration [92]; and

1670
1671
1672
1673



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

1674

6.5.3 Environmental issue 1: Prevention of pollution

1675

6.5.3.1 Description of the issue

1676
1677
1678
1679

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 ofland and soils, the use and disposal of toxic and hazardous chemicals, and other pollution fromits activities, products and services.

1680
1681
1682
1683
1684
1685



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

1686
1687
1688



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

44© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

1689
1690
1691
1692
1693



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

1694
1695
1696
1697



Preventing the release of toxic and hazardous chemicals: An organization utilizing or
producing toxic and hazardous chemicals (both naturally occurring and anthropogenic) may
adversely affect ecosystems and human health through acute (immediate) or chronic (longterm) impacts.

1698
1699
1700
1701
1702



Preventing all identifiable forms of pollution: An organization’s activities, products andservices 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 spread of genetically modified organisms) that negatively affect thehealth and wellbeing of communities.

1703

6.5.3.2 Related actions and/or expectations

1704

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

1705
1706
1707



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

1708
1709



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

1710
1711



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

1712
1713
1714



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 andenvironmental risks of these materials; and

1715
1716
1717
1718
1719
1720
1721



implement a programme 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, fromall activities, products and services within its control or sphere of influence. Chemicals to
avoid include, but are not limited to: ozone-depleting substances [93], persistent organic
pollutants [94] and Rotterdam Convention [95], hazardous pesticides (as defined by theWorld Health Organization), and chemicals defined as carcinogenic (including tobacco),
mutagenic, toxic to reproduction, persistent and bio-accumulative, and endocrine disrupting.

1722

6.5.4 Environmental issue 2: Sustainable resource use

1723

6.5.4.1 Description of the issue

1724
1725
1726
1727
1728
1729
1730
1731

To ensure the availability of resources into the future, current patterns of consumption andproduction need to be transformed to ensure they operate within the Earth’s carrying capacity.
The sustainable use of renewable resources (such as fish stocks), requires that the resource isused 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 requires that its rate of use is less than therate at which a renewable resource can be substituted for it. An organization can ensure moresustainable resource use by using electricity, fuels, raw and processed materials, land and water
more responsibly, and by switching from non-renewable to renewable resources.

© ISO 2007 – All rights reserved

45

WORKING DRAFT 4.2

1732
1733
1734



Energy efficiency: An organization can implement energy efficiency programmes to savemoney and reduce the energy demand for buildings, transportation, production processes,
appliances and electronic equipment, and the provision of services.

1735
1736
1737
1738
1739



Water conservation: Water is a fundamental human need and a basic human right. The
Millennium Development Goals (Box 5) include the provision of safe, reliable drinking waterand sanitation services to all people. An organization can improve its social responsibility byconserving water and making decisions that protect fair and sustainable access tofreshwater resources within its local watershed.

1740
1741
1742
1743
1744
1745



Materials efficiency: Materials use causes numerous direct and indirect environmental
burdens, associated for example, with the impact on ecosystems of mining, forestry andother extractive operations, and the emissions resulting from the use, transport andprocessing of materials. An organization can implement materials efficiency programmes toreduce the environmental burden caused by the use of raw materials for production
processes or for finished products used in its activities and/or in the delivery of its services.

1746

6.5.4.2 Expectations and/or related actions

1747

An organization should:

1748
1749



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

1750
1751



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

1752
1753



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

1754
1755



identify feasible opportunities for non-renewable resources with alternative renewable andlow impact sources; and

1756



manage water resources to ensure fair access for all users within a watershed.

1757

6.5.5 Environmental issue 3: Climate change mitigation and adaptation

1758

6.5.5.1 Description of the issue

1759
1760
1761
1762
1763
1764
1765

It is recognized that greenhouse gas (GHG) emissions from human activities are the very likely
cause of global climate change, which is having significant impacts on the natural and humanenvironment (Intergovernmental Panel on Climate Change [96]. Among the trends observed andanticipated are: changes in rainfall patterns, more frequent occurrences of extreme weather
events, rising sea levels, and changes to ecosystems, agriculture and fisheries. It is anticipatedthat climate change may pass a tipping point, after which changes would be felt far more widelyand acutely and would be much more difficult to address.

1766
1767
1768
1769
1770

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 interms of minimizing 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.

46© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

1771

6.5.5.2 Expectations and/or related actions

1772

6.5.5.2.1 Climate change mitigation

1773

To mitigate climate change, an organization should:

1774
1775



identify the sources of direct and indirect GHG emissions for its activities, products andservices;

1776
1777
1778



measure, record and report on all relevant and significant GHG emissions associated with its
activities, products and services, preferably using methods defined in internationally agreed
standards (see Annex A for some examples of initiatives and standards);

1779
1780



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;

1781
1782
1783



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

1784
1785



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

1786
1787



consider measures to offset remaining GHG emissions through carbon sequestration oremissions reduction programmes striving for carbon neutrality; and

1788
1789



consider relevant opportunities for emissions trading, such as the Clean Development
Mechanism under the Kyoto to the UN Framework Convention on Climate Change [97].

1790

6.5.5.2.2 Climate change adaptation

1791

To reduce vulnerability to climate change, an organization should:

1792
1793



consider future climate predictions to identify risks and integrate climate change adaptation
into its decision making;

1794
1795



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

1796
1797
1798



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

1799
1800
1801



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

1802

6.5.6 Environmental issue 4: Protection and restoration of the natural environment

1803

6.5.6.1 Description of the issue

1804
1805
1806
1807

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, fibre,
fuel and mineral resources has resulted in a substantial and often irreversible loss of habitat andthe diversity of life on earth [98].

© ISO 2007 – All rights reserved

47

WORKING DRAFT 4.2

1808
1809

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

1810
1811
1812
1813
1814
1815
1816



Valuing, protecting and restoring ecological services: Ecosystems contribute to the wellbeingof society by providing services such as fresh water, food, fuel, flood control, soil, pollinators,
natural fibres, recreation, and the absorption of pollution and waste. As ecosystems aredegraded 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 bycompensation to replace services that have been depleted.

1817
1818
1819
1820



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 [99].
Protecting biodiversity includes terrestrial and aquatic species, genetic variability, and natural
ecosystems.

1821
1822
1823



Using land and natural resource sustainably: An organization’s land use projects may protect
or degrade habitat, water, soils, and ecosystems ultimately affecting human health and thewellbeing of society.

1824

6.5.6.2 Expectations and/or related actions

1825

An organization should:

1826
1827



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

1828
1829
1830



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;

1831
1832



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;

1833
1834



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

1835
1836



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

1837
1838



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

1839
1840
1841



incorporate the protection of natural habitat, wetlands, forest, wildlife corridors, protectedareas and agricultural lands into the planning of the built environment expansion anddevelopment;

1842
1843



adopt sustainable agricultural, fishing and forestry practices as defined in leading standards
and certification schemes (see for example Annex A); and

1844
1845



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

48© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

1846

6.6

Fair operating practices

1847

6.6.1 Overview of fair operating practices

1848

6.6.1.1 Organizations and fair operating practices

1849
1850
1851
1852

Fair operating practices concern ethical conduct in an organization’s dealings with otherorganizations. This includes relationships between organizations and government agencies, aswell as between organizations and their partners, suppliers, contractors, competitors and theassociations of which they are members.

1853
1854
1855

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 otherorganizations; and respect for property rights.

1856

6.6.1.2 Fair operating practices and social responsibility

1857
1858
1859
1860

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.

1861

6.6.1.3 Benefits to an organization of fair operating practices

1862
1863
1864
1865

Fair operating practices tend to improve the social and economic environment in whichorganizations function. By preventing corruption, promoting fair political processes, encouraging
fair competition, and improving the reliability and fairness of transactions, a more equitable socialand economic environment is established with resulting benefits for all organizations.

1866

6.6.2 Principles and considerations

1867
1868
1869
1870
1871
1872
1873

Adherence to ethical standards is fundamental to establishing and sustaining legitimate andproductive relationships between organizations. Therefore, observance, promotion andencouragement of standards of ethical behaviour underlie all fair operating practices. Preventing
corruption and responsible political involvement depend on respect for the rule of law, adherenceto 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 withintegrity.

1874

6.6.3 Fair operating practices issue 1: Anti–corruption

1875

6.6.3.1 Description of the issue

1876
1877
1878
1879

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 takemany forms (for example: bribery of domestic and foreign public officials, bribery in the private
sector, conflict of interest, fraud, money laundering and trading influence).

1880
1881
1882
1883

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 canalso violate human rights, erode political processes, damage the environment, distort competition
and impede the redistribution of wealth and economic growth.

1884

6.6.3.2 Related actions and/or expectations

1885

To prevent corruption and bribery, an organization should:© ISO 2007 – All rights reserved

49

WORKING DRAFT 4.2

1886
1887



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

1888
1889



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

1890
1891



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

1892
1893



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

1894
1895



encourage employees and agents to report violations of the organization’s policies byadopting mechanisms that enable reporting without fear or reprisal;

1896
1897



bring violations of the criminal law to the attention of the relevant law enforcement
authorities; and

1898



work to oppose corruption by influencing others to adopt similar practices.

1899

6.6.4 Fair operating practices issue 2: Responsible political involvement

1900

6.6.4.1 Description of the issue

1901
1902
1903

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

1904

6.6.4.2 Related actions and/or expectations

1905

An organization should:

1906
1907



train and raise the awareness of employees and agents about responsible politicalinvolvement and contributions;

1908
1909



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

1910
1911



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

1912
1913



avoid political contributions that amount to an attempt to control policymakers in favour of a
specific cause; and

1914



avoid lobbying activities that involve misinformation, misrepresentation, threat or compulsion.

1915

6.6.5 Fair operating practices issue 3: Fair competition

1916

6.6.5.1 Description of the issue

1917
1918
1919
1920
1921
1922

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 inanti-competitive behaviour they help to build a climate of zero tolerance, which benefits everyone.

50© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

1923
1924
1925
1926

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

1927

6.6.5.2 Related actions and/or expectations

1928

To promote fair competition, an organization should:

1929
1930



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

1931
1932



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

1933
1934



promote employee awareness of the importance of compliance with competition legislationand fair competition; and

1935
1936



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

1937
1938

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

1939

6.6.6.1 Description of the issue

1940
1941
1942
1943
1944
1945

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

1946

6.6.6.2 Related actions and/or expectations

1947

An organization should:

1948
1949



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

1950



encourage other organizations to adopt similar policies;

1951
1952
1953



carry out relevant and appropriate investigations and monitoring of the organizations withwhich they have relationships so that their actions do not compromise the organization’scommitments to social responsibility;

1954
1955



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

1956
1957



actively participate in raising the awareness of organizations with which they haverelationships on social responsibility issues and principles.

© ISO 2007 – All rights reserved

51

WORKING DRAFT 4.2

1958

6.6.7 Fair operating practices issue 5: Respect for property rights

1959

6.6.7.1 Description of the issue

1960
1961
1962
1963

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.

1964
1965

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

1966

6.6.7.2 Related actions and/or expectations

1967

An organization should:

1968



implement policies and practices that promote respect for property rights;

1969
1970



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

1971
1972



not engage in activities that violate property rights, including counterfeit and piracy, orotherwise infringe consumer interests; and

1973



pay fair compensation for property that it acquires or uses.

1974
1975

In exercising and protecting their intellectual and physical property rights organizations shouldtake into account public and social needs.

1976

6.7

1977

6.7.1 Overview of consumer issues

1978

6.7.1.1 Organizations and consumer issues

1979
1980
1981
1982

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

1983
1984

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

1985
1986
1987

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

1988

6.7.1.2 Consumer issues and social responsibility

1989
1990
1991
1992

By offering sustainable products and services, and by providing consumers with information
about the sustainability of those products and services, an organization can stimulate sustainableconsumption. Both stimulation of sustainable consumption and respect for consumer rights, areaspects of an organization’s social responsibility.

52

Consumer issues© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

1993

6.7.1.3 Benefits to an organization of socially responsible consumer issues

1994
1995
1996
1997
1998
1999

Consumer decisions have a strong influence on the success of organizations. Throughengagement with consumers, organizations can more effectively meet consumer expectations,
thereby preventing or reducing potential conflicts about their products or services. By
demonstrating social responsibility in their relations with consumers, organizations can enhancetheir reputation. Use of fair marketing, information and contractual practices may make a
substantial positive contribution to the reputation of an organization.

2000

6.7.2 Principles and considerations

2001

6.7.2.1 Principles

2002

Box 4 – United Nations Guidelines for Consumer Protection

2003
2004
2005
2006
2007
2008
2009
2010

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 onsustainable consumption. They call upon states to protect consumers from hazards to their healthand safety, promote and protect the economic interests of consumers, enable them to makeinformed choices, provide consumer education, make available effective consumer redress,
guarantee freedom to form consumer groups and promote sustainable consumption patterns[100].

2011

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

2012
2013



principles based on the eight consumer rights that underpin the United Nations Guidelines
for Consumer Protection [100]:

2014
2015
2016

 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 andsanitation;

2017
2018

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

2019
2020

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

2021
2022

 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;

2023
2024

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

2025
2026

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

2027
2028
2029

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

2030
2031

 the right to a healthy environment – the right to live and work in an environment, which
is non-threatening to the well-being of present and future generations.

2032



additional principles:© ISO 2007 – All rights reserved

53

WORKING DRAFT 4.2

2033
2034
2035
2036

 the right to privacy, from the Universal Declaration on Human Rights, Article 12 [3] – noone shall be subjected to arbitrary interference with their privacy, family, home orcorrespondence, or to attacks upon their honour and reputation. Everyone has the rightto the protection of the law against such interference or attacks; and

2037
2038
2039
2040

 a precautionary approach – where there are threats of serious or irreversible damage tothe environment or human health, lack of full scientific certainty should not be used as areason for postponing cost-effective measures to prevent environmental degradation ordamage to human health.

2041

6.7.2.2 Considerations

2042
2043
2044
2045
2046

Vulnerable consumers need to be treated with special care. They 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 orservices. Vulnerable consumers include children and young people, the aged, the illiterate andpeople with disabilities, including intellectual impairment.

2047
2048
2049
2050
2051
2052

Although it is the primary responsibility of the state to ensure that the right to satisfaction of basic
needs is respected, an organization can contribute to the fulfilment of this right. Particularly inareas where the state does not or cannot adequately satisfy people's basic needs, organizations
should be sensitive to the effect their actions could have on the ability of people to satisfy theirbasic needs, and should try to avoid actions that would place this ability in jeopardy and to takeactions that would help this ability to be met.

2053

6.7.3 Consumer issue 1: Fair marketing, information and contractual practices

2054

6.7.3.1 Description of the issue

2055
2056
2057
2058
2059

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 byconsumers. Fair contractual processes aim to protect the legitimate interests of both suppliersand consumers to overcome imbalances in negotiating power between the parties.

2060
2061
2062
2063

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 or misleading 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 [101, 102].

2064

6.7.3.2 Related actions and/or expectations

2065

When communicating with consumers, an organization should

2066
2067



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

2068



clearly identify advertising and marketing;

2069
2070
2071
2072



openly disclose total prices, eventual taxes, terms and conditions of the products andservices as well as any accessories or delivery costs. When offering consumer credit,
provide details of the actual annual interest rate, amount to be paid in each instalment,
number of payments, and the due date of instalment payments;

2073



substantiate claims or assertions by providing underlying facts and information;

2074
2075



avoid using images that could perpetuate negative stereotypes of people, in particulargender and ethnic stereotypes

54© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

2076



provide complete, accurate understandable and comparable information on:

2077
2078

 all relevant aspects of products or services, including financial and investment products,
ideally taking into account the full life cycle;

2079
2080

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

2081
2082

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

2083
2084

 the organization’s physical address including phone number, when using distanceselling.

2085

use contracts that:

2086
2087
2088

 do not include unfair contract terms, such as the exclusion of liability, the right tounilaterally change prices and conditions, the transfer of risk of insolvency to consumers
or unduly long contract periods; and2089

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

2090

6.7.4 Consumer issue 2: Protecting consumers’ health and safety

2091

6.7.4.1 Description of the issue

2092
2093
2094
2095

Protection of consumers’ health and safety involves the provision of products and services thatare safe and that do not carry risk of harm when used or consumed by consumers as directed,
indicated or when misused in a reasonably foreseeable way [100, 101]. Clear instructions for safe
use are also an important part of the protection of health and safety.

2096
2097
2098
2099
2100
2101
2102

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 fromuse and misuse of products and services [103]. However the rapid pace of change in productdesign, 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 crossborder movement of products and sourcing of services, which puts strain on regulatory andtesting resources.

2103
2104

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

2105
2106
2107
2108

Whether or not legal safety requirements are in place, products and services should be safe –this follows from the precautionary approach. Safety includes anticipation of potential risks to
avoid harm or danger. As not all risks can be foreseen, measures to protect safety include
mechanisms for product withdrawal and recall.

2109

6.7.4.2 Related actions and/or expectations

2110
2111
2112

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

2113
2114



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

2115
2116



assess the adequacy of health and safety laws, regulations, standards and otherspecifications to address all health and safety aspects [104, 105, 106, 107, 108].

© ISO 2007 – All rights reserved

55

WORKING DRAFT 4.2

2117
2118
2119
2120
2121
2122

Organizations should go beyond these minimum safety requirements where there isevidence 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 therequirements, or the availability of products or product designs that can reduce the number
and/or severity of accidents;

minimize risks in the design of products:2123

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

2124
2125
2126

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

2127
2128

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

2129
2130

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

2131
2132
2133



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

2134
2135
2136



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

2137
2138



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

2139
2140



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

2141
2142



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

2143
2144
2145
2146



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 withdraw all products that are still in the distribution chain, and recall products using
appropriate measures and media to reach people who purchased the product.

2147

6.7.5 Consumer issue 3: Sustainable consumption

2148

6.7.5.1 Description of the issue

2149
2150
2151
2152
2153
2154

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 [92], which states that to achieve sustainable development and ahigher quality of life for all people, states should reduce and eliminate unsustainable patterns of
production and consumption and promote appropriate demographic policies. Sustainableconsumption also encompasses a concern for ethical behaviour regarding animal welfare.

2155
2156

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

2157
2158

Current rates of consumption are clearly unsustainable, particularly in the developed world,
contributing to environmental damage and resource depletion. Consumers play a pivotal role in56© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

2159
2160
2161

fostering sustainable development through the incorporation of social and environmental
performance of products and services and the social responsibility of organizations providingthem in purchasing decisions.

2162
2163

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

2164

6.7.5.2 Related actions and/or expectations

2165

To contribute to sustainable consumption, organizations should:

2166
2167



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

2168
2169



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

2170



breed animals in a way that respects their physical integrity and avoids cruelty;

2171
2172



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

2173



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

2174
2175



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

2176



provide and inform consumers about reuse, recycling and safe disposal of products;

2177



enable consumers to consume in a sustainable manner by:

2178
2179
2180
2181

 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 [109, 110, 111,
112];

2182
2183

 providing consumers with information about the social responsibility of organizations
providing products and services;

2184
2185
2186
2187
2188
2189

 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, aspects
related to animal welfare, safe use, maintenance, storage and disposal of the products
and their packaging. This should be based on average performance or best practice;
and

2190
2191

 making use of eco-label schemes and/or other benchmarks to communicate theenvironmental and social qualities of products and services [110, 111, 112]; and

2192
2193



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

2194
2195

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

2196
2197

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

© ISO 2007 – All rights reserved

57

WORKING DRAFT 4.2

2198

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

2199

6.7.6.1 Description of the issue

2200
2201
2202
2203

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.

2204
2205

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.

2206
2207
2208
2209

Providers of products or services can increase consumer satisfaction and reduce levels ofcomplaints 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 and dispute resolution procedures by periodic surveys of their users [101, 113].

2210

6.7.6.2 Related actions and/or expectations

2211

An organization should:

2212
2213
2214



engage in precautionary measures to prevent complaints [114] 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;

2215



review complaints and improve practices in response to these complaints;

2216



offer warranties that exceed periods guaranteed by law;

2217
2218



clearly communicate to consumers how they can access after-supply services and support
as well as dispute resolution and redress mechanisms [115, 116];

2219



offer adequate and efficient support and advice systems;

2220
2221



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

2222
2223
2224



make use of alternative dispute resolution, conflict resolution and redress procedures thatare based on national or international standards, are free of charge to consumers [115, 116]
and that do not require consumers to waive their rights to seek legal recourse.

2225

6.7.7 Consumer issue 5: Consumer data protection and privacy

2226

6.7.7.1 Description of the issue

2227
2228
2229

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 usedand secured.

2230
2231
2232

Increasing use of electronic communication, including for financial transactions, as well as growthin large-scale databases raises concerns about how consumer privacy can be protected,
particularly with respect to personally identifiable information [101, 117, 118, 119].

2233
2234

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

58© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

2235

6.7.7.2 Related actions and/or expectations

2236
2237

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

2238
2239
2240



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,
and obtain data by lawful and fair means;

2241
2242



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

2243
2244
2245



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

2246
2247
2248



provide consumers with the right to confirm whether the organization has data relating tothem and to challenge this data. If the challenge is successful, the data should be erased,rectified, completed or amended;

2249



protect personal data by reasonable security safeguards; and

2250
2251
2252
2253
2254



be open about developments, practices and policies with respect to personal data andprovide 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 dataprotection in the organization (sometimes called the data controller), and hold this person
accountable for complying with the above measures;

2255

6.7.8 Consumer issue 6: Access to essential services

2256

6.7.8.1 Description of the issue

2257
2258
2259
2260
2261

Although it is the primary responsibility of the state to ensure that the right to satisfaction of basic
needs is respected, there are many locations in which the state does not or cannot ensure that
this right is protected. Even where satisfaction of some basic needs is protected, protection of theright to essential services may not be fully protected. An organization can contribute to thefulfilment of this right [100].

2262

6.7.8.2 Related actions and/or expectations

2263

Regarding access to essential services:

2264
2265
2266
2267
2268



if adequate government frameworks are not in place to guide suppliers of essential services
such as electricity, gas, water and telephone, these organizations should not disconnect theessential services for non-payment without providing the consumers with the opportunity toseek financial relief. Suppliers should also operate in a transparent manner, providing
information related to the setting of prices and charges;

2269
2270
2271



in cases of non-payment of bills paid collectively by a group of consumers, an organization
should not resort to collective disconnection of services that penalize all consumers
regardless of payment; and

2272
2273
2274



if networks are subject to curtailment or interruption of supply, such curtailments orinterruptions should be managed in an equitable manner, avoiding discrimination against anygroups of consumers.

© ISO 2007 – All rights reserved

59

WORKING DRAFT 4.2

2275

6.7.9 Consumer issue 7: Education and awareness2276

6.7.9.1 Description of the issue

2277
2278
2279
2280
2281

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

2282
2283
2284
2285

The aim of consumer education is not only to transfer knowledge, but also to provide practice inacting on this knowledge, including developing skills for assessing products and services and formaking comparisons. It is also intended to raise awareness about the impact of consumption
choices on others and on sustainable development [100].

2286

6.7.9.2 Related actions and/or expectations

2287

In educating consumers an organization should address:

2288



health and safety, including product hazards;

2289
2290



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

2291



product labelling;

2292
2293



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

2294



financial and investment products;

2295



environmental protection;

2296



efficient use of materials, energy and water;

2297



sustainable consumption; and

2298



disposal of packages and products.

2299

6.8

2300

6.8.1 Overview of community involvement and development2301

6.8.1.1 Organizations and community involvement and development

2302
2303
2304
2305
2306

This section addresses issues related to two interrelated areas of concern. The first is anorganization’s involvement in the community which concerns the relationships between theorganization and other organizations and institutions in the communities where they operate. The
second is development, the process by which economic, social, cultural, political andenvironmental dimensions of the society improve thus promoting higher levels of wellbeing.

2307
2308
2309
2310
2311
2312

Organizations operate in communities, taken here as the people living in one place, district orcountry. Because of this, organizations can’t be considered to be apart of community.
Relationships with other community members and institutions are unavoidable and in somecases may be a necessary condition for any organization to operate, perform its role and achieve
its goals. It is not possible for an organization to operate without having relations with otherorganizations.

60

Community involvement and development© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

2313
2314
2315
2316
2317
2318

The quality of the relationship an organization establishes with the rest of the community will
influence its contribution to the development process. The need for contributions to development
in order to reduce poverty and improve poor social conditions is universally accepted, as
reflected in the United Nations Millennium Declaration (see box 5, [120]) Although development isguided and driven by public policies, the development process depends on the contributions of allorganizations, public and private, large and small.

2319
2320
2321
2322
2323
2324

Development is the improvement in the standard of living of a population. It comprises theincrease and diversification of economic activities that will better satisfy the needs of society. A
balanced distribution of the outputs of economic growth is also necessary to reduce poverty andbenefit society as a whole. The social dimensions of the development process are related to theconditions that constitute a decent standard of living, such as health, education, democratic
institutions and the rule of law.

2325

6.8.1.2 Social responsibility and community involvement and development

2326
2327
2328
2329
2330
2331
2332
2333

Robust civil society relationships and institutions make society more sustainable. Organizations
contribute to the strength of civil society through participation in associations especially wherethese associations contribute to common purposes and the public good. Organizations also
strengthen civil society by engaging in a respectful manner with such institutions that reflect
democratic and civil values, the worth of individuals and the duties of citizenship and belonging.
This goes beyond identifying and engaging stakeholders over the impacts of an organization’s
operations. It also encompasses actions based on a sense of solidarity and identification with thecommunity.

2334
2335
2336

While small organizations will probably be in a position to contribute to their immediate local
community, large organizations may be in a position to contribute to a broader community, onethat could encompass a whole district, country or group of countries.

2337
2338
2339
2340
2341
2342
2343
2344
2345
2346
2347

Development, together with environmental protection, is also a necessary basis for a sustainable
society. Development in a sustainable manner requires the balance of its social, economic,
environmental and political dimensions. Development is about the reduction of poverty and theattainment of a higher quality of life. Although the primary responsibility for social and economic
development belongs to governments, all organizations have a responsibility to contribute to thedevelopment process. Organizations are frequently invited by authorities or other organizations to
get involved in efforts to overcome problems and challenges that communities face.
Organizations may even take a lead through specific programs in support of communities,
contributing with resources and knowledge. This section offers guidance related to local
development impacts that include and go beyond those that would arise through anorganization’s performance of its core objectives and activities.

2348

6.8.1.3 Benefits to an organization of community involvement and development

2349
2350
2351
2352
2353
2354
2355
2356
2357

All organizations should recognize their long term interest in the sustainability of the communities
in which they operate. Community involvement contributes to the common good and tostrengthening civil society and institutions that are essential elements of social cohesion andstability as well as of social justice. An organization’s community involvement should arise out ofrecognition that the organization is a stakeholder in the community with significant common
interests with all members of the community. Effective community involvement can increase boththe quality of the community and the ability of the organization to achieve its own purposes.
Among other things, an organization’s community involvement will impact on an organization’s
reputation and on the morale of its employees.

2358
2359
2360
2361
2362

By contributing to the development of the community in which it is located, an organization canbenefit from the resulting enhanced opportunities to individuals and organizations associated withgreater economic development and higher levels of education and wellbeing of people that thisentails. This can result in benefits associated with an enhanced reputation, higher levels of
employee morale and improved management of risks and opportunities.

© ISO 2007 – All rights reserved

61

WORKING DRAFT 4.2

2363

6.8.2 Principles and considerations

2364

6.8.2.1 Principles

2365
2366
2367
2368
2369
2370
2371

International declarations such as the Millennium Declaration [120] and the Copenhagen
Declaration [121] express basic principles concerning contribution to the community and society.
One of the values of the Millennium Declaration is that “no individual and no nation must be
denied the opportunity to benefit from development”. The Copenhagen Declaration recognizes
the “urgent need to address profound social challenges, especially poverty, unemployment andsocial exclusion”. Both documents invite all organizations to contribute to the development goals
to which nations have agreed.

2372
2373
2374
2375

In addition to the principles outlined before it is necessary to consider that the respect for
Economic, Social and Cultural Human Rights are intimately related to community anddevelopment issues (see Clause 7.3.6). The same may be said regarding the environment issues
addressed in Clause 7.6, which is a pillar of a sustainable development.

2376

Box 5 Millennium Development Goals and the Copenhagen Declaration

2377

Millennium Development Goals

2378
2379
2380
2381
2382
2383

The Millennium Development Goals (MDGs) are eight goals to be achieved by the year 2015 that
respond to the world's main development challenges. The MDGs are drawn from the actions andtargets contained in the Millennium Declaration that was adopted by 189 nations and signed by
147 heads of state and governments during the UN Millennium Summit in September 2000. The
8 MDGs break down into 18 quantifiable targets that are measured by 48 indicators. The 8 MDGs
are:

2384

1. Eradicate extreme poverty and hunger

2385

2. Achieve universal primary education

2386

3. Promote gender equality and empower women

2387

4. Reduce child mortality

2388

5. Improve maternal health2389

6. Combat HIV/AIDS, malaria and other diseases

2390

7. Ensure environmental sustainability

2391

8. Develop a global partnership for development

2392

Copenhagen Declaration

2393
2394
2395
2396
2397
2398

At the World Summit for Social Development, held in March 1995 in Copenhagen, Governments
reached consensus on the need to put people at the centre of development. The Social Summit
was the largest gathering ever of world leaders at that time. The Copenhagen Declaration and
Programme of Action pledged the international community to make the conquest of poverty, thegoal of full employment and the fostering of social integration overriding objectives ofdevelopment.

2399

6.8.2.2 Considerations

2400
2401

The following are considerations that an organization should take into account when addressing
community involvement and development:

2402
2403
2404



62

recognition of rights: organizations should recognize the rights of men and women to decide
over the life of their community and in doing so to maximize their own capabilities, resourcesand opportunities;© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

2405
2406
2407
2408



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

2409
2410



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.

2411

6.8.3 Community involvement and development issue 1: Community involvement2412

6.8.3.1 Description of the issue

2413
2414
2415
2416
2417
2418

Organizations contribute to their communities through their participation in, and support for, civil
institutions and through the involvement in networks of groups and individuals that constitute civilsociety. The strengthening of civil institutions and civil society facilitates the creation of sharedvalues which results in greater levels of trust in society essential to the rule of law and to thesuccess of democratic institutions. Organizations support a community by respecting its laws andpractices.

2419
2420
2421
2422
2423

Organizations can join associations of others to defend and advance their own interests.
However, these associations should represent their member's interests within the context ofrespecting the rights of other groups and individuals to do the same and they should always
operate in a way so as to increase respect for the rule of law and for democratic processes. Such
associations should be transparent and conduct their activities in an ethical manner.

2424
2425
2426
2427
2428
2429

Organizations should join associations and work with groups and individuals to advance thecommon good of the community. This involvement will increase the capacity of communities topromote their own development, to address problems of broad concern and to achieve worthy
objectives and goals. Organizations are increasingly being invited by authorities or otherorganizations to get involved in programs and actions aimed at solving the challenges that
communities face.

2430
2431
2432
2433
2434

However organizations should not seek to cooperate with groups or individuals where the effectof the activities is to undermine respect for the rule of law or democracy. This could include
informal economic activities where the effect or purpose is to avoid taxes or to thwart the purposeor spirit of laws or regulations. Organizations should in this regard respect other practices that
may have evolved to protect the community and to build shared values and increase trust.

2435

6.8.3.2 Expectations and/ or related actions

2436

An organization should:

2437
2438



participate in local associations with the objective of contributing to the public good and thedevelopment objectives of communities;

2439
2440
2441
2442
2443



contribute to democratic processes through the appropriate and transparent participation in
the political process that respects the rights and views of others to express and defend theirinterests; this processes may relate to the setting up, implementation, monitoring andevaluation of development programs. In some cases, this involves contributing knowledge,
skills, human resources and/or material resources;

2444
2445
2446



conduct all activities within an appropriate legal and/or institutional framework, including
when establishing relations with other organizations thus contributing to broad respect for thelaw in the community; and

2447
2448



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

© ISO 2007 – All rights reserved

63

WORKING DRAFT 4.2

2449

6.8.4 Community involvement and development issue 2: Social investment2450

6.8.4.1 Description of the issue

2451
2452
2453
2454

Social investment takes place when organizations invest their resources in infrastructure andprograms aimed at improving social aspects of community life. Social investment is a means bywhich organizations can contribute to the development of the communities where they operate.
This includes compensation for negative impacts of an organization's operations.

2455
2456
2457
2458

In identifying opportunities for social investment an organization should align its contribution with
the needs of the communities in which the organization operates. Information sharing,consultation and negotiation are useful tools for a participative approach in identifying andimplementing social investments.

2459
2460
2461
2462
2463

The increase of a community’s collective capacities does not depend exclusively onorganizations but also on individuals. Organizations have a central role in communicating tocitizens the importance of their actions in achieving social development. All organizations, bothlarge and small, can also contribute through awareness raising activities to mobilize the public forsocial development.

2464

6.8.4.2 Expectations and/ or related actions

2465

Organizations should:

2466
2467



undertake social investments in the community or communities that are related to its
operations;

2468
2469



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;

2470
2471
2472
2473



recognize that social investments do not preclude other social actions and philanthropy (forexample grants, volunteering and donations). These however, should be aligned with theorganization’s overall capacity building aims. They should focus on giving resources to thecommunity through programs or projects for long-term development;

2474
2475
2476



promote sustainable social investments projects, by involving the community in their design
and implementation. Community involvement will help projects to survive and prosper when
the organization is no longer involved;

2477
2478
2479



take into account the promotion of community development in planning social investment
projects. All actions should broaden the opportunities for citizens, for example increasing
local procurements and outsourcing to support local development;

2480
2481
2482



within the context of social responsibility, take into account the value of aligningorganizational contributions to the community with local and national policy priorities. This
will increase the probability of a successful and sustainable social investment;

2483
2484



avoid actions that perpetuate a community’s dependence on the organization’s philanthropic
activities; and

2485
2486



assess existing community-related initiatives, provide feedback on their success andsuitability and identify where improvements might be made.

64© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

2487

6.8.5 Community involvement and development issue 3: Employment creation

2488

6.8.5.1 Description of the issue

2489
2490
2491
2492

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. In the course of creating employment,
issues referred to in clauses 6.3 (Human Rights) and 6.4 (Labour Practices) should apply.

2493

6.8.5.2 Expectations and/ or related actions

2494

An organization should:

2495
2496



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

2497
2498



consider the impact of technology choice on employment, and where economically viable,
select technologies that maximize employment opportunities; and

2499
2500
2501



consider the impact of outsourcing decisions on employment creation, both within theorganization making the decision and within external organizations affected by suchdecisions.

2502

6.8.6 Community involvement and development issue 4: Technology development2503

6.8.6.1 Description of the issue

2504
2505
2506
2507

To overcome under-development and its associated problems, countries need, amongst otherthings, access to modern technology. Organizations can contribute to the development of thecommunities in which they operate by applying specialized knowledge, skills and technology insuch a way as promote human resource development and technology diffusion.

2508

6.8.6.2 Expectations and/ or related actions

2509

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

2510
2511
2512
2513



consider engaging in partnerships with local organizations (for example universities or
research laboratories), and where mutually beneficial and where appropriate, engage inscientific and technological development with partners from the local community, employing
local people in this work [101]; and

2514
2515
2516



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.

2517

6.8.7 Community involvement and development issue 5: Wealth and income

2518

6.8.7.1 Description of the issue

2519
2520
2521
2522
2523
2524
2525
2526

The creation of increased incomes for broad sectors of society is critically important towards
freeing men, women and children from the abject and dehumanizing conditions of extreme
poverty, to which more than one billion people around the world are subjected. All organizations,both large and small, should contribute within their means, and based on their corecompetencies, to poverty and hunger eradication initiatives. Access to goods and services
provided by higher incomes tends to improve life expectancy, allow the achievement of higher
levels of education and health, and contribute to gender equality, child welfare and the protectionof human rights.

© ISO 2007 – All rights reserved

65

WORKING DRAFT 4.2

2527
2528
2529
2530
2531
2532

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 importantpart when 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 ofresources by complying with all applicable laws and regulations, and by scrutinizing the functionsof a tax system to ensure transparency and conformance with applicable laws and regulations.

2533
2534
2535
2536
2537

One important consideration for the contribution of organizations to wealth and income
generation is the need to conduct activities under a legal framework. Many organizations 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 erosionof legal frameworks and respect for laws and government institutions.

2538

6.8.7.2 Expectations and/ or related actions

2539
2540

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

2541
2542



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

2543
2544



encourage and assist informal organizations to become formal organizations operating underlegal frameworks;

2545



endeavour to use natural resources in a sustainable way that helps to alleviate poverty [122];

2546
2547
2548



obtain prior informed consent of the local community for the use of local natural resources
and respect the traditional use of natural resources by local populations, in particularindigenous people [21];

2549
2550



give preference to local suppliers of goods and services and contribute to local supplierdevelopment;

2551
2552
2553
2554



contribute to programs that provide access to food and other essential goods for vulnerable
groups of low income people, taking into account the importance of contributing to theirincreased capabilities, resources and opportunities. Special attention should be given tochild nutrition;

2555
2556
2557



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

2558
2559



where economically feasible develop potential local knowledge and technologies and respect
the communities rights to that knowledge or technology; and

2560
2561



fulfil its tax responsibilities as described in law and related regulations, and provide theauthorities with the necessary information to correctly determine its taxes [101].

2562

6.8.8 Community involvement and development issue 6: Education and culture

2563

6.8.8.1 Description of the issue

2564
2565
2566
2567

Education is an imperative for the progress of civilization and 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
a positive impact on social cohesion and development [122].

66© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

2568

6.8.8.2 Expectations and/ or related actions

2569

An organization should:

2570
2571
2572



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
are especially important as a means of combating discrimination;

2573
2574



help conserve and protect cultural heritage, especially where its operations may have an
impact on it [123];

2575



promote the use of appropriate indigenous knowledge systems where possible [21];

2576
2577



promote and/or support education at all levels and engage in actions to improve the qualityof education, to promote local knowledge and to eradicate illiteracy; and

2578
2579



encourage the enrolment of children in formal education and contribute to the elimination of
barriers to children obtaining an education, such as child labour [10].

2580

6.8.9 Community involvement and development issue 7: Health2581

6.8.9.1 Description of the issue

2582
2583
2584
2585
2586
2587
2588

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

2589

6.8.9.2 Expectations and/ or related actions

2590

An organization should:

2591
2592
2593



promote good health by, for example, contributing to access to medicines and vaccination
and by encouraging healthy lifestyles, including exercise and good nutrition, and by
discouraging the consumption of unhealthy substances;

2594
2595



raise awareness about major diseases and their prevention, such as HIV/AIDS, cancer,
heart diseases, malaria and tuberculosis;

2596
2597



support access to essential health care services and to clean water and appropriate
sanitation as means to prevent illness, especially for women and children; and

2598
2599



seek to minimize or eliminate the negative health impacts of any products or services
provided by the organization.

2600

6.8.10 Community involvement and development issue 8: Responsible Investment2601

6.8.10.1 Description of the issue

2602
2603
2604
2605

Responsible investment is a means by which investors may better align their activities withbroader objectives of society. It can produce positive contributions on all core subjects of thisstandard, not only on community development. Responsible investment includes consideration of
the economic, social, environmental and governance dimensions of an investment, in addition to© ISO 2007 – All rights reserved

67

WORKING DRAFT 4.2

2606
2607

the traditional financial dimensions. Where financially sustainable, preference should be given to
activities which can be viewed as a contribution to the present and future welfare of society.

2608
2609
2610

The term “investment” here refers not only to traditional capital investments by financial
institutions and other businesses, but also to projects that may be identified, considered, funded
and/or managed by NGOs and other organizations covered by this guidance standard.

2611

6.8.10.2 Expectations and/ or related actions

2612
2613

To orient its investments according to the guidance on social responsibility, in addition to financial
considerations, an organization should:

2614
2615



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

2616
2617



develop and disclose an active ownership or governance policy consistent with principles ofsocial responsibility;

2618
2619



seek appropriate disclosure on economic, environmental, social and governance issues by
the organizations in which it has invested;

2620
2621
2622



engage with organizations on their economic, environmental, social and governancepractices, with a view to improving the social performance of organizations in which it has
invested; and

2623
2624



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

2625

7

Guidance on implementing practices of social responsibility

2626

7.1

General

2627
2628
2629
2630
2631
2632
2633

Previous clauses of this standard have identified the principles, core subjects and issues of social
responsibility. This clause provides guidance on putting social responsibility into practice in an
organization. In most cases, organizations can put social responsibility into practice without
creating new structures or major new systems, although some activities are likely to be
conducted in new ways, or with consideration for a broader range of issues. Implementation ofsocial responsibility is primarily about integrating social responsibility into existing systems,
policies, structures and networks.

2634
2635
2636
2637
2638
2639

It is generally not necessary, or productive, to totally re-invent the organization to build social
responsibility into the way that it operates. There are occasions when an organization might
decide it should undertake a radically new approach to its activities – which could arise, forexample, from a sense of urgency about the need to address climate change – but in mostcases, social responsibility can be integrated into an organization without dramatic changes in its
structures or systems.

2640
2641
2642
2643
2644
2645

The purpose of this clause is to identify important practices of social responsibility and to assist
organizations in understanding how to use and apply the information in earlier clauses. Some
organizations may already have well developed techniques for introducing new approaches into
their activities, as well as effective systems for communication and internal review, and may havelittle need for the approaches in this clause. Others may find one or more of the approaches
useful as they put social responsibility into practice.

68© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

2646

7.2

The relationship of the organization's characteristics to social responsibility

2647
2648
2649
2650
2651
2652

The role and practices of social responsibility will vary considerably between organizations.
Social responsibility may be dramatically different in a large multi-national corporation than in asmall community group, both with respect to the breadth of relevant issues and the need forformal procedures to implement actions related to social responsibility. To provide an informed
basis for integrating social responsibility into the organization, it is useful to analyze how some of
the key characteristics of the organization relate to social responsibility.

2653

This analysis could include consideration of factors such as:

2654



locations in which the organization operates;

2655
2656

 nature of the legal framework in these locations (Is there a strong legal framework that
regulates many of the activities related to social responsibility?);2657

 social, environmental and economic characteristics of the areas of operation;

2658



the organization’s type, purpose and size;

2659



characteristics of the organization's workforce or employees;

2660



industry or sector organizations in which the organization participates;

2661

 activities related to social responsibility undertaken by these organizations;

2662
2663

 codes or other requirements related to social responsibility imposed by theseorganizations;

2664



concerns of internal and external stakeholders relevant to social responsibility;

2665
2666



decision making structure of the organization (which decisions are made centrally, which aredecentralized); and

2667



value chains and contractors for the organization.

2668
2669
2670
2671

In addition to understanding the characteristics of the organization and the context in which it
operates, it is also important to understand the current attitudes and understanding of social
responsibility by the organization’s leadership. A good understanding of the benefits of social
responsibility will greatly assist the integration of social responsibility into the organization.

2672
2673
2674

The analysis will help in identifying relevant core subjects and issues of social responsibility forthe organization. It will also provide a basis for determining how social responsibility can beeffectively integrated throughout the organization.

2675

7.3

2676

7.3.1 The scope of social responsibility for the organization

2677
2678
2679
2680
2681
2682
2683
2684

Social responsibility involves integrating all the principles in Clause 4 into the way theorganization operates, as well as identifying and addressing the expectations associated with
relevant and significant core subjects and issues. Clause 4 provides examples of the practicalapplication of these principles of social responsibility. Clause 5 addresses two fundamental
practices of social responsibility: how an organization recognizes its social responsibility and how
it identifies and engages its stakeholders. Clause 6 provides specific guidance on core subjects
and issues. This clause (Clause 7) identifies and describes the practices used to address thecore subjects and issues.

Understanding the social responsibility of the organization© ISO 2007 – All rights reserved

69

WORKING DRAFT 4.2

2685

7.3.2 Determining relevance and significance of core subjects to the organization

2686

7.3.2.1 Determining relevance

2687
2688
2689

All the core subjects, but not all issues, have some relevance for every organization. The degreeof relevance and the significance of the core subject vary, depending on the nature, size andlocation of the organization.

2690
2691
2692
2693

In an initial review of the relevance of the core subjects and issues, there could be benefit intaking a very broad view of possible relevance. It will be relatively easy later to narrow down thelist of relevant issues to those of greatest significance. To start the identification process, anorganization can:

2694



list the full range of its activities;

2695
2696
2697
2698



look at the activities of the organization itself and the activities within the organization’s value
chain and sphere of influence (see Clause 5.1.2 for discussion of sphere of influence andvalue chain/supply chain). The activities of suppliers and contractors can reflect on the social
responsibility of the organization;

2699
2700



determine which core subjects and issues might arise when the organization and others
within its value chain carry out these activities;

2701
2702



examine the range of ways in which the organization’s decisions and activities can cause
impacts on sustainable development and the welfare of society; and

2703



identify the societal expectations of responsible behaviour concerning these impacts.

2704
2705
2706
2707

Although the organization itself may understand societal expectations of its social responsibility(see Clause 5.2.3), there can be benefit in involving stakeholders in this process to broaden theperspective on the core subjects and issues. It is important to recognize though that issues may
be significant even if stakeholders fail to identify them.

2708
2709
2710
2711
2712
2713
2714

When looking at the possible core subjects and issues relevant to the organization, an
organization should include both those that relate to day-to-day activities as well as those thatarise only occasionally under very specific circumstances. As an example, organizations do notconstruct or lease new buildings for their offices or facilities very often, but when they do, theissues of energy and water efficiency (Core subject: Environment) and access for people withdisabilities (Core subject: Human rights) are likely to be important aspects of social responsibility
to be considered.

2715
2716
2717
2718
2719
2720
2721

An organization is likely to identify more relevant core subjects and issues than it had previously
considered. An organization that operates only in one location in an area with strong laws onsuch issues as human rights, consumer protection and environmental management may assume
that all the relevant aspects of such issues are covered by law, and that these core subjects areprobably irrelevant. But careful review of the core subjects and issues in Clause 6 is likely toreveal issues that are not legally regulated and are directly relevant to the activities of theorganization.

2722
2723
2724
2725
2726

Even for subjects or issues covered by applicable law, responding to the spirit of the law may insome cases involve action beyond simple compliance. As an example, although someenvironmental regulations limit emissions of air or water pollutants to specific amounts or levels,
a socially responsible organization is likely to strive for using best practice to reduce its emissionof those pollutants to the lowest levels that can be achieved in a cost-effective manner.

70© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

2727

7.3.3 Determining significance

2728
2729
2730

Once an organization has identified the broad range of issues relevant to its actions, it can lookcarefully at those issues identified and develop a set of criteria for deciding on the core subjects
and issues that have the greatest significance for the organization. Possible criteria could include:

2731



the extent of the impact of the issue on sustainable development and the welfare of society;

2732



the potential effect of taking action or failing to take action on the issue;

2733



the level of stakeholder concern about the issue;

2734
2735



the potential effect of the related action on the issue compared to the resources and effort
required to implement the action; and

2736
2737



the ease of controlling threats or taking advantage of opportunities for contributing tosustainable development, health and welfare of society.

2738

7.3.4 Establishing priorities for addressing core subjects and issues

2739
2740
2741
2742
2743

The significance of a core subject or issue is not the same as the priority an organization assigns
to taking action on that issue. Having determined its significant issues, an organization should
determine priorities for action based on its plans for integrating social responsibility into theorganization and its daily practices. An organization may find it valuable to involve some of its
stakeholders in the identification of priorities.

2744

Priority may be given to issues and actions that:

2745



relate to compliance with law or professional codes;

2746



relate to potential violations of human rights;

2747



relate to practices that could endanger life;

2748



will take a long time to become fully effective;

2749



are of immediate concern to stakeholders;

2750



have significant cost implications if not addressed quickly; and

2751
2752



can be implemented quickly and easily and will be useful in increasing awareness of andmotivation for action on social responsibility within the organization.

2753
2754
2755
2756
2757

In addition to setting priorities for immediate action, an organization can establish priorities forconsideration of core subjects and issues that are relevant to activities that an organization
expects to carry out in the future, such as building construction, employing new staff, hiringcontractors or conducting fund-raising activities. The priority considerations will then form part ofthe planning for these future activities.

2758
2759

An organization should also consider what other criteria it considers important to establishingpriorities for action. These are very likely to vary among organizations.

2760
2761

Once the process of integrating social responsibility throughout the organization is underway,
there would be value in re-examining and updating the priorities for action.

© ISO 2007 – All rights reserved

71

WORKING DRAFT 4.2

2762

7.4

2763

7.4.1 General

2764
2765
2766
2767

A fundamental characteristic of social responsibility is its integration through all parts of theorganization and their activities. This involves making social responsibility an important part ofexisting organizational strategies, systems, practices and processes. This clause provides
guidance on how an organization can bring about this integration.

2768

7.4.2 Setting the direction of the organization towards social responsibility

2769
2770
2771
2772
2773

The statements and actions of the organization’s leadership and the organization's strategic
framework — its purpose, its aspirations and its values — set the directions for the organization.
To make social responsibility an important part of the functioning of the organization, it should bereflected in the organization's strategic framework. This framework includes a number of
elements.

2774
2775
2776
2777

The purpose or role of the organization is the reason why the organization exists. Examples ofsome purposes are: 'to protect wetlands', 'to publish the best literature by local authors', and 'to
work for a fair marketplace for consumers'. Some organizations express their purpose in the formof a mission statement.

2778
2779

The aspirations of an organization are what it would like to be in the future. Some organizations
express their aspirations in the form of a vision statement.

2780
2781
2782

An organization's values, beliefs, attitudes and philosophy are designed to reflect and to shape
the organization's culture. They determine how the organization operates and how its people
make decisions.

2783
2784
2785

Ethics or accepted behaviours guide the activities of people within an organization even if these
are not formally expressed or acknowledged. Some organizations adopt written codes of conduct
or ethics codes approved by the organization’s leadership.

2786
2787
2788

An organization's strategy, whether or not it is formally stated, is based on the organization's
purpose, vision, values and ethics and describes how an organization intends to operate andwhat it needs to do to achieve its goals.

2789
2790

An organization can help set the direction of the organization by making social responsibility an
integral part of its strategic framework. Some of the ways it can do this include:

2791
2792
2793



incorporating in its purpose or in a mission statement specific clear and concise references
to important aspects of social responsibility, including the principles and issues of social
responsibility, that help determine the way the organization operates;

2794
2795



including in the organization’s aspirations or vision statement reference to the way in which it
intends social responsibility to influence its actions;

2796
2797
2798



reviewing the organization's values or philosophy to determine if they are consistent with asocially responsible approach and whether there would be benefit in a more specificreference to social responsibility;

2799
2800
2801
2802



adopting a written code of conduct or ethics code that specifies the organization’scommitment to social responsibility by translating the principles and values into statements
on appropriate behaviour. Codes can be specific to the organization or based on codesdeveloped by professional or sector organizations;

2803
2804



including social responsibility as a key element of the organization’s strategy. Social
responsibility has implications for all aspects of the way an organization is run and operates.

72

Integrating social responsibility throughout the organization© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

2805
2806
2807
2808

It should be integrated into systems, policies, processes and decision making behaviours. It
affects the labour practices of the organization, its purchasing practices and the way it deals
with suppliers, its attitudes and practices related to the communities where it operates, its
relationship with government and many other activities; and

2809
2810
2811
2812
2813
2814
2815



2816

7.4.3 Raising awareness and building competency for social responsibility

2817
2818
2819
2820
2821
2822
2823
2824

Building social responsibility into every aspect of an organization involves commitment andunderstanding by employees at all levels of the organization. The commitment and understanding
should start at the top of the organization. The organization’s leadership plays a very importantrole in setting the direction of the organization. Efforts should therefore be made to provide theorganization’s leadership with a thorough understanding of the principles, core subjects andissues and the implications of social responsibility for the activities of the organization.
Understanding of the benefits of social responsibility for the organization can play a major role ingaining commitment from the organization’s leadership.

2825
2826
2827

In the early stages of an organization's efforts related to social responsibility, the focus ofawareness-building should be on increasing understanding of the aspects of social responsibility,
including principles, core subjects and issues.

2828
2829
2830
2831
2832

Not all employees and all sections of an organization will be equally receptive and willing to adopt
socially responsible practices. No single formula for bringing about change is applicable to allorganizations. Creating a culture of social responsibility within an organization may take a
substantial amount of time, but proceeding systematically and building from existing values andcultures will ultimately create the desired outcomes.

2833
2834
2835
2836
2837

Building the capability for implementing practices of social responsibility may involve
strengthening or developing skills in some areas of activity such as stakeholder engagement, andin improving knowledge and understanding of the application of the core subjects. Efforts should
build on the existing knowledge and skills of people within the organization. Specific training may
be useful for some issues.

2838
2839
2840
2841

To effectively integrate social responsibility, the organization may identify a need for changes indecision making processes and governance that would promote greater freedom, authority andmotivation to suggest new approaches and ideas. An organization may also find that it requires
better tools for monitoring and measuring some aspects of its performance.

2842

7.4.4 Building social responsibility into the organization’s systems and procedures

2843
2844
2845
2846
2847
2848
2849
2850

The most important and effective means of integrating social responsibility throughout theorganization is through the organization’s governance, the system by which its decisions are
made and implemented. When making decisions, including with respect to new activities, anorganization should consider the likely impacts of these decisions on others. In doing so anorganization should consider the best ways of minimizing the harmful impacts of its activities andof increasing the beneficial effects of its behaviour on society and the environment. The
resources and planning required for this purpose should be taken into account when decisions
are made.

2851
2852

An organization should confirm that the principles of accountability, transparency and ethicalbehaviour are applied in its governance and reflected in its structure. Organizations should

translating the priorities for action on core subjects and issues into manageableorganizational objectives, with strategies, processes and timelines developed to achievethese objectives. Objectives should be specific and measurable conditions that contribute to
the goal of being socially responsible. Stakeholder input can be valuable in assisting thisprocess. The details of achieving the objectives, including budgets and the effect on otheractivities of the organization, should be an important element in establishing the objectives
and the strategies for their achievement.

© ISO 2007 – All rights reserved73

WORKING DRAFT 4.2

2853
2854

periodically review procedures and processes to make sure that they take into account the social
responsibility of the organization.

2855
2856
2857
2858
2859
2860

Organizations should apply established management practices to addressing their social
responsibility. Planning, assessing strengths and weaknesses, developing strategies, setting
targets, allocating resources, developing competencies and regularly examining and evaluating
activities can be used to improve the performance of an organization related to social
responsibility. Management processes such as continual improvement can be applied to thispurpose.

2861
2862
2863
2864

Efforts should be made to identify the ways in which the principles of social responsibility and thecore subjects and issues apply to the various departments and sections of the organization. The
roles and responsibilities for achieving the objectives related to priority core subjects and issues
should be identified for each department or section of the organization.

2865
2866
2867
2868
2869
2870
2871
2872

Specific short-term targets should be set to translate objectives into their practical application at a
departmental or other level of the organization. The targets should be clear, specific, measurable,
time bound and realistic. An example of a specific target related to an objective of achieving fair
operating practices for the organization is to prepare and adopt (by specified dates) a policy on
prompt payment of creditors and contractors. If achieving a target will involve a number of steps
and several people or groups, it may be helpful to prepare an action plan that specifies exactly
what will be done, by whom and by what deadline. Resources necessary for meeting the targets
should be determined.

2873
2874
2875
2876
2877

Departments or groups within the organization should review and revise operating procedures tomake them consistent with the principles and core subjects of social responsibility. A broad andeffective mechanism for promoting social responsibility across the organization is to build social
responsibility issues into all human resource practices, such as recruitment, hiring, orientationand other employee training, as well as into performance reviews.

2878
2879
2880
2881

To monitor progress on integrating social responsibility throughout the organization, an
organization should identify the methods it will use for evaluation. These can include periodic
reviews, benchmarking, obtaining feedback from stakeholders, measurement against indicators(see clause 7.7.2) or other methods identified by the organization.

2882
2883
2884
2885
2886
2887
2888
2889
2890

The role of the department (or individual in small organizations) with primary responsibility foroversight of social responsibility activities in the organization can be a powerful indication of howsocial responsibility is viewed by the organization. If responsibility is assigned to a group orindividual whose primary focus is on public relations or external affairs, this may indicate topeople both inside and outside the organization that social responsibility is seen as enhancing
the image of the organization but not fundamentally changing the way it operates. The
appropriate location for oversight of social responsibility activities will depend on the nature andstructure of the organization, but it should relate to the ability of that group or individual to foster
integration of social responsibility across the organization.

2891
2892
2893
2894
2895
2896
2897

The existing values and culture of the organization can have a significant effect on the ease andpace with which social responsibility can be fully integrated throughout the organization. For
some organizations, where the values and culture are already closely aligned to those of social
responsibility, the process of integration may be quite straightforward. In others, some parts of
the organization may not recognize the benefits of social responsibility and may be resistant tochange. Systematic efforts over an extended period may be involved in integrating a socially
responsible approach in these areas.

2898
2899
2900
2901
2902

It is important too to recognize that the process of integrating social responsibility throughout anorganization does not occur all at once or at the same pace for all core subjects and issues. A
plan for addressing some social responsibility issues in the short term and some over a period oftime should be realistic and should take into account the capabilities of the organization, theresources available and the priority of the issues (see clause 7.3.3).

74© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

2903

7.5

Communication on social responsibility

2904

7.5.1 Characteristics of communication for social responsibility

2905
2906
2907
2908

Communication concerning an organization’s social responsibility will likely affect anorganization’s reputation and even its performance. However, communications should not betreated as just self-promotion or advertising. Information concerning an organization’s impacts
and its efforts to address these impacts should have the following characteristics:

2909
2910
2911
2912
2913
2914
2915



it should be understandable. Information should be provided with regard for the knowledge
that the persons using the information will possess. Both the language used, and the mannerin which the material is presented, including how it is organized, should be accessible for the
stakeholders intended to receive the information. In planning communication with specificgroups, the organization should consider the cultural, social, educational and economic
background of those who will be involved in the communication, so that any materials areappropriate for the intended participants;

2916
2917



it should be truthful and accurate. The information should be factually correct and should
provide sufficient detail to be useful and appropriate for its purpose;

2918
2919



it should be balanced. If it is presenting positive information, it should not omit relevant
negative information concerning the impacts of the organization’s activities;

2920
2921
2922
2923
2924



it should include all the material information about the relevant issues. The term material(3.10) in this sense refers to information that should not be withheld if a true picture is to beprovided. In this context information would be considered material if it would influence thedecisions or understanding of stakeholders concerning their interests with respect to thedecisions or activities of the organization;

2925
2926
2927
2928



it should be timely. Out of date information can be misleading. An understanding of theperiod of time covered will allow stakeholders to compare the performance of theorganization with its earlier performance and even with the performance of otherorganizations; and

2929
2930
2931



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 theorganization's impacts and actions with those of similar organizations.

2932
2933
2934
2935

Information on specific issues should be made available to the relevant stakeholders. The
relevant stakeholders will not be the same for each issue. For some issues a broader sphere of
influence of the organization should be taken into account and it may be important tocommunicate with a wide range of stakeholders.

2936

7.5.2 The role of communication in social responsibility

2937
2938
2939

Many practices related to social responsibility will involve some form of internal and external
communication. Communication can serve many different functions in social responsibility
including:

2940



demonstrating accountability and transparency;

2941
2942



addressing legal and other requirements for the disclosure of information related to social
responsibility;

2943
2944



showing how the organization is meeting its commitments on social responsibility andresponding to the expectations of stakeholders and of society in general;© ISO 2007 – All rights reserved75

WORKING DRAFT 4.2

2945
2946



raising awareness within the organization of its strategies and objectives plans, performanceand challenges for social responsibility;

2947
2948



providing information about the impacts of the organization's operations, products, services
and other activities;

2949
2950



helping to engage and motivate employees and others to support the organization’s activities
in social responsibility;

2951
2952



facilitating benchmarking among peer organizations, which can stimulate improvements inperformance on social responsibility;

2953



helping to engage and create dialogue with stakeholders; and

2954
2955



enhancing an organization’s reputation for responsible action, openness, integrity andaccountability to strengthen stakeholder trust and confidence in the organization.

2956

7.5.3 Communicating about the organization’s performance on social responsibility

2957
2958
2959
2960

Many organizations issue some form of report to their members, shareholders, or the public on aregular basis. In some cases, these are simple, short reports to inform members and otherinterested parties about the activities of the organization over the period since the previous
report.

2961
2962
2963

In many jurisdictions, a number of organizations are legally required to produce financial reports
on an annual basis. The requirements for dissemination of such reports may vary depending on
the nature and size of the organization.

2964
2965

To be accountable, an organization should at appropriate intervals report significant impacts
related to social responsibility to concerned stakeholders.

2966
2967
2968
2969
2970
2971
2972
2973
2974

Increasing numbers of organizations that are committed to socially responsible behaviour are
producing periodic reports on social responsibility, which are sometimes called sustainability or
stakeholder reports. Some produce environment or health, safety and environment reports. The
majority of organizations producing such reports are relatively large, although some very smallorganizations also produce social responsibility reports. Some reports are produced in hard copy;
some are web-based, and some use a combination of hard copy and web-based formats. Someof the reports are in the form of separate documents; others appear as sections in an
organization's annual report. Some sector associations strongly encourage their member
organizations to produce such reports.

2975
2976
2977

In some countries, certain types of organizations, typically large corporations or government
agencies, are legally required to produce non-financial reports, such as sustainability or
environment reports.

2978
2979
2980
2981

Some organizations, particularly large ones, produce several different social responsibility
reports. One report may cover the activities of the organization as a whole; other, smaller reports
cover activities at a particular location or site. Community groups often consider smaller, locationspecific reports more useful than an organization-wide report.

2982
2983
2984
2985
2986
2987

Publication of a social responsibility report can be a valuable aspect of an organization's activities
on social responsibility. The scope and scale of an organization's report should be appropriate forthe size and nature of the organization and can also reflect the extent of the organization's
experience with such reporting. In some cases, organizations initiate their efforts with limited
reports covering only a few key subjects and in subsequent years expand coverage as they gain
experience and have sufficient data on which to base the broader report scope.

2988
2989

A social responsibility report should cover an organization's objectives and performance on its
relevant and significant core subjects. The report should provide a fair and complete picture of76© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

2990
2991
2992

social responsibility performance, including achievements and shortfalls and ways in which theshortfalls will be addressed. It should include a description of how the organization decided upon
the issues to be covered in the report.

2993
2994
2995

There are a number of initiatives – at global, national and/or sector-specific level – that are
intended to provide guidance to organizations on social responsibility reporting (see Clause 7.8
and Annex A).

2996

7.6

2997

7.6.1 Enhancing the credibility of reports and claims about social responsibility

2998
2999
3000
3001
3002

Some organizations take measures to enhance the credibility of their reports and claims aboutsocial responsibility. The credibility of social responsibility reports is usually enhanced by making
the reports comparable over time and with reports produced by peer organizations. Providing abrief explanation of why omitted subjects are not covered can also be used to show that theorganization has made an effort to cover all significant matters.

3003
3004
3005
3006
3007
3008
3009
3010
3011
3012
3013

As no binding criteria exist for social responsibility reports, unlike for legally required financial
reports, some organizations undertake efforts to show that preparation of the report has involved
use of rigorous and responsible procedures. To promote confidence in the data and information
provided in a social responsibility report, some organizations undertake a process of verification,in which the data and information are traced back to a reliable source to check the accuracy ofthat data and information. An individual or individuals independent of the process of report
preparation, either within the organization or external to it, usually undertake the verification
process. Often a statement attesting to the verification is published as part of the report.
Professional assurance providers, usually engineering or management consulting firms, produce
written conclusions concerning public reports of organizations. These conclusions can concern
either the processes or the information in the report.

3014
3015
3016
3017
3018
3019

Some organizations undertake processes for their social responsibility reports that involve a
determination that the report reflects the material (3.10) issues for the organization, that it is
responsive to the needs of stakeholders, and that it provides complete coverage of the issues
addressed. Use of stakeholder groups to provide such reviews is becoming more widespread asorganizations recognize the value of stakeholder input to improvement of their social
responsibility and reporting practices.

3020
3021
3022
3023
3024
3025
3026

Another way of enhancing credibility is to take extra steps to be transparent. Credibility will be
increased by providing information of a kind and in a form that can be easily checked by others.
For instance, instead of just reporting statistics concerning performance, an organization can also
make available details on the sources of the information and the processes used to develop thestatistics. An organization can increase the credibility of claims it makes about its value chain byrevealing the places where it conducts its activities and/or the names and locations of all of its
suppliers or partners.

3027
3028

As a further means of adding credibility to their reports, some organizations report theirconformance to the reporting requirements of an external organization.

3029
3030
3031
3032

A great many products include claims about environmental or social aspects of the product or theorganization that produced it. To enhance the credibility of their claims, some organizations
obtain eco-labels, certification or other form of recognition from bodies that use life-cycle
assessments, audits or other criteria-based systems for evaluation.

3033

7.6.2 Enhancing the credibility of the organization regarding social responsibility

3034
3035
3036
3037

There are various ways in which an organization establishes its credibility. One is stakeholder
engagement. Dialogue with stakeholders is one means of increasing confidence that the interestsand intentions of the parties are understood. This dialogue can build trust, and hence enhancecredibility. Dialogue provides a means of correcting wrong impressions. Stakeholder engagement

Enhancing credibility regarding social responsibility© ISO 2007 – All rights reserved

77

WORKING DRAFT 4.2

3038
3039
3040

can be a basis for involving stakeholders in the verification of an organization’s claims concerning
its performance. Arrangement can be made for stakeholders to periodically review or otherwise
monitor aspects of an organization’s performance.

3041
3042
3043
3044
3045
3046
3047
3048
3049

Credibility with respect to certain issues can sometimes be enhanced through participation in
specific certification schemes. Initiatives have been developed to certify product safety or tocertify processes or products with respect to their environmental impact and other aspects ofsocial responsibility. Such schemes must be credible in themselves. Any “certifiers” must be truly
independent. This requires that they work to a rule-driven process and that an effective system isin place to prevent or address conflicts of interest. In some situations, organizations involve
independent parties in their activities to provide credibility. An example of this is the creation ofadvisory committees or review committees consisting of persons who are selected because they
will be considered credible.

3050
3051
3052
3053

Organizations sometimes join associations of peer organizations to establish or promote socially
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 social responsibility.

3054
3055

7.7 Reviewing and improving the organization’s actions and practices related tosocial responsibility

3056

7.7.1 General

3057
3058
3059
3060

Effective performance on social responsibility, as on most major initiatives of an organization,
depends in part on careful oversight, evaluation and review of the activities undertaken, progress
made, achievement of identified objectives, resources used and other aspects of theorganization's efforts.

3061
3062
3063

Ongoing monitoring or observation of activities related to social responsibility is primarily aimed atmaking sure that activities are proceeding as intended, identifying any crisis or out-of-the ordinary
occurrences, and for making minor modifications to the way things are done.

3064
3065
3066
3067

Periodic reviews of performance are used to determine progress on social responsibility, help
keep programmes well focused, identify areas in need of change and contribute to improved
performance. Stakeholders can play an important role in reviewing an organization's performanceon social responsibility.

3068
3069
3070
3071

In addition to reviewing existing activities, organizations also should keep abreast of changing
conditions or expectations and new opportunities for enhancing its efforts on social responsibility.
This clause identifies some techniques organizations can use for monitoring, reviewing andimproving their performance on social responsibility.

3072

7.7.2 Monitoring activities on social responsibility

3073
3074
3075
3076

To have confidence in the effectiveness and efficiency with which social responsibility is being
put into practice by all parts of an organization, it is important to monitor ongoing performance on
the activities related to core subjects and issues. The extent of this effort will obviously vary withthe scope of the core subjects covered, the size of the organization and other factors.

3077
3078
3079
3080
3081
3082

When deciding on the activities to be monitored the organization should focus on those that are
significant and seek to make the results of the monitoring easy to understand, reliable and timely,
and responsive to stakeholders’ concerns. As in any other type of performance management, themanner in which monitoring of performance is done and the nature and extent of feedback canhave a significant impact on the level of cooperation of workers in maintaining high standards andbringing about improvement.

78© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

3083
3084
3085
3086
3087
3088
3089
3090
3091

There are many different methods that can be used to monitor performance on social
responsibility, including periodic reviews, benchmarking and obtaining feedback fromstakeholders. One of the more common methods is measurement against indicators. An indicator
is a measurement of a specific aspect of performance; it is used to monitor or evaluate theachievement of project objectives over time. For example, if an organization has an objective of
reducing its electricity use, a good indicator of its progress toward achieving that objective is thesize of its electricity bill. By checking its bill every three months, an organization can determine
whether its electricity use is increasing or decreasing. Comparison of the bills over a few years
will allow the organization to take account of variations that reflect seasonal patterns.

3092
3093
3094
3095
3096
3097
3098

Indicators are often used when it is too difficult or expensive to monitor every activity that makes
up a programme for social responsibility. As an example, the proportion of computer monitors
turned off overnight or the proportion of computers on which energy saver features have beenenabled can be a good indicator of the effectiveness of an energy efficiency programme for asmall office-based organization. This indicator is considered representative of the performanceon its whole energy efficiency programme. A larger or more complex organization could have anumber of different performance indicators for energy efficiency.

3099
3100
3101
3102
3103
3104
3105
3106

To be valuable in organization's efforts on social responsibility, indicators chosen for monitoring
performance should be valid, that is, they should actually measure what they are intended tomeasure. It is important to have confidence that the results provide a clear picture of theperformance activity they are meant to measure or the results may not be useful. As an example,
it could be misleading to use the number of community survey forms that are completed as ameasure of community interest in a specific issue. A poor result, that is, only a few surveys arecompleted, could indicate a low level of interest, or it could reflect the poor quality of the survey
form and survey process.

3107

Indicators should also be:

3108
3109



informative – readily understandable in the provision of the type of information desired bystakeholders;

3110
3111



practical – able to be used to compare conditions over time and between locations and able
to be monitored easily using available or readily obtainable data;

3112



credible – accepted as valid by the community, and logically or scientifically defensible; and

3113
3114

 reliable – sensitive to changes in time, space or within groups but not subject to significant

3115
3116

Extensive additional detail on selecting and using indicators is available in many references onsocial responsibility and sustainability.

3117
3118
3119
3120
3121
3122
3123
3124
3125

Although indicators that yield quantitative results are relatively straightforward to use, they are notappropriate for all aspects of social responsibility, In the area of human rights, for example,
people's views about whether they are being fairly treated can be more meaningful than somequantitative indicators on discrimination. Beyond this, it is important to recognize that social
responsibility is about more than specific achievements in measurable activities, such as
reducing pollution and responding to complaints. As social responsibility is based on values,
application of principles of social responsibility, and attitudes, monitoring involves more subjective
approaches such as interviewing, observing and other techniques for evaluating behaviour andcommitments.

3126

7.7.3 Reviewing the organization's progress and performance on social responsibility

3127
3128
3129
3130

In addition to its day-to-day oversight and monitoring of the activities related to social
responsibility, organizations should carry out periodic reviews to determine how they are
performing against their targets and objectives for social responsibility and to identify potentialchanges in the programmes and procedures.

variability in measurement.

© ISO 2007 – All rights reserved

79

WORKING DRAFT 4.2

3131
3132
3133
3134
3135
3136

These reviews typically involve the comparison of indicators of performance across a range ofsocial responsibility core subjects with results from earlier reviews, to determine progress andmeasure achievement against objectives. They should also include examination of less easily
measured aspects of performance such as attitudes to social responsibility, integration of social
responsibility across the organization and adherence to principles, value statements andpractices.

3137
3138
3139
3140
3141

The role of stakeholders can be a valuable part of such reviews. Stakeholder information notifies
an organization not only how stakeholders perceive specific achievements of its social
responsibility programme, but also how they view the organization's overall efforts on social
responsibility. Stakeholders can also keep an organization attuned to changes in expectations
and attitudes in the broader community.

3142

Types of questions that could be asked during periodic reviews include:

3143



Were objectives achieved as envisioned?

3144



Did the strategies and processes suit the objectives?

3145



What worked and why? What did not work and why?

3146



Were the objectives appropriate?

3147



What could have been done better?

3148
3149
3150

Based on the results of its reviews, an organization should identify changes to its programmesthat would remedy any deficiencies and bring about improved performance on social
responsibility.

3151

7.7.4 Enhancing the reliability of data and information collection and management

3152
3153
3154
3155

Organizations that are accountable for the provision of performance data to government, otherorganizations or the public or for maintaining databases containing sensitive information can
increase their confidence in their data collection and management systems by detailed audits orreviews of the systems. The aim of such reviews or audits may be to:

3156



increase the organization’s confidence that the data it provides to others is accurate;

3157



improve the credibility of data and information; and

3158



confirm the reliability of systems for protecting the security and privacy of data.

3159
3160
3161
3162
3163

Such detailed reviews may be prompted by legal or other requirements for release of data on
emissions of greenhouse gases or pollutants, conditions of environmental licenses or permits,requirements for provision of programme data to funding bodies or oversight departments, andconcerns about protection of private information, such as financial or medical data or personal
details,

3164
3165
3166
3167
3168
3169

As part of such reviews, independent people or groups, either internal or external to theorganization, examine the ways in which data is collected, recorded or stored, handled and usedby the organization. The reviews can help identify vulnerabilities in data collection andmanagement systems that would allow the data to become contaminated by errors or would
permit access by unauthorized individuals. The results of the reviews can help the organization
strengthen and improve its systems.

80© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

3170

7.7.5 Improving performance

3171
3172
3173
3174
3175
3176
3177
3178
3179

On the basis of periodic reviews, or at other appropriate intervals, an organization should
consider ways in which it could improve its performance on social responsibility. These
improvements could involve modification of targets and objectives to reflect changing conditions
or aspiration for greater achievement. As an example, an organization that has undertaken agreen purchasing programme for office supplies may now aim to include a broader range of
products or expand the programme to other parts of the organization. The provision of additional
or different resources for activities related to social responsibility might be an issue to consider.
Improvements could also include programmes or activities to take advantage of newly identified
opportunities.

3180
3181
3182

Stakeholder views expressed during reviews may assist the organization in the identification of
new opportunities and changed expectations to be taken into account in improving performanceof its activities on social responsibility.

3183
3184
3185
3186

To encourage the realization of organizational goals and objectives, some organizations build
achievement of specific social responsibility objectives into the annual or periodic performance
reviews of senior executives and managers. Such steps emphasize that the organization's action
on social responsibility is intended to be a serious commitment.

3187

7.8

3188
3189
3190
3191
3192
3193

Many government and private organizations have developed voluntary programmes toencourage and support others to become more socially responsible. These can be considered
voluntary initiatives for social responsibility. There is a wide variety of initiatives: some address
principles, some address one or more core subjects and issues, and others address
implementation practices. Some initiatives also provide practical support such as tools, practicalguidelines, value statements or other mechanisms.

3194
3195
3196
3197
3198
3199
3200
3201
3202

In implementing social responsibility, an organization may find it useful to participate in one ormore social responsibility initiatives. Participation should lead in one way or another to concrete
action within the organization, such as obtaining support or learning from others. Participation
can be especially valuable when an organization starts using or drawing upon tools or practicalguidance that accompanies the initiative. Organizations may use initiatives to seek some form ofrecognition, such as a certificate or label. Some initiatives are broadly recognized as a credible
basis for public recognition of performance or compliance regarding specific practices or on
specific issues. Practical guidance of these initiatives can vary from self-assessment tools to third
party verification.

3203

In considering the added value of an initiative, the organization may ask the following questions:

3204



do we have issues to integrate that can be addressed or supported by an initiative?

3205
3206



do we have a lack of important information, guidelines or tools that can be provided by aninitiative?

3207
3208



do we need support in reaching specific stakeholder groups that can be addressed by aninitiative?

3209
3210



is the initiative designed for our particular type of organization and is it locally or regionally
relevant?

3211
3212

In identifying and selecting initiatives to answers these questions, an organization should
consider first:

3213
3214
3215



Selecting initiatives on social responsibility

the purpose of the initiative (for example: substantive guidance concerning one or more core
subjects or issues, good practices, reporting guidance, practical implementation tools, orinformation assisting in verification); and© ISO 2007 – All rights reserved

81WORKING DRAFT 4.2

3216
3217



3218
3219

In a second step the organization may identify the relevance of an initiative. The following factors
may be worth considering:

3220
3221



whether the initiative is consistent with the principles mentioned in Clause 4 (for example,‘guided by internationally recognized norms applicable to social responsibility’);

3222
3223



the reputation of the organization or entities developing or supporting the development of theinitiative and/or tools;

3224
3225
3226
3227



the nature of the process for developing and implementing the initiative (for example,
whether the initiative is developed and/or implemented through a multi-stakeholder,transparent, open, and accessible process with developed and developing country
participants); and

3228
3229



the accessibility of the initiative (for example, whether there is a cost to join the initiative or
not).

3230
3231

These factors may be difficult to weigh so it is important that an organization considers more than
one view:

3232
3233
3234



a widespread accepted initiative ‘by the market’ may be an indication of relevance, although
it might also be an indication that it has less strong requirements; by contrast a new and lesswidespread initiative may be more innovative or challenging; or

3235
3236



a freely available initiative may seem attractive, while an initiative available at a price may be
kept up-to-date, and thus more valuable in the long-term.

3237
3238
3239
3240

Participating in an initiative often requires a tailored approach for the organization and the sameis true for integrating its practical tools. Initiatives that currently meet the criteria can change inways that they become less interesting, so periodically reviewing the initiatives available will benecessary.

3241
3242
3243

An overview of initiatives is listed in a table in Annex A, “Reference to initiatives and tools related
to social responsibility”. This Annex also includes a brief description of the initiative and theorganization that is administering it.

82

the scope of application of the initiative (for example: global, regional or local application, aparticular sector or all sectors, large or small organizations, or a specific stakeholder group).

© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

Annex A – Social Responsibility Initiatives

3244
3245
3246

Note: At the time of submitting WD4.2, this Annex was still being finalized by the IDTF. The
proposed Annex will be distributed and made available separately.

© ISO 2007 – All rights reserved

83

WORKING DRAFT 4.2

Bibliography

3247
3248

ISO Documents

3249

[103]

ISO/IEC 51:1999, Safety aspects – Guidelines for their inclusion in standards

3250

[104]

ISO 9000:2005, Quality management systems – Fundamentals and vocabulary

3251

[105]

ISO 9001:2000, Quality management systems – Requirements

3252
3253

[106]

ISO 9004:2000,
improvements

3254
3255

[107]

ISO 19011:2002, Guidelines for quality and/or environmental management systems
auditing

3256
3257

[108]

ISO 22000:2005, Food safety management systems – Requirements for any organizationin the food chain

3258

[109]

ISO 14020:2000, Environmental labels and declarations – General principles.

3259
3260

[110]

ISO 14021:1999, Environmental labels and declarations – Self-declared environmental
claims.

3261
3262

[111]

ISO 14024:1999, Environmental labels and declarations – Type I environmental labelling– Principles and procedures.

3263
3264

[112]

ISO 14025:2006, Environmental labels and declarations – Type III environmental
declarations – Principles and procedures.

3265
3266

[114]

ISO 10001, Quality Management: Customer Satisfaction--Guidelines for Codes ofConduct.

3267
3268

[115]

ISO 10002, Quality Management: Customer Satisfaction--Guidelines for Complaints
Handling.

3269
3270

[116]

ISO 10003, Quality management - Customer satisfaction - Guidelines for dispute
resolution external to organizations.

3271
3272

[119]

ISO 27001, Information technology – Security techniques – Information security
management systems – Requirements.

Quality

management

systems–

Guidelines

for

performance

3273
3274

Authoritative international instruments

3275
3276

[1]

United Nations (UN) Conference on Trade and Development (UNCTAD): Guidance on
Good Practices in Corporate Governance Disclosure. 2006

3277
3278

[2]

Organization for Economic Co-Operation and Development (OECD): OECD Principles ofCorporate Governance. 2004

3279

[3]

United Nations (UN): Universal Declaration on Human Rights. 1948

3280

[4]

United Nations (UN): International Covenant on Civil and Political Rights. 1966

3281
3282

[5]

United Nations (UN): International Covenant on Economic, Social and Cultural Rights.
1966

84

© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

3283
3284

[6]

United Nations (UN): Second Optional Protocol to the International Covenant on Civil andPolitical Rights, aiming at the abolition of the death penalty. 1989

3285
3286

[7]

United Nations (UN): International Convention on the Elimination of All Forms of Racial
Discrimination. 1965

3287
3288

[8]

United Nations (UN): Convention on the Elimination of All Forms of Discrimination against
Women. 1979

3289
3290

[9]

United Nations (UN): Convention against Torture and Other Cruel, Inhuman or Degrading
Treatment or Punishment. 1984

3291

[10]

United Nations (UN): Convention on the Rights of the Child. 1989

3292
3293

[11]

United Nations (UN): Optional Protocol to the Convention on the Rights of the Child on
the involvement of children in armed conflict. 2000

3294
3295

[12]

United Nations (UN): Optional Protocol to the Convention on the Rights of the Child on
the sale of children, child prostitution and child pornography. 2000

3296
3297

[13]

United Nations (UN): International Convention on the Protection of the Rights of All
Migrant Workers and Members of Their Families. 1990

3298
3299

[14]

International Labour Organization (ILO): Migration for Employment Convention (Revised)(No. 97) 1949

3300
3301

[15]

International Labour Organization (ILO): Migrant Workers (Supplementary Provisions)
Convention (No. 143). 1975

3302
3303

[16]

International Labour Organization (ILO): Migrant Workers Recommendation (No.151).
1975

3304
3305

[17]

United Nations (UN): International Convention for the Protection of All Persons from
Enforced Disappearance. 2006

3306

[18]

United Nations (UN): Convention on the Rights of Persons with Disabilities. 2006

3307
3308

[19]

The Geneva Convention relative to the Treatment of Prisoners of War and the Geneva
Convention relative to the Protection of Civilian Persons in Time of War. 1949

3309
3310

[20]

United Nations (UN): United Nations Declaration on the Rights of Indigenous Peoples.
2007

3311
3312

[21]

International Labour Organization (ILO): Indigenous and Tribal Peoples Convention (No.
169). 1989

3313
3314

[22]

United Nations (UN): Declaration on the Rights of Persons Belonging to National or
Ethnic, Religious and Linguistic Minorities. 1992

3315
3316

[23]

United Nations (UN): Declaration on the Elimination of All Forms of Intolerance and ofDiscrimination Based on Religion or Belief. 1981

3317
3318

[24]

United Nations (UN): Durban Declaration from the World Conference against Racism,
Racial Discrimination, Xenophobia and Related Intolerance. 2006.

3319

[25]

United Nations (UN): Declaration of Commitment on HIV/AIDS. 2001

3320
3321

[26]

International Labour Organization (ILO): ILO Code of practice on HIV/AIDS and the worldof work. 2006

© ISO 2007 – All rights reserved85

WORKING DRAFT 4.2

3322
3323

[27]

International Labour Organization (ILO): Declaration of Fundamental Principles andRights at Work. 1998

3324
3325

[28]

International Labour Organization (ILO): Freedom of Association and Protection of theRight to Organise Convention (No. 87). 1948

3326
3327

[29]

International Labour Organization (ILO): Right to Organise and Collective Bargaining
Convention (No.98). 1949

3328

[30]

International Labour Organization (ILO): Forced Labour Convention (No. 29). 1930

3329
3330

[31]

International Labour Organization (ILO): Abolition of Forced Labour Convention (No. 105).
1957

3331

[32]

International Labour Organization (ILO): Minimum Age Convention (No. 138). 1973

3332

[33]

International Labour Organization (ILO): Minimum Age Recommendation (No. 146). 1973

3333
3334

[34]

International Labour Organization (ILO): Worst Forms of Child Labour Convention (No.
182) 1999

3335
3336

[35]

International Labour Organization (ILO): Worst Forms of Child Labour Recommendation(No. 190). 1999

3337

[36]

International Labour Organization (ILO): Equal Remuneration Convention (No. 100). 1951

3338
3339

[37]

International Labour Organization (ILO): Equal Remuneration Recommendation (No. 90).
1951

3340
3341

[38]

International Labour Organization (ILO): Discrimination (Employment and Occupation)
Convention (No.111). 1958

3342
3343

[39]

International Labour Organization (ILO): ILO Constitution (including Declaration ofPhiladelphia). 1944

3344
3345

[40]

International Labour Organization (ILO): Employment Relationship Recommendation.
2006

3346
3347

[41]

International Labour Organization (ILO): Termination of Employment Convention (No.
158). 1982

3348
3349

[42]

International Labour Organization (ILO): Termination of Employment Recommendation(No. 166). 1982

3350
3351

[43]

International Labour Organization (ILO): Vocational Rehabilitation and Employment(Disabled Persons) Convention (No. 159). 1983

3352
3353

[44]

International Labour Organization (ILO): Vocational Rehabilitation and Employment(Disabled Persons) Recommendation (No. 168). 1983

3354
3355

[45]

International Labour Organization
Recommendation (No. 99). 1955

3356
3357

[46]

International Labour Organization (ILO): Private Employment Agencies Convention (No.
181). 1997

3358
3359

[47]

International Labour Organization (ILO): Private Employment Agencies Recommendation(No. 188). 1997

86(ILO):

Vocational

Rehabilitation(Disabled)© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

3360
3361

[48]

International Labour Organization (ILO): ILO Tripartite Declaration of Principles
Concerning Multinational Enterprises and Social Policy. Third Edition. 2001

3362
3363

[49]

International Labour Organization (ILO): Minimum Wage Fixing Convention (No. 131).
1970

3364
3365

[50]

International Labour Organization (ILO): Minimum Wage Fixing Recommendation (No.
135). 1970

3366

[51]

International Labour Organization (ILO): Protection of Wages Convention (No. 95). 1949

3367
3368

[52]

International Labour Organization (ILO): Protection of Wages Recommendation (No. 85).
1949

3369
3370

[53]

International Labour Organization (ILO): Protection of Workers’ Claims (Employer’s
Insolvency) Convention (No. 173). 1992

3371
3372

[54]

International Labour Organization (ILO): Hours of Work (Industry) Convention (No. 1).
1919

3373

[55]

International Labour Organization (ILO): Forty-Hour Week Convention (No. 30). 1935

3374
3375

[56]

International Labour Organization (ILO): Reduction of Hours of Work Recommendation(No. 116). 1962

3376

[57]

International Labour Organization (ILO): Night Work Convention (No. 171). 1990

3377

[58]

International Labour Organization (ILO): Night Work Recommendation (No. 178). 1990

3378
3379

[59]

International Labour Organization (ILO): Weekly Rest (Industry) Convention (No. 14).
1921

3380
3381

[60]

International Labour Organization (ILO): Weekly Rest (Commerce and Offices)
Convention (No. 106). 1957

3382
3383

[61]

International Labour Organization (ILO): Weekly Rest (Commerce and Offices)
Recommendation (No. 103). 1957

3384

[62]

International Labour Organization (ILO): Holidays with Pay Convention (No. 52). 1936

3385
3386

[63]

International Labour Organization (ILO): Holidays with Pay Recommendation (No. 47).
1936

3387
3388

[64]

International Labour Organization (ILO): ILO Occupational Health and Safety Guidelines.
2001

3389
3390

[65]

International Labour Organization (ILO): Occupational Safety and Health Convention (No.
155). 1981

3391
3392

[66]

International Labour Organization (ILO): Protocol of 2002 to the Occupational Safety and
Health Convention (No. 155). 1981

3393
3394

[67]

International Labour Organization
Recommendation (No. 164). 1981

3395
3396

[68]

International Labour Organization (ILO): Occupational Health Services Convention (No.
161). 1985

© ISO 2007 – All rights reserved(ILO):

Occupational

Safetyand

Health87

WORKING DRAFT 4.2

3397
3398

[69]

International Labour Organization (ILO): Occupational Health Services Recommendation(No. 171). 1985

3399

[70]

International Labour Organization (ILO): Chemicals Convention (No. 170). 1990

3400

[71]

International Labour Organization (ILO): Chemicals Recommendation (No. 177). 1990

3401
3402

[72]

International Labour Organization (ILO): Safety and Health in Agriculture Convention (No.
184). 2001

3403
3404

[73]

International Labour Organization
Recommendation (No. 192). 2001

3405
3406

[74]

International Labour Organization (ILO): Protection of Workers' Health Recommendation(No. 97). 1953

3407
3408

[75]

International Labour Organization (ILO): Welfare Facilities Recommendation (No. 102).
1956

3409
3410

[76]

International Labour Organization (ILO): Social Security (Minimum Standards) Convention(No. 102) (Part VIII, Articles 46-52). 1952

3411

[77]

International Labour Organization (ILO): Maternity Protection Convention (No. 183). 2000

3412
3413

[78]

International Labour Organization (ILO): Maternity Protection Recommendation (No. 191).
2000

3414
3415

[79]

International Labour Organization (ILO): Workers' Representatives Convention (No. 135).
1971

3416
3417

[80]

International Labour Organization (ILO): Communications within the Undertaking
Recommendation (No. 129). 1967

3418
3419

[81]

International Labour Organization (ILO): Examination of Grievances Recommendation(No. 130). 1967

3420

[82]

International Labour Organization (ILO): Human Development and employment promotion

3421
3422

[83]

International Labour Organization (ILO): Workers with Family Responsibilities Convention,
1981 (No. 156)

3423
3424

[84]

International Labour Organization
Recommendation (No. 165). 1981

3425
3426

[85]

International Labour Organization (ILO): Maternity Protection Recommendation (No. 191).
2000

3427
3428

[86]

International Labour Organization (ILO): Older Workers Recommendation, (No. 162).
1980

3429
3430

[87]

International Labour Organization (ILO): Human Resources Development Convention(No. 142). 1975

3431
3432

[88]

International
LabourOrganization
Recommendation (No. 195). 2004

3433

[89]

International Labour Organization (ILO): Part-Time Work Convention (No. 175). 1994

88

(ILO):(ILO):

SafetyWorkers(ILO):

andHealth

with

Human

FamilyResourcesin

Agriculture

Responsibilities

Development© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

3434
3435

[90]

International Labour Organization (ILO): Part-Time Work Recommendation (No. 182),
1994

3436
3437

[91]

International Labour Organization (ILO): Paid Educational Leave Convention (No. 140).
1974

3438
3439

[92]

United Nations Conference on Environment and Development: Rio Declaration on
Environment and Development. 1992

3440
3441

[93]

United Nations Environment Programme (UNEP): Montreal Protocol on Substances that
Deplete the Ozone Layer. 1987

3442
3443

[94]

United Nations Environment Programme (UNEP): Stockholm Convention on Persistent
Organic Pollutants (POPs). 2001

3444
3445
3446
3447

[95]

United Nations (UN), United Nations Environment Programme (UNEP), Food andAgriculture Organization of the United Nations (FAO): Rotterdam Convention on the Prior
Informed Consent (PIC) Procedure for Certain Hazardous Chemicals and Pesticides inInternational Trade. 2004

3448
3449

[96]

Intergovernmental Panel on Climate Change: Fourth Assessment Report; Climate
Change 2007: Synthesis Report (Summary for Policymakers). 2007

3450
3451

[97]

United Nations: Kyoto Protocol to the UN Framework Convention on Climate Change.
1997

3452

[98]

Millennium Ecosystem Assessment. 2005

3453
3454

[99]

United Nations Environment Programme (UNEP): Convention on Biological Diversity.
1992

3455
3456

[100]

United Nations (UN): United Nations Guidelines for Consumer Protection, UN Doc.
No.A/C.2/54/L.24. 1999

3457
3458

[101]

Organization for Economic Co-Operation and Development (OECD): OECD Guidelines
for Multinational Enterprises: Review. 2000

3459
3460

[102]

Organization for Economic Co-Operation and Development (OECD): OECD Guidelines
for Consumer Protection in the Context of Electronic Commerce. 1999

3461
3462

[113]

Organization for Economic Co-Operation and Development (OECD):
Recommendation on Consumer Dispute Resolution and Redress. 2007

3463
3464

[117]

Organization for Economic Co-Operation and Development (OECD): OECD Guidelines
on the Protection of Privacy and Transborder Flows of Personal Data. 2002

3465
3466

[118]

Organization for Economic Co-Operation and Development (OECD): OECD Guidelines
for the Security of Information Systems and Networks: Towards a culture of security. 2002

3467
3468

[120]

United Nations (UN): The United Nations Millennium Declaration, General Assembly
resolution 55/2 of 8 September 2000. 2000

3469
3470
3471

[121]

United Nations (UN): World Summit for Social Development. Report of the World Summit
for Social Development. Document A/CONF. 166/9, 1995. Copenhagen Declaration on
Social Development. 1995

3472
3473

[122]

United Nations (UN): Report of the World Summit on Sustainable Development,
Johannesburg, South Africa, 26 August - 4 September 2002. 2002

© ISO 2007 – All rights reserved

OECD

89

WORKING DRAFT 4.2

3474
3475

90

[123]

United Nations (UN) Educational, Scientific and Cultural Organization (UNESCO):
Declaration against the intentional destruction of cultural heritage. 2003

© ISO 2007 – All rights reserved

WORKING DRAFT 4.2

Index

3476
3477
3478
3479

Note: the Editing Committee believes that an index would increase the utility of ISO 26000 andthat is should be provided in the final document. This is something that could be undertaken at
the end of the process

3480
3481
3482
3483

© ISO 2007 – All rights reserved

91