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• Module 6 is connected with Module 4 and 5, therefore you are suggested to

clearly understand Module 4 and 5 before going through Module 6.

• Module 6 presents the following topics:

– Understanding an organization‟s characteristics and social responsibility of an

organization.

– Integrating social responsibility throughout an organization.

– Communication on social responsibility.

– Enhancing credibility regarding social responsibility.

– Reviewing and improving social responsibility practices

– Voluntary initiatives for social responsibility

• At the end of module 6, you are expected to understand the practices tointegrate social responsibility in an organization and encourage social

responsibility integration process in your organization.

Learning objectives

2Module 6, self-learning e-course, ISO26000:2010

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3

The Diagram

Understanding Socialresponsibility of an

organization

Communication on social

responsibility

Due diligence

Determine Relevance &

Significance

Establish priorities

Integrating social

responsibility

Enhancing credibility

Reviewing & Improving

Voluntary initiatives for SR

Implementation Advancement

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Course content

Slide ISO 26000

clause no

Content

5 – 10 Clause 7.1.

Clause 7.2.

Social responsibility of an organization

11 – 13 Clause 7.3.1. Due diligence

14 – 19 Clause 7.3.2. Determine relevance and significance

20 – 23 Clause 7.3.4. Establish priorities

24 – 34 Clause 7.4. Integrating social responsibility

35 – 41 Clause 7.5. Communication on social responsibility

42 – 46 Clause 7.6. Enhancing credibility regarding social responsibility

47 – 51 Clause 7.7. Reviewing and improving social responsibility practices52 – 56 Clause 7.8. Voluntary initiatives for social responsibility

57 – 84 - Case study


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Clause 7.1 & 7.2: Social Responsibility of an

organization

An organization has its own characteristics regarding social responsibility

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This is intended to help all

organizations, whatever their starting

point, integrate social responsibility

into the way they operate.

Integrating social responsibility

throughout an Organization

Source: ISO2600:2010 pg.69

6



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An organization should determine how its keycharacteristics relate to social responsibility:

– The organization's type, purpose, nature of

operations and size, locations in which the

organization operates, including:

(1) whether there is a strong legalframework that regulates many of the

decisions and activities related to

social responsibilities;

(2) social, environmental and economic

characteristics of the areas of

operation.

7



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An organization should determine how its keycharacteristics relate to social responsibility:

– The historical performance of the organization on social

responsibility.

– The characteristics of the organization's workforce oremployees, including contracted labor.

– The organization's own mission, vision, values,

principles, and code of conduct.

– Concerns of internal and external stakeholders relevant

to social responsibility.

8



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An organization should determine how its key

characteristics relate to social responsibility:

– Sector organizations in which the

organization participates, including:

• the activities related to social

responsibility undertaken by these

organizations; and• the codes or other requirements related to

social responsibility promoted by these

organizations;

– The organization's value chain, nature of decision-making, commitment and leadership.

9



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Understand social responsibility of an organization

10

Due diligence

DetermineRelevance &

Significance ofIssues

Establishing

Priorities

Integrate Social

Responsibility



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Clause 7.3.1: Due diligence

An organization should recognize its actual and potential

impacts of products, services and activities on the

environment and society

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Due dil igence

is a comprehensive, proactive process to identify the actual and potential

negative social , envi ronmental and economic impacts of an organization' s

decisions and activi ties, with the aim of avoiding and mitigating those impacts.

• In due diligence, an organization should consider the country context.

• Due diligence may also entail influencing the behavior of others, where they

are found to be the cause of human rights or other violations in which the

organization may be implicated.

12

Due diligence


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Due diligence covers the following:

–

Means of assessing: (1) existing and proposed activities may affect policy

goals, (2) integrating social responsibility

throughout the organization; and (3)

tracking performance over time, to be

able to make necessary adjustments in

priorities and approach.

– Appropriate actions to address the

negative impacts.

– Organizational policies related.

– Those are closely linked to the

organization;

13

Due diligence


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Clause 7.3.2: Determine relevance and

significance

A organization should recognize the relevant and significant issues,

therefore a number of resources can be allocated efficiently and

effectively

l d f

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An organization should review all core subjects

to identify which issues are relevant

The identification process of relevant issues:

– List the full range of its activities.

– Identify stakeholders (Module 4).

– Identify the activities of the organization itself and of the organizations within its

sphere of influence. The decisions and activities of suppliers and contractors can

have an impact on the social responsibility of the organization.

15

Determine relevance and significance


i l d i ifi

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The identification process of relevant issues:

⁻ Determine which core subjects and issues might arise when the

organization and others within the sphere of influence and/or thevalue chain carry out activities, taking into account all

applicable legislation.

⁻ Examine the range of ways in which the organization's decisions

and activities can cause impacts on stakeholders and on

sustainable development.

⁻ Examine the ways in which stakeholders and social

responsibility issues can impact the decisions, activities and

plans of the organization; and

⁻ Identify all issues of social responsibility that relate to day-to-

day activities as well as those that arise only occasionally under

very specific circumstances.

16



D i l d i ifi

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An organization should identi f ied and develop a set of cri ter ia for

deciding which issues have the greatest signi f icance

and are most important to the organization

Issues that are generally considered to be significant are:

(1) non-compliance with the law;

(2) inconsistency with international norms of behavior;

(3) potential violations of human rights; life or health; and environment.

17



D t i l d i ifi

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Possible criteria to determine significance:

– Extent of the impact of the issue onstakeholders and sustainable development.

– Potential effect of taking action or failing to

take action on the issue.

– Level of stakeholder concern about the

issue. – Identification of the societal expectations of

responsible behavior concerning these

impacts.

An organization should assess its “sphere of

influence” (see Module 4).

18



D t i l d i ifi

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An organization's influence may depend on a number of factors, including

physical proximity, scope, length and strength of the relationship.

19



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Clause 7.3.4: Establish priorities

Establishing priorities is a strategic way to address social

responsibility in an organization


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Priori ties should be establi shed from among the issues

considered signi f icant and relevant

• An organization can establish priorities for consideration of future issues, e.g.

as building construction, employing new staff, hiring contractors or

conducting fund-raising activities.

• The priorities should be reviewed and updated periodically according to the

needs of an organization (e.g. 3-5 years, or new projects)

21




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An organizations should consider the following

to establish priorities: – Current performance with regard to legal

compliance, international standards,

international norms of behavior, the state-of-

the-art and best practices.

–

Whether the issue can significantly affect theability of the organization to meet important

objectives.

– The potential effect of the related action

compared to the resources required for

implementation.

22




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An organizations should consider the

following to establish priorities: – The length of time to achieve the desired

results.

– Whether there can be significant cost

implications if not addressed quickly.

– The ease and speed of implementation,which may have a bearing on increasing

awareness.

– The motivation for action on social

responsibility within the organization.

23



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Clause 7.4: I ntegrating social responsibil i ty

Commitment from the top is the key to integrate social responsibility in

an organization


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AwarenessRaising &

BuildCompetency

SettingOrganization’s

Directiontowards SocialResponsibility

BuildingOrganization’s

Governancesystems andProcedures

25

Practices for Integrating social

responsibility in an organization

requires a process…………..




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“Integrating social responsibility stands to assign responsibil ities and

accountabil ity at all levels”

• Social responsibility should be an integral part of core organizational strategy,

with assigned responsibilities and accountability at all appropriate levels of the

organization.

• It should be reflected in decision making and considered in implementing

activities.

• It should not be substituted by Philanthropy – in this context refers to giving to

charitable causes which can have a positive impact on society.

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• In integrating social responsibility, an

organization may have to work with peer

organizations, competitors, other parts of value chain because the impacts of an

organization's decisions or activities can be

greatly affected by its relationships with

other organizations.

• These can include peer organizations,

competitors (while taking care to avoid

anti-competitive behavior), other parts of

the value chain or any other relevant party

within the organization's sphere of influence.

27




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Commitment and understanding should start at the top of the organization

Raising awareness and build competency:

– Awareness building should be on increasing understanding of the aspects of social

responsibility, including principles, core subjects and issues.

– Identify a need for changes in decision-making processes and governance that

would promote greater freedom, authority and motivation to suggest new

approaches and ideas.

28



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An organization integrates social responsibil i ty thr ough governance;

the system by which its decisions are made and

implemented in pursui t of its objectives .

To set direction

– To set social responsibility objectives with specific and measurable or verifiable

target.

– Ensuring established management practices reflect and address the organization's

social responsibility.

30




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To integrate social responsibility

– Identifying the ways in which the

principles of social responsibility and

the core subjects and issues apply to the

various parts of the organization.

– If appropriate to the size and nature of

the organization, establishingdepartments or groups within the

organization to review and revise

operating procedures so that they are

consistent with the principles and core

subjects of social responsibility.

31




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To integrate social responsibility

– Taking account of social

responsibility when conducting

operations for the organization.

– Incorporating social responsibility

into purchasing and investment

practices, human resources

management and other

organizational functions.

32



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Methods of exercising influence include:

– Making investment decisions.

– Sharing knowledge and information.

– Conducting joint projects.

– Undertaking responsible lobbying and using media relations.

– Promoting good practices.

– Forming partnerships with sector associations, organizations and others

– Setting contractual provisions or incentives.

– Public statements by the organization.

–

Engaging with the community, political leaders and other stakeholders.

34

g g p y


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Clause 7.5: Communication on social responsibil i ty

Many practices related to social responsibility will involve some form of

internal and external communication.

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Communication on social responsibil i ty

Communication

InternalExternal

What is the purpose of communication?

- Raining awareness of its strategies and objectives, plans, performance etc-enhancing an organization's reputation for socially responsible action, openness, integrity and

accountability, to strengthen stakeholder trust in the organization.

Many practices related to social responsibility will involve some form of internal and

external communication

Communication on social responsibility

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The purpose of communication on social

responsibility:

– Addressing legal and other requirements for the

disclosure of information.

– Showing the organization‟s commitments on

social responsibility.

– Helping to engage and motivating employees.

– Facilitating comparison with peer organizations,

which can stimulate improvements.

– Enhancing an organization's reputation for

socially responsible action, openness, integrity

and accountability.

– Strengthening stakeholder trust in the

organization.

37

p y



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Characteristics of communication

Information should be:

– Complete: address all significant activities and

impacts related to social responsibility.

– Understandable: with regard for the

knowledge and culture, social, education andeconomy.

– Responsive: responsive to stakeholder interests.

– Accurate: factually correct and should provide

sufficient detail to be useful



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Characteristics of communication

Information should be:

– Balanced: fair, should not omit relevant

negative information concerning the

impacts of an organization's activities.

– Timely: out of date information can be

misleading.

– Accessible: Information on specific

issues should be available to the

stakeholders concerned.



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Types of communication on social responsibility

–

Meetings, conversations, dialogue withstakeholders.

– Communication between the organization's

management and employees.

– Communication with stakeholders concerning

claims about the social responsibility (these

claims can be verified through internal review

and assurance).

– Communication with suppliers about

procurement requirements related to social

responsibility;



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Types of communication on social responsibility

– Communication to the public about emergencies

that have consequences for social responsibility.

• Prior to emergencies, communication

should aim to increase awareness and

preparedness.

• During emergencies, it should keepstakeholders informed and provide

information on appropriate actions.

– Product-related communication, such as product

labeling, product information and other consumer

information that stimulates feedbacks.



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Types of communication on social responsibility – Articles on social responsibility in magazines or

newsletters aimed at peer organizations.

– Advertisements or other public statements to

promote some aspect of social responsibility.

–

Submissions to government or public inquiries. – Periodic public reporting with opportunities for

stakeholder feedback (an organization can follow

Global Reporting Initiative‟ guidelines or

Integrated Reporting Framework to make public

reporting).


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Clause 7.6: Enhancing credibility regarding social

responsibility

Enhancing credibility is a way to increase the organization‟s value

as well as to promote social responsibility


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Various ways to enhance credibility:

– Stakeholder engagement, especially dialogue.

– Participation in specific certification scheme.

– Join association or peer association.

– Assessing performance.

– Reporting on progress and shortcomings.

– Resolve conflicts.

Some of ways to enhance credibility of report

– A report about performance on social responsibility should be comparable over

time and with reports of peer organizations, depend on the type, size and capacityof the organization.



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– Providing a brief explanation of why topics omittedfrom reports are not covered, to show that the

organization has made an effort to cover all

significant matters.

– Using a rigorous and responsible process of

verification, in which the data and information aretraced back to a reliable source to verify accuracy

of that data and information.

– Using the help of an individual or individuals

independent of the process of report preparation, to

undertake the verification process.



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Be transparent by providing source of information that is ver if iable


– Publishing a statement attesting to the verification as part of the report.

– Making use of stakeholder groups to provide a determination that the report

reflects the relevant and significant issues for the organization, that it is responsive

to the needs of stakeholders, and that it provides complete coverage of the issues

addressed.

– Reporting conformance to the reporting guidelines of an external organization.



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Some of ways in resolving conflicts to enhance

credibility:

– Direct discussions with affected stakeholders.

– Provide written information to address

misunderstandings.

–

Establish forums in which stakeholders and theorganization can present their points of view and

look for solutions.

– Establish formal complaints handling procedures.

– Establish mediation or arbitration procedures.

–

Establish systems that enable reporting ofwrongdoing without fear of reprisal.


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Clause 7.7: Reviewing and improving social

responsibility practices

Reviewing and improving social responsibility practices

should be carried out based on an adequate data analysis.

Reviewing and improving actions related to SR

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A number of methods can

be used as follows:

– Stakeholder

engagement

– Certifications

– Join associations

– Make commitments,

take actions and report

progress


An appropriate data management system is needed to provide a reliable and

accurate data for reviewing and improving performance

Some pertinent questions to review…..

What to review?

Review the existing activities and performances

Who will review?

Stakeholders can play a major role in the review

How often to review?

At an appropriate intervals

How to perform the review?

Different methods such as benchmarking, obtaining

stakeholders feedback, measurement against

qualitative and quantities indicators


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Types of questions in reviews

– Were objectives and targets achieved as

envisioned?

– Did the strategies and processes suit the

objectives?

– What worked and why? what did not work

and why?

– Were the objectives appropriate?

– What could have been done better?

– Are all relevant persons involved?


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Improving social responsibility practices

– It should be carried out periodically after the

review.

– Improvement could involve modification of

targets and objectives.

–

Achievement of social responsibility objectivescan be linked with periodic performance reviews

of senior executives and managers.

Independent people or groups, should examine the

ways in which data is collected, recorded or stored,handled and used by the organization.


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Clause 7.8: Voluntary initiatives for social

responsibility

Engagement in a voluntary initiative should be carried out by considering a

number of factors, both internal and external

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Considerations to choose voluntary initiatives

– Whether the initiative is consistent with

ISO26000‟s social responsibility principles.

– Whether the initiative provides valuable and

practical guidance to assist the organizationto address a particular core subject or issue

and/or to integrate social responsibility

throughout its activities.

– Whether the initiative is designed for that

particular type of organization or its areas of interest.



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– Whether the initiative is locally or regionally

applicable, or whether it has global scope and

applies to all types of organizations.

– Whether the initiative will assist the

organization to reach specific stakeholdergroups.

– The kind of organization or organizations that

developed and govern the initiative, such as

government, NGO, labor, private sector or

academic.



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– The nature of the process for developing and governingthe initiative, for example, whether the initiative has

been developed through or governed by a multi-

stakeholder, transparent, open, and accessible process,

with developed and developing country participants.

– The reputation of the organization or organizations thatdeveloped and govern the initiative, considering their

credibility and integrity;

– The accessibility of the initiative, for example, whether

an organization must sign a contract to participate.

– Whether there are costs to join the initiative.


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Steps to implement CSR

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Steps to implement CSR

It will not be effective if it is filled out by one individual, because the success of ISO 26000

depends on team efforts.

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2. Evaluation for

the Seven Core Table -1: “Importance of core subjects for our business”

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the Seven CoreSubjects

Table -1: Importance of core subjects for our business

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Gap analysis some considerations

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Complete the matrix: add a ‘yes’ (Y) where

applicable

The matrix provides you with an overview of:

• The issues on which your stakeholders

expect action

• Issues that link with your company‟s

values

• Issues you already cover and issues not

(yet) addressed (GAP)• The impact and influence of your

company

• Priorities for follow-up: what needs to be

addressed first?

• Tools available for action

The result: your company‟s SR profile / an

indication to build on

Module 6, APO Self-learning E-course ISO26000:2010 66

Gap analysis- some considerations

GAP analysis:

What do your (potential) buyers expect

from you? What do other important stakeholders

expect from you?

What do your company values require?

What issues do you already adequately

cover (on a DO level)?

Priorities:

What is your (potential) impact on the

issue (positive or negative)?

What influence do you have to improve the

situation?

Directly and indirectly in your supply chain What priorities do you see for your

company?

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3 Engaging yourstakeholders

“Engaging your stakeholders” – having two-way discussions with them about how

you and they can best work together – helps you to understand how others see you,

and is a logical next step after your internal evaluation.

Stakeholders are people or groups whoare affected by the actions of your

business. Often they also have the

ability to affect you. This is why ISO

26000 emphasizes stakeholder

involvement.

Identify stakeholder

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Capturing issues

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Market access Low High

Stakeholder

expectations

High Working hours

Occupational health &

safety

Community

education

Community health

care

Child labour

Forced labour

Low

Module 6, APO Self-learning E-course ISO26000:2010 69

Capturing issues

Examples of : Market access requirements and stakeholder expectations: People issues

Impact Low High

Influence

High Emission to air Emission to water

Climate change

(energy use)

Low Depletion non-

renewable

materials (rare

earth metals)

Emission to water

Examples : Impact (direct impact in bold) and influence: Planet issues

SWOT Analysis

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Strength Weakness

Opportunity Threat

SWOT Analysis

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4. Plans forImprovement

Step 1: Identify key issues and core subjects for your CSR improvements

When doing this, consider the following three factors:

the impacts of the changes you are considering

your capability and resources to carry out the changes

the visibility of the changes you are considering

CSR improvements can

involve making changes in

the way you do business,

and/or creating new projects

or products to meet newly-

discovered needs.

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5. Public Reporting

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a) Creating Your Report

Using Your Report

Public reporting is a way to claim credit for

your work on social responsibility. It is also a

way to demonstrate your respect for yourstakeholders, as you practice accountability

through your reporting to them.

5. Public Reporting

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6. Claiming Credit

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A. How to communicate your use of ISO 26000

ISO recommends that business users say,

“[Your business name] recognizes ISO 26000 as a reference

document that provides guidance on social responsibility.”

and/or

“[Your business name] has used ISO 26000 as a guide to

integrate social responsibility into our values and practices.”

B. How to utilize your improved SR status

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1) Promote your products and services as “value added”

•Negotiate better contracts and prices

•Develop your own “socially responsible brand name products”•Don’t feel powerless in price negotiations

• Ask stakeholders to support your efforts

•Co-market

2) Seek support, recognition and flexibility from policy makers and regulators

- Document that you obey local laws, and also document CSR actions that you take that go beyond local laws to have an even strongerimpact.

- When you act to reduce pollution, or to improve other aspects of your business operations, let local officials know. Ask them for

recognition. Since public officials are credited with solving social problems, they can become your allies.

- Monitoring, testing, and inspections are expensive for everyone. Depending on the regulatory system in place, it may be possible for

you to request relief from unnecessary monitoring because your business is more transparent and responsible through the use of ISO

26000. Your stakeholders can also help you with assuring buyers and regulators that you are being responsible.

3) Join, or form, a regional trade association of businesses for social responsibility

Documents

Module_6 ISO 26000