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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
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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
Social responsibility of an organization
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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
Social responsibility of an organization
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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
Social responsibility of an organization
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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
Social responsibility of an organization
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Understand social responsibility of an organization
10
Due diligence
DetermineRelevance &
Significance ofIssues
Establishing
Priorities
Integrate Social
Responsibility
Social responsibility of an organization
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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
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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
Determine relevance and significance
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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
Determine relevance and significance
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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
Determine relevance and significance
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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
Determine relevance and significance
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Clause 7.3.4: Establish priorities
Establishing priorities is a strategic way to address social
responsibility in an organization
Establish priorities
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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
Establish priorities
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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
Establish priorities
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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
Establish priorities
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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
Integrating social responsibility
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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…………..
Integrating social responsibility
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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.
26
Integrating social responsibility
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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
Integrating social responsibility
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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
Integrating social responsibility
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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
Integrating social responsibility
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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
Integrating social responsibility
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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
Enhancing credibility
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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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Some of ways to enhance credibility of report
– 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
Some of ways to enhance credibility of report
– 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
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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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Reviewing and improving actions related to SR
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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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Voluntary initiatives for SR
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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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Considerations to choose voluntary initiatives
– 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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Considerations to choose voluntary initiatives
– 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
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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
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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