Module - 6 ISO 26000

Module -6
Integrating soc al responsibility

throughout an organization
Self learning e-Course on ISO 26000:2010 Guideline on Social Responsibility

Course
Developed by
Project code: 15-IN-06-GE-TRC-A-01

Timing and duration: July 30 September 2015
Learning objectives
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 organizations 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 to

integrate social responsibility in an organization and encourage social
responsibility integration process in your organization.
Module 6, self-learning e-course, ISO26000:2010
The Diagram
Implementation
Integrating social
responsibility
Establish priorities
Advancement
Communication on social
responsibility
Enhancing credibility
Determine Relevance &

Significance
Reviewing & Improving
Due diligence
Voluntary initiatives for SR
Understanding Social
responsibility of an
organization
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.
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.
52 56
Clause 7.8.
Voluntary initiatives for social responsibility
57 84
Case study
Clause 7.1 & 7.2: Social Responsibility of an

organization
An organization has its own characteristics regarding social responsibility
This is intended to help all

organizations, whatever their starting
point, integrate social responsibility
into the way they operate.

throughout an Organization
Source: ISO2600:2010 pg.69
An organization should determine how its key

characteristics 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 legal
framework that regulates many of the
decisions and activities related to
social responsibilities;
(2) social, environmental and economic
characteristics of the areas of
operation.

The historical performance of the organization on social
responsibility.
The characteristics of the organization's workforce or
employees, 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.

Sector
organizations
in
which
organization participates, including:
the
activities
related
to
responsibility undertaken by
organizations; and
the
social
these
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.
Understand social responsibility of an organization
Due diligence
Determine
Relevance &
Significance of
Issues
Establishing
Priorities
Integrate Social
Responsibility
10
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
Due diligence
Due diligence
is a comprehensive, proactive process to identify the actual and potential
negative social, environmental and economic impacts of an organization's
decisions and activities, 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
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
negative impacts.
to
address
the
Organizational policies related.

Those are closely
organization;
linked
to
the
13
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
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
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 the
value 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-today activities as well as those that arise only occasionally under
very specific circumstances.
16
An organization should identified and develop a set of criteria for

deciding which issues have the greatest significance
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
Possible criteria to determine significance:

Extent of the impact of the issue on
stakeholders 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
An organization's influence may depend on a number of factors, including

physical proximity, scope, length and strength of the relationship.
19
Clause 7.3.4: Establish priorities

Establishing priorities is a strategic way to address social
responsibility in an organization
Priorities should be established from among the issues

considered significant 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
An organizations should consider the following

to establish priorities:
Current performance with regard to legal
compliance, international standards,
international norms of behavior, the state-ofthe-art and best practices.
Whether the issue can significantly affect the
ability of the organization to meet important
objectives.
The potential effect of the related action
compared to the resources required for
implementation.
22
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
Clause 7.4: Integrating social responsibility

Commitment from the top is the key to integrate social responsibility in
an organization
Practices for Integrating social

responsibility in an organization
requires a process..
Setting
Organizations
Direction
towards Social
Responsibility
Building
Organizations
Governance
systems and
Procedures
Awareness
Raising &
Build
Competency
25
Integrating social responsibility stands to assign responsibilities and

accountability 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
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
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
An organization should set its direction by making social responsibility an

integral part of its policies, culture, strategies, structures & operations.
To set direction
To include social responsibility in its vision and mission statement
To adopt written code of conducts or ethics.
To include social responsibility as the key element in organizations strategy.
To translate the priorities for action on core subjects and issues into manageable
organizational objectives with strategies, processes and timelines.
29
An organization integrates social responsibility through governance;

the system by which its decisions are made and
implemented in pursuit 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
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, establishing
departments 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
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
Sphere of Influence: An organization can

exercise its influence (see Module 4) to
enhance positive impacts on sustainable
development, or to minimize negative
impacts, or both:
Guided by ethical behavior and other
principles.
Dialogue first, to improving awareness
of social responsibility and encouraging
socially responsible behavior.
If dialogue is not effective, alternative
actions should be considered.
33
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
Clause 7.5: Communication on social responsibility
Many practices related to social responsibility will involve some form of

internal and external communication.

Many practices related to social responsibility will involve some form of internal and
external communication
Communication
Internal
External
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.
The purpose of communication on social

responsibility:
Addressing legal and other requirements for the
disclosure of information.
Showing the organizations 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
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 and
economy.
Responsive: responsive to stakeholder interests.
Accurate: factually correct and should provide
sufficient detail to be useful
38
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.
39
Types of communication on social responsibility

Meetings, conversations, dialogue with
stakeholders.
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;
40

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 keep

stakeholders informed and provide
information on appropriate actions.
Product-related communication, such as product
labeling, product information and other consumer
information that stimulates feedbacks.
41

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).
42
Clause 7.6: Enhancing credibility regarding social

responsibility
Enhancing credibility is a way to increase the organizations value
as well as to promote social responsibility
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 capacity
of the organization.
44

Providing a brief explanation of why topics omitted
from 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 are
traced 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.
45
Be transparent by providing source of information that is verifiable

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.
46
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 the
organization 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 of
wrongdoing without fear of reprisal.
47
Clause 7.7: Reviewing and improving social

responsibility practices
should be carried out based on an adequate data analysis.
Reviewing and improving actions related to SR

An appropriate data management system is needed to provide a reliable and
accurate data for reviewing and improving performance
A number of methods can

be used as follows:
Stakeholder
engagement
Certifications
Join associations
Make commitments,
take actions and report
progress
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
49
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?
50
An organization should engage independent people or groups

in reviewing performance.
An organization should also maintain data management system in order to:
Increase an organization's confidence that the data it provides to others is accurate.
Improve the credibility of data and information.
Confirm the reliability of systems for protecting the security and privacy of data,
where appropriate.
51
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 objectives

can 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.
52
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
Social responsibility should not be treated only as a form of risk management.

An organization should also determine objectively whether a particular initiative
will help it to address its social responsibility, and whether the initiative is mainly
a form of public relations or a means of protecting the reputation of members or
participating organizations.
54
Considerations to choose voluntary initiatives

Whether the initiative is consistent with
ISO26000s social responsibility principles.
Whether the initiative provides valuable and
practical guidance to assist the organization
to 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.
55

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 stakeholder
groups.
The kind of organization or organizations that
developed and govern the initiative, such as
government, NGO, labor, private sector or
academic.
56

The nature of the process for developing and governing
the initiative, for example, whether the initiative has
been developed through or governed by a multistakeholder, transparent, open, and accessible process,
with developed and developing country participants.
The reputation of the organization or organizations that
developed 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.
57
A Case Study
Implementing Social Responsibility
Organization s may start SR activities depending on their level of

preparedness
Module 6, APO Self-learning E-course ISO26000:2010
59
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.
Your Business
a) What does it do, what does it produce and sell, who does it
employ, and where is it located?
b) Who are your key business partners suppliers, customers,
etc?
Second, explore what social responsibility means to you.
a) What does a good company look like in your eyes?
What should it pursue in addition to generating profit? What
are its principles and actions?
b) Does your business strive to meet that ideal?
If yes, how do you do that specifically?
If not, what obstacles prevent you from pursuing that ideal?
2. Evaluation for
the Seven Core
Subjects
Table -1: Importance of core subjects for our business
Table 2: SR Programs and activities already established in our Business

Core Subject
Organizational
Governance
Human rights
Labor practices
Environment
Fair operating practices
Consumer issues
Community
involvement
and development
CSR programs and activities already established

IMPORTANT: These can be obvious or not-so
obvious
Gap Analysis
Begin outlining your internal confidential working documents about your SR

actions. Your first step is to conduct a gap analysis. Use the information in
Table 1, Importance of Core Subjects for Our Business, and Table 2, SR
Programs and Activities Already Established in Our Business.
A gap analysis focuses on

the gap, or distance,
between what you are
presently doing and what
you want or need to do.
--Identify core subject areas where you can address missed opportunities to improve your
business model
--Identify core subject areas where you are exposed to risks that have not been properly
planned for.
--Refer back to Table 1 . Using your gap analysis, identify and highlight any core subjects
where you have noticed room for improvement.
Prioritizing
Stakeholders
Employees
Local community
Relevant to the
company score 1
(low) - 5 (high)
5: productivity,
loyalty, quality of
work
3: local work force,
local environmental
impacts of
production
Local government 4: production

permit, cooperation
when expanding the
business
Etc.
CSR related expectations?
Engagement by
company
No discrimination
A living wage
Safe working environment
Etc.
Local pollution prevention
(emissions to air and water)
Hiring of local labour
Procurement of local products
and services
Contribution to local education
services
Compliance to environmental
and social legislation
Regular meetings with

employee representatives
Annual employee
satisfaction review
No systematic
engagement
Periodic meetings with

local officials
65
Gap analysis- some considerations

Complete the matrix: add a yes (Y) where
applicable
GAP analysis:
The matrix provides you with an overview of:
The issues on which your stakeholders

expect action
Issues that link with your companys

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?
Priorities:
Tools available for action
The result: your companys SR profile / an

indication to build on
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)?
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?
66
3 Engaging your
stakeholders
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 who

are 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
Capturing issues
Examples of : Market access requirements and stakeholder expectations: People issues
Market access
Stakeholder
expectations
High
Low
High
Working hours
Occupational health &
safety
Community
education
Community health
care
Child labour
Forced labour
Low
Examples : Impact (direct impact in bold) and influence: Planet issues

Impact
Influence
High
Low
Low
High
Emission to air
Emission to water
Climate change
(energy use)
Depletion nonrenewable
materials (rare
earth metals)
Emission to water
69
SWOT Analysis
Strength
Weakness
Opportunity
Threat
4. Plans for
Improvement
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 newlydiscovered needs.
5. Public Reporting
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 your
stakeholders, as you practice accountability
through your reporting to them.
5. Public Reporting
6. Claiming Credit
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

1) Promote your products and services as value added
Negotiate better contracts and prices
Develop your own socially responsible brand name products
Dont 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 stronger
impact.
- 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

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Module -6

Integrating soc al responsibility

Self learning e-Course on ISO 26000:2010 Guideline on Social Responsibility

Project code: 15-IN-06-GE-TRC-A-01

Module 6 presents the following topics:

Communication on social responsibility.

At the end of module 6, you are expected to understand the practices to

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

Determine Relevance &

Reviewing & Improving

Voluntary initiatives for SR

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

Social responsibility of an organization

Determine relevance and significance

Integrating social responsibility

Communication on social responsibility

Enhancing credibility regarding social responsibility

Reviewing and improving social responsibility practices

Voluntary initiatives for social responsibility

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

Clause 7.1 & 7.2: Social Responsibility of an

Social responsibility of an organization

This is intended to help all

Integrating social responsibility

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

Social responsibility of an organization

An organization should determine how its key

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

Social responsibility of an organization

An organization should determine how its key

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

Social responsibility of an organization

An organization should determine how its key

the codes or other requirements related to

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

Social responsibility of an organization

Understand social responsibility of an organization

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

Clause 7.3.1: Due diligence

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

Due diligence covers the following:

Organizational policies related.

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

Clause 7.3.2: Determine relevance and

Determine relevance and significance

An organization should review all core subjects

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

Determine relevance and significance

The identification process of relevant issues:

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

Determine relevance and significance

An organization should identified and develop a set of criteria for

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

Determine relevance and significance

Possible criteria to determine significance:

An organization should assess its sphere of

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

Determine relevance and significance

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

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

Clause 7.3.4: Establish priorities

Priorities should be established from among the issues

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