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    Int. J. Production Economics 113 (2008) 7487

    The impact of ISO 9000 and ISO 14000 on standardisation of

    social responsibilityan inside perspective

    Pavel Castkaa,, Michaela A. Balzarovab

    aDepartment of Management, University of Canterbury, Private Bag 4800, Christchurch, New ZealandbLincoln University, Christchurch, New Zealand

    Accepted 20 February 2007

    Available online 13 November 2007

    Abstract

    Following a growing interest in corporate social responsibility, the International Organization for Standardization (ISO)

    announced plans for development of the ISO 26000guidance standard for social responsibility. Despite initial signals

    that ISO 26000 will be built on the intellectual and practical infrastructure of ISO 9000 and ISO 14000, the Advisory

    Group on Social Responsibility set a different direction: a guidance standard and not a specification standard against

    which conformity can be assessed. This paper aims to investigate what views ISO member body delegations and invited

    participants in international standardisation of social responsibility had about the divergence from the meta-standard

    approach towards a guidance standard. To answer the research question, the discussions at the ISO International

    Conference on Social Responsibility, where ISO member body delegations and approximately 40 invited organisations

    commented on this matter, have been analysed. As a result of this understanding, not only will insight into the first steps of

    standardisation of social responsibility be provided, but it will also shed light on the perception of ISO 9000 and ISO 14000

    that are held by standard developers.

    r 2007 Elsevier B.V. All rights reserved.

    Keywords: ISO 26000; ISO 9000; ISO 14000; Corporate social responsibility; Management systems; Standardisation

    1. Introduction

    In the past, companies were facing growing

    demands from customers, who hugely impacted on

    the way they operated, whereas todays demandshave shifted toward addressing a wider spectrum of

    stakeholders (Rosam and Peddle, 2004). This

    evolution of business and societal environment is

    bringing quality management closer with other

    fields, such as corporate social responsibility

    (CSR), corporate governance and business ethics.

    Many scholars have started to point towards this

    evolutionary trend and some of them argue that for

    quality to remain a viable concept in the 21stcentury, it must embed more deeply and firmly the

    issues of virtue (Ahmed and Machold, 2004). As

    CSR is gaining its momentum, other scholars point

    to obvious parallels in quality and CSR evolution

    (Peddle and Rosam, 2004; Waddock and Bodwell,

    2004; Castka et al., 2004a, b) as well as assert the

    convergence of these two fields of study.

    Indeed, this convergence is happening at many

    levelsone of which is the arena of international

    ARTICLE IN PRESS

    www.elsevier.com/locate/ijpe

    0925-5273/$- see front matterr 2007 Elsevier B.V. All rights reserved.

    doi:10.1016/j.ijpe.2007.02.048

    Corresponding author. Tel.: +64 3 364 2987x8617;

    fax: +64 3 3642020.

    E-mail addresses:[email protected] (P. Castka),

    [email protected] (M.A. Balzarova).

    http://www.elsevier.com/locate/ijpehttp://localhost/var/www/apps/conversion/tmp/scratch_1/dx.doi.org/10.1016/j.ijpe.2007.02.048mailto:[email protected]:[email protected]:[email protected]:[email protected]://localhost/var/www/apps/conversion/tmp/scratch_1/dx.doi.org/10.1016/j.ijpe.2007.02.048http://www.elsevier.com/locate/ijpe
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    standardisation. In the 1980s, following on from

    British Standard BS 5750, the International Orga-

    nization for Standardization (ISO) developed ISO

    9000a generic quality management systems stan-

    dard (MSS), which became accepted globally.

    Followed by the ISO 14000 environmental manage-ment system in 1996, a similar scenario has been

    happening with the social responsibility field. In

    2004, ISO announced a new work item: ISO 26000-

    guidance standard for social responsibility to be

    introduced by 2008. The pre-standardisation pre-

    paratory work suggested that the impact of ISO

    9000 and ISO 14000 on the standardisation of social

    responsibility is likely to be substantial. ISO/

    Bulletin (2002) informed that ISO standard for

    social responsibility would evolve from quality and

    environmental standards (ISO 9000 and ISO

    14000). Specifically, the ISO Committee on Con-sumer Policy (ISO COPOLCO, 2002) recommended

    a meta-standard approach to the social responsi-

    bility standard against which firms could self-

    declare compliance or could seek certificates from

    authorised third parties. However, the Advisory

    Group on Social Responsibility, which was estab-

    lished as a result of Resolution 78/2002 and given

    the purpose of determining whether ISO should

    proceed with the development of ISO deliverables in

    the field of corporate social responsibility, recom-

    mended that a guidance document, and thereforenot a specification document against which con-

    formity can be assessed should be developed (ISO/

    AG/SR, 2004a, b). As the next step in this pre-

    standardisation work, ISO held the ISO Interna-

    tional Conference on Social Responsibility and

    invited ISO member body delegations and other

    international organisations to debate recommenda-

    tions made by the Advisory Group on Social

    Responsibility.

    We conducted our research at this stage of

    the process of the social responsibility standardisa-

    tion, i.e. before the process of the development

    of ISO 26000 started. Our aim was to investigate

    the question what impact has ISO 9000 and

    ISO 14000 had on the direction of the develop-

    ment of ISO 26000 guidance standard for social

    responsibility? In particular, we aimed to investi-

    gate what views ISO member body delegations

    and invited participants had on the proposal to

    move from the meta-standard approach towards a

    guidance standard. To answer our research ques-

    tion, we analysed the discussions at the ISO

    International Conference on Social Responsibility,

    where ISO member body delegations and approxi-

    mately 40 invited organisations commented on this

    matter.

    The paper has the following structure. Firstly,

    we look at ISO MSS and discuss the situation

    in this area. Secondly, we shift the focus towardssocial responsibility standardisation and present

    recent developments within the ISO related to

    social responsibility standardisation. Thirdly, we

    describe in detail our research engagement.

    Fourthly, the results are presented, analysed

    and concluded with a discussion of social

    responsibility standardisation, limitations of

    our research and implication for future develop-

    ments in the arena of social responsibility standar-

    disation.

    2. ISO management systems standards: state-of-the-art

    Uzumeri (1987) explains that in the late 1980s

    standards bodies made major breakthroughs in

    management standardisation by developing MSS.

    These standards emerged in fields as diverse as

    product quality, financial controls (the COSO

    Framework), white-collar crime prevention and

    environmental management. The most prominent

    are ISO MSS, namely ISO 9000 and ISO 14000. By

    developing this voluntary set of standards, ISOaimed to facilitate international exchange of goods

    and services as well as simplify business-to-business

    operations. In order to be certified, organisations

    have to comply with the requirements described in

    these standards. This compliance is verified by a

    third-party audit carried out by an accredited

    certification agency.

    ISO 9000 is designed as an MSS, i.e. a system to

    establish policy and objectives as well as a way to

    achieve these objectives. Uzumeri (1987) refers to

    ISO 9000 as a meta-standarda standard based on

    a list of design rules to guide the creation of entire

    classes of management systems. Since its introduc-

    tion in 1987, ISO 9000 has been revised in 1994 and

    2000 (Kartha, 2002;Laszlo, 2000;Struebing, 1997).

    Of paramount importance is the 2000 revision that

    further strengthened the focus on a systems

    approach to management, which was less empha-

    sised in previous versions. The revised ISO

    9000:2000 family of standards includes a model

    of a process-based quality management system and

    a much stronger emphasis on systems nature of the

    standard. Furthermore, ISO 9000:2000 promotes a

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    set of eight principles (customer focus, leadership,

    involvement of people, process approach, systems

    approach to management, continual improvement,

    factual approach to decision making and mutually

    beneficial supplier relations), which form a basis for

    the quality management principles within the ISO9000 family and beyond. ISO 14000, introduced in

    1996 and revised in 2004, shares the same approach

    and principles with ISO 9000. Moreover, both

    standards contain appendices that directly demon-

    strate the link between respective clauses of these

    standards.

    Both standards have spread globally. In 2004, the

    ISO reported over 670,000 ISO 9000 certificates in

    154 economies and over 90,000 ISO 14000 certifi-

    cates in 127 economies (ISO/Survey, 2004). Indeed,

    many influential organisations adopted the

    standard, despite the fact that ISO 9000/14000are voluntary and not a mandatory directive

    (Brunsson and Jacobsson, 2000). This in turn

    forced others (directly or indirectly) to adopt ISO

    standards. Indeed, the research into the diffusion

    of ISO 9000/14000 standard demonstrates that the

    role of multinational networks here is crucial

    they are viewed as key actors responsible for

    coercive isomorphism (Guler et al., 2002;Neumayer

    and Perkins, 2005; Corbett and Kirsch, 2001).

    The diffusion mechanisms usually involve contrac-

    tual requirements imposed by multinationals, theindustry or key players in the supply chain.

    Cohesive trade relationships between countries

    (Guler et al., 2002) play a similar role. In the

    domestic context, the number of past adoptions,

    share of manufacturing GDP and level of education

    are positively correlated with the adoption of ISO

    9000. However, bureaucracy and/or corrupt reg-

    ulatory interventions by governments are reported

    as key deterrents in the diffusion (Neumayer and

    Perkins, 2005). Hence this popularity of the

    standard does not necessarily originate from its

    appropriateness. This is one of the major criticisms

    of ISO 9000. ISO 9000 is often imposed upon

    organisations and organisations are also seen to be

    opportunistic in pursuing certification to increase

    sales rather than to improve quality (Abraham

    et al., 2000).

    Related to previous discussion is the question

    whether ISO 9000 and ISO 14000 actually bring any

    value for certified organisations. Many studies

    strongly advocate for the benefits that organisations

    gain from ISO 9000 certification (Sharma, 2005;

    Briscoe et al., 2005). For instance, Poksinska et al.

    (2003) summarise the following benefits stemming

    from ISO 9000 and ISO 14000:

    Internal performance benefits (cost reductions,

    environmental/quality improvements,

    increased productivity, improved employeemorale)

    Relations benefits (improved relations with

    communities and authorities)

    External marketing benefits (improved corpo-

    rate image, increased market share, increased

    customer satisfaction, increased on-time deliv-

    ery)

    However, recent discussions on ISO 9000 (both

    academic and from practitioners) report contra-

    dictory and ambiguous findings and opinions. For

    instance, van der Wiele et al. (2005) reportimprovements in companies perception of the ISO

    9000 standard, whilst Casadesus and Karapetrovic

    (2005) argue that benefits that organisations obtain

    from the ISO certification are eroding.Corbett et al.

    (2005) found that ISO 9000 certification leads to

    improved financial performance measured by return

    on asset. On the other hand, studies set up to

    confirm that the market values ISO 9000 (Martinez-

    Costa and Martinez-Lorente, 2003;Aarts and Vos,

    2001) did not reveal any linkage. In a similar vein,

    Corbett and Klassen (2006) argue that the linkbetween financial performance and environmental

    management is inconclusive after more than three

    decades of research. More important is to look at

    factors moderating successful implementation. Here

    some studies conclude that the ones who benefit

    from ISO 9000 are those who learn (Naveh et al.,

    2004) and that the certification provides little

    guarantee of high-performance outcomes unless it

    is accompanied by transformational and transac-

    tional change (Abraham et al., 2000;Briscoe et al.,

    2005; Balzarova et al., 2006; Castka et al., 2004c).

    This is further emphasised byTakakusa (2005), who

    warns that the benefits of ISO 9000 could be

    constrained by the way different organizations

    implement the QMS standard and how committed

    they are to an ISO 9000-based system. Indeed,

    organisations differ in sizes, have different structur-

    al and infrastructural designs and ownership ar-

    rangements. All of these factors influence the

    approach toward adoption of ISO 9000 standards.

    This stems from the meta-standard nature of the

    standard (Uzumeri, 1987), which is clearly a double-

    edged sword: on the one hand it makes the standard

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    generic in nature and gives organisations freedom to

    translate it into their unique settings. On the other

    hand, the consistency and quality of this transla-

    tion becomes problematic.

    To assure this consistency, the ISO certification

    process includes a third-party certification auditcarried out by an accredited verification body. The

    aim is also to reduce the number of second-party

    audits, assist organisations in creating networks and

    facilitate the business-to-business operations. How-

    ever, the credibility of certification has become

    increasingly criticised by organisations, consultants

    and members of the ISO community. For example,

    Lal (2004)states:

    Judging by the views expressed in various

    forums, one cannot help but conclude that ISO

    9000 certification has fallen short of expectations.The main reason for laxity and malpractice in

    ISO 9000 certification is that what was originally

    meant to be a service to industry is increasingly a

    business motivated by profit.

    Lal (2004), similar toSeddon (2000), furthermore

    summarises the weakness of the present system:

    The commercial nature of the relationship

    between the certifier and the audited organisa-

    tion The technical competence of auditors

    Accountability of the certification body to the

    final customers and end users of the audited

    companys products and services

    In conclusion, there is a large body of literature

    on ISO 9000 and ISO 14000, which provides

    rich evidence on various aspects of these two

    standards. However, there seems to be one

    significant difference between empirical studies

    (such as Briscoe et al., 2005; Casadesus and

    Karapetrovic, 2005; Corbett et al., 2005; Naveh

    et al., 2004; van der Wiele et al., 2005) and

    views expressed by practitioners (Dalgleish, 2005;

    Lal, 2004; Seddon, 2000). Whereas the authors

    of empirical studies in general agree that ISO

    9000 certification is beneficial (even Casadesus

    and Karapetrovic, 2005 conclude in this way

    despite their overall criticism), many practitioners,

    deriving from largely anecdotal evidence, argue

    against ISO 9000 (Seddon, 2000) and claim

    that ISO 9000 proves ineffective (Dalgleish,

    2005).

    3. Towards ISO 26000

    With over a decade of delay after ISO 9000 and

    shortly after the introduction of ISO 14000, the first

    attempts were made to provide standards for social

    responsibility. Similar to quality, where a nationalstandard produced by the British Standards Institu-

    tion (BS5750, 1987) led to an international stan-

    dardisation of quality management, the first social

    responsibility standards were developed by the

    National Standards Bodies in Australia, France,

    Mexico, Japanto name but a few. Furthermore,

    other standards outside National Standards Bodies

    were developed, such as AA 1000 (1999) and SA

    8000 (2001). In ISO/Bulletin (2002), the ISO

    announced its intention to grasp the area of social

    responsibility with further possibility to develop a

    standard. Firstly, ISO formed the ISO Committeeon consumer policy (ISO COPOLCO), which

    announced that a trio of ISO management stan-

    dardsISO 9001, ISO 14001 and ISO corporate

    social responsibility MSS (CSR MSS)would

    support business efforts to show that an organisa-

    tion cares about quality, environment and the social

    effects of a production or activity (ISO COPOLCO,

    2002). In their report, the committee has, amongst

    other issues, recommended that (ISO COPOLCO,

    2002):

    ISO CR MSSs would constitute an internation-

    ally agreed-upon framework for operationaliza-

    tion of corporate responsibility commitments,

    capable of producing verifiable, measurable out-

    puts. The ISO CR MSSs would build on the

    intellectual and practical infrastructure of ISO

    9000 quality MSSs and ISO 14000 MSSs, and the

    momentum associated with close to one-half

    million firms certified as compliant with these

    standards. As with ISO 9000 and ISO 14000,

    firms could self-declare compliance with the

    proposed ISO CR MSSs or could seek certificatesfrom authorized third parties. It should be

    emphasized, however, that ISO CR MSSs would

    be insufficient by themselves to assure that a firm

    has developed and implemented an effective CR

    approach. Thus, ISO CR MSSs would be one

    piecealbeit a fundamental building blockof

    effective CR approaches.

    Where ISO COPOLCOs report shows the link

    between social responsibility standard, ISO 9000,

    ISO 14000 and MSS approach, the lately formed

    ISO Advisory Group on Social Responsibility

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    (AG SR) dismissed this intent and recommended a

    guidance document, and not a specification docu-

    ment against which conformity can be assessed

    (ISO/AG/SR, 2004b):

    for use by business and other organisations, that emphasises results and performance im-

    provement,

    that adopts a common terminology in this area,

    that assists organisations in effectively addres-

    sing their social responsibilities in various

    cultures, societies and environments,

    that can complement other relevant instruments

    and tools,

    that is not intended to reduce the governments

    authority to address the social responsibility of

    organisations,

    that is of use to business and other organisations

    of all sizes,

    that provides practical guidance on methods

    and options for operationalising social respon-

    sibility, identifying and engaging with stake-

    holders, enhancing credibility in claims made

    about social responsibility, that should be

    written in clear and understandable language.

    By this step, ISO 26000 has taken a different

    approach in comparison to ISO 9000 and ISO

    14000. Apart from a shift from the meta-standardapproach and from third-party certification, ISO

    26000 has a much broader content (see Table 1

    key elements). It not only gives guidance for

    organisations to implement social responsibilities

    (SRs), but also provides guidance on SR context,

    SR principles and guidance on core SR subjects/

    issues.

    4. Research engagement

    As a new standard for social responsibility

    emerges, the inevitable question arises: is the

    standardisation in social responsibility fundamen-

    tally different from quality and environment? What

    are the similarities and differences between quality,

    environment and social responsibility? What can we

    expect from social responsibility standardisation?

    Apparent parallels can be identified that would

    suggest that standards in social responsibility,

    quality and environment should show certain

    similarities. All of these concepts are somehow

    elusive and multiple meanings and definitions

    exist (Waddock and Bodwell, 2004; ISO/AG/SR,

    2004a;Lockett et al., 2006). According toWaddock

    and Bodwell (2004), this was a problem in the early

    days of quality movement and consequently many

    managers questioned whether quality was measur-

    able and whether there was a business case for

    qualitysimilarly to social responsibility. In other

    words, these concepts are organisation and sector

    specific and a standard needs to take this into

    consideration. In the case of ISO 9000 and ISO

    14000, a meta-standard approach provided a solu-tion. ISO 26000 also aims to assist organisations to

    deal with social responsibility and also aims to be

    generic. Hence from the perspective of design, we

    would expect that ISO 26000 would be built on the

    ARTICLE IN PRESS

    Table 1

    A comparison of ISO 9000, ISO 14000 and ISO 26000

    Standard ISO 9000 ISO 14000 ISO 26000

    General description Quality management systemsstandard

    Environmental managementsystems standard

    Guidance on socialresponsibility

    Third-party certification Yes Yes No

    Key elements Quality management

    system

    Management

    responsibility

    Resource Management

    Product realization

    Measurement, analysis

    and improvement

    Environmental policy

    Planning

    Implementation and

    operation

    Checking

    Management review

    The SR context in which

    all organisations operate

    SR principles relevant to

    organisations

    Guidance on core SR

    subjects/issues

    Guidance for

    organisations

    implementing SR

    Note: Key elements of ISO 26000 are based on the Design Specification (ISO/TMB/WG SR N49, 2005).

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    intellectual and practical infrastructure of ISO 9000

    and ISO 14000, as well as be designed as a meta-

    standard.

    However, social responsibility requires a much

    wider stakeholder base to be considered in compar-

    ison to quality. The ISO 9000 quality managementstandard is focused predominantly on the customer

    and meeting the customers requirements. Social

    responsibility, in contrast, considers stakeholders

    ranging from customers to society in large. A

    further difference is the control and feedback

    mechanism. Quality is much more market driven

    and customers can mostly directly assess the quality

    of products and services. However, this is different

    for social responsibility as well as environment. As

    Terlaak (2002) asserts, for stakeholders to distin-

    guish and to make informed decision on whether

    ISO 14000-certified firms outperform in environ-mental terms than those that are not certified is

    difficult. Despite possible differences between qual-

    ity and social responsibility, with respect to control

    mechanisms of organisational quality and social

    performance, there are clear similarities between

    social responsibility and environment. Social re-

    sponsibility performance, which is similar to

    environmental performance, is often less transpar-

    ent than quality. This suggests that environmental

    and social responsibility standards should be result

    based. However, ISO 14000 (developed through thesame standard development process as ISO 26000)

    is designed as a process-based standard and not as a

    result-based standard. Therefore, we expect ISO

    26000 to be closely aligned with ISO 14000 and to

    require organisations to develop their management

    systems around their social responsibility aspects

    and impacts. Similarly, we expect ISO 26000 to be

    based on processes as ISO/AG/SR (2004b) state

    that ISO has to recognise that it does not have either

    the legitimacy or the authority to set social

    obligations that are defined by governments.

    The work on international standardisation in-

    evitably brings with it a conflict of interests and

    principles (Hallstrom, 2004). In comparison to ISO

    9000, the development of ISO 26000 requires a

    much wider stakeholder base to be involved. This

    includes stakeholders that have different expecta-

    tions, benefits and views on social responsibility

    standardisation. Since the ISO process of interna-

    tional standards development is based on a con-

    sensus of involved parties, we expect that the final

    product, a guidance standard for social responsi-

    bility, will reflect this. The preceding review of the

    literature on benefits from ISO 9000 and ISO 14000

    certification not only highlighted certain decoupling

    of empirical findings and practitioners perception

    of ISO MSS, but also showed that practitioners are

    rather doubtful about the empirical results. We

    therefore expect that the standard developmentagenda will be largely politically driven and that

    participants will show contradictory views based on

    their interests and personal beliefs.

    This last point led us to an exploratory design for

    this study. Hence, we aim to answer the what and

    why questions stated previously. In our quest to

    investigate the research question what impact has

    ISO 9000 and ISO 14000 had on the direction in the

    development of ISO 26000 guidance standard for

    social responsibility?, we investigate what views

    ISO member body delegations and invited partici-

    pants (further referred to as standard developers)had on the proposal to move from the meta-

    standard approach towards a guidance standard.

    We conduct this inquiry in the three research areas

    (RAs) that capture the difference between the ISO

    9000, ISO 14000 approach and that of ISO 26000:

    RA1MSS,

    RA2process approach,

    RA3certification.

    In other words, we want to understand what arethe views of the standard developers in terms of

    MSS, process approach and certification. In parti-

    cular, who supports/dismisses these approaches and

    why as well as what alternatives are available. Our

    overall aim is to explore this area and provide an in-

    depth picture of the views surrounding this matter.

    4.1. Sample

    Our sample consists of ISO member body

    delegations, invited international groups and orga-

    nisations at the ISO International Conference on

    Social Responsibility. The conference took place in

    Stockholm, Sweden, on June 2004. It drew together

    355 participants from 66 countries, including 33

    developing countries, representing the following

    stakeholder groups:

    national standards bodies,

    industry,

    government,

    labour,

    consumers,

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    international and nongovernmental organisa-

    tions (NGOs).

    4.2. Data gathering

    The conference consisted of plenary sessions,stakeholder presentations, panel discussions and

    parallel breakout sessions. The first two (plenary

    session and stakeholder presentations) consisted of

    presentations from the Advisory Group on Social

    Responsibility members and invited speakers, while

    the remaining two were made up of round-table

    discussions. We tape-recorded all presentations and

    discussions, which were then transcribed verbatim.

    We did not take part in the discussions, allowing the

    participants to express their views openly. Our

    approach was to analyse what was said, rather than

    force the discussion or use of other means, such asindividual interviews, to collect additional data.

    This would undoubtedly strengthen our research

    design, yet it was physically and politically impos-

    sible.

    4.3. Data analysis

    For the purposes of data analysis, we have used

    the coding system depicted in Fig. 1. We had three

    high-level codes that corresponded to the main

    research areas (RAs 13; discussed previously).Secondly, for each cluster, we used a second tier

    of codes that consisted of stakeholder group,

    stakeholder position and stakeholder rationale

    (all described inFig. 1).

    At the first stage of data analysis, we reviewed the

    whole transcript and selected the data that were

    applicable to this research (i.e. statements from the

    participants related specifically to issues in RA 13).

    Consequently, we worked independently from each

    other and used the high-level codes to cluster the

    data. Afterwards, we came together and compared

    our results. We followed the advice of Miles and

    Huberman (1994) as well as Druskat and Wheeler(2003) to assess the inter-rater reliability, i.e. a

    number of agreements divided by the sum of the

    total number of agreements and disagreements. The

    initial result was 0.91, which exceeded the minimal

    level set by Miles and Huberman (1994). We

    concluded that this was because (a) the coding

    scheme was set at a high level (we had only three

    coding clusters as described above); (b) we are both

    experienced coders; and (c) we have both prior

    experience in this area and therefore were able to

    understand the jargon used by the participants. We

    have furthermore decided to resolve the discrepan-cies.

    After this initial clustering, we coded the in-

    formation using the second tier of codes (seeFig. 1).

    We used an identical coding system for all clusters.

    For instance, the statement I fully agree with [the

    previous speaker] about PDCA [Plan Do-Check

    Act]. It has the operational element companies

    want by a participant from industry was coded as

    [Stakeholder groupindustry], [Stakeholder posi-

    tionagreement], and the statement it has the

    operational element companies want was coded as[Stakeholder rationalejustification].

    At this stage of the data analysis, we also

    discussed the possibility of introducing a more

    detailed coding system. This idea was however

    dismissed. The discussions (hence the data) ap-

    peared to be rather generic without needing a great

    level of detailed analysis. In general, participants

    ARTICLE IN PRESS

    Management

    System Standards

    CertificationProcess Approach

    Stakeholder groups

    Stakeholder position

    (agreement vs. disagreement)

    Stakeholder rationale(justification of stakeholders

    position)

    national standard bodiesindustry

    governmentlabour

    consumersinternational and nongovernmental

    organisations (NGOs)

    Fig. 1. Coding system for the study.

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    expressed their agreement or disagreement with the

    issue of MSS, process approach and certification, as

    well as provided a short explanation (see example

    above). Here our coding system proved sufficient. In

    some cases, however, we were not able to use the

    very element in our coding system. For instance,discussions based around certification in many cases

    brought statements such as certification would not

    bring any value without either rationale behind the

    statement or justification. However, this was in line

    with our expectation that the process of ISO 26000

    development is in its infancy and also that it would

    be politically driven. Hence at this stage, standard

    developers would focus predominantly at clarifica-

    tion of their positions and general views. InTable 2,we present extracts from the data to illustrate the

    nature of the data. In the following sections, we

    present the results of this study.

    ARTICLE IN PRESS

    Table 2

    Excepts from the data

    Management systems

    standard

    The advisory group recommends guidance not a specification document against which the conformity can

    be assessedyy. The background, the discussion of this topic was that classical management system

    approach not promotedy enhancing credibility that is the area where ISO can add valuey. ISO guidance

    document must be more than addressing management systems standard, it should give the practical

    guidance on diversity of issues and how to handle them, business needs (small and medium, different sizes),

    national regulations.AG Member, ISO Advisory Group on Social Responsibility

    I like very much the concept of SA 8000 standard, which uses the concept of conventions and that is the

    correct one for the companies. And I think that is a good approach because at the one hand it fulfils the

    recommendation of the report that the existing laws are not changed and are taken as they are, and make

    the requirements for the companies.

    Participant, Plenary

    y a management system framework is not agreeable.

    Participant, NGO

    I heart my colleague that he is seeking the certifiable standard in order to supersede SA 8000 and its

    requirements with the presumption that ISO has a powerful enough brand to supersede these other

    requirements. That is the question to answer whether ISO has the powerful enough brand. And whether it

    will just become another requirement.Participant; Industry session

    I do not agree with ICC what they said yesterday and I do not agree with SIEMENS. Yes it will be difficult

    and yes it is a complex area. If ISO will not do it, we will have others who will produce international,

    national, local difficult initiatives that will all make this area and make it more difficult to move around.

    ISO needs to take this forward not just as a guidance document but also as a standard documenty.

    Definitely the standard, we need to take discussions.

    Participant, Plenary

    I fully agree with [the previous speaker] about PDCA. It has the operational element companies want.

    Maybe multinationals do not want the standardy. it is a well-known methody. we need to give

    [companies] a tool to prioritize because companies cannot address these issues at the same time.

    Participant; Industry session

    Process approach Over last 2 years we have benchmarked many standards, Australian, Spain, Japan, Mexico; if go toAA1000 or SA 8000, what is the main component? PDCA.

    Participant; Industry session

    As we discussed in the AG, this PDCA method smells much too much as a future management system

    standard, this is not the way to tackle CSR. CSR needs some better tools, some better guidance than a

    classical management system standard. This is why the recommendations say this is not the subject to

    guidance document.

    AG Member; ISO Advisory Group on Social Responsibility

    Certification There is a very strong concern within the NGO community that ISO document will become the alibi

    document to use the standard for advertising purposes and that is the reason why we want to have a

    standard that contains ethical requirements and not the management system standard. A management

    system standard would be hardly agreeable with the NGO.

    Participant, NGO

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    5. Results

    5.1. Management systems standard (MSS)

    The topic of the MSS approach, as a basis for the

    social responsibility standard, became a leitmotif

    throughout the entire conference. Overall, our data

    shows that the participants were polarised into two

    groups. There were those who favoured the MSS

    approach and those who opposed it. This polarisa-

    tion was predominantly influenced by (a) a personal

    stance towards meta-standards, (b) belonging to a

    particular stakeholder group and (c) demography-

    developed versus developing countries.

    Advocates (including past ISO 9000 and ISO

    14000 developers, consultants, company representa-

    tives, etc.) pointed to the benefits that companies

    obtain from ISO 9000 and ISO 14000 certification

    such as improved performance, acquiring of

    best practices or improved communication in

    the supply chain. Furthermore, ISO 9000 was

    presented as an established platform that could

    contribute to the dissemination of, and learning

    about, social responsibility standard as well. The

    opponents representing NGOs, Labour and some

    Industry, especially large multinational corpora-

    tions, strongly dismissed the idea of MSS. Industry

    representatives argued that an MSSis not necessary

    because the industry has their own solutions to deal

    with social responsibility and ethical issues. Further-

    more, it was mentioned that ISO 9000 often does

    not fulfil the internal requirements of multinational

    corporations, and yet another standard would

    only increase the cost with little impact on

    improvement of social responsibility in organisa-

    tions. In case of NGOs and Labour participants,

    they were against an MSStheir alternative being a

    guidance document.

    ARTICLE IN PRESS

    Table 2 (continued)

    You cannot have any system without some kind of process of verification. However, I think that the

    problem with the certification has been, that it is one process of verification and there many different

    processes of verification that are dependant upon who is relying on claims; and the size of the organisation

    and the purpose of making the claims, so I think that one of the benefits of the document or standard

    document might be to set out alternative methods of verification so that they match the organisation and so

    they match the intent, of what the claim is being used for and who is being relying it upon.

    Participant, Others

    I think to set a standard for this matter would be a huge mistake. Because what is a standard? We put a

    standard in place in order to prevent people from doing things that should not have been done or to give the

    guidance how they should do things they do not know. Now, in this subject matter, we need to give

    guidance to different corporation how to be leaders in this world by giving example of leadership to other

    corporation, suppliers, environment, to the public.

    Participant, Motorola

    y Certification would not bring any value for the company and its suppliers and that they would only put

    millions into certification.

    Participant, siemens

    I know that there might be a cost [for certification] that customers will have to pay but they are also paying$200mil fines for doing bad marketing. So we need to discuss what is ethical pay and what is SR for

    organisations not just companies. And also take into consideration countries where governments dont

    have the same strengths and same resources for doing this. We need to be fair as organisations. We need to

    help each other to move this forward because it is our responsibility.

    Participant, Industry

    The key question is how to make it credible. And I am afraid that there are no options available than to go

    for 3rd party certification.

    Participant, Industry

    I fundamentally disagree with the notion of guidance document being satisfactory. Regardless of whether

    or not the certification has been done up to date, there are ways to verification [agrees with previous

    speaker] to getting this credibility, perhaps better than it exists.

    Participant, National Standards Body

    Note: Language in the quotes was not corrected; PDCA Plan Do Check Act; NGO non-governmental organisations; AG Advisory

    Group; CSR Corporate Social Responsibility.

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    Participants from developing countries showed

    considerable agreement on the benefit of having an

    international standard for social responsibility.

    Some of these explicitly pointed out that an MSS

    would be preferable. The major argument was that

    many CSR standards are imposed on suppliersfrom developing countries. These organisations

    have to comply with them and that is a prerequisite

    for these organisations to enter some markets and

    networks. Here, as one participant said, it would

    be better to have one leader [ISO] than hundreds of

    different schemes. Furthermore, participants from

    developing countries emphasised the need to involve

    their representatives in the ISO 26000 development

    process. They typically stated that with ISO

    developing countries can at least influence the

    standard.

    The participants showed disunity over the funda-mental approach to standardisation of social

    responsibility. Some were in favour of guidance

    standard, while others were in favour of manage-

    ment systems standard.Whilst the plenary was asked

    to indicate by vote who was in favour of these

    approaches, the result was a 50:50 split.

    5.2. Process approach

    Process approach is one of the eight quality

    principles (ISO 9004) and a fundamental buildingblock of ISO 9000/ISO 14000. Therefore, it was

    another key theme of the discussions. Similar to the

    discussions around the suitability of the MSS

    approach, the participants remained divided in their

    opinions.

    Firstly, it was argued by the member of the

    Advisory Group on Social Responsibility that the

    process approach is not suitable for social respon-

    sibility standardisation:

    ISO must focus on results. Not on process. ISO

    14000 is a processit does not work with socialresponsibility. That is why we are talking about

    the guidance documenty [we need to] provide

    practical methods and guidance for operationa-

    lizing SR, fulfilling the expectations of the

    society, identifying and engagement with stake-

    holders.

    Even though many participants acknowledged

    that the process approach does not a priori ensure

    results, they also pointed out possible drawbacks

    embedded in the results approach such as introdu-

    cing uniformity of views on social responsibility,

    the danger of ignoring local differences, forcing

    the focus on results instead of on improvement.

    Furthermore, many of these drawbacks were closely

    discussed in relation to the differences in regulatory

    systems, which limited the success of reinforcement

    of international law in many countries and thelegitimacy of ISOs social responsibility standard. It

    was generally acknowledged that these were clearly

    the forces constraining, and significantly affecting,

    the design of the social responsibility standard.

    Secondly, the PDCA approach, mostly used by

    quality practitioners and advocated by leading

    quality experts, is a critical mechanism in ISO

    9000 and ISO 14000, became another controversial

    topic in the discussion. Here again, it was the

    dismissive position of the Advisory Group on Social

    Responsibility towards the PDCA that triggered the

    debate. Many participants expressed their supportfor the PDCA approach explicitly. They had two

    common arguments: (a) it is a well-established

    mechanism to learn and (b) many national and

    other standards employed this approach. The

    former argument was that PDCA has the opera-

    tional elements that companies want, it is a well

    known method and we need to give companies

    the tool to prioritise because they cannot address

    these issues at the same time. The latter arguments

    linked the PDCA to other standards like SA8000,

    AA1000 or national initiatives/standards in coun-tries such as Australia, Spain, Japan, Mexico.

    5.3. Certification

    The issue of certification came across hand in

    hand with the discussion on the feasibility of an

    MSS and experience with the ISO 9000/ISO 14000

    certification. Here, the credibility of certification

    was often questioned and many participants com-

    mented sarcastically about the verification indus-

    try or a small number of consultants having jobs

    out of that. The following themes, underlying most

    of the arguments, are addressed below.

    Firstly, some participants expressed a fear

    about a possible misuse of certification. Especially,

    NGOs and labour participants were very vocal in

    dismissing the idea of certification, which they felt

    could become an alibi document for advertising

    purposes rather than a real commitment to social

    responsibility. At the other side of the spectrum,

    some industry participants pointed out that if

    some activist groups start to mandate that you

    can sell and must have a SR standard on this or that

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    market, it will become quasi-mandatory to do a

    business.

    Secondly, it was often reported that the nature of

    MSS drives the behaviour towards compliance

    with minimal requirements rather than seeking

    improvements or encouraging a genuine effort intoimprovement-related activities. Many participants

    strongly asserted that social responsibility standar-

    disation should be voluntary and based on leading

    by example, not by imposing rules and require-

    ments:

    y to set a standard in this matter would be a

    huge mistakey leadership is never imposed.

    Leadership is earned and therefore we should not

    do the standard and [force] corporations to be

    the leaders of so and so. The right way is to let

    corporations earn the leadership. The right wayis to give an opportunity to guide smaller

    organisation and public in order to get the right

    results. We should provide the guidance for

    organisations to be leaders in the world.

    Many participants were pointing out that if there

    are no requirements in ISO 26000, it would be very

    difficult to judge organisations commitment to

    social responsibility and ISO 26000. As one

    participant put it:

    it is a risk for ISO itself and its reputation if

    organisations will claim that they follow ISO

    guidance. We will not know because of the

    missing requirements.

    However, the representatives of multinationals

    pointed out that ISO 9000/ISO 14000 requirements

    are often not sufficient for their business and that

    their corporations require more from their suppli-

    ers. They also stressed that certification would not

    bring any value for the company nor the suppliers,

    and would just put millions into the certification

    industryincreasing the cost for their customers

    and suppliers.

    However, other participants, even though ac-

    knowledging that the certification process was not

    fully satisfactory thus far, probed further discussion

    into how to improve the certification process and, in

    fact, redesigning it in order to suit the changing

    societal needs. Firstly, it was mentioned that ISO

    should come with alternative methods of verifica-

    tionto match different needs of various organisa-

    tions. Here participants mentioned, for instance,

    that social responsibility intensity in various in-

    dustries differswith some organisations and some

    industry sectors having rarely problems with ethical

    issues and others having those more often (see also

    the quote in Table 2). Secondly, it was suggested

    several times that ISO can establish a web-site

    listing organisations following the standard and

    their resultsa proposition favoured by some andregarded as not sufficient by others.

    6. Discussion

    Through this study we have confirmed that the

    standard development agenda in its initial stages has

    been driven by politics and the participants have

    shown contradictory views based on their personal

    interests and beliefs. At the same time, the study

    provided a rich picture of the views of standard

    developers on the divergence from a meta-standard

    towards a guidance standard. The study alsohighlighted the impact of ISO 9000 and ISO 14000

    on the development of ISO 26000.

    Our first conclusion from this study is that

    standard developers have polarised opinions over

    the nature of the future social responsibility

    standard. Our research shows that despite the

    existence of ISO 26000 development primary as a

    guidance standard, there is a large percentage of

    standard developers who strongly advocated a

    management systems approach and third-party

    certification, which would be similar to ISO 9000and ISO 14000. What should also be noticeable is

    the disparity of views of different stakeholder

    groups on these issues; as shown, there was a strong

    opposition from the labour and NGO stake-

    holder group, as well as a division of opinions

    amongst industry stakeholders. However, third-

    party certification was almost unanimously seen as a

    problematic areano matter whether participants

    supported certification or not. Proponents of

    certification typically argued that there was no

    better way whilst the opponents dismissed certifica-

    tion pointing at disfunctionality, malpractice and

    disreputable practices in the certification industry.

    Overall, the disagreement of standard developers

    over the issue of third-party certification is probably

    one of the major forces towards a different direction

    for standardisation of social responsibility.

    Our second conclusion was that the shift toward a

    guidance standard (as opposed to MSS) was largely

    a politically driven decision. The direction set by the

    Advisory Group on Social Responsibility was to

    develop a guidance standard, and therefore not a

    specification standard against which conformity

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    could be assessed. This has been maintained even

    though a large percentage of standard developers

    expressed different points of view. From this we

    conclude that the decision to develop a guidance

    standard rather seems to be a platform for a

    consensus of involved parties and not necessarily adirective to develop a substantial standard for social

    responsibility. As shown, politics played a signifi-

    cant role in the early stages of ISO 26000 develop-

    ment. Here, our conclusion is echoed by Bowers

    (2006):

    The International Labor Organization (ILO) is

    participating, but only under the security of its

    memorandum of understanding [effectively giv-

    ing ILO veto power over labor related sections in

    the standard]. The Global Reporting Initiative

    (GRI), a privately organized and funded NGOthat develops standards, is participating, but

    certainly in part to protect its own interests.

    Other NGOs and consumers who are participat-

    ing would prefer a mandatory minimum stan-

    dard that could be more demanding than a

    national labor or environmental standard. Gov-

    ernments, to the limited extent they are partici-

    pating, are either protecting their turf or seeking

    powers they do not have statutorily or finan-

    cially.

    Our final conclusion from this research study is acall for future research in the arena of ISO

    management standards. Some of the arguments

    and opinions of standard developers that were used

    to influence the development of ISO 26000 deserve

    attention and empirical investigation. In particular,

    the arguments over the malpractice in third-party

    certification and inefficiencies of ISO management

    systems standards in general require further inquiry.

    Our experience, from working with practitioners

    and professional bodies in quality in several

    countries and with the ISO community, confirms

    the somewhat negative attitude amongst practi-

    tioners towards ISO management system standards

    and third-party certification. However, apart from

    this anecdotal evidence, we have not found any

    empirical study that has credibly dealt with these

    issues.

    7. Limitations of the research

    There are some limitations to our research that

    we would like to acknowledge. This research is

    limited to the investigation of the impact of ISO

    9000 and ISO 14000 on the development of social

    responsibility standard. Hence, other topics that are

    closely related (such the role of governments, the

    role of legislation, legislative enforcement in devel-

    oping countries, alignment with ILO Conventions)

    are outside the scope of this paper. Furthermore, itshould be noticed that the data collected in this

    research were focused largely at the high-level

    issues, such as the feasibility of an MSS or

    credibility of certification. The research at this stage

    did not allow for deeper inquiry into further

    explanations. Hence this research should be seen

    as a reflection of the first stages in the development

    of social responsibility standards and as a basis for

    future investigations.

    Further limitation of this research is in the choice

    of the participants for our study. This study

    provides an inside perspective on the standarddevelopment and includes its direct participants.

    The study, therefore, relies on the appropriateness

    of the nomination process of the ISO, and hence

    inevitably has its limitation. For instance, some

    countries choose not to get involved, some stake-

    holder groups can be under-represented (Hallstrom,

    2000) and the whole process of standardisation is

    influenced by self-interest of standard developers

    and their respective stakeholder groups (Bowers,

    2006;Hallstrom, 2000;Seddon, 2000). Nevertheless,

    our research aimed to investigate those views, so itmay only be appropriate for the purpose of this

    study.

    8. Future research

    The introduction of ISO 26000 will inevitably

    bring fruitful ground for future research. Amidst the

    plethora of options, we would like to highlight and

    recommend several areas. Firstly, studies into

    diffusion patterns of ISO 26000, which determine

    why, under what circumstances and which organi-

    sations and supply chains adopt ISO 26000, will

    shed more light on the role of ISO 26000 in the

    pursuit of the SR agenda. Here, the work on

    diffusion of ISO 9000 and ISO 14000 (i.e. Corbett,

    2006) and first predictions on the diffusion of ISO

    26000 (Castka and Balzarova, 2007) can serve as

    useful starting points. Secondly, since ISO 26000

    will not be certifiable, evaluations of claims made in

    relation to ISO 26000 will also be necessary. Here

    researchers can initially focus on the theoretical

    developments and debates (before the introduction

    of ISO 26000) and later on the evaluation of the

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    claims organisations will make in relation to ISO

    26000. Thirdly, recent debates within ISO suggest

    that there is a willingness in ISO to tighten

    certification and accreditation practices (Wade,

    2002; Lal, 2004). The International Accreditation

    Forum and ISO stepped forward to address thecriticism by revisions of the requirements for

    accreditation bodies, who accredit conformity, and

    for auditor competences (Feary, 2005). Future

    studies can focus on analysis and evaluation of

    these activities to determine whether this can bring

    ISO 26000 towards third-party certification.

    9. Conclusion

    ISO 9000 and ISO 14000 significantly influenced

    the first steps in standardisation of social responsi-

    bility. Indeed, the global diffusion of both of thesestandards and its meta-standard approach to

    standardisation of management practice gave the

    initiators of social responsibility standardisation an

    approach to grasp the social responsibility agenda

    (ISO/Bulletin, 2002). This is true not only for

    national standards such as DR03028 (2003) and

    SII10000 (2001), but also for standards such as

    SA8000 (2001) and AA1000 (1999). SA8000 was

    designed as an auditable standard for a third-party

    verification system and AA1000 is an accountability

    standard, focused on securing the quality of socialand ethical accounting, auditing and reporting.

    Both of these are built around notions of policies,

    audits, management reviews and continuous im-

    provement, which are typical elements of ISO 9000

    and ISO 14000.

    ISO 26000 avoided third-party certification, yet

    this can cause problems and raise further questions.

    Research shows that guidance documents are often

    widely unknown and their purpose is unclear (Boys

    et al., 2004). The risk here is that a guidance

    document, without a clear purpose and question-

    able credibility, can hamper the adoption and

    diffusion process of ISO 26000. Indeed, third-party

    certification can provide at least some level of

    confidence even if it is perceived as having eroded

    credibility. Hence ISO 26000 will have to find other

    ways to insure that the standard is not misused. One

    of the ways would be to use the approach of UN

    Global Compact and require companies to disclose

    information about the ways it supports ISO 26000

    and its principles. Other approaches can encompass

    different certification schemes tailored to the type of

    claims that the organisation makes. Developments

    in these areas are necessary for ISO 26000 to add

    value to the uptake of the social responsibility

    agenda.

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    ARTICLE IN PRESS

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