The International Organization for Standardization (ISO) initially appointed a working group, that arrived at a consensus in November 2010, to launch this guide-line which establishes a stable, conceptual, and structural framework for CSR, and which, although it was not unanimously adopted, was approved without a great deal of opposition to the basic points.

It was drawn up with the cooperation of 2,000 experts from different areas (consultants, NGOs and associations), and countries, headed by the teams from Brazil and Sweden and associated with ISO, after the organization had noticed that there were different national standards, although all involved professed a common goal: that of promoting a common framework, vision, and terminology.

The norm can be understood as a standard to be adopted internationally even though at present the Europeans have shown more interest in it and in putting it into effect than the Americans.

The fact that the norm is non-compulsory is perhaps its most striking feature, in so far as it focuses on the voluntary nature of CSR as far as organizations are concerned, as opposed to the view of those experts and professionals who strongly feel that it should be compulsory and that rules should be strictly binding, within a framework similar to that of legislation.

The advantage of a voluntary standardIn the opinion of Antonio Argandona, professor of Economics and holder of the Chair in CSR and Corporate Governance at IESE Business School,

The publication of the ISO 26000 guidance is an important advance in an area where so far there have been many efforts to establish several different standards of certifi cation. It is the only norm not requiring certifi cation on which a consensus has been reached, perhaps because it possesses one of the essential qualities of CSR: it is a completely voluntary standard.

Strategy DocumentsI02/2011

A new common framework for Corporate Social Responsibility: the international standard ISO 26000

Public Affairs

Insights

Document prepared by Corporate Excellence with reference to, among other sources, the intervention of Antonio Argandona (professor of Economics and holder of the ‘la Caixa’ chair in CSR and Corporate Governance at IESE) during the sessions of the Executive Education Program “Making Social Responsibility Work: The Cornerstone of Sustainable Business” organized by IESE Business School in Barcelona in July 2011.

Insights 2

A new common framework for Corporate Social Responsibility: the international standard ISO 26000

ISO 26000’s non-compulsory nature is its great advantage. It is merely a suggestion, a guide-line or advice on how to behave and is one of the basic tenets of CSR; it depends on each company and on each individual, so that we are able to speak of the principle of personal rather than just legal responsibility: It allows for innovation, different ways of implementation and improvements in how the standard is put into practice.

The question of a voluntary guideline is central in the on-going debate on CSR. It shows that CSR has come about as a result of the important realization by business of the knock-on effects of economic and corporate activity. It demonstrates the acceptance by companies of social realities, which, as in the case of individual responsibility, are a consequence of their actual existence.

Moreover, at the centre of the debate about adopting a socially and environmentally responsible approach to business is the question of whether a standard is voluntary or compulsory, and is precisely the point at which American and European views of CSR diverge.

‘The fact that the norm is non-compulsory is perhaps its most striking feature, in so far as it focuses on the voluntary nature of CSR as far as organizations are concerned.’

CSR must not be turned into an obstacle to free trade, nor a means of imposing sanctions or a restrictive form of regulation. This is why the voluntary standard occupies an important central position between those who believe that the very idea of social responsibility has no place in business and those who see it as something that, to a certain extent, stifles the business initiative necessary to avoid the evils intrinsic in the system.

In addition, the norm concerns several different key themes which may be grouped and summarized into seven separate areas in order of importance:

1. Human rights.2. Corporate governance.3. Labor relations.4. Fair dealings.5. Environment.6. Consumer affairs.7. Social development.

An overall definition of CSRAs we said at the beginning of this article, ISO 26000 - SR provides a harmonized framework, a vision of CSR that is international and contains global principles in line with Kant’s moral philosophy as well, expressed by a common definition and in common terms: “CSR is the responsibility assumed by an organization for the impact of its decisions and activity on society or on the environment, through accountable, ethical behavior which contributes to sustainable development, takes account of stakeholders’ expectations, is assimilated by the organization and is applied in all its dealing with others”.

Hence it contains an approach as to the sphere of influence of the organization (responsibility towards others) and the evaluation of any impacts (positive or negative changes in society), as well as the principles of responsible behavior to be followed by companies, and aspects on which work is needed:

• Key themes to be complied with.

• Relevant or significant matters to be developed.

• Competency and skills to be developed.

• Communications and relationships to be built.

• Interest groups to be prioritized.

It also establishes the path responsible companies should follow, explains how to integrate CSR into Corporate Governance and the procedures that must be complied with, and it helps governments to understand the role of Corporate Social Responsibility in providing a common world-wide viewpoint and in encouraging sustainable development in countries in cooperation with the private sector.

Seven principles for one principleThe ISO guideline document for CSR clearly sets out seven principles to be used by firms in directing a socially responsible policy:

The seven core subjects at a glance

Source: Desarrollo Humano Sostenible. 2011

Human rights.

Labour practices

The environment

Organizational governance

Social Responsability

Consumer issues

Fair operating practices

Community involvement

and developments

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A new common framework for Corporate Social Responsibility: the international standard ISO 26000

1. Responsibility: allowing questions to be asked about the firm’s decisions and activities by its own management, legal authorities or interest groups.

2. Accountability: openness in decision-making and activities which affect society, the economy or the environment, and willingness to communicate these clearly, precisely, honestly, fully and in a timely manner.

3. Ethics: behavior that is in accord with accepted legal principles and good conduct with regard to specific situations in accordance with international standards and norms.

4. Respect: for the stakeholders, individually or collectively, who are interested in any of the organizations activities or decisions.

5. Compliance: with the law, by accepting its authority and acknowledging that no one is above the law.

6. Obedience: to the traditional norms of behavior and international law, generally accepted principles and agreements between governments worldwide which are internationally recognized.

7. Observance: of human rights and the importance of respecting and promoting them.

Basically, these seven principles correspond to the seven ISO themes previously mentioned and which are explained as follows:

1. Corporative Governance: the system for taking and implementing decisions.

2. Environment: the impact on immediate surroundings and on the global environment.

3. Fair dealings: morally just conduct in one’s dealings with other firms.

4. Consumer affairs: responsibility regarding products and services.

5. Labor relations: including subcontracted companies.

6. Social development: involvement in the community and contributing to it.

7. Human rights: which give protection to everyone.

‘The reasons for publishing and adopting international guide-line ISO 26000 are without doubt more powerful that the arguments’

How to use the CSR guidanceThere are also seven basic steps to be taken in order for firms to incorporate and use this guidance, correctly. The guidance for Corporate and Social Responsibility has been published for the first time, to bring about a consensus in this subject:

1. To identify the specific features of the company with regard to CSR: the corporate culture, brand history and heritage, its values, value chain, industry, activities and emplacement

2. To prioritize stakeholders and identify their needs and expectations: they may have contradictory interests and be affected differently by the firm’s activities and decisions.

Managing for sustainable business

Source: United We Stand Productions and Planetary Citizens, 2011.

Clause 4

Seven principles of social responsability

Accountability

Transparency

Ethical behaviour

Respect for stakeholder interests

Respect for the rule of law

Respect for international norms of behaviour

Respect for human rights

Two fundamental practices of social responsibility Clause 5

Clause 6

Clause 7

Socail responsibility core subjects

Integrating social responsability throughout an organizaton

Recognizing social responsability

Human rights

Labour practices

The relatonship of an organization @ characteristics to

social responsability

Voluntary initiatives for social responsabilitity

Reviewing and improving an organization @ actions and practices related to social

Understanding the social responsability of the organization

Communication on social responsability

Enhancing credibility regarding social responsability

The Environ-

ment

Fair operating practices

Consumer issuers

Community involvement and

development

Stakeholder identification and engagement

Organizational govenance

Related actions and expectations

Annex: Examples of voluntary initiatives and tools for social responsability

Sustainable development

Practices for integrating social

responsability throughout and organizatioin

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A new common framework for Corporate Social Responsibility: the international standard ISO 26000

3. To recognize Corporate and Social Responsibility, in three areas: the relationship with society, with interest groups, and between society and the stakeholders.

4. To understand the role of CSR within the organization: developing a due diligence (internal audit) which includes a study of materiality or relevance with key themes, the allocation of its importance, determination of the commented sphere of infl uence and the establishment of priorities.

5. To decide practices that should be developed: defi ning the direction the business should take and providing suffi cient means to achieve this, as well as incorporating it effectively and with a good level or representation into the hierarchy of the organization.

6. To communicate openly and convincingly: by reinforcing methods, setting out clear information, and directing the fi rm’s efforts towards resolving confl ict, as well as opening up honest and productive dialogue between all the parties concerned.

7. To improve continually: doing more does not improve CSR, we need to do better things and necessary things, such as revising performance, following-up activity, checking business indicators, and analyzing the development and progress achieved.

Conclusions: criticism of ISO 26000At present there have been two fundamental criticisms of the procedure and fi nal draft of this international ISO norm which does not require certifi cation:

• About the process: the defective way in which the principal agents involved were represented and the confl icts of interest due to the presence of consulting bodies.

• About the result: it is not relevant or useful for small and medium-sized enterprises (SMEs) which constitute the major part of businesses world-wide, the language used is neither accessible or easy, it does not respect cultural differences with different approaches to different matters, and the possibility that in the end it will be used and manipulated for certifi cation (eventually in most cases it is the letter, not the spirit that is complied with).

Nevertheless, the reasons for publishing and adopting ISO 26000 are without doubt more powerful that the arguments against, on the economic grounds of effi ciency and performance, and on the grounds of extending the work and recognition of CSR (by imitation and as a driving force), of standardization and of the establishment of strong foundations on which to build more socially responsible businesses.

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