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How Social Enterprise Practices Social Responsibility? Connie Sham Head of Audit 04 November 2014 1 Sharing Objectives To share the key elements of ISO 26000 – Guidance on Social Responsibility To explore the benefits and impact of practicing ISO 26000 Opportunities for social enterprise 2 Paradigm Shift - Change Stakeholders expectations Social Responsibility and Business Ethics Vs Time Social Responsibility and business ethics issues Organization practices Social responsibility and business ethics issues 1960’s Now 3 Guidance on Social Responsibility 4 ISO 26000 connects the Great Global Agreements to the daily activities of organizations OVERVIEW OF ISO26000 7 Core Subjects Community Involvement and development The environment Human rights ORGANIZATION Consumer issues Labour practices Fair operating practices 7 Organizational Governance Governance system : incorporating the principles & practices of SR into decision making and implementation Governance structure: directed by personnel having authority and responsibility for pursuing SR objectives Due Diligence: involves an organization conscientiously and methodically considering the actual and possible negative impacts of its activities and managing these with a view to minimizing and avoiding the risk of social and environmental harm Human Rights Risk situation: give thoughts to the potential consequences Avoidance of complicity:become aware of, prevent and address risks of complicity (knowingly providing substantial assistance to the commission of a human rights abuse or commission of wrongful acts of others) by integrating the security arrangement features into due diligence process Resolving grievances: means for those who believe they have been harmed to bring this to attention of the organization and seek redress, without losing their right to use available legal mechanism Discrimination and vulnerable groups: ensure the organization does not discriminate against employee, partners, customers, stakeholders, members and anyone else Civil and political rights: organization should always respect individual rights to freedom of opinion and expression, religion, privacy etc. Economic, social and cultural rights: Organization have a responsibility to respect the enjoyment of economic, social and cultural rights Fundamental rights at work: organizations should independently ensure that issues like freedom of association and collective bargaining, forced and child labor are addressed Labor Practices Employment and employment relationship: improvement of standard of living through full & security employment, ensure equal opportunities, not benefit from exploitative or abusive labor practices Conditions of work and social protection: fair and appropriate consideration should be given to the quality of conditions of work Social dialogue: mechanism for exchange of information, developing policy and finding solutions that take into account the priorities and needs of both employers and employees Health and safety at work: protection of employees from risk to health and the adaptation of the occupational environment to the physiological and psychological needs of workers Human development and training in the workplace: facilitating the education, training and lifelong learning of employees The Environment Prevention of pollution: preventing pollution including emission to air, discharge to water, generation of waste, contamination of land and use of toxic chemicals etc. Sustainable resource use: progress towards sustainable use of electricity, fuel, raw and processed materials, land and water, and by combining or replacing with renewable resources. Climate change mitigation: minimizing GHG emissions and planning for a changing climate. Protection and restoration of the natural environment: protect and restore the natural environment and its ecosystem Fair Operating Practices Anti-corruption: identify the risks of corruption and implement, apply and improve policies and practices that prevent corruption and bribery Responsible political involvement: train and raise awareness about responsible political involvement, transparent organization’s activities related to lobbying, political contributions, establish policies and guidelines to avoid manipulation, intimidation and coercion that can erode public political process Fair competition: Promote fair competition by establishing to prevent engaging in or being complicit in anti-competitive behavior, raise employees’ awareness and support public policies. Promoting social responsibility in the sphere of influence: incorporate ethical, social, environmental and gender equality criteria in contracting policies, carry out investigations and monitoring with which the organization has relationships etc. Respect for property rights: implement policies and practices that promote respect for property rights and conduct investigations to ensure legitimate use of properties Consumer Issues Fair marketing, factual and unbiased information and fair contractual practices: provide complete, accurate, understandable and comparable information Protecting consumer’ health and safety: provide products or services that under normal and reasonably foreseeable conditions of use, are safe for users, their property, other persons and the environment Sustainable consumption: offer consumers socially and environmentally beneficial products and reduce adverse impacts Consumer services, support and dispute resolution: engage in precautionary measures to prevent complaints, review complaints and improve practices, provide clear communication of after-supply services Consumer data protection and privacy: prevent personal data collection and processing from infringing privacy Access to essential services: operate in transparent manner, providing information related to the setting of prices and charges Education and awareness: raise awareness of consumers about the impacts of consumption choice and on sustainable development Community Involvement & Development Community Involvement: contribute to democratic processes, maintain transparent relationships with local government and political parties, consultation with community groups Education and culture: promote and support education, promote cultural activities, help conserve and protect cultural heritage Employment creation with skills development: contribute in investment decisions on employment creation, consider the impact of technology choice and outsourcing on employment, participate in skills development program Technology development and access: contribute to development of low cost technologies, engaging in partnership with local organization for scientific development Wealth and income creation: fulfill tax responsibilities, engage in economic activities that support low income people etc. Health: promoting good health, raise awareness about major diseases, support health care etc. Social investment: undertake projects related to education, training, culture, health care, capacity building in community, volunteering and donations etc. BENEFITS AND IMPACTS Let’s Give Thoughts to CSR Is Corporate Social Responsibility (CSR) = Corporations’ duty only? Why Social Enterprise should also care about social responsibility? 16 Concept Building Sustainable Development Millennium Development Goals Business Theory – Triple Bottom Line Social Responsibility Adam Smith Friedman and the concept of shareholder The concept of stakeholder Safeguards to Sustainability Maximize financial return on capital Sustainability Maximize financial, environmental and social return on capital Aspirations Achieve certain minimum environmental and social standards 19xx Preventing harm Entry level requirements Achieve certain minimum environmental and social standards Now What do we mean by the environmental and social return on capital? Benefits and Impacts It’s the right thing to do for every organization Address stakeholders expectations Accountability Risk management Transparency 19 OPPORTUNITIES FOR SOCIAL ENTERPRISE Opportunities ISO 26000 provides guidance for organization to practice social responsibility regardless of nature, size and geographical location Social Enterprise should gear up and get prepare Share the common goals with corporations Demonstrate commitments to stakeholders Be a responsible partners Above all SUSTAINABILITY! 21 The Choice is Yours! 22 THANK YOU !