Ethical business: protecting ourplanet and the people on it www.bsigroup.com/ConsumerStandards

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Ethical business: protecting our planetand the people on it A consumer’s guide to the social responsibility standard - ISO 26000:2010

The globalization of business has broken down international barriers and made theworld seem a smaller place. And advances in media technology have made it easierfor us to find out what’s going on in different parts of the world – fromenvironmental disasters and unethical practices such as child labour, to dangerousworking conditions and corruption. This knowledge has made many of us think notonly about what we buy but how the goods and services we buy are produced.

Of course, cost, quality and customer service are still important,but more consumers are now interested in a company’s ethicsand principles too. During the last 10 years UK spending onethical goods, such as fairtrade food, energy-efficienthousehold goods and ethical financial services, has trebled.

This increasing awareness has put pressure on all types oforganizations to behave in a more socially responsible way, as they realise that the way they act is important to consumersand can benefit their organization in the long run.

In a nutshell, a socially responsible organization is one that runs itself in a way that respects our planet and the people on it. It can achieve this by:

• Protecting human rights

• Treating workers fairly

• Avoiding discrimination

• Respecting the environment

• Protecting consumers and

• Helping to improve the local communities that it works in.

But if an organization wants to start being socially responsible,or improve the way that it operates, how does it know whereto start and what to do? That’s where ISO 26000 can help.

ISO 26000 – The basicsThe standard was developed and published by ISO – the international standards body of which the UK standardsbody (BSI) is a member. ISO 26000 can be used by all typesof organizations all over the world, regardless of their size or activity. For example, it might be used by private businesses,government agencies and departments as well as charities or voluntary organizations.

ISO 26000 gives detailed guidance for organizations on how to become more socially responsible and integratesocially responsible behaviour into all levels of their business.It sets out society’s basic expectations for social andenvironmental performance and gives practical advice on how to achieve these. The standard simplifies things for everyone by giving common definitions, workingpractices and methods of evaluation.

In summary, organizations following the standard should:

• Do everything they can to contribute to sustainabledevelopment.

• Be open and honest about their actions and takeresponsibility for any problems.

• Act ethically at all times and do their best to make a positive impact on the environment and the peoplearound them.

A wide range of people worked together to develop the ISO standard for Social Responsibility includingconsumers and representatives from government, industry, non-governmental organizations (NGOs), labour groups, service providers, research organizations and others.

ISO 26000 – The detailsThe standard is voluntary, but an organization that choosesto use it should:

Clearly define social responsibility

Identify key issues and priorities to address within the seven core subjects:

• Organizational governance; human rights; labour practices;the environment; fair operating practices; consumer issues;and community involvement and development.

Think about its impact on others

• Consider how its decisions and activities affect all of its‘stakeholders’ (individuals or groups that have an interestin the decisions or activities of an organization).

Be transparent

• Give full, clear information about its policies, decisions and activities, including their actual and potential impact on society and the environment.

• This information should be readily available, accessible and understandable to those who have been, or may be,affected by the organization.

Be accountable

The management of the organization must:

• Be accountable for the overall impact of its decisions and activities on society and the environment.

• Be answerable to those people affected by its decisions and activities.

• Accept responsibility where something has gone wrong,take the appropriate steps to put things right and takeaction to prevent it from happening again.

Behave ethically

• Identify and actively promote its ethical values.

• Clearly communicate its ethical values to all staff, suppliersand other ‘stakeholders’ (individuals or groups workingwith or affected by the organization).

• Have procedures in place to monitor, support and enforceethical behaviour.

• Have procedures in place to deal with unethical behaviour.

Respect the law and international norms of behaviour

• Understand and abide by the law, such as equality laws,wherever it operates. Laws may not be enforced in someparts of the world so organizations should take responsibilityfor finding out about relevant legislation and sticking to it.

• Respect ‘international norms of behaviour’. It can bedifficult to know what is acceptable, and this may differfrom country to country, but organizations should do allthey can to find out what is expected, ‘normal’ or widelyaccepted socially responsible behaviour in the countriesthey work in and then respect those ‘norms’.

• Avoid working with, or supporting, other organizationsthat do not respect the law or international norms of behaviour.

Respect human rights

• Respect and, where possible, promote the rights set out in the International Bill of Human Rights. This includeseliminating racial and gender discrimination, protectingchildren and the rights of people with disabilities.

USEFUL INFORMATION

British Standards Institution (BSI) – 020 8996 9001 – www.bsigroup.com

Equality and Human Rights Commission (EHRC) – 0845 604 6610 www.equalityhumanrights.com

International Standards Organization (ISO) – www.iso.org/iso/social_responsibility

Frequently asked questions

Who or what is ISO?

ISO (International Organization for Standardization) is a non-governmental organization that develops and publishes standards to help meet the needs ofbusinesses and society. The British Standards Institution(BSI) is the UK member of ISO and worked with ISO to develop the standard on Social Responsibility.

Who or what is BSI?

The British Standards Institution (BSI) has beendeveloping standards for over 100 years to makeproducts and services safer for consumers. Standards set out good practice and guidelines for organizations to follow.

Why is it called SR (social responsibility) ratherthan CSR (corporate social responsibility)?

Traditionally CSR was seen to apply only to bigbusinesses or corporations. SR adopts similarprinciples but is wider in scope and can apply to groups or organizations of any size or type, such as government and charities as well as private companies.

Do all organizations have to comply with the standard?

No, the standard is voluntary so not all organizationschoose to follow it.

If an organization doesn’t follow the standard, is it breaking the law?

No, it is not a legal requirement to follow the standard. The standard provides voluntary guidance to helporganizations that wish to run their business in a more socially responsible way.

Where possible I’d prefer to buy from/ deal withorganizations that are signed up to this standard. How will I know who is signed up and who isn’t?

Organisations using ISO 26000 are likely to be open about their use of the standard and communicate this to the public in company literature – such as their SocialResponsibility policies and annual reports. These areusually available on websites or you could contact thecompany directly to make enquiries.

Where can I get a copy of ISO 26000?

Your local public library should be able to give you access to a reference copy, or you can purchase a copy fromBSI, either as a printed document or in electronic form(PDF format), see www.bsigroup.com.

Some of the documents used in the development of the standard are publicly available on the ISO website.

http://www.iso.org/iso/iso_catalogue/management_and_leadership_standards/social_responsibility/sr_background_archives.htm

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