1
Introduction
1.1 An emerging morality: the new business doctrine
Interest in CSR (corporate social responsibility) is increasing daily. As one of the most visible management themes of the 21st century it has captured the attention of many organisations around the worldâand not just businesses, but also governments and NGOs (non-governmental organisations). CSR has become part of many marketing campaigns, a key criterion in procurement, an instrument for recruiting and retaining talented employees, a source of innovation, an entrepreneurial opportunity, a profit-driver and even an export product, to use the words of the Dutch Secretary of Economic Affairs of the Balkenende IV administration, Frank Heemskerk (Volkskrant 2007).
At the same time, CSR is a reflection of an emerging new organisational morality, a way to express values and identities, perhaps as an acknowledgement of something that many organisations already âdoââsimply because they think it important. CSR also has great societal relevance, since businesses, governments and NGOs have a central role in contributing to what might be the most important challenge of our times: realising sustainable development. This emerging morality is illustrated in the new global guidance document ISO 26000.1
CSR has also obtained a role in the development and education of new generations of managers, directors, administrators and entrepreneurs. The subject is constantly evolving and may now be described as both a management philosophy and a modern economic doctrine. The American business scholar Dow Votaw wrote as long ago as 1972 that corporate social responsibility means something, but not always the same thing to everybody (Votaw 1972). CSR, it sometimes seems, is everything and everywhere.
Within this jungle of CSR themes, initiatives and views, many organisations are urgently in need of an overview, structure and roadmap on how to engage with CSR in practice. What does CSR mean to them? For many organisations, engagement would be far easier if there were a way to design a CSR policy to fit with their own uniqueness and characteristics, including the context in which they operate. Many organisations are also in need of guidance and advice in the field of implementing CSRâcreating enthusiasm and buy-in both internally and externally, and practising CSR on a day-to-day basis.
1.1.2 A note on terminologies
ISO 26000, the new global guidance document for SR (social responsibility) has been developed to address these problems. But, before we look at ISO 26000 in more detail, thereâs a terminology thing to settle: SR or CSR? ISO took the decision that its guidance should be appropriate for all organisations: not just big business (as the âCâ in CSR implies), but governments, NGOs and businesses of all sizes. This is an important distinction. Therefore, although it is our intention in this book to primarily explain the standard in terms of its potential usage by business (and âCSRâ has clearly been the term in common use thus far) we will follow the lead set by ISO 26000 and generally use the term âSRâ unless we are talking specifically about corporations or known CSR initiatives.
1.2 Creating clarity and uniformity
ISOâs ambition was to develop a global and overarching guidance document which could create clarity and uniformity in SR concepts, define essential SR topics, provide advice about the ways in which organisations can identify their social responsibilities and show how SR can be integrated not only into companies, but into all types of organisations. A vast array of stakeholder groups have been involved in the process. ISO 26000 is also a new branch on the thriving tree of SR standards, of which more and more have emerged over the past few yearsâsome in the field of CSR sub-areas, such as Account-Abilityâs AA1000 series on stakeholder engagement, with others focusing on CSR as a whole, such as the Global Reporting Initiative (GRI) guidelines on sustainability reporting. Still, ISO 26000 is rather different to these initiatives and is likely to become the single most significant development in the field for years to come. For tens of thousands of organisations around the world ISO 26000 may well provide the foundation for their SR policies.
1.2.1 Why this bookâand why now?
The finalisation of ISO 26000 and its release in November 2010 means that the guidance it provides needs explanation for potential business users. Research conducted in 2009 by Brandsma et al. among 221 Dutch organisations (both SMEs and large companies) showed that more than half of the respondents (54%) were only in the initial stages of implementing policies on SR. Almost 15% of organisations indicated that they had not taken any steps at all. The results also highlighted the clear lack of knowledge, a plan or strategies to implement SR (see Fig. 1.1). ISO 26000âand this bookâmay come at the right time for such organisations.
Despite its short history, a number of myths and misunderstandings regarding ISO 26000 have already surfaced. There appears to be confusion among many potential users about the scope and status of the guidance, its applicability to different kinds of organisations, its relationship with other standards (for example, in the fields of quality, environment, safety, health and information security) and, crucially, whether it will be possible to certify against it. Clearly, such confusion neither promotes the usage of ISO 26000 nor the implementation of SR in general. This book attempts to clarify these myths and misunderstandings by describing and analysing what ISO 26000 isâand what it isnât.
The intention of this book is to examine the content and the ideas behind ISO 26000 in a clear and understandable way. Both organisations that want to learn more about the âwhy, what and howâ of ISO 26000 and those that are interested in basing their SR policy on it (or who want to organise existing policies in accordance with the new standard) can benefit from this book. It is not our intention to elaborate on all of the subjects dealt with in ISO 26000 in great detail. That would be an impossible taskâmany of these subjects warrant (and in many cases already have) separate books all to themselves. There are literally hundreds of tools dealing with individual SR subjects and the themes that are included within ISO 26000. The fact that these materials have not yet found their way into many organisations around the world is another issue entirely.
Figure 1.1 Barriers for CSR implementation
Source: Brandsma et al. 2009
Despite the fact that the text of ISO 26000 is the starting point of this book, we also provide relevant background material regarding the development of the guidance, real-life examples, reflections and several practical tools (such as an ISO 26000 quick scan and a method for identifying stakeholders), as well as experiential implementation tips that can be used in practice by different organisations.
1.3 Outline of this book
This book contains nine chapters, six interludes and five annexes. After having read the chapters the reader should have developed a clear understanding of SR and ISO 26000. The book is full of real-life examples, âdid-you-knowâ boxes and illustrative material.
This book largely follows the overall structure of ISO 26000. Hence, the core of the book consists of the four main clauses of ISO 26000:
- SR principles (Clause 4)
- The identification of stakeholders and the creation of stakeholder engagement (Clause 5)
- The core subjects and issues of SR (Clause 6)
- The integration of SR throughout the organisation (Clause 7)
Clause 4 and Clause 6 essentially deal with âthe contents of SRâ (SR-related starting points and themes); Clause 5 and Clause 7 essentially deal with âthe process of SRâ (implementing and integrating SR into an organisation). We do diverge slightly from the standardâs structure. For example, Clause 7 has been divided into two parts in this book: the selection of SR priorities; and the SR implementation process.
Did you know . . .
The Price water house Coopers Sustainability Barometer of September 2009 showed that only 40% of Dutch companies have linked business goals to their CSR strategies.
1.3.1 Chapter outline
After this introduction, we briefly introduce SR (Chapter 2). The meaning of the term and its origin are explored and several generally accepted views, interpretations and characteristics are discussed. Chapter 2 also considers a number of the SR core subjects included in ISO 26000, both from a conceptual and a practical angle, and explores the concept of SR as it is defined in ISO 26000. One key theme here is the emphasis the guidance gives to morality as a driver for SR. Much of the discourse in the business world regarding CSR has been around the business case. Perhaps because the intention of ISO 26000 is to be relevant to all organisations, we hear little of the business reasons for action.
We follow Chapter 2 with the first of six interludes. These are inserted throughout the book as additional short explanations or illustrations of the practice of SR and ISO 26000. Interlude I examines motives for, manifestations of and outcomes of SR in practice.
Chapter 3 discusses ISO 26000 more specifically and starts with characterising where the guidance fits within the burgeoning field of CSR-related codes, guidelines, norms and standards. We look at the reasons behind its development, its ambition, scope, objectives and functions. We also examine the new concept of the SR profile introduced in ISO 26000. This approach provides room for a definition of SR that fits the uniqueness of different organisations. This organisation-specific definition of SR is a characteristic of a new generation of SR, which we label âSR 2.0â and consequently elaborate on. Chapter 3 concludes by summarising the layout and content of ISO 26000. The structure of ISO 26000 is briefly discussed and its clauses are explained. Here, attention is also paid to the way in which the actions and expectations of organisations are defined within ISO 26000.
In the second interlude, we attempt to clarify the first three of a total of six myths and misunderstandings that exist about ISO 26000.
Chapter 4 deals with the first of the four core clauses of ISO 26000: the SR principles. Here, the general SR principles (which have to be distinguished from the principles specified for each of the core subjects in ISO 26000) are discussed. These principles form the pillars of ISO 26000 and are related to all other parts of the guidance. This chapter begins by stressing the importance and the role of principles and their application within (C)SR. Consequently, the general SR principles are described. We also look at other potential principles, not included in ISO 26000 but which perhaps could and should have been. Finally, the chapter considers the expectations ISO 26000 spells out for organisations in dealing with these principles.
Interlude III examines the final three myths and misunderstandings about ISO 26000.
Chapter 5 concerns perhaps the most prominent SR principle within ISO 26000ârespect for stakeholder interests. We therefore consider the identification of stakeholders and their interests, and the management of stakeholder engagement. This principle, and hence this chapter, deals with the relationships between the organisation, its stakeholders and society as a whole. We discuss how organisations can identify their stakeholders and their interests, illustrated with several examples. Subsequently, we examine the reasons for creating stakeholder engagement programmes, actions that an organisation should undertake in this area and ways to involve stakeholders in the SR policy of an organisation.
The fourth interlude contains a number of frequently asked questions about ISO 26000âand the answers to these questions.
The SR core subjects and issues that ISO 26000 specifies are described in Chapter 6. We discuss practicalities and potential problems for organisations. After an initial overview of the core subjects and issues, their structure within ISO 26000 is explained. Furthermore, this chapter provides numerous examples of the (often brief) descriptions, related principles and starting points from which the SR core subjects have developed. However, the meat of this chapter concentrates on the expectations that ISO 26000 has for organisations that want to base their SR policy on the guideline. All of the SR issues are illustrated with real-life examples to illustrate ISO 26000âs potential application.
The next interlude focuses on the materiality (relevance) of the SR principles, SR core subjects and SR issues for SMEs (small and medium-sized enterprises). This was the subject of a study conducted by the IISD (International Institute for Sustainable Development) at the end of 2008 (Perera 2008). The results of this research offered interesting insights into how both potential users and certain experts perceive the relevance of ISO 26000 for SMEs.
Chapter 7 covers the first part of Clause 7 of ISO 26000, and addresses how organisations should select SR priorities. In line with the idea of an organisation-specific SR profile, ISO 26000 asks the user to define the main areas that they want to focus their SR policy on. ISO 26000 encourages organisations to formulate their own SR priorities, based on the idea of their sustainability impact (the effects an organisation has on people, environment, stakeholders and society). How an organisation defines the ârelevanceâ and âsignificanceâ of SR core subjects and related issues, as well as the sphere of influence an organisation has, play a central role in this chapter. The chapter ends with advice on the selection of SR priorities.
Chapter 8 concentrates on the second part of Clause 7: integrating SR into the organisation. It consequently deals with SR implementationâa major challenge for many organisations. Creating support for SR and engaging stakeholders are just two of the common problems experienced. This chapter discusses the considerations and suggestions that ISO 26000 provides on SR implementation. Furthermore, attention is paid to communicating SR (for example, the functions and methods of SR communication), enhancing the credibility of SR initiatives and monitoring and improving SR performance.
The final chapter contains a number of concluding thoughts and remarks about ISO 26000. This epilogue discusses, among other things, possible futures for ISO 26000, such as whether certification or alternatives for certification are likely, the potential contractual use of ISO 26000 and further speculation regarding the further development of ISO 26000 when it is revised in the coming years.