Observations by October 2009Observations by October 2009Start of the DIS commenting and voting Start of the DIS commenting and voting

period (ending 14 February 2010)period (ending 14 February 2010)

ISO/DIS 26000 Guidance

on Social Responsibility

Guido Gürtler, ICC Observer to ISO/TMB WG SR, Member of the WG SR Industry Stakeholder

Group guido.guertler@t-online.de

Outline (1/2)Outline (1/2) OriginationOrigination Key project dataKey project data The Standard and its contentThe Standard and its content Estimation of main usersEstimation of main users Who is drafting what for whomWho is drafting what for whom Working stages and commentsWorking stages and comments Positive and critical pointsPositive and critical points About ISO and societal About ISO and societal

standards standards

Outline (2/2)Outline (2/2) Meeting the Design Meeting the Design

Specification?Specification? Who will vote on the DIS?Who will vote on the DIS? CD voting resultsCD voting results The voting processThe voting process Voting optionsVoting options Possible D-Liaisons’ actionPossible D-Liaisons’ action Sovereignty in taking decisionsSovereignty in taking decisions Perspectives ABCPerspectives ABC

SummarySummary

ISO/DIS 26000 is a major achievement and not a bad document…

…but for its purpose and the expectations raised it is not good enough, yet.

Origination (1/2)Origination (1/2)

Gestation began early 90’s (primarily from the Gestation began early 90’s (primarily from the Nordic part of EU)Nordic part of EU)

4/01 ISO COPOLCO asked by ISO Council to 4/01 ISO COPOLCO asked by ISO Council to consider viability of a CSR Standardconsider viability of a CSR Standard

6/02 ISO/COPLOCO Workshop in Trinidad meeting – 6/02 ISO/COPLOCO Workshop in Trinidad meeting – obvious strong agreement that ISO should proceedobvious strong agreement that ISO should proceed

9/02 ISO Council accepts report and establishes 9/02 ISO Council accepts report and establishes SAGSAG

ISO SR Advisory Group (SAG) late 2002 worked for ISO SR Advisory Group (SAG) late 2002 worked for 18 months on comprehensive report to ISO TMB 18 months on comprehensive report to ISO TMB including an overview of worldwide initiatives. including an overview of worldwide initiatives. Concluded ISO should go forward with the workConcluded ISO should go forward with the work

There was an overwhelmin

g demand from

developing countries

Origination (2/2)Origination (2/2) It‘s a Consumer Initiative It‘s a Consumer Initiative

COPOLCO is the ISO COPOLCO is the ISO CoConsumer nsumer PolPolicy icy CoCommitteemmittee

The COPOLCO Workshop in Trinidad, June The COPOLCO Workshop in Trinidad, June 2002, had some 90 attendees, with only 2002, had some 90 attendees, with only 2 from industry, none from the banking 2 from industry, none from the banking sector sector

ISO Council decided about the COPOLCO ISO Council decided about the COPOLCO proposal as requested by ISO proceduresproposal as requested by ISO procedures

Key Project DataKey Project Data

Working since early 2005400+ members (experts and

observers)Many of them first time working

in an ISO projectMajority from developing

countries

About the StandardAbout the Standard

ISO 26000 “Guidance on Social Responsibility”ISO 26000 “Guidance on Social Responsibility” Target: Target: To be applied by To be applied by allall types of organizations types of organizations

Type of standard: Type of standard: International standard providing guidance; International standard providing guidance; NOT for third-party certification; NOT for third-party certification; NOT a Management System StandardNOT a Management System Standard

ISO 26000 – Contents (1/3) 0 Introduction

1 Scope2 Terms and definitions3 Understanding SR of organizations4 Principles of SR5 Recognizing SR and engaging stakeholders6 Guidance on SR subjects7 Guidance on integrating SR throughout an organization

Annex A: Voluntary initiatives and tools for SRAnnex B: AbbreviationsBibliography

ISO 26000 (2/3)4 Principles of social responsibility Identifies a set of SR principles:

Principle of accountability Principle of transparency Principle of ethical behavior Principle of respect for stakeholder

interests Principle of respect for the rule of law Principle of human rights Principle of respect for international norms

of behavior

ISO 26000 (3/3)6 Guidance on SR core subjects

Provides separate guidance on a range of core subjects/issues and relates them to organizations.

Organizational Governance Labor Practices Human Rights The Environment Fair Operating Practices Consumer Issues Community Involvement & Development

ISO 26000 VolumeISO 26000 Volume

It has become

an educational

document of

100+

pages!

…..Warnings on too big a size exist since Working Draft 2, late 2006…..

Who is „Industry“?Who is „Industry“?Industry Stakeholder Definition (N48 rev1)The industry stakeholder group includes representatives of: Enterprises that manufacture products or provide services and pursue primarily commercial interests. This group includes supportive enterprises like energy and water supply, banking, communication, insurance or transport companies. Such enterprises exist of any size and legal form and may operate at local, regional or international level.

Industry also includes employer organizations, business associations, special industry organizations and trade associations representing various industries at the national, regional and international levels.

Estimation of Main UsersEstimation of Main UsersIndustry and service organizations

stand for 96% of all users.

Stakeholder %Government  1,5Labor  1Consumers  0,5NGO  1Services 36Industry  60

36%60%

Who is drafting what for Who is drafting what for whom?whom?

60 % are not Industry & Services

4 % are not Industry & Services

60% of WG SR experts represent 4% of users, but have a say on what 96% should follow

Working Stages and Comments (1/3)Working Stages and Comments (1/3)

Initiation

NWIP

Working Drafts

CommitteeDraft

DIS FDIS IS

20042002 2009 2010

Here we are!

Working Stages and Comments (2/3)Working Stages and Comments (2/3)

Working Drafts 1, 2 and 3 caused Working Drafts 1, 2 and 3 caused some some 2.5002.500 to to 3.0003.000 comments each comments each

WD 4.1 received WD 4.1 received 5.000+ 5.000+ commentscomments WD 4.2 got WD 4.2 got 5.000+ 5.000+ commentscomments

Committee Draft got Committee Draft got 3.400+ 3.400+ commentscomments

In view of the large number of comments, theyIn view of the large number of comments, they Were grouped into Were grouped into „key topics“„key topics“ In meetings, solutions were sought for new In meetings, solutions were sought for new

language on these key topicslanguage on these key topics

ThisThis process used was a way forward to process used was a way forward to manage the large quantity of comments, and manage the large quantity of comments, and designed to show progress, but it also lost a designed to show progress, but it also lost a lot of substance offered in the details.lot of substance offered in the details.Consequently many comments had to be Consequently many comments had to be repeated, many of them several times.repeated, many of them several times.

Working Stages and Comments (3/3)Working Stages and Comments (3/3)

Positive PointsPositive Points

ISO 26000 will boost the global discussion on Social Responsibility

ISO 26000 will make many organizations rethink their behavior

WG SR has done an admirable work; found consensus of 400+ members

Critical PointsCritical Points

ISO 26000 will boost a consultant business because it is not easy to understand and does not offer tools

ISO 26000 is not for certification but certifiers will create “their SR Standards” and possibly decorate them with attributes like “…in line with ISO 26000”

ISO/DIS 26000 is not applicable to the vast majority of SMOs; small and medium organizations

- The International Standards Organization- Located in Geneva- Founded 1946 for standardization in

technical areas; to foster trade and increase welfare

- In the 1980’s expansion into so-called “Management System Standards”, like ISO 9000 or 14001

- ? Since 2004 on the way to expand into societal areas?

About ISO and societal standards (1/10)About ISO and societal standards (1/10)Foundation and work areasFoundation and work areas

162 Members in total

106 full members, having voting rights, called “member bodies”

056 members, correspondent or subscriber members) not having voting rights (35%)

About ISO and societal standards (2/10)About ISO and societal standards (2/10)ISO member bodiesISO member bodies

About ISO and societal standards (3/10)About ISO and societal standards (3/10)Definition of “stakeholder”Definition of “stakeholder”

2.1.20 stakeholderindividual or group that has an interest in any decisions or activities of an organization

The proposal is to use the ICC definition that reads  “Individual or group significantly affected by an organization’s activities.”

About ISO and societal standards (4/10)About ISO and societal standards (4/10)Definition of “organization”Definition of “organization”2.1.12 organizationentity with identifiable objectives and structure

NOTE 1 For the purpose of this International Standard organization does not include government executing duties that are exclusive to the state.NOTE 2 Clarity on the meaning of small and medium-sized organizations (SMOs) is provided in Clause 3.3. This includes all from multinationals to

shoemakers and social non-for-profit organizations;

Missing key words like governing bodies, functions, positions, authority for and delegation of…

Each legal entity is an organization

About ISO and societal standards (5/10)About ISO and societal standards (5/10)PricingPricing policy on ISO 26000 policy on ISO 26000 Council Resolution 32/2009 (Free availability of ISO 26000) Council, noting that the TMB Working Group on Social Responsibility (WG SR) has requested that ISO/DIS 26000 and ISO 26000 be made freely available, further noting that, in consultation with the Commercial Policies Steering Group (CPSG), the Secretary-General has agreed to make ISO/DIS 26000 freely available on the ISO Web site for the WG SR, having considered the rationale lying behind this WG SR's request, decides that ISO 26000 should not be made freely available and that therefore the current pricing policy should be applied with no deviation.

About ISO and societal standards (6/10)About ISO and societal standards (6/10)Pricing policy, Pricing policy, consequencesconsequences

SMOs including micro

organizations have to buy the

document

Reduction of the ISO 26000

proliferation

Increase of revenues at ISO

itself

Increase of revenues at ISO member bodies*

* Several set the price of standards dependent on the number of pages

About ISO and societal standards (7/10)About ISO and societal standards (7/10)Feature “national Feature “national

delegations”delegations”ISO Technical

Ctee

Composed of a few national delegates from participating ISO Members

ISO Member

ISO Member

ISO Member

ISO Member

ISO Member

National Mirror Ctees

….….

National parties concerned; stakeholders

….

About ISO and societal standards (8/10)About ISO and societal standards (8/10)Feature “one-country-one-Feature “one-country-one-

votevote ””One vote, regardless of size of population, culture, convictions and habits, religion, etc.

China can be formally outweighed by Mauritius, the US by Saint Lucia…

About ISO and societal standards (9/10)About ISO and societal standards (9/10)Feature “comments Feature “comments

groupinggrouping ””The subject‘s

complexity and differences in

understandings lead to 20.000+

comments on „Working Drafts“

from WG SR experts

The CD Committee Draft received

3.400+ comments from ISO Member

Bodies

Their was no other chance than “grouping” them into “key issues” and try

to find solutions; but this lead also to repeatedly presented comments

About ISO and societal standards (10/10)About ISO and societal standards (10/10)Feature “Feature “involvement of D-Liaisons involvement of D-Liaisons

””As an innovative process: direct participation in „technical work“

Participating “industry” relevant organizations:BIAC, ICC, ICMM, IFAN, ILO, IOE, IPIECA, NORMAPME, OECD, OGP, WBCSD, WSBIThese organizations count for much more

industry representation than all “national delegates”, but their voices count only numerically….e.g. IOE can be outweighed by e.g. ‘Red Puentes’

?

Meeting the Design Specification? (1/2)Meeting the Design Specification? (1/2)Design Specification requirement (N049) Judgment “…is consistent with, and not in conflict with, existing documents, international treaties and conventions and existing ISO standards;”

Needs to be checked case-by-case

“…be applicable by all types of organizations (e.g. regardless of their size, location, the nature of their activities and products, and the culture, society and environment in which they carry out their activities.) 

Not met

“…limiting the proliferation of SR sector standards” Not met

Meeting the Design Specification? (2/2)Meeting the Design Specification? (2/2)

Design Specification requirement (N049) Judgment “…facilitate trade liberalization and remove trade barriers (implement open and fair trade)”

more than dubiously met

“…complement and avoid conflicts with other existing SR standards and requirements.”

Not proven to be met

“The language must be clear, understandable and objective throughout the guidance standard.“   (“EASY to UNDERSTAND”)

Not met

Who will vote on the DIS? Who will vote on the DIS? (1/2)(1/2)

For CD and DIS the same ISO rules apply:

ISO member bodies can vote; i.e. full members only (currently 106 out of 162)

D-Liaison organizations can raise their “voices”; they don’t have voting rights

CD Vote 

was 

countryCD vote in words

DIS voting rights

Population of voting rights countries

Developing countr

y

P-member of WG 

SR

simple count YES NO Abs

taindeveloping

developed

Industry rep in national ctee

Algeria IANOR Member body

  1 1 new 1 35,5

Argentina IRAM Member body

1 1 1 1     1 yes 1 1 39,7

Armenia SARM Member body

1 1 1       1 silent 0 1 3,8

Australia SA Member body

  1 1 1     1 yes 1 1 20,3

Austria ON Member body

  1 1   1   1 no 1 1 8,3

Azerbaijan AZSTAND Member body

1 1 1       1 silent 1 1 8,7

Who will vote on the DIS? Who will vote on the DIS? (2/2)(2/2)

The whole file is available at http://www.26k-estimation.com/html/dis__vote__analysis.html#dis-voteanalysis-start

CD vote results (1/3)These 10 countries did not vote:1. Armenia 2. Azerbaijan 3. Bangladesh 4. Barbados5. Iran6. Russia7. Saint Lucia8. Trinidad and Tobago9. Ukraine, and10. ZimbabweTheir voices do not count.

These 4 countries abstained:

1. Bulgaria2. Ghana3. Lebanon4. Saudi Arabia

CD vote results (2/3)

1. Austria 2. Belarus 3. China 4. Cuba5. Fiji 6. India 7. Indonesia 8. Jamaica 9. Korea 10. Malaysia

11. Mauritius12. Mexico 13. The

Netherlands 14. Peru 15. Philippines 16. Syria 17. Turkey 18. United States 19. Viet Nam

These 19 countries placed a negative vote:Note the substantial geopolitical and economic clout of those highlighted in Red

79  P-members-10  not voting69  "votes cast" 69   "votes cast"

-4   abstentions

-19   negative votes

46 positive votes

46 is exactly 2/3 of 69; the formal require-ments of the ISO Directives were met

CD vote results (3/3)

D-Liaison Organizations “Voices” (1/3)

Industry and service organizations stand

for 96% of all users.

Business oriented D-Liaison organizations raised major concerns on the CD, some emphasizing that those have been presented repeatedly

98% of them are micro, small and

medium organizations.

As regards the ISO 26000 applicability to the main user group (SMO), business oriented D-Liaison organizations basically criticize the

Volume of 100+ pages Language and tone (not easy to

understand) Relevancy of all core subjects

D-Liaison Organizations “Voices” (2/3)

D-Liaison Organizations “Voices” (3/3)

Such major concerns have been expressed on the CD by:•BIAC - Business and Advisory Committee to the OECD•ICC - International Chamber of Commerce•IFAN - International Federation of Users of Standards •IOE - International Organization of Employers•IPIECA - International Petroleum Industry Environmental Conservation Association, and•NORMAPME - European Office of Crafts, Trade and Small and Medium Enterprises for Standardization These “voices” weigh in with by far more “business reality” than that provided through the ISO national

member bodies** A number of national mirror committees don’t include industry representatives

The DIS Voting Count (1/3)The DIS Voting Count (1/3)Country Acronym MembershipAfghanistan ANSA Correspondent member

Albania DPS Correspondent member

Algeria IANOR Member bodyAngola IANORQ Correspondent member

Antigua and Barbuda

ABBS Subscriber member

Argentina IRAM Member bodyArmenia SARM Member body….Uzbekistan UZSTANDA

RDMember body

Venezuela FONDONORMA

Member body

Viet Nam STAMEQ Member bodyYemen YSMO Correspondent member

Zambia ZABS Correspondent member

Zimbabwe SAZ Correspondent

ISO, Genev

a

162 ISO members, out of them106 ISO member „bodies“ have voting rights

The DIS Voting Count (2/3)The DIS Voting Count (2/3)

P-Member Vote

78 P-Members in WG SR51,48 66 % must be positive

52 positive votes make the DIS accepted

27 negative votes would make the DIS fail

Both P-Members’ and ISO member bodies’ votes must be positive; if one of them is negative, the

vote failed

The DIS Voting Count (3/3)The DIS Voting Count (3/3)

ISO member bodies' vote106 ISO member bodies can vote79,5 75 % must be positive

80 positive votes make the DIS accepted

27 negative votes make the DIS fail

Both P-Members’ and ISO member bodies’ votes must be positive; if one of them is negative, the

vote failed

Voting OptionsVoting Options

In favor: supports the document as it is; comments may be made

Against: does not support the document as it is; comments must be made

Abstain: feels too small, didn’t find consensus etc.; abstentions don’t count

Votes must be sent by the ISO member body to ISO Geneva, before 14 February 2010

Possible D-Liaison actions Possible D-Liaison actions (1/2)(1/2)StepsSteps

ISO member body

ChairmanSecretaryMember 1Member 2…

Find a position on ISO/DIS 26000

Make that position publicly known

Make that position known to national

ISO member bodies

Since D-Liaison organizations don’t vote, ISO encourages them to approach national ISO

member bodies with their position

Possible D-Liaison actions Possible D-Liaison actions (2/2)(2/2)

Time LineTime Line2009-09-14

2010-02-14

106 ISO member bodies send their vote

106 national mirror

committees find their position

Reasonably an effective influence can only be exerted in the early weeks and

months.

Sovereignty in taking Sovereignty in taking decisionsdecisions

ISO Member Body have voting rights and is sovereign in its decision finding.

D-Liaison organizationscan raise their “voice”

Note: According to N105 Operating Procedures D-Liaison organizations have the right of appeal to the WG Plenary; an option normally not used because finding consensus is considered more important

Perspectives ABC (1/3)Perspectives ABC (1/3)

DIS vote

Yes

No

“Minor”

changes

“Major” changes; DIS2

DIS2 vote

FDIS vote

Yes No

Final work

Yes

No

Technical Report

B

B

A

No

International Standard

C

Perspectives ABC (2/3)Perspectives ABC (2/3)

Route A: is the fastest one; may be preferred by all who want to end the project quickly, regardless of its smaller or greater success

Route B: is a preferred option, including the continua-tion of the project in a new to be founded global organization for “Standards and Benchmarks for Society”

Route C: continues with a second DIS and major changes of the document (changes as requested in all “general” and “technical” comments”)

Perspectives ABC (3/3)Perspectives ABC (3/3)

Who will take the decision on how to proceed?

ISO TMB, the ISO Technical Management Board that controls and coordinates all technical work of the many ISO committees. According to http://www.iso.org/iso/iso_technical_committee.html?commid=54996 the 12 members of 2009 are ABNT Brazil (2011), AENOR Spain (2010) ; AFNOR France (2011) , ANSI USA (2009) , BIS India (2011), BSI United Kingdom (2009) , DIN Germany (2009) , JISC Japan (2010) , KATS Korea, Republic of (2011), SABS South Africa (2011), SAC China (2011), SCC Canada (2010).

The „2009 members“ will change by January 2010.

This project will remain exciting!

AbbreviationsAbbreviations

CD Committee DraftDIS Draft International Standard COPOLCO Consumer Policy Committee FDIS Final DISIS International Standard NWIP New Work Item ProposalSMO Small and Medium organization WD Working DraftWG SR Working group social responsibility

Links (1/2):Links (1/2):

- ISO/DIS 26000 as document N0172 at - ISO/DIS 26000 as document N0172 at http://isotc.iso.org/livelink/livelink?http://isotc.iso.org/livelink/livelink?func=ll&objId=547513&objAction=RunRepfunc=ll&objId=547513&objAction=RunReport&InputLabel1=26000 ort&InputLabel1=26000 - Details on voting rights at http://www.26k-Details on voting rights at http://www.26k-estimation.com/html/dis_rules.html#WhoHaestimation.com/html/dis_rules.html#WhoHasVotingRightssVotingRights

- Personal comments at http://www.26k-Personal comments at http://www.26k-estimation.com/html/dis_comments.html#destimation.com/html/dis_comments.html#dis-comments is-comments

Links (2/2):Links (2/2):

-ISO Members, at ISO Members, at http://www.iso.org/iso/iso_members.htmhttp://www.iso.org/iso/iso_members.htm

- ISO member bodies having voting rights, ISO member bodies having voting rights, atathttp://www.26k-estimation.com/html/dis__vhttp://www.26k-estimation.com/html/dis__vote__analysis.html#dis-voteanalysis-start ote__analysis.html#dis-voteanalysis-start