The concept of social responsibility 391

© ISO 2007 - all rights reserved 5 tone to the paragraph. There also are different opinions with respect as to whether to take a historical 351 approach or to use the core issues to provide context, as well as differences with respect to the level of 352 detail. Some members of the drafting team feel that this section should provide more information and more 353 of an explanation than is currently offered. 354 [There have been various examples in history where organizations have incorporated socially responsible 355 measures into their operations, driven by their own moral or humanitarian considerations. Many still operate 356 successfully today, so demonstrating the effectiveness of the far-sighted approach they took. Nonetheless, 357 often they were localized in their activity and others did not see the value that these approaches brought. 358 Sharing of good practices has been helped over the last few years by globalization. 359 Globalization may be thought of as the complex process of interdependency or convergence resulting from 360 the dramatically increasing exchange in goods, information, services and capital. [Globalization has for 361 various reasons made it difficult for governments to fulfil their recognized roles. Moreover, 362 intergovernmental cooperation with respect to globalization has been insufficient.] This has helped to make 363 more visible the long-term benefits that social responsibility can bring to organizations, whether they 364 operate on a small local basis or as large multi-national operations. This is especially important in dealing 365 with the challenges globalization has brought, such as in the supply chain. 366 Various issues summarized below were encapsulated in the 2002 UN World Summit on Sustainable 367 Development in Johannesburg where the importance of a balanced interrelationship between economic, 368 social and environmental factors was widely accepted. The summit also recognised the need for 369 organizations to engage with those impacted by their activities and understand their issues, regardless of 370 the size and type of organization. 371 Some aspects of social responsibility have been recognized for many years. Principles of organized labour 372 were established in the 19th century and were consolidated with the establishment of the International 373 Labour Organization in 1919. Such labour practices are amongst the first of the international norms of 374 behaviour and are relevant to all organizations. 375 The Universal Declaration of Human Rights was developed after the formation of the United Nations at the 376 end of the Second World War. This description of human rights represents another international norm of 377 behaviour that it is essential for any organization wanting to implement social responsibility concepts to 378 understand. 379 Recognition that environmental issues are now global, and that even small, local organizations may have 380 an impact, is leading to further international norms of behaviour expressed, for example, in [the Rio 381 Declaration on Environment and Development, the Johannesburg Declaration on Sustainable Development 382 and various multilateral environmental agreements] or [standards such as ISO 14001]. 383 Consumers have long demonstrated their power to influence social issues; this standard highlights current 384 consumer issues that relate to an organization. Some types of organizations find it makes sense to co- 385 operate to build local capacity through social development in areas such as education and medicine. 386 Finally, [the ethical and humanitarian drive by organizations referred to at the start of this clause] or [the 387 appreciation that good outcomes rely on good governance] is now being formally recognized in the 388 mechanisms of organizational governance being used, as well as in the adoption of fair operating 389 practices.] 390

4.2 The concept of social responsibility 391

OPTION ONE: 392 [The definition of social responsibility in Clause 3.9 refers to compliance with applicable law. Initiatives 393 beyond legal compliance and the achievement of the legitimate mission of an organization are voluntary, 394 although there should be consistency with international norms of behaviour. Once adopted, such initiatives 395 become goals of an organization alongside those associated with achieving the mission and legal 396 compliance. 397 6 © ISO 2007 - all rights reserved Many successful organizations can show that a transparent and ethical drive to undertake voluntary socially 398 responsible actions beyond legal compliance results in significantly enhanced organizational performance. 399 This reinforces the notion that social responsibility contributes to the sustainability of an organization itself 400 as well as to the sustainable development of the world in which it operates. However, it should be 401 implemented in such a way that these contributions are mutually compatible. 402 It is important for an organization to understand through engagement how its operations impact others, but 403 ultimately the choices it makes must be its own, based on balancing legal and missiongoal considerations 404 against those impacts.] 405 OPTION TWO: 406 [Social responsibility concerns the behaviour of an organization with respect to the impact of its decisions 407 and activities on society and the environment. It involves willingness of an organization to be held 408 accountable for actions over which it has control. Social responsibility is a form of ethical behaviour, which 409 is behaviour based on acceptance that there is right and wrong. 410 An organization should be aware of the issues to be taken into account when considering the social and 411 environmental impact of its activities. It should be aware of the expectations of others concerning 412 responsible behaviour and not seek to define unilaterally the welfare of society. Respect for the rule of law 413 and compliance with legally binding obligations is an essential part of socially responsible behaviour. 414 Although the expectations of responsible behaviour will vary between countries and cultures, organizations 415 should recognize and accept the universally applicable values established through authoritative 416 intergovernmental instruments such as the Universal Declaration on Human Rights. 417 An organization’s contribution to sustainable development is an essential aspect of its social responsibility. 418 However the sustainability of an organization is not the same thing as the sustainability referred to in the 419 concept of sustainable development. Actions taken to provide for the continued existence of an 420 organization may not always be consistent with the concept of social responsibility, as some activities in 421 this regard may be harmful to society as a whole. 422 An organization should integrate social responsibility into its regular and ongoing activities. While 423 philanthropy on the part of an organization can have a positive impact on society, it should not be 424 considered as a substitute for addressing the social and environmental impacts of an organization’s 425 activities. 426 Although the concept of social responsibility can apply to all organizations, there are two important caveats. 427 First, some organizations, such as those established to carry out criminal activity, are too inconsistent with 428 the interests of society to be socially responsible. 429 Second, while the concept of social responsibility applies to most activities of government organizations, 430 there are some important exceptions involving the role of the state. The state has roles that cannot be 431 assumed by other organizations, as only the state can assume responsibility for the interest of society as a 432 whole through the creation of legal frameworks that hold organizations accountable. The state has the 433 indispensable role of ensuring that human rights are respected and, in most situations, it is only the state 434 that has the legitimacy to decide among competing claims over the exercise of rights. Only political 435 decisions can determine what activities should be undertaken by government or subject to legally binding 436 regulation. How these decisions should be taken involves other concepts such as democracy.] 437

4.3 From theory to practice 438