Description of the issue Related actions andor expectations 1992

© ISO 2007 - all rights reserved 45

6.6.6 Fair operating practices issue 4: Promoting social responsibility through the supply chain

1966

6.6.6.1 Description of the issue

1967 An organization can influence other organizations through the exercise of its purchasing power as well as 1968 through leadership and mentorship. By doing so, an organization can use its relationship with other 1969 organizations to promote broader-scale adoption and support of principles of social responsibility. It can 1970 also stimulate demand for socially responsible goods and services. These actions should not be viewed as 1971 replacing the role of authorities to implement and enforce laws and regulations. 1972

6.6.6.2 Related actions andor expectations 1973

An organization should: 1974  Incorporate ethical, social and environmental criteria , including health and safety, in its purchasing and 1975 contracting policies; 1976  Encourage other organizations to adopt similar policies; 1977  Carry out relevant and appropriate inquiries investigations of the organizations with which they have 1978 relationships so that their actions do not compromise the organization’s commitments to social 1979 responsibility; 1980  Promote fair sharing of the costs and benefits of implementing socially responsible practices 1981 throughout the supply chain; and 1982  Actively participate in raising the awareness of organizations with which they have relationships on 1983 social responsibility issues and principles. 1984

6.6.7 Fair operating practices issue 5: Respect for property rights

1985

6.6.7.1 Description of the issue

1986 Property rights cover both physical property and intellectual property and include interest in land, 1987 copyrights, patents, moral rights and other rights. They also extend to rights that may not be recognized in 1988 law, such as traditional knowledge of specific groups or the intellectual property of employees. 1989 Recognition of property rights promotes investment, economic and physical security as well as encouraging 1990 creation and invention. 1991

6.6.7.2 Related actions andor expectations 1992

An organization should: 1993  Comply with all laws and regulations related to respect for property; 1994  Not engage in activities that violate property rights, including counterfeit and piracy; 1995  Conduct proper investigations to be confident it has legitimate ownership to use or dispose of property; 1996 and 1997  Pay fair compensation for property that it acquires or uses. 1998 46 © ISO 2007 - all rights reserved

6.7 Consumer issues

1999

6.7.1 Rationale 2000

Consumers are among an organizations important stakeholders. An organizations operations and output 2001 have a strong impact on those who use its goods or services, especially when they are individual 2002 consumers. Consumers are referees in the competitive marketplace, and their preferences and decisions 2003 have a strong influence on the success of most organizations. Despite this, when bargaining, buying 2004 products or receiving services, individual consumers are often in a weaker position than the organizations 2005 with whom they deal. Moreover, they do not have the same level of bargaining power, expertise and 2006 amount of information concerning a specific product or service as organizational purchasers. Society 2007 expects an organization to treat its consumers fairly, assume responsibility for their safety when using its 2008 goods and services and provide access to essential goods and services at an affordable price. Unfair 2009 practices or the provision of dangerous products and services are incompatible with society’s expectations 2010 for the social responsibility of organizations. 2011 Furthermore, consumers play a key role in promoting sustainable development through sustainable 2012 consumption. An organization should enable consumers to consume in an enlightened and sustainable 2013 way. Sustainable consumption is, however, only possible if consumers have information about the 2014 conditions under which goods and services are produced andor delivered and only if consumers can 2015 compare the goods and services, for example, with respect to their energy efficiency. That means that an 2016 organization should provide consumers with relevant information and engage in awareness-raising 2017 campaigns to stimulate the demand for sustainably produced goods and services. If these preconditions 2018 are fulfilled, consumers can substantially stimulate demand for sustainable production and service delivery. 2019 Although fair operating practices are discussed, the emphasis in this subclause is on the relationship 2020 between organizations and individual consumers and not on the relationship between organizations see 2021 Clause 6.6 for Fair operating practices between organizations. 2022

6.7.2 Principles and considerations

2023 Editing Committee note: If there are any principles and considerations relevant to this core issue, they 2024 should be described here andor reference should be made to Clause 5.The following have been cited as 2025 principles within the text of this clause: principles of fairness and transparency, causer pays principle, 2026 collection limitation principle, sparsity principle, purpose specification principle, use limitation principle, 2027 security safeguards principle, openness principle, individual participation principle, accountability principle, 2028 principle of affordable access to essential goods and services. 2029

6.7.3 Consumer issue 1: Fair operating, marketing and information practices 55, 56 2030

6.7.3.1 Description of the issue 2031

In their dealings with consumers, organizations should be guided by the principles of fairness, transparency 2032 and care, especially towards vulnerable groups. Consumers however, are confronted daily with 2033 representations, omissions or practices that are deceptive, misleading, fraudulent or unfair. Such practices 2034 include untruthful or coercive marketing, discriminatory and unfair pricing and supply, and inappropriate 2035 targeting of vulnerable consumer groups, such as children, people who are illiterate, people with special 2036 needs, the seriously ill and the elderly. The effects of such practices are that some consumers may be 2037 harmed, consumers may not make choices that reflect their best interests and competition may be 2038 infringed. These problems are especially pertinent in dealing with consumers who are unaware of their 2039 rights and responsibilities and with illiterate consumers, who may be wholly dependent on information 2040 provided by the organization through advertising and other marketing practices. 2041

6.7.3.2 Related actions andor expectations

2042 In dealing with its consumers, an organization should: 2043