From theory to practice 438

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

OPTION 1 439 [The challenge for each organization will be to anticipate the impact of its activities on others and to 440 understand how these impacts relate to the welfare of society and sustainable development. Organizations 441 should become familiar with the most important issues and the expectations of society with respect to 442 various aspects of these issues. This standard contains some general principles that should be taken into 443 account by organizations in considering their social responsibilities. It also identifies seven core issues and 444 © ISO 2007 - all rights reserved 7 provides guidance on related principles, considerations and expectations. This standard references the 445 most authoritative international standards upon which to base behaviour.] 446 or 447 OPTION 2 448 [Clause 4.1 highlights the complexity of social responsibility issues. This is complicated further as the range 449 of organizations having impacts on others is so diverse. The challenge for each organization is to determine 450 for itself how to set its own socially responsible behaviours. However, it should be noted that different types 451 of organization have different types of responsibility. For example, governments should enforce human 452 rights while other types of organization should promote respect for them. Most organizations with a long 453 history of social responsibility started with clear principles of the type shown in clause 5. These principles 454 lead to well defined codes of organizational behaviour based on an organizations mission and goals, the 455 legal framework in which it operates and applicable international norms of behaviour.] 456 Social responsibility entails a listening element and an understanding of the key impacts of an 457 organization’s operations on others, as determined through engagement. These impacts can be classified 458 according to the issues described in Clause 6. It also entails an appreciation of the interactions between 459 those listened to and a balancing of conflicting interests. Even for identical operations, impacts may vary 460 according to specific circumstances and thus flexibility in the voluntary approach is essential. 461 It is well understood in any engagement that effective listening is best demonstrated by feedback. In the 462 area of social responsibility, this is achieved through reporting. Reporting mechanisms are best determined 463 by the organization itself as it develops its listening skills. Guidance on engagement, managing impacts and 464 reporting is given in Clause 7. How an organization deals with factors such as location is important and it 465 should determine how to set boundaries around each issue. 466 [The social responsibility of an organization is realized through behaviour. It is not about attitudes, feelings 467 or beliefs that may, or may not be, reflected in behaviour. Of course the actions that reflect an 468 organization’s social responsibility can include the decision to refrain from an activity where that is 469 considered the right thing to do. It is not essential that actions taken by an organization be justifiable in 470 terms of a direct measurable or immediate benefit to the organization. Social responsibility involves an 471 appreciation of the role of enlightened self-interest to the welfare of the organization. This means that some 472 actions may be justified by indirect benefits or by their long-term impacts. 473 Measuring and reporting impacts and the related aspects of an organization’s performance are activities 474 that can reflect its sense of social responsibility. Engaging those who may be impacted by an organization’s 475 behaviour involves activities that can be an especially important part of social responsibility. This 476 engagement will not replace measures taken to secure legal compliance or measures taken to understand 477 the relevant expectations of behaviour concerning the welfare of society and sustainable development. 478 Engaging others involves two-way communication. The move from theory to practice is best reflected by 479 changes in behaviour made by an organization to increase the beneficial effects of the organization’s 480 activities for the welfare of society and sustainable development.] 481

4.4 The relationship of the stakeholder approach to the concept of social responsibility