Historical background and trends

4 © ISO 2007 - all rights reserved 3.14 311 sustainability 312 [the feasibility of activities continuing without long-term adverse social, economic or environmental impacts 313 that outweigh beneficial impacts] 314

3.15 315

sustainable development 316 development that meets the needs of the present without compromising the ability of future generations to 317 meet their own needs 60, p8 318 3.16 319 transparency 320 openness about actions and impacts, and willingness to communicate these in a clear, honest and complete 321 manner to all stakeholders and society 322 4 The context of social responsibility in which an organization operates 323 Drafters note: The multi-stakeholder representative drafting team that was established to draft text on this 324 section has failed to reach agreement on compromise text for this section. Some of the areas of 325 disagreement, including in some instances possibilities for alternative text, are presented in square 326 brackets. This current text should not be taken to suggest that some of the issues not referred to in this 327 Clause have been resolved or otherwise dismissed. To assist in finalising this text experts are asked to 328 comment on the text below, as well as to respond to specific questions pertaining to this text these will be 329 attached separately. These responses will be used to inform revised text that will be prepared for 330 consideration and further discussion in the WG meeting in Vienna. 331 OPTION 1 332 [The social responsibility of organizations is of increasing interest throughout the world. This section 333 explains what the concept means and addresses some issues that should be taken into account when 334 applying this concept. The section also provides some background as to how the ideas and practices 335 surrounding the concept of social responsibility evolved.] 336 OPTION 2 337 [How an organization achieves its mission and goals can have a fundamental impact on its long-term 338 success. It is not sufficient just to meet legal requirements: an organization should understand the impacts 339 of its activities on others. The development of a more informed civil society and accelerating and more 340 effective methods of sharing information increases the scrutiny on all types of organization. This clause 341 describes why organizations may find it beneficial to consider the developments, trends and influences that 342 have led to the concept of social responsibility. It also introduces the ways in which organizations can utilize 343 this concept according to their own specific circumstances.] 344

4.1 Historical background and trends

345 Drafters note: Some members of the drafting team feel that this section needs to give greater 346 acknowledgement to the suggestion that concerns relating to the social responsibility performance of 347 organizations evolved largely out of concerns about the impact of business on society. An alternative view 348 from the group is that drawing attention to one particular sector, when this standard is required to provide 349 guidance applicable to all types of organisation, is unhelpful in the effort to create a positive and beneficial 350 © 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