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Connie Sham Connie Sham Head of AuditHead of Audit
04 November 201404 November 2014
1
How Social Enterprise How Social Enterprise Practices Social Practices Social Responsibility?Responsibility?
How Social Enterprise How Social Enterprise Practices Social Practices Social Responsibility?Responsibility?
Sharing Objectives
To share the key elements of ISO 26000 – Guidance on Social Responsibility
To explore the benefits and impact of practicing ISO 26000
Opportunities for social enterprise
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Paradigm Shift - Change
3
1960’s Now
Stakeholders expectations
Social responsibility and business ethics issues
Social Responsibility and business ethics issues
Organization practices
Social Responsibility and Business Ethics Vs Time
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Labourpractices
Fair operating practices
Consumer issues
Theenvironment
CommunityInvolvement and
developmentHuman rights
Or g a n i z a t i o n a l
ORGANIZATION
7 Core Subjects
Organizational Governance
Governance system : incorporating the principles & practices of
SR into decision making and implementation
Governance structure: directed by personnel having authority and responsibility for pursuing SR objectives
Due Diligence: involves an organization conscientiously and methodically considering the actual and possible negative impacts of its activities and managing these with a view to minimizing and avoiding the risk of social and environmental harm
Human RightsRisk situation: give thoughts to the potential consequences
Avoidance of complicity:become aware of, prevent and address risks of complicity (knowingly providing substantial assistance to the commission of a human rights abuse or commission of wrongful acts of others) by integrating the security arrangement features into due diligence process
Resolving grievances: means for those who believe they have been harmed to bring this to attention of the organization and seek redress, without losing their right to use available legal mechanism
Discrimination and vulnerable groups: ensure the organization does not discriminate against employee, partners, customers, stakeholders, members and anyone else
Civil and political rights: organization should always respect individual rights to freedom of opinion and expression, religion, privacy etc.
Economic, social and cultural rights: Organization have a responsibility to respect the enjoyment of economic, social and cultural rights
Fundamental rights at work: organizations should independently ensure that issues like freedom of association and collective bargaining, forced and child labor are addressed
Labor PracticesEmployment and employment relationship: improvement of standard of living through full & security employment, ensure equal opportunities, not benefit from exploitative or abusive labor practices
Conditions of work and social protection: fair and appropriate consideration should be given to the quality of conditions of work
Social dialogue: mechanism for exchange of information, developing policy and finding solutions that take into account the priorities and needs of both employers and employees
Health and safety at work: protection of employees from risk to health and the adaptation of the occupational environment to the physiological and psychological needs of workers
Human development and training in the workplace: facilitating the education, training and lifelong learning of employees
The Environment
Prevention of pollution: preventing pollution including emission to air, discharge to water, generation of waste, contamination of land and use of toxic chemicals etc.
Sustainable resource use: progress towards sustainable use of electricity, fuel, raw and processed materials, land and water, and by combining or replacing with renewable resources.
Climate change mitigation: minimizing GHG emissions and planning for a changing climate.
Protection and restoration of the natural environment: protect and restore the natural environment and its ecosystem
Fair Operating PracticesAnti-corruption: identify the risks of corruption and implement, apply and improve policies and practices that prevent corruption and bribery
Responsible political involvement: train and raise awareness about responsible political involvement, transparent organization’s activities related to lobbying, political contributions, establish policies and guidelines to avoid manipulation, intimidation and coercion that can erode public political process
Fair competition: Promote fair competition by establishing to prevent engaging in or being complicit in anti-competitive behavior, raise employees’ awareness and support public policies.
Promoting social responsibility in the sphere of influence: incorporate ethical, social, environmental and gender equality criteria in contracting policies, carry out investigations and monitoring with which the organization has relationships etc.
Respect for property rights: implement policies and practices that promote respect for property rights and conduct investigations to ensure legitimate use of properties
Consumer IssuesFair marketing, factual and unbiased information and fair contractual practices: provide complete, accurate, understandable and comparable information
Protecting consumer’ health and safety: provide products or services that under normal and reasonably foreseeable conditions of use, are safe for users, their property, other persons and the environment
Sustainable consumption: offer consumers socially and environmentally beneficial products and reduce adverse impacts
Consumer services, support and dispute resolution: engage in precautionary measures to prevent complaints, review complaints and improve practices, provide clear communication of after-supply services
Consumer data protection and privacy: prevent personal data collection and processing from infringing privacy
Access to essential services: operate in transparent manner, providing information related to the setting of prices and charges
Education and awareness: raise awareness of consumers about the impacts of consumption choice and on sustainable development
Community Involvement & Development
Community Involvement: contribute to democratic processes, maintain transparent relationships with local government and political parties, consultation with community groups
Education and culture: promote and support education, promote cultural activities, help conserve and protect cultural heritage
Employment creation with skills development: contribute in investment decisions on employment creation, consider the impact of technology choice and outsourcing on employment, participate in skills development program
Technology development and access: contribute to development of low cost technologies, engaging in partnership with local organization for scientific development
Wealth and income creation: fulfill tax responsibilities, engage in economic activities that support low income people etc.
Health: promoting good health, raise awareness about major diseases, support health care etc.
Social investment: undertake projects related to education, training, culture, health care, capacity building in community, volunteering and donations etc.
Let’s Give Thoughts to CSR
Is Corporate Social Responsibility (CSR) = Corporations’ duty only?
Why Social Enterprise should also care about social responsibility?
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Concept Building
Millennium Development
Goals
Friedmanand the conceptof shareholder
Adam Smith
The concept ofstakeholder
SustainableDevelopment
Business Theory –Triple Bottom Line
Social Responsibility
Maximize financial return on capital
Achieve certain minimum environmental and social standards
19xx
Maximize financial, environmental and social return on capital
Now
Achieve certain minimum environmental and social standards
Entry level requirements
Aspirations
Sustainability
Preventing harm
What do we mean by the environmental and social return on capital?
Safeguards to Sustainability
Benefits and Impacts
It’s the right thing to do for every organization Address stakeholders expectations Accountability Risk management Transparency
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Opportunities
ISO 26000 provides guidance for organization to practice social responsibility regardless of nature, size and geographical location
Social Enterprise should gear up and get prepare Share the common goals with corporations Demonstrate commitments to stakeholders Be a responsible partners
Above all SUSTAINABILITY!21