Manila Times; "ISO 26000: A new boost for sustainability"

BY SEMERDANTA PUSAKA

(this article was posted on June 29, 2010)

Last May 17 to 21, the ISO Working Group on Social Responsibility leveled the status of ISO 26000 from Draft International Standard (DIS) to Final Draft International Standard (FDIS). This is the last phase prior to the release of the standard by the end of 2010.

Reviewing the shift from DIS to FDIS, the seven principles and seven core issues of social responsibility are basically similar in both DIS and FDIS, even with those of the Committee Draft (CD) ISO 26000.

The availability of ISO 26000 can initiate a new era of learning about corporate social responsibility (CSR) concepts from the perspective of ethics, business sustainability, and sustainable development. This is especially true in developing countries where CSR is seen merely as social investment, social development, natural environment protection, charity, or philanthropy of large corporations. ISO 26000, which is supported by 436 experts and 195 observers from 94 member countries and 42 liaison organizations, can bring CSR into a stage of global consensus on principles, issues and applications. After all, it was developed based on various inter-governmental agreements on related social responsibility aspects. Furthermore, since ISO 26000 can be used by any type of organization, discussions about CSR will be expanded to “Organizational Social Responsibility.” Multinational Corp.’s, large national companies, Small and Medium Enterprises (SMEs), nongovernment organizations (NGOs) and government agencies can now all take part in developing paths towards sustainable development.

A study I conducted in a medium-sized company in Indonesia indicated some insights that might predict the future of ISO 26000. This study covered the integration of CD ISO 26000 in all aspects of the company including vision, mission, code of conduct, policies, organization structure, strategies, CSR initiatives, and scheduling and budgeting for implementation. A “not too small” SME was chosen to ensure that many CSR issues could be addressed in the study.

Nevertheless, the study indicated that the chief executive officer and managers found it difficult to understand the comprehensive statements of CD ISO 26000. The company also required a strategic organizational behavior change program rather than a check list of action items for CD ISO 26000 implementation. It should be noted that the guidelines can be useful if they can be appropriately interpreted according to the organizational context of its users. This may need knowledgeable consultants to assist SMEs in developing change programs and interpreting the standard based on their organizational context. Industry associations can also encourage SMEs by developing simpler industry guidelines using the ISO 26000 as a reference.

The coming of ISO 26000 may encounter some challenges and misperceptions. Those who benefit from the current state of CSR understanding may directly or indirectly take a position against ISO 26000. For example, local communities and NGOs who receive “CSR funds” from businesses may fear that their donors will allocate money for more strategic CSR initiatives. Also, governments that encourage businesses to disburse funds for social initiatives through laws and regulations may oppose the standard because the guidelines do not recommend social actions, which usually create social dependency on businesses. A government or industry association who subscribes to ISO 26000 may incorrectly use the guidelines as a barrier to entry into a market or country.

It would be impossible for an organization to fully comply with all ISO 26000 clauses due to organizational limitations and context. The ISO 26000 guidelines should be implemented gradually and be part of the organization’s lifetime journey in pursuit of sustainability.

Semerdanta Pusaka is a student of the Doctor of Business Administration Program of the College of Business of De La Salle University. His email address is dantesstyle @hotmail.com.