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									Social Accountability and
  Social Responsibility


        Shikhar Jain
      Senior Counsellor
Standards for Social Accountability and
• Standards have been developed to assist organizations
  in being socially accountable and responsible, arising
  from the expectations of its stakeholders and society.

• The following standards will be introduced in this
    Guidance on Social Responsibility (ISO 26000:2010)
    International Standard for Social Accountability (SA
    Indian Standard for Organizational Accountability at
     the Workplace (IS 16001:2010)

ISO 26000 – A new standard for a new world

              ISO 26000
     the Great Global Agreements
to the daily activities of organizations

                        Rising Influence &
                     Power of the Private Sector
         Country/Corporation   GDP/Sales ($ million)                       Country/Corporation   GDP/Sales ($ million)
 1   United States                        11,667,510.00    37   Hong Kong, China                              163,004.70
 2   Japan                                  4,623,398.00   40   General Electric                              134,187.00
 3   Germany                                2,714,418.00   41   Malaysia                                      117,775.80
 4   United Kingdom                         2,140,898.00   42   Israel                                        117,548.40
 5   France                                 2,002,582.00   43   ChevronTexaco                                 112,937.00
 7   China                                  1,649,329.00   49   ConocoPhillips                                 99,468.00

 9   Canada                                  979,764.20    50   Colombia                                       97,383.93

10   India                                   691,876.30    51   Pakistan                                       96,114.84

20   Turkey                                  301,949.80    52   Citigroup                                      94,713.00

21   Austria                                 290,109.50    53   Chile                                          94,104.94

22   Wal-Mart Stores                         258,681.00    54   Intl. Business Machines                        89,131.00

23   Indonesia                               257,641.50    57   Egypt                                          85,000.00

24   Saudi Arabia                            250,557.30    60   Hewlett-Packard                                73,061.00

27   Poland                                  241,832.50    62   Peru                                           68,394.96

28   Exxon Mobil                             213,199.00    63   Verizon Communications                         67,752.00

29   South Africa                            212,777.30    64   Ukraine                                        65,149.34

30   Greece                                  203,401.00    65   Home Depot                                     64,816.00

31   General Motors                          195,645.20    66   Berkshire Hathaway                             63,859.00

32   Finland                                 186,597.00    67   Altria Group                                   60,704.00

35   Ford Motor                              164,496.00    69   Bangladesh                                     56,844.49
              The SR concept building


                                  Triple Bottom Line


                                          The concept of
                    Friedman               stakeholder
                and the concept
                 of shareholder
 Adam Smith


Adopting integrated Social Policies

Evidence of the Importance of Goodwill
           Stock        Net
        Market Value Book Value Goodwill                  %

            $113 bn              $7 bn         $106 bn    75%
            $380 bn            $41 bn          $339 bn    89%
            $199 bn            $21 bn          $178 bn    90%
            $499 bn            $23 bn          $476 bn    95%
            $104 bn              $8 bn           $96 bn   92%
            $202 bn            $31 bn          $171 bn    85%
              $60 bn             $8 bn           $52 bn   87%
              $46 bn           $19 bn            $27 bn   59%
              $35 bn             $8 bn           $28 bn   78%
            $149 bn            $72 bn            $77 bn   52%
        Source: Interbrand/Citibank league table, 2001
Some of the Social Pressures Facing Managers
    Definition ‘Social responsibility’

Responsibility of an organization for the impacts of its
decisions and activities on society and the environment,
through transparent and ethical behaviour that
 contributes to sustainable development, including
   health and the welfare of society;
 takes into account the expectations of stakeholders;
 is in compliance with applicable law and consistent
   with international norms of behaviour; and
 is integrated throughout the organization and
   practiced in its relationships.

NOTE 1 Activities include products, services and processes
NOTE 2 Relationships refer to an organization’s activities within
its sphere of influence

The 7 Principles of Social Responsibility
  – Accountability: an organization should be
    accountable for its impacts on society and the
  – Transparency: an organization should be
    transparent in its decisions and activities that
    impact on others
  – Ethical behaviour: an organization should behave
    ethically at all times
 The 7 Principles of Social Responsibility

– Stakeholder: an organization should respect and consider the
  interests of its stakeholders
– Rule of law: an organization should respect the rule of law
– International norms: an organization should respect relevant
  international norms where these norms are more favourable
  to sustainable development and the welfare of society
– Human rights: an organization should recognize both the
  importance and the universality of human rights
Stakeholder map
                                    Association        Shareholders
                                                                        Banks /


                                  Employees       Organization

     Suppliers                                                                Customers

           Government                                                 Media

                               Citizens                NGO’s

Value & supply chain
                                      Sector        Shareholde
                                      Associatio    rs           Banks /
                           Partner    n                          Insurance

 Value chain

     Supply chain

        Sub-                                     Industry
                        Supplier        Employee Organization        Customers   Consumers
                        s               s

      Raw material
       providers                                                                  Waste

                     Government                                       Media
                                      Citizens         NGO’s

Social Responsibility Core Subjects

                            and   Human rights

              The                              Labour
           environment                        practices

                     Consumer     Fair operating
                      issues        practices

SR Framework
Social Responsibility – from Top to Bottom

                                         50,000 feet: VISION

            How is your         - Define corporate values
              company           - Build a vision
           articulating its     - Understand macro trends
         mission and vision?    - Educate and manage stakeholders
                                - Assure transparency and

                                      30,000 feet: STRATEGY

            How is your         - Create a clear value proposition
         company creating a     - Develop a strategic plan
             strategy?          - Integrate and align
                                - Build a communications and
                               engagement strategy
                                - Create a measurement system

                                       Ground: EXECUTION

            How is your
         company executing     - Implement
           on its strategy?    - Communicate
                               - Report
                               - Evaluate
  SA8000 covers the following areas of
Child Labor
Forced Labor
Workplace Safety & Health
Freedom of Association & Right to Collective
Working Hours
             ILO Conventions
# Forced labor (29, 105)          # Wages (100, 131,
95, 63)
# Child labor (138, 182)      # Working Hours (1, 116
                                  30, 63, 47)
# Freedom Of Association      # Health and Safety (155
  (87, 98)                       162)
# Discrimination (111, 100,   # Home workers (177)
  35, 154)                     # Maternity Protection
• SA8000 is a global social accountability standard
  for decent working conditions, developed and
  overseen by Social Accountability International

• SA8000 is based on the UN Universal Declaration
  of the Human Rights, Convention on the Rights
  of the Child and various International Labour
  Organisations (ILO) conventions.

        Social Accountability
          1. Child Labor

Criteria 1.1
The company shall
not engage in or
support the use of
child labour as
defined above.
Criteria 1.4
The company shall not
expose children or
young workers to
situations-in or outside
of the workplace- that
are hazardous or
unsafe to their physical
and mental health and
           2. Forced Labour
Criteria 2.1
The company shall not
engage in or support the use
of forced or compulsory labor
as defined in ILO Convention
29, nor shall personnel be
required to pay ‘deposits’ or
lodge identification papers
with the company upon
commencing employment
             3. Health & Safety
Criteria 3.1
The company, shall provide a safe and
healthy working environment and shall
take effective steps to prevent potential
accidents and injury to workers’ health
arising out of, associated with, or
occurring in the course of work, by
minimizing, so far as is reasonably
practicable, the causes of hazards
inherent in the working environment and
bearing in mind the prevailing knowledge
of the industry and of any specific
    4. Freedom of Association & Right
          to Collective Bargaining
Criteria 4.1
All personnel shall have the right to form, join,
and organize trade unions of their choice and to
bargain collectively on their behalf with the
company. The company shall respect this right,
and shall effectively inform personnel that they
are free to join an organization of their choosing
and that their doing so will not result in any
negative consequences to them, or retaliation,
from the company. The company shall not in
any way interfere with the establishment,
functioning or administration of such workers’
organizations or collective bargaining.
                5. Discrimination
Criteria 5.1
The company shall not engage in
or support discrimination in hiring,
remuneration, access to training,
promotion,       termination      or
retirement based on race, caste,
national or social origin, religion,
disability,     gender,      sexual
orientation, union membership,
political opinions, age or any
other condition that could give
rise to discrimination.
     6. Disciplinary Practices
Criteria 6.1
The company shall treat all personnel with dignity
and respect. The company shall not engage in or
support the use of corporal punishment, mental or
physical coercion, and verbal abuse of personnel.
No harsh or inhumane treatment is allowed.
           7. Working Hours
Criteria 7.1
The company shall comply
with applicable laws and
industry standards on
working hours and public
holidays. The normal
workweek, not including
overtime, shall be defined
by law but shall not
exceed 48 hours.
            8. Remuneration
Criteria 8.1
The company shall respect
the right of personnel to a
living wage and ensure that
wages paid for a standard
working week shall always
meet at least legal or
industry minimum standards
and shall be sufficient to
meet     basic   needs    of
personnel and to provide
some discretionary income.
Social Responsibility and Social
Accountability in India
• India has the largest number of workers employed by
  facilities certified to SA 8000 in the world:

    364,231 workers in 576 SA8000 certified facilities

• The Ministry of Textiles, GoI, encourages textile
  manufacturers to be more accountable and responsible
  to society by encouraging them to adopt the following
  standards: ISO 14001, OHSAS 18001 and SA 8000.

• The Textile Committee of the Ministry of Textiles
  provides technical assistance to manufacturers for
  certification to these standards.

Indian Standard for Organizational
Accountability at the Workplace (IS 16001)
  • The standard details out principles and requirements of
    each core element that have to be adhered to by the
    organization to be in compliance with the standard

  • The core elements of the standard are:
       Child Labour                Freedom of Association
       Community Engagement        Health & Safety at the
       Discrimination               Workplace
       Employment Freely Chosen    Harassment, Abuse and
                                     Inhumane Treatment
       Employment Relationship
                                    Wages and Benefits
       Employees’ Welfare

Social Responsibility and Social
Accountability in India
• The Indian Standard for Organizational Accountability at
  the Workplace (IS 16001), described earlier is an
  initiative taken by the Bureau of Indian Standards to
  promote Social Accountability of Indian Business.

• It provides for a mechanism to be in place taken into
  account the local context to ensure the promotion of
  such practices are taken up by Indian companies.

• Need to popularize IS 16001 vis-à-vis SA 8000

     Questions and Discussions



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