MONTIFIC Conference 2010

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1 Let s join our strengths together! MONTIFIC Conference 2010 Business Ethics - ISO Social Responsibility Dr. Romana Vajde Horvat ECQA Vice President for Processes Budapest, 30 th September and 1 st October 2010

2 We live in a society of interdependence. (Greater than ever!)

3 Business Ethics Whatever the business does, it affects its stakeholders (and, indirectly, to stakeholders of stakeholders). Stakeholders: (organizations or individuals, internal or external) customers, employees, government, owners (shareholders), suppliers, unions, the community,...

4 Business Ethics Areas A topic which should be applied to every area of business! Ethics in the area of: Production (products and services) finance human resource management sales and marketing property, property rights and intellectual property rights technology Laws, standards and regulations define basic requirements for business ethics.

5 Business Ethics Bottom-line Treat others as you wish to be treated by them.

6 Business Ethics - Social Responsibility The term Corporate Social Responsibility-CSR came into widespread use in the early 1970s. CSR: Built-in, self-regulating mechanism whereby business would monitor and ensure its support to law, ethical standards, and international norms. Social Responsibility-SR : enhancement to other types of organizations, not only corporations. Inclusion of public interest into corporate decisionmaking: people, planet, profit.

7 Benefits of implementing SR Enhancing the reputation of the organization and fostering greater public trust. Improving the competitiveness of the organization with respect to its competitors. Improving the relationship with its stakeholders Improving innovation, through exposure to new perspectives and contact with a diverse range of stakeholders; Contributing to the long-term viability of the organization. Contributing to strengthening civil society and institutions.

8 ISO Guidance on social responsibility To be published in 2010 Currently being edited as final draft (FDIS) Voluntary to use. Gives guidance on: principles of social responsibility the core subjects and issues of SR (6) ways to integrate SR behaviour into organization Suitable for all types of organizations (profit or non-profit; private or public). SR is a continuous process.

9 Ethical Behaviour HOW? WHAT? developing governance structures that help to promote ethical conduct identifying, adopting and applying standards of ethical behaviour encouraging and promoting the observance of its standards of ethical behaviour; defining and communicating the standards of ethical behaviour preventing or resolving conflicts of interest throughout the organization establishing oversight mechanisms and controls establishing mechanisms to facilitate the reporting of unethical behaviour recognizing and addressing situations where local laws and regulations either do not exist or conflict with ethical behaviour; respecting the welfare of animals, when affecting their lives and existence

10 HOW? WHAT?

11 Core subject: Human rights The Universal Declaration of Human Rights adopted by the UN: the elimination of all forms of racial discrimination, elimination of all forms of discrimination against women, measures to prevent and eliminate torture and other cruel, inhuman or degrading treatment or punishment. rights of the child, prevention of involvement of children in armed conflict, prevention of sale of children, child prostitution and child pornography, protection of migrant workers and their families, protection of all persons from enforced disappearances, rights of persons with disabilities.

12 Core subject: Human rights Issue 1: Due diligence Issue 2: Human rights risk situations Issue 3: Avoidance of complicity (involvement in actions conflicting human rights) Issue 4: Resolving grievances Issue 5: Discrimination and vulnerable groups Issue 6: Civil and political rights Issue 7: Economic, social and cultural rights Issue 8: Fundamental rights at work

13 Issue 3: Avoidance of complicity Direct complicity Beneficial complicity Silent complicity Actions: not provide goods or services to an entity that uses them to carry out human rights abuses; not enter into a formal partnership with a partner that commits human rights abuses in the context of the partnership; inform itself about the social and environmental conditions in which purchased goods and services are produced; consider making public, or taking other action indicating that it does not condone acts of discrimination occurring in employment in the country concerned.

14 Project SOCIRES Development of training and certification schema for SR managers. Duration: 2011 to 2012; LLP funded project Contractor: Slovenian Institute for Standardization Partners: Alexander Technological Educational Institute of Thessaloniki, Greece Corvinus University of Budapest, Hungary Gustav-Siewerth Akademie, Germany I.S.C.N. GesmbH, Austria prohuman Ltd., Slovenia (coordinator) SIBAC Gmbh, Germany Universidad de Alcalá, Spain

15 Project SOCIRES - TRAINING MATERIAL - aimed for usage for VET trainings or distant learning. It will be modular: Units /Elements/Performance Criteria and supported with exercises, - POOL OF EXAM QUESTIONS - unified, supported by ECQA electronic exam system - LEARNING PORTAL - providing training material and exercises; - TRIALS and EXPLOITATION (260 participants) - TRAIN THE TRAINERS (2 trainers per partner) - INTEGRATION OF TRAINING SCHEMA INTO ECQA SCHEMA. ECQA European Certification and Qualification Association ( - CERTIFICATION - ECQA Participant Certificate ; ECQA Certified Social Responsibility Manager Certificate

16 Social Responsibility Manager SRM will obtain knowledge on: core principles of social responsibilities (as defined in ISO 26000), other models and related knowledge (like Ethics in Business) identification of organization's SR stakeholders, methods for analyzing the alignment of business processes to SR requirements, definition of SR processes in org. and improvement of business processes, SR related monitoring and relevant models for reviewing SRs continuous improvement of SR, etc.

17 SRM Employment Opportunities Skills and knowledge of "Social Responsibility Managers" will be needed by: all types of organizations to improve influence and cooperation with actors in society, governmental bodies to evaluate and understand the SR influence of certain organization in local environment, various non-governmental bodies working in the social area (e.g. humanitarian organizations, culture associations etc.) to establish cooperation with social responsible organizations, etc.

18 Contacts: Dr. Romana Vajde Horvat prohuman Ltd. Prušnikova ulica 30, SI-2000 Maribor, Slovenia Tel.: , Fax.: , Mobile: info@prohuman.si 18

19 This publication was developed within LLP project Dissemination of European certification schema ECQA Nr LLP AT-KA4-KA4MP This project has been funded with support from the European Commission. This publication reflects the views solely of the author and the Commission cannot be held responsible for any use which may be made of the information contained therein.

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