Social Accountability and
Social Responsibility
By
Shikhar Jain
Senior Counsellor
CII
Standards for Social Accountability and
Responsibility
• 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
presentation:
 Guidance on Social Responsibility (ISO 26000:2010)
 International Standard for Social Accountability (SA
8000:2008)
 Indian Standard for Organizational Accountability at
the Workplace (IS 16001:2010)
2
Globalization
ISO 26000 – A new standard for a new world
4
ISO 26000
connects
the Great Global Agreements
to the daily activities of organizations
5
Rising Influence &
Power of the Private Sector
Country/Corporation
1
United States
2
GDP/Sales ($ million)
Country/Corporation
GDP/Sales ($ million)
11,667,510.00
37
Hong Kong, China
163,004.70
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
Sustainable
Development
Triple Bottom Line
Poverty
Social
Responsibility
Adam Smith
Friedman
and the concept
of shareholder
The concept of
stakeholder
7
MEO-CCP021-20080221-RGSS
Adopting integrated Social Policies
8
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
today
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
11
The 7 Principles of Social Responsibility
– Accountability: an organization should be
accountable for its impacts on society and the
environment
– 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
Sector
Association
Shareholders
Partners
Banks /
Insurance
Workers
Consumers
Volunteers
Employees
Industry
Organization
Customers
Suppliers
Government
Media
Citizens
NGO’s
15
Value & supply chain
Partner
s
Sector
Associatio
n
Shareholde
rs
Banks /
Insurance
Value chain
Supply chain
SubSuppliers
Workers
Supplier
s
Industry
Employee Organization
s
Customers
Raw material
providers
Consumers
Waste
services
Government
Citizens
NGO’s
Media
16
Social Responsibility Core Subjects
Community
involvementand
development
The
environment
Human rights
ORGANIZATION
Consumer
issues
Labour
practices
Fair operating
practices
50
SR Framework
Social Responsibility – from Top to Bottom
50,000 feet: VISION
How is your
company
articulating its
mission and vision?
- Define corporate values
- Build a vision
- Understand macro trends
- Educate and manage stakeholders
- Assure transparency and
accountability
30,000 feet: STRATEGY
How is your
company creating a
strategy?
- Create a clear value proposition
- Develop a strategic plan
- Integrate and align
- Build a communications and
engagement strategy
- Create a measurement system
Ground: EXECUTION
How is your
company executing
on its strategy?
- Implement
- Communicate
- Report
- Evaluate
SOCIAL
ACCOUNTABILITY
SA8000 covers the following areas of
accountability:
Child Labor
Forced Labor
Workplace Safety & Health
Freedom of Association & Right to Collective
Bargaining
Discrimination
Discipline
Working Hours
Remuneration
ILO Conventions
# Forced labor (29, 105)
95, 63)
# Child labor (138, 182)
# Freedom Of Association
(87, 98)
# Discrimination (111, 100,
35, 154)
(183)
# Wages (100, 131,
# Working Hours (1, 116
30, 63, 47)
# Health and Safety (155
162)
# Home workers (177)
# Maternity Protection
Introduction
• SA8000 is a global social accountability standard
for decent working conditions, developed and
overseen by Social Accountability International
(SAI).
• 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.
23
Social Accountability
Requirements
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
development.
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
hazards,
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.
33
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
Community Engagement
Discrimination
Employment Freely Chosen
Employment Relationship
Employees’ Welfare
Measures
 Freedom of Association
 Health & Safety at the
Workplace
 Harassment, Abuse and
Inhumane Treatment
 Wages and Benefits
34
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
35
Questions and Discussions
THANKS
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