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Competitiveness, Responsibility and Sustainability February 24th, 2014.
Marriot Hotel –Zamalek-Cairo
Eng. Osama Elmeligy
2
•In July 2013 CSR & UNDP launched a CSR strategy for the Agro Food Industries in Egypt. The theme of which is from corporate Social Responsibility to corporate competitive advantage.
•This course is an integral part of the efforts of UNDP & ECRC to raise awareness and knowledge of stakeholders on how to integrate this strategy into their businesses and in relationships with government bodies & business
Introduction
3
Benefits of integrating CSR strategy
Generates new business opportunities
Improves company’s social standing
Improves company’s brand reputation
Increases employee motivation
Supports company’s philanthropic priorities/ Initiatives
Markets to socially responsible consumers
Creates an important solution to a social or environmental problem
Promises significant and new business/ market opportunities
Promises long-term gains by significantly changing its business environment
4
1. The challenges and opportunities
2. Global Changes in Agro Food business environment
3. CSR strategy.
4. Leadership.
5. Sustainability. Economic, Environmental, Societal.
6. New approaches
7. Tools and techniques
8. International standards and norms.
9. Integration
10. Communication and reporting
11. Conformity, Compliance & Certification
12. Feedback
13. Evaluation
Contents
المسائلة • Accountability قابلية
لإلجابة والقابلية للمنشأة المتحكمة الجهات مع للتجاوب المنشأة قابلية هي
أسئلة على
. المنشأة فيها تعمل التي المجتمعات و المعنية األطراف و القانونية السلطات
Consumer المستهلك •
أغراض في يستخدمها أو الخدمات أو البضائع يشتري الناس عامة من شخص
.شخصية
Environment البيئة •
المنشأة فيه تعمل الذي طبيعية المحيط موارد و أرض و ماء و هواء من فيه بما
و
. بشرية كائنات و مائيات و نباتات
البيئي • Environmental impact التأثير
جزئي أو كلى مفيد، أو عكسي تأثير ذو كان سواء البيئة في يحدث تغير أي
نتيجة
المنشأة أنشطة .
والتعاريف ” Terms and definitions“المصطلحات
6ISO 26000- ECRC - TOTAL
األخالقي • Ethical behavior السلوك
المباد مع يتوافق الذي السليم ئ السلوك أو الصحيح للسلوك عليها المتفق
ضمن وذلك)
معين موقف (.سياق
Materialالمادة •
التقييمات على جوهري بشكل ستؤثر التي الموضوع أو المعلومات خصائص
لقراراتاو
. معا كليهما أو المعنية أطرافها أو بالمنشأة الخاصة
Organization المنشأة •
المسئوليات ترتيب مع واضح غرض اجل من سويا يعملون الناس من مجموعة
والسلطات
. والعالقات 7ISO 26000- ECRC - TOTAL
والتعاريف ” Terms and definitions“المصطلحات
المؤسسية • Organizational governance الحوكمة
قراراتها خالله من المنشأة تتخذ الذي . النظام
Policy السياسة •
المنشأة تتبناها التي العامة اإلرشادية الخطوط و .القرارات
Principleالمبدأ •
أو القرار لصناعة مرشد كدليل تستخدم عامة مواصفة أو قاعدة
للتأثيرعليهما أو .السلوك
Productالمنتج •
المنشأة توفرها خدمة من جزءا? تعد التي أو للبيع تطرح التي .المادة
Service الخدمة •
طلب أو احتياج لتلبية . مساعدة
8ISO 26000- ECRC - TOTAL
والتعاريف ” Terms and definitions“المصطلحات
المجتمعية Social responsibility المسئولية
منها تعاريف عدة المجتمعية : للمسئولية
المستدامة التعريف ال للتنمية العالمي األعمال مجلس قبل من شائع
ال المسئولية يعرف األعمال “ موهو قطاع من تعهد بأنها للشركات جتمعية
(WBCSD)
مع العمل خالل من المستدامة االقتصادية التنمية في بالمشاركة
حياتهم جودة تحسين بغرض واإلقليمي المحلي والمجتمع وعائالتهم، ”العاملين
ال المسئولية مصطلح المستدامة للتنمية الدولي المعهد فسر في موقد جتمعية
إطار
المستدامة أو ” بأنها التنمية معايير تسهم أن المتوقع من وأنه المجتمع، إلى تشير
ال المسئولية المستدامة ممقاييس التنمية لتحقيق الثالثة الركائز تعزيز في جتمعية
االقتصادية التنمية البيئية “و وهي والحماية االجتماعية التنمية
تعريف أي فإن ال كذلك للمسئولية األهداف معالمي إلى يشير وأن بد ال جتمعية
. المتحدة لألمم 9ISO 26000- ECRC - TOTALاإلنمائية
والتعاريف ” Terms and definitions“المصطلحات
cم مسؤول • Socially responsible جتمعيا
ممارسات و لمبادئ طبقا .المجتمعية المسؤوليةالتصرف
Sphere of influence التأثير دائرة •
على للتأثير السلطة المنشأة أو الفرد فيها يمتلك التي المنطقة أو المجال
واألنشطة .القرارات
Stakeholder المعني الطرف •
بها تتأثر أو المنشأة على تؤثر قد مصلحة تجمعهم األفراد من مجموعة أو . فرد
Stakeholder engagement المعنية األطراف مشاركة •
المعنية اإلطراف بإشراك المنشأة تقوم التى األنشطة في " األساسية " وهي
تعاونية عالقة
ايجابية نتائج لتحقيق
10ISO 26000- ECRC - TOTAL
والتعاريف ” Terms and definitions“المصطلحات
المستدامة • Sustainable development التنمية
األجيال بقدرة المساس دون الحاضر احتياجات تلبي التى التنمية وهي
على المستقبلية
الخاصة . احتياجاتهم تلبية
اإلمداد • Supply chain سلسلة
وأنشطة عمليات في وانخفاض ارتفاع من المؤسسة أداء على يطرأ ما وتشمل
القيم تسليم
للمؤسسة . أوخدمات منتجات صورة في
Transparencyالشفافية •
واضح بشكل بينها الربط في والرغبة ، والتأثيرات باألعمال المجاهرة بها ويقصد
وصريح
والمجتمع ) (. المعنية األطراف جميع بين وكامل
المجتمع • Welfare of society رفاهية
عام بشكل المجتمع ورخاء وسعادة صحة إلى . وتشير11ISO 26000- ECRC - TOTAL
والتعاريف ” Terms and definitions“المصطلحات
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Challenges facing the Agribusiness in Egypt
1. Economic challengesa. The productivity of agribusiness sector in Egypt is very low and the waste
in all processes exceeds the international norms.b. The national system for standardization is not up to international
standards and no empowerment.c. Lack of awareness of standards and quality systems within producers,
buyers, regulators and along the supply chain. d. Shortage of testing laboratories that are accredited.
14
2. Environmental challengesa. Water scarcity is becoming a big issue due to mismanagement and misuse.b. Land degradation and contamination, due to excessive use of chemicals
and pesticides.c. Poor waste management, see how famers set fire in the hey of rice after
the season of harvest. d. Energy and fuel shortages, a big problem now for farmers is to ensure
business continuity when there is a petrol or electricity problem .
Challenges facing the Agribusiness in Egypt
15
3. Challenges with Human Resources and Social Aspectsa. The quality of education and lack of training and skills development .b. The turnover of manpower and the instability in the labor market. c. Unfair wages paid to workers and farmers.d. Corruption in the local governments that should ensure compliance to
laws and legislations, regulating the agribusiness.
Challenges facing the Agribusiness in Egypt
17
CSR core values/concepts
• Visionary and committed leadership.
• Stakeholder-driven excellence and responsible practices.
• Organisational and personal learning through dialogue and mutual
engagement with relevant stakeholders (primary and secondary
stakeholders).
• Valuing employees, partners, other stakeholders.
• Agility and focus on the future (short and long term).
• Managing for responsibility and improvement.
• Management by fact, transparency, accountability.
• Public responsibility and citizenship.
• Focus on positive results, impacts and value-added for stakeholders with
responsible ecological practices.
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Putting Responsibility Management into Practice – Corporate Strategy
Top management need to take a long-term perspective, make a public
commitment, communicate the commitment, be a role model for the
company’s values, integrate vision and values into strategies and practices
and support changes.
Responsibility Management Approaches must be both systemic and holistic
of they are to be effective.
ISO 26000 was designed as a holistic approach involving the
interdependence of seven factors: community involvement and
development, human rights, labor practices, the environment, consumer
issues, fair operating practices and organizational governance .
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What is sustainability?
1 2 3 4
90%
0%0%
10%
1. Satisfying basic needs without
depleting or degrading resources
2. Maximizing resource use
3. Reducing resource use even if it
means some big sacrifices by
human beings
4. Halting further resource use and
limiting human progress
21
Definitions of Sustainability`
Sustainability
The possibility that human and other forms of life on earth will flourish forever
Sustainable Development (SD)
Meeting the needs of the present generation without compromising the
ability of future generations to meet their own needs .
Sustainable Development (SD)
Enough - for all – forever.
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Core Concepts of Sustainability
Futures ThinkingIntergenerational responsibility
(Eco)-Systems ThinkingCarrying capacity of the planetto absorb waste and support life
Social JusticeEquity, Dignity, Basic services, Human rights,
Stakeholder voices
Economic, Environmental, Social/Culturalresponsibilities
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اإلستدامة أوجهAspects of Sustainability
إقتصادية تنميةEconomic
مجتمعية مسؤوليةSocial Responsibility
بيئي إلتزامEnvironment
اإلستدامة Sustainability
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Corporate Sustainability, Three Legged Stool
= Environmental, Social, Governance (ESG)
Economy - ProfitsGrowth
Jobs, TaxesProductsServices
Equity - People Employees
Community / Culture World
Environment - PlanetEco-efficiencies
Eco-effectiveness
=Corporate Social Responsibility (CSR) =Corporate Responsibility (CR) = Green
= Sustainability = Sustainable Development (SD)Triple Bottom Line (TBL) = 3Es = 3Ps
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Principles of Environmental Sustainability
1. Environmental Policy Integration
2. Transparency, Public Participation, and access to Information and
Remedies
3. Precaution
4. Polluter-Pays
5. Responsibility for trans-boundary Harm
6. Subsidiarity & Decentralization
27
The WF is an indicator of water use that looks at both direct and indirect water use of a consumer or producer.
Water use is measured in terms of:- water volumes consumed )evaporated or otherwise not returned(- polluted per unit of time
Geographically explicit
A WF can be calculated for:- process - product - consumer- group of consumers )e.g. municipality, province, state, nation( - producer )e.g. a public organization, private enterprise(
The Water Footprint Concept
28
The Water Footprint of a Product
Green water footprint
► volume of rainwater evaporated.
Blue water footprint
► volume of surface or groundwater evaporated.
Grey water footprint
► volume of polluted water.
30
Water footprint of EU’s cotton consumption )blue water(
Blue water footprint Million m3/yr
2959Mm3/yr
690 Mm3/yr
421 Mm3/yr
2459 Mm3/yr
803 Mm3/yr
581 Mm3/yr
533 Mm3/yr
450 Mm3/yr
EU25's impact on blue water resources
The water footprint:making a link between consumption in one place and impacts on water systems elsewhere
Shrinking Aral Sea
[Hoekstra & Chapagain, 2008]
This is a global average and aggregate number. Policy decisions should be taken on the basis of:
1. Actual water footprint of certain coffee at the precise production location.
2. Ratio green/blue/grey water footprint.
3. Local impacts of the water footprint based on local vulnerability and scarcity.
36
Carbon Footprint
• Best estimate of full climate change impact of something– Carbon – Usually talking
about CO2e (CO2-eq) not actually just carbon
– Footprint – Total impact
37
Direct vs. indirect emissions
• Direct emissions of an item– Manufacturing process – Transportation of item to retailer
• Indirect emissions – Everything else– Example: offices in the factory use paper
clips made of steel that were mined and have their own carbon footprint
38
Context for numbers
• 1 gram of CO2e would be produced if you burned a pea sized blob of gasoline
• 1 Kilogram (2 lbs) of CO2e would be produced if you burned 2 cups of gasoline
• 1 Ton of CO2e would be produced if you burned 60 gallons of gasoline
39
Context for numbers
• The average American has a carbon footprint of 28 tons CO2e / year
• The global average carbon footprint is ~6 tons CO2e / year / person
42
Some organizations may already have established techniques for
introducing new approaches into their decision making and activities, as
well as effective systems for communication and internal review. Others
may have less well-developed systems for organizational governance or
other aspects of social responsibility.
Approaches into decision making and activities
43
Social responsibility involves the adoption of an integrated approach to
managing an organization's activities and impacts. An organization should
address and monitor the impacts of its decisions and activities on society and
the environment in a way that takes account of both the size of the
organization and its impacts. It may not be possible for an organization to
remedy immediately all negative consequences of its decisions and activities. It
might be necessary to make choices and to set priorities.
Approaches for integrating SR within an organization
44
An organization should look at the core subjects holistically, that is, it
should consider all core subjects and issues, and their interdependence,
rather than concentrating on a single issue. Organizations should be
aware that efforts to address one issue may involve a trade-off with other
issues.
Holistic approach
46
Organizations should adopt an integrated approach that takes into consideration
the direct and indirect economic, social, health and environmental implications of
their decisions and activities.
Integrated approach
47
Due diligence can be a useful approach for an organization in addressing the
issues of social responsibility.
Due diligence approach
48
An organization has much to gain from taking an active approach to ensuring
equal opportunity and respect for all individuals.
Active approach
49
Precautionary approach This is drawn from the Rio Declaration on Environment
and Development and subsequent declarations and agreements , which
advance the concept that where there are threats of serious or irreversible
damage to the environment or human health, lack of full scientific certainty
should not be used as a reason for postponing cost-effective measures to
prevent environmental degradation or damage to human health. When
considering the cost-effectiveness of a measure, an organization should
consider the long-term costs and benefits of that measure, not only the short-
term costs to that organization;
Precautionary approach
50
Life cycle approach The main objectives of a life cycle approach are to reduce
the environmental impacts of products and services as well as to improve their
socio-economic performance throughout their life cycle, that is, from
extraction of raw materials and energy generation, through production and
use, to end-of life disposal or recovery. An organization should focus on
innovations, not only on compliance, and should commit to continuous
improvements in its environmental performance;
Life cycle approach
51
Cleaner production and eco-efficiency These are strategies for satisfying human
needs by using resources more efficiently and by generating less pollution and
waste. An important focus is on making improvements at the source rather
than at the end of a process or activity. Cleaner and safer production and eco-
efficiency approaches include: improving maintenance practices; upgrading or
introducing new technologies or processes; reducing materials and energy use;
using renewable energy; rationalizing the use of water; eliminating or safely
managing toxic and hazardous materials and wastes; and improving product
and service design;
Eco-efficiency approach
52
Product-service system approach This can be used to shift the focus of market
interactions from selling or providing products (that is, transfer of ownership
through one-time sale or lease/rental) to selling or providing a system of
products and services that jointly fulfill customer needs (by a variety of service
and delivery mechanisms). Product-service systems include product lease,
product renting or sharing, product pooling and pay-for-service. Such systems
can reduce material use, decouple revenues from material flows, and involve
stakeholders in promoting extended producer responsibility through the life
cycle of the product and accompanying service
Product–service system approach
53
• Consider itself as part of, and not separate from, the community in
approaching community involvement and development;
• Recognize and have due regard for the rights of community members to
make decisions in relation to their community and thereby pursue, in the
manner they choose, ways of maximizing their resources and
opportunities;
Approaches to community involvement
54
In identifying opportunities for social investment, an organization should align
its contribution with the needs and priorities of the communities in which it
operates, taking into account priorities set by local and national
policymakers. Information sharing, consultation and negotiation are useful
tools for a participative approach to identifying and implementing social
investments.
Participative approach
55
The existing values and culture of an organization can have a significant effect
on the ease and pace with which social responsibility can be fully integrated
throughout the organization. For some organizations, where
the values and culture are already closely aligned to those of social
responsibility, the process of integration may be quite straightforward. In
others, some parts of the organization may not recognize the benefits of
social responsibility and may be resistant to change. Systematic efforts over an
extended period may be involved in integrating a socially responsible approach
in these areas.
Socially responsible approach
56
Through dialogue with its stakeholders, an organization can benefit from
receiving and exchanging direct information about stakeholders' views. An
organization should seek dialogue with its stakeholders to secure
verification of reported information by stakeholders, if this approach to
verification is used; and identify best practice.
Approaches for verification
57
Such comparisons may be focused on actions related to specific core subjects or
on broader approaches to integrating social responsibility throughout the
organization.
As social responsibility is based on values, application of principles of social
responsibility and attitudes, monitoring can involve more subjective approaches
such as interviewing, observing and other techniques for evaluating behavior
and commitments.
Subjective approach
63
Techniques
1. Social Auditing
2. ISO 19011 : 2011 Audit
3. Key Performance Indicators ( KPIs)
4. Typical KPIs
5. Statistical Techniques in Continuous Social Responsibility Improvement
64
Social Audit is based on the principle that democratic local governance should
be carried out, as far as possible, with the consent and understanding of all
concerned. It is thus a process and not an event.
What is a social audit?
A social audit is a way of measuring, understanding, reporting and ultimately
improving an organization’s social and ethical performance. A social audit helps
to narrow gaps between vision/goal and reality, between efficiency and
effectiveness. It is a technique to understand, measure, verify, report on and to
improve the social performance of the organization.
Techniques - Social Auditing
65
Social auditing is taken up for the purpose of enhancing local governance,
particularly for strengthening accountability and transparency in local bodies.
The key difference between development and social audit is that a social
audit focuses on the neglected issue of social impacts, while a development
audit has a broader focus including environment and economic issues, such
as the efficiency of a project or program.
Techniques - Social Auditing
66
Objectives of social audit :
1. Assessing the physical and financial gaps between needs and resources
available for local development.
2. Creating awareness among beneficiaries and providers of local social and
productive services.
3. Increasing efficacy and effectiveness of local development programs.
4. Scrutiny of various policy decisions, keeping in view stakeholder interests
and priorities, particularly of rural poor.
5. Estimation of the opportunity cost for stakeholders of not getting timely
access to public services.
Techniques - Social Auditing
67
Advantages of social audit
a) Trains the community on participatory local planning.
b) Encourages local democracy.
c) Encourages community participation.
d) Benefits disadvantaged groups.
e) Promotes collective decision making and sharing responsibilities.
f) Develops human resources and social capital
Techniques - Social Auditing
68
To be effective, the social auditor must have the right to:
1) Seek clarifications from the implementing agency
2) Consider and scrutinize existing schemes and local activities of the
agency
3) Access registers and documents relating to all development activities
undertaken by the implementing agency or by any other government
department.
Techniques - Social Auditing
70
Dashboard
Techniques - KPIs
Dashboard designers must understand:
•The end user’s needs
•How the dashboard will be used
•How the measurements will be made
•How often the measurements will be made
•How the dashboard will be updated
•How to maintain uniformity in design, if possible
71
Understanding Dashboard
Techniques - KPIs
• Dashboards are communication tools to provide information at a glance
• Dashboard design begins with an understanding of the user’s needs
• Dashboard design can be done with simple displays
• Dashboard design can be done with simple tools
• Use the fewest metrics necessary
• Determine the fewest metrics that can be retained in memory
• Using too many colors or sophisticated, complex metaphors leads to distractions
• Limit metrics to a single screen
• Perfection in design can never be achieved
• Asking for assistance with the design effort is not an embarrassment
• Monitor the health and user friendliness of the dashboard
72
Monitoring & Measurement of Social Performance :
Techniques - KPIs
General Rule If it cannot be measured, then it cannot be managed .
73
Metric Measurements
Techniques - KPIs
• Metric measurements can be recorded as:
• Numbers
•Percentages
•Dollars
•Counts
•Ratings (good, bad or neutral)
•Qualitative versus quantitative
75
Trends in agro-food International Standards
•Increased food safety awareness
•Focus on health and diet
•Social and environmental concerns
•Authenticity of origin
•Product differentiation
•Quality control
•Traceability (field-to-fork)
•Third-party certifications or auditing
•Larger number of standards
•More complex standards
•More stringent food safety standards
76
Agro-food Standards as simplified typology
• Mandatory
– Import regulation (i.e. food safety, geographic indications, labelling)
• Voluntary
– International standards (ISO, Codex, SA8000)
– Labels (organic, fair trade, eco-labels)
– Model codes of conduct (EUREP-GAP, ETI)
• Private
– Defined and owned by a company (supermarket chain quality standards)
• Considerable overlaps
77
Agro-food Standards as simplified typology
• Standards are mandatory when they are set by governments in the form of
regulation. These may affect trade flows by placing food safety
requirements, testing, certification and labelling procedures on imported
agro-foods
• Voluntary standards arise from a formal coordinated process in which key
participants in a market or sector seek consensus.
• The International Standardization Organisation (ISO) has established over
7,000 voluntary standards. Codex Alimentarius and SA8000 (social
accountability for auditing and certifying labour practices) are other
examples of these
78
Standards as a ’trade passport
• Standards define whether a good is ’fit for trade’
• Key issues for developing countries:
– Who defines standards?
– Who decides the content?
– Who sets the measurement methods?
– Who pays for the costs of compliance, monitoring and verification?
– Who captures the benefits?
81
Industry standards:
• Manage risks relating to product safety & quality
• Enable comparisons of prices between suppliers
• Reduce transaction costs
• Strengthen consumer confidence & loyalty
• Branding & labels can differentiate products
• Certification informs consumers about supply chain practices
• Standards ensures consumer protection & provides both incentives and
sanctions for improvement of product quality & safety.
Industry Standards & Quality Requirements
82
Unlikely poorer countries can keep up & benefit from advances in product
specification & certification requirements, without access to sophisticated
technologies, efficient & low-cost communication & information systems,
adequate infrastructure & supportive institutions & services. Need to initiate
dialog on standards on:
• Strengthen compliance & certification & reduce costs
• Reform of institutions & legal frameworks
• Investments in physical facilities, labs, equipment, infra
• Support institutions responsible for food safety, control of fraud,
animal & plant health
Industry Standards & Quality Requirements
83
Inspection”One stop shop”
BRCTesting
ISO 9000
HACCP
IFS
ISO 22000
NO
N-G
MO
GlobalGAP
Program Management
•Security
•Social Accountability
•Environmental
HALAL
ORG
ANIC
What Should the Industry Expect?
84
Enhancing Food Quality & Safety
Market and Legal compliance
Efficiency
Profitable
Integrated Food Quality and Safety
Systems
85
Technical Working Groups
86
Foundation in Science
GFSI RecognisedSchemes
ISO StandardsISO 22000
Codex Alimentarius StandardsHACCP Principles
Legislation
Requirements
Principles
Standards
Schemes
Supplementary Codes
89
Putting Responsibility Management into Practice – Corporate Strategy
Top management need to take a long-term perspective, make a public
commitment, communicate the commitment, be a role model for the
company’s values, integrate vision and values into strategies and practices
and support changes.
Responsibility Management Approaches must be both systemic and holistic
of they are to be effective.
ISO 26000 was designed as a holistic approach involving the
interdependence of seven factors: community involvement and
development, human rights, labor practices, the environment, consumer
issues, fair operating practices and organizational governance .
91
Communication on Social Responsibility
Communication is critical to many different functions in social responsibility including:• Raising awareness both within and outside the organization on its strategies
and objectives, plans, performance and challenges for social responsibility• Demonstrating respect for the social responsibility principles• Helping to engage and create dialogue with stakeholders• Addressing legal and other requirements for the disclosure of information
related to social responsibility• Showing how the organization is meeting its commitments on social
responsibility and responding to the Interests of stakeholders and expectations of society in general
• Providing information about the impacts of the organization's activities, products and services, including Details of how the impacts change over time
The Role of Communication in Social Responsibility :
92
Communication on Social Responsibility
Information relating to social responsibility should be:
• Complete : information should address all significant activities and impacts
related to social responsibility.
• Understandable : information should be provided with regard for the
knowledge and the cultural, social, educational and economic background
of those who will be involved in the communication.
• Responsive: information should be responsive to stakeholder interests.
• Accurate : information should be factually correct and should provide
sufficient detail to be useful and appropriate for its purpose.
Characteristics of information relating to social responsibility :
93
Communication on Social Responsibility
Information relating to social responsibility should be:• Balanced : information should be balanced and fair and should not
omit relevant negative information concerning the impacts of an
organization's activities.• Timely :out of date information can be misleading. Where information
describes activities during a specific period of time, identification of
the period of time covered will allow stakeholders to compare the
performance of the organization with its earlier performance and with
the performance of other organizations • Accessible : information on specific issues should be available to the
stakeholders concerned.
Characteristics of information relating to social responsibility :
94
Communication on Social Responsibility
There are many different types of communication related to social
responsibility. Some examples include:
• Meetings or conversations with stakeholders.
• Communication with stakeholders on specific issues or projects of
social responsibility.
• Communication between the organization's management and
employees or members to raise general awareness about and support
for social responsibility and related activities. Such communication is
generally most effective when it involves dialogue.
• Team activities focused on integration of social responsibility
throughout the organization.
Types of communication on social responsibility :
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Communication on Social Responsibility
There are many different types of communication related to social
responsibility. Some examples include:
• Communication with stakeholders concerning claims about the social
responsibility related to the organization's activities. These claims can
be verified through internal review and assurance.
• Communication with suppliers about procurement requirements
related to social responsibility;
• Communication to the public about emergencies that have
consequences for social responsibility.
Types of communication on social responsibility :
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Communication on Social Responsibility
There are many different methods and media that may be used for
communication. These include meetings, public events, forums,
reports, newsletters, magazines, posters, advertising, letters, voicemail,
live performance, video, websites, podcasts (website audio broadcast),
blogs (website discussion forums), product inserts and labels.
It is also possible to communicate through the media using press
releases, interviews, editorials and articles.
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Sustainability Reporting
The Purpose of a Sustainability Report:
Sustainability reporting is the practice of measuring, disclosing, and being
accountable to internal and external stakeholders for organizational
performance towards the goal of sustainable development. ‘Sustainability
reporting’ is a broad term considered synonymous with others used to
describe reporting on economic, environmental, and social impacts (e.g.,
triple bottom line, corporate responsibility reporting, etc.).
Overview of Sustainability Reporting
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Reports can be used for the following purposes, among others:
• Benchmarking and assessing sustainability performance with respect to
laws, norms, codes, performance standards, and voluntary initiatives;
• Demonstrating how the organization influences and is influenced by
expectations about sustainable development; and
• Comparing performance within an organization and between different
organizations over time
Overview of Sustainability Reporting Cont.
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Orientation to the GRI Reporting Framework:
All GRI Reporting Framework documents are developed using a process that
seeks consensus through dialogue between stakeholders from business, the
investor community, Labor, civil society, accounting, academia, and others.
All Reporting Framework documents are subject to testing and continuous
improvement
Overview of Sustainability Reporting Cont.
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Orientation to the GRI Reporting Framework:
The GRI Reporting Framework is intended to serve as a generally accepted
framework for reporting on an organization’s economic, environmental, and
social performance. It is designed for use by organizations of any size,
sector, or location. It takes into account the practical considerations faced
by a diverse range of organizations – from small enterprises to those with
extensive and geographically dispersed operations. The GRI Reporting
Framework contains general and sector-specific content that has been
agreed by a wide range of stakeholders around the world to be generally
applicable for reporting an organization’s sustainability performance
Overview of Sustainability Reporting Cont.
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Orientation to the GRI Reporting Framework:
The Sustainability Reporting Guidelines (the Guidelines) consist of Principles
for defining report content and ensuring the quality of reported
information. It also includes Standard Disclosures made up of Performance
Indicators and other disclosure items, as well as guidance on specific
technical topics in reporting.
Overview of Sustainability Reporting Cont.
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• This section provides Reporting Principles and Reporting Guidance
regarding defining report content, ensuring the quality of reported
information, and setting the Report Boundary.
• Reporting Guidance describes actions that can be taken, or options that
the reporting organization can consider when making decisions on what
to report on, and generally helps interpret or govern the use of the GRI
Reporting Framework. Guidance is provided for defining report content
and setting report Boundary.
Part 1: Defining Report Content, Quality, and Boundary
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In order to ensure a balanced and reasonable presentation of the
organization’s performance, a determination must be made about
what content the report should cover. This determination should be
made by considering both the organization’s purpose and experience,
and the reasonable expectations and interests of the organization’s
stakeholders. Both are important reference points when deciding what
to include in the report.
Part 1: Defining Report Content Cont.
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• The following approach governs the use of the GRI Reporting
Framework in preparing sustainability reports.
• Identify the topics and related Indicators that are relevant, and
therefore might be appropriate to report, by undergoing an
iterative process using the Principles of materiality, stakeholder
inclusiveness, sustainability context, and guidance on setting the
Report Boundary.
Reporting Guidance for Defining Content:
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• When identifying topics, consider the relevance of all Indicator Aspects
identified in the GRI Guidelines and applicable Sector Supplements. Also
consider other topics, if any, that are relevant to report.
• From the set of relevant topics and Indicators identified, use the tests listed for
each Principle to assess which topics and Indicators are material, and
therefore should be reported.
Reporting Guidance for Defining Content:
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• Use the Principles to prioritize selected topics and decide which will be
emphasized.
• The specific methods or processes used for assessing materiality should:
• Differ for, and can be defined by, each organization;
• Always take into account the guidance and tests found in the GRI
Reporting Principles; and
• Be disclosed.
Reporting Guidance for Defining Content:
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Each of the Reporting Principles consists of a definition, an explanation, and
a set of tests to guide the use of the Principles. The tests are intended to
serve as tools for self-diagnosis, but not as specific Disclosure items to report
against. The Principles should be used together with the guidance on
defining content.
Materiality:
Definition: The information in a report should cover topics and Indicators
that reflect the organization’s significant economic, environmental, and social
impacts, or that would substantively influence the assessments and decisions
of stakeholders
Reporting Principles for Defining Content:
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Explanation: Organizations are faced with a wide range of topics on which
they could report. Relevant topics and Indicators are those that may
reasonably be considered important for reflecting the organization’s
economic, environmental, and social impacts, or influencing the decisions of
stakeholders, and, therefore, potentially merit inclusion in the report.
Materiality is the threshold at which an issue or Indicator becomes
sufficiently important that it should be reported. Beyond this threshold, not
all material topics will be of equal importance and the emphasis within a
report should reflect the relative priority of these material topics and
Indicators.
Reporting Principles for Defining Content:
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• This section specifies the base content that should appear in a
sustainability report, subject to the guidance on determining
content in Part 1 of the Guidelines.
• There are three different types of disclosures contained in this
section.
• Strategy and Profile: Disclosures that set the overall context for
understanding organizational performance such as its strategy,
profile, and governance.
Part 2: Standard Disclosures
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• Management Approach: Disclosures that cover how an
organization addresses a given set of topics in order to provide
context for understanding performance in a specific area.
• Performance Indicators: Indicators that elicit comparable
information on the economic, environmental, and social
performance of the organization.
• Reporting organizations are encouraged to follow this structure in
compiling their reports, however, other formats may be chosen
Part 2: Standard Disclosures Cont.
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This section is intended to provide a high-level, strategic view of the
organization’s relationship to sustainability in order to provide
context for subsequent and more detailed reporting against other
sections of the Guidelines. It may draw on information provided in
other parts of the report, but this section is intended to produce
insight on strategic topics rather than simply summarize the
contents of the report.
ProfileStrategy and Analysis
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• Name of the organization.
• Primary brands, products, and/or services.
• The reporting organization should indicate the nature of its role in
providing these products and services, and the degree to which it
utilizes outsourcing.
• Operational structure of the organization, including main divisions,
operating companies, subsidiaries, and joint ventures.
• Location of organization’s headquarters.
Organizational Profile
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• Report Profile
– Reporting period (e.g., fiscal/calendar year) for information
provided.
– Date of most recent previous report (if any).
– Reporting cycle (annual, biennial, etc.).
– Contact point for questions regarding the report or its contents
Report Parameters
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Data Gathering: Feasibility Assessment
The process of defining report content will result in a set of topics and
Indicators on which the organization should report. However, practical
challenges such as the availability of data, the cost of gathering it, the
confidentiality of information, privacy or other legal concerns, the
reliability of available information, and other factors, may result in a
legitimate decision not to disclose certain information. Where material
information is omitted, the report should clearly indicate this and the
reasons why.
General Reporting Notes
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Data Aggregation and DisaggregationReporting organizations will need to determine the level of aggregation at which to present information. This requires balancing the effort required against the added meaningfulness of information reported on a disaggregated basis (e.g., country or site). Aggregation of information can result in the loss of a significant amount of meaning, and can also fail to highlight particularly strong or poor performance in specific areas. On the other hand, unnecessary disaggregation of data can affect the ease of understanding the information. Reporting organizations should disaggregate information to an appropriate level using the principles and the guidance in the reporting Indicators. Disaggregation may vary by Indicator, but will generally provide more insight than a single, aggregated figure.
General Reporting Notes Cont.
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Report Form and Frequency: Definition of a Sustainability Report
A sustainability report refers to a single, consolidated disclosure that provides a
reasonable and balanced presentation of performance over a fixed time period.
Stakeholders should be able to directly access all of the report information from
a single location, such as a GRI content index. Other publications should not be
referenced as the information source for a GRI Standard Disclosure Item (ex., a
Performance Indicator) unless the means for a stakeholder to directly access the
information is provided (e.g., a link to a specific web page or the page number of
the corresponding publication). There is no minimum length for a report using
the GRI Framework as long as the organization has properly applied the
Guidelines and Framework documents it has chosen to use.
General Reporting Notes
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Medium of ReportingElectronic (e.g., CD-ROM) or web-based reporting and paper reports are appropriate media for reporting. Organizations may choose to use a combination of web and paper-based reports or use only one medium. For example, an organization may choose to provide a detailed report on their website and provide an executive summary including their strategy and analysis and performance information in paper form. The choice will likely depend on the organization’s decisions on its reporting period, its plans for updating content, the likely users of the report, and other practical factors such as its distribution strategy. At least one medium (web or paper) should provide users with access to the complete set of information for the reporting period.
General Reporting Notes
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Frequency of Reporting
Organizations should define a consistent and periodic cycle for issuing a report. For many organizations, this will be an annual cycle, although some organizations choose to report biannually. An organization may choose to update information on a regular basis between the issuing of consolidated accounts of performance. This has advantages in terms of providing stakeholders with more immediate access to information, but has disadvantages in terms of comparability of information. However, organizations should still maintain a predictable cycle in which all of the information that is reported covers a specific time period.
General Reporting Notes
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Updating Report ContentWhen preparing a new report, an organization may identify areas of information that have not changed since the prior report (e.g., a policy that has not been amended). The organization may choose to only update the topics and Indicators that have changed and to re-publish the Disclosures that have not changed. For example, an organization may choose to reproduce the information on policies that have not changed and only update its Performance Indicators. The flexibility to take such an approach will depend in large part on the organization’s choice of reporting medium. Topics such as strategy and analysis and Performance Indicators are likely to show changes each reporting period, while other topics such as organizational profile or governance may change at a slower pace. Regardless of the strategy used, the full set of applicable information for the reporting period should be accessible in a single location (either a paper or web-based document).
General Reporting Notes
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Conformity, Conformance or Compliance
Do you say conformity or compliance? Is it okay to use conformance instead of
conformity? Does it matter?• The ISO 9000:2000 Fundamentals and Vocabulary standard defines
conformity
as the fulfillment of a requirement. A note says conformance is synonymous,
but deprecated (meaning use of that term is considered obsolete).
• ISO 9000 defines nonconformity as the non-fulfillment of a requirement. It
doesn’t define compliance.
• QS-9000 uses both conformity (process) and conformance (product).
However, ISO 9000 uses conformity as fulfilling either process or product
requirements.
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Conformity, Conformance or Compliance
• QS-9000 defines nonconformity as a “process” which does not conform
to a quality system requirement. It makes the distinction that
a nonconformance is a “product or material” which does not conform
to customer requirements or specifications.
• ISO/TS 16949:2002 (the replacement for QS-9000 by 2006) uses the
ISO 9000:2000 definitions for conformity and nonconformity. It
dropped the QS-9000 use of nonconformance.
• ISO/IEC Guide 2:1996 defines conformity as “fulfillment by a product,
process, or service of specified requirements”.
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Certification
• Certification is known in some countries as registration.
• It means that an independent, external body has audited an organization's
management system and verified that it conforms to the requirements specified in
the standard (ISO 9001 ,ISO 14001, ISO 22000 & ISO-----).
• ISO does not carry out certification and does not issue or approve certificates,
• Certification is not a requirement of ISO 9001, ISO 14001, ISO 22000 & ISO----.
• The organization can implement and benefit from an ISO 9001 or ISO 14001 system
without having it certified.
• The organization can implement them for the internal benefits without spending
money on a certification program.
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Third-Party Certification
• A tool allowing producers to enter a recognized market using an
established umbrella program or label
• Certified products provide consumer assurance that products meet
certain “extra-sensory” or production/process attributes
• Third-party certification implies that the certifying party does not
directly benefit from sale of the goods.
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Branding vs. Certification
Branding
“A name, term, design, symbol, or
any other feature that identifies one
seller’s good or service as distinct
from those of other sellers.”
Certification
“To confirm formally as true, accurate, or
genuine. To guarantee as meeting a
standard.”
Nutritious, Safe, AffordableLabel may display one or both of these items
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Functions of Third-Party Certification
1. Standard Setting
– Specific quality levels, well-defined criteria and terminology
2. Testing/Inspection
– Objective verification of production practices, record-keeping
requirements, quality standards, etc.
3. Provide Labels to Certified Producers
4. Enforcement
– Continued testing & inspection
– Fines/penalties for fraud
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Types of Certifying Agencies
• International Bodies
• Government Agencies
• Non-Government Organizations (NGOs)
• Private Companies
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Benefit of Certificate
Benefits:
• Meet the requirements and conditions on the regional and international level
for approval as a supplier in relation to the global food chain and market share.
• Show commitment to risk management related to food safety
• Show and reflect commitment to customer satisfaction for food products
• Achieve internal efficiency by reducing errors and waste of resources , which
leads to a sustainable improvement
• Improve the stability of prices of food products
• lead to increase the size of the company's business and enter new markets and
gain a larger
• Improve the image of the entity
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