Chinese National Standards of Social Responsibility

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1 ISO and the Global Social Responsibility Agenda International Conference Chinese National Standards of Social Responsibility Gefei YIN Vice President of China WTO Tribune/Founder of GoldenBee Oct 20, 2015

2 Overview Brief Introduction of CSR Development in China Chinese National SR Standards and ISO Core Content of Chinese National SR Standards

3 Brief Introduction of CSR Development in China History: Four stages of CSR development in China: The CSR origin in China Late 90s-2005 The CSR debate in China The CSR consensus in China -First Year of CSR in China (2006) 2012 The CSR management in China -First year of CSR management in China (2012)

4 Brief Introduction of CSR Development in China State: Five-in-one for Joint Promotion means that government, sector, enterprise, society and international cooperation have formed five forces in promoting CSR development.

5 Brief Introduction of CSR Development in China 1. Government-directed Since 2006, Chinese government has began to promote CSR through various means, including perfecting laws and regulations, and releasing notices, opinions, measures, and guidelines. SASAC Promote CSR management of SOEs MOFCOM Promote Chinese international contractors to perform social responsibility abroad MIIT Promote CSR pilots and CSR in information technology industry MEP Promote corporations to engage in biodiversity SAC Promote the standardization of CSR CNCA Promote certification institutes to release social responsibility report A total of 16 provinces released 30 CSR guidelines.

6 Brief Introduction of CSR Development in China 2. Sector-propelled Release industrial CSR guidelines or initiatives. Since 2006, 43 industry associations have released guides on CSR. 11 have released social responsibility reports. 21 industry associations have built platforms for companies to release reports together. Capacity building. Through CSR trainings, information exchanges, workshops, performance assessment etc., industry associations increase CSR awareness, practices and management for their member companies. CNTAC provided CSR trainings for over 3600 managers of 940 companies and CSR assessment services for 92 backbone enterprises. CBCSD Annual General Meeting 2014 Shanghai Federation of Industrial Economics CSR Training Shandong Province Association For Enterprise Credit And Social Responsibility CSR Assessment

7 Brief Introduction of CSR Development in China 3. Enterprise-implemented Central SOEs All of the 112 Chinese Central SOEs released their CSR reports in 2012 All of them established functional departments in charge of CSR Since 2012, they began to employ CSR management as an important mean to improve business management Foreign-invested enterprises in China The 2014 Excellent CSR Practices of Foreign-Invested Enterprises in China, launched by China Association of Enterprises with Foreign Investment (CAEFI) and China WTO Tribune, showed a 83.6 index value. SMEs According to the data from the Looking for GoldenBee Enterprise held by China WTO Tribune, participating growing enterprise was increasing year by year, from 69.5% in 2007 to 82% in 2013.

8 Brief Introduction of CSR Development in China 4. Society-involved Education and research organization: Since 2009, over 100 Chinese business schools have provided CSR courses for MBA students. NBOs released 764 reports which was accounting for 34.1 % of the total. 43 reports were released by industry associations, accounting for 5.6% of the total. Capital market: 6 social responsibility funds were raised in China. 5. International cooperation Inter-governmental CSR international cooperation project Sino-German CSR Project ( ) Sino-Sweden CSR Project ( present) Sino-Dutch CSR Project ( ) Cooperation and communication among international social responsibility organizations Co-host international forum, workshop, roundtable forums

9 Chinese National SR Standards and ISO On June 2, 2015, China released its national social responsibility standards GB/T Guidance on Social Responsibility, GB/T Guidance on Social Responsibility Reporting GB/T Guidance on Classifying Social Responsibility Performance. Chinese National SR Standard uses Redrafting method in the adoption of ISO and forms three national SR standards. ISO Redrafting Method GB/T GB/T GB/T

10 Chinese National SR Standards and ISO Compilation Principles Remaining the technical content of ISO 26000:2010 unchanged Remain the fundamental structure Continue to use terms and definitions Keep 7 principles Keep 7 core subjects

11 Chinese National SR Standards and ISO Compilation Principles Simplifying the content of ISO 26000:2010 Consolidation. For example, consolidate ISO 26000: , , , , , , Deletion. Delete some informative and descriptive information, for example, Box 4 Understanding complicity, Box 6 The International Bill of Human Rights and the core human rights instruments, Box 7 Child labour, Box 10 Examples of climate change adaptation actions and etc.

12 Chinese National SR Standards and ISO Compilation Principles Adapting to the legal and policy requirements and national conditions of China Replacement. Replace Social dialogue with collective consultation and democratic management to demonstrate the good practices of China s Trade Union. Deletion. Delete ISO 26000: Fair operating practices: Responsible political involvement which is not suitable to the actual needs of CSR in China. Addition. In the issue of Anti-corruption: related actions and expectations, add actively engage and implement related anti-corruption action plan issued by the government authority, support, promote and coordinate with related anticorruption actions to demonstrate the good practices in China s anti-corruption work.

13 Chinese National SR Standards and ISO Compilation Principles More instructive to Chinese organizations Elaborate Social responsibility of SMOs in a separate clause to emphasize their differences with large organizations and set more practical guidance for SMOs practices. ISO 26000:2010 Box 3 ISO and small and medium-sized organizations (SMOs) Small and medium-sized organizations are organizations whose number of employees or size of financial activities fall below certain limits. The size thresholds vary from country to country. For the purpose of this International Standard, SMOs include those very small organizations referred to as micro organizations. GB/T Social responsibility of SMOs Small and medium-sized organizations are organizations whose number of employees or size of financial activities fall below large organizations in the certain industry. For the purpose of this Standard, SMOs include those very small organizations referred to as micro organizations.

14 Chinese National SR Standards and ISO Compilation Principles More adaptive to national conditions of China Replace parts of ISO 26000: Respect for human rights with relevant contents in accordance with the requirements of Chinese Constitution and Laws as well as some Regulations. ISO 26000: Respect for human rights An organization should: respect and, where possible, promote the rights set out in the International Bill of Human Rights; respect the universality of these rights, that is, that they are indivisibly applicable in all countries, cultures and situations; ; in situations where human rights are not protected, take steps to respect human rights and avoid taking advantage of these situations; and in situations where the law or its implementation does not provide for adequate protection of human rights, adhere to the principle of respect for international norms of behaviour (see 4.7). GB/T Respect for human rights An organization should: respect human rights that are stated in Chinese Laws and Regulations, and that stated in the recognized international human rights documents, and promote and protect the rights in accordance with the above law; take human rights as a interdependent and inseparable whole to promote the harmonious development of economic, societal, cultural, civil and political rights,as well as the individual and collective rights. respect the universality of human rights while adhere to the national conditions and reality to respect and promote them.

15 Core Content of Chinese National SR Standards Relationships 1. Guidance on Social Responsibility GB/T (Localization of ISO in China) 2. Guidance on Social Responsibility Reporting GB/T (Disclosure of the application of GB/T 36000) 3. Guidance on Classifying Social Responsibility Performance GB/T (Measurement of the application level of GB/T and provide reference for the reporting)

16 Core Content of Chinese National SR Standards GB/T Guidance on Classifying Social Responsibility Performance Clause 1: Scope Guidance for all types of organizations. Providing a set of uniform and standardized classification framework for facilitating further research and social responsibility performance evaluation and development of its own indicators. Clause 2: Normative reference Clause 3: Terms and definitions Clause 6: Performance classification structure Classification Structure Subjects Level 1 Issues Level 2 Actions and expectations Level 3 Clause 7: Social responsibility performance classification Human rights Labor practices Organizational governance The environment Fair operating practices Consumer issues Community involvement and development Clause 4: General Clause 5: Application Bibliography

17 Core Content of Chinese National SR Standards GB/T Guidance on Classifying Social Responsibility Performance Level 1 Classification (core subjects) Level 2 Classification (issues) Level 3 Classification (actions and expectations) Organizational governance (Z) 1 12 Human rights (R) 3 12 Labour practices (L) 5 45 The environment (H) 4 39 Fair operating practices (G) 4 25 Consumer issues (X) 7 53 Community involvement and Development (S) 7 42 Total

18 Core Content of Chinese National SR Standards GB/T Guidance on Social Responsibility Reporting 5. Basic principles Completeness Objectivity Specification Comparison Comprehension Accessibility 1. Scope 2. Normative Reference Scope Method Time and frequency Release means 6.Report planning Backgroun d Content Social responsibility performance information 3. Terms and definition 4.General Set up group Draft work plan 7. Report compilation Collect information Plan report content Compile and design Release report 8. Improving credibility of social responsibility report Improve the credibility of the activity Comparability Reason not covering certain subject Assurance process With the support of stakeholders Third-party information or data source In accordance criteria

19 中国社会责任国家标准主要特点 THANKS!