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There is a growing international trend towards mandatory regulation and an increasing number of codes of conduct and voluntary standards for business to report on their social and environmental impacts.International standards have been created as a response to the market requiring a common standard framework to facilitate trade and technology transfer.Further, environmental disasters present a burgeoning wave of litigation and legal headaches.To date, BP faces 300 lawsuits related to the oil spill.Despite this, it is possible, in the future that in developed countries, activist NGOs are likely to launch a campaign to shame any corporation that is not ISO 26000-compliant.Whether companies will face negative public relations consequences from environmentalists, government officials and organised labour and human rights advocates for failing to adopt ISO 26000 remains to be seen.
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The definition of ‘Social Responsibility’ is: Responsibility of an organisation for the impacts of its decisions and activities on society and the environment, through transparent and ethical behaviour that: Whether dropping’ corporate’ as part of a well known term is going to impact on how organisations use or accept the new definition will be seen over time.
The creation of an international standard providing guidance on SR was seen as a way of mainstreaming the concept, by creating a universal definition.
In light of the 2010 explosion of BP Deepwater Horizon offshore oil rig, the importance of documenting and managing SR practices has become increasingly acute. Not only was the explosion an environmental disaster, but BP also lost its reputation as a good corporate citizen.
BP is a prime example of how SR is of critical importance to an enterprise from both the public perception standpoint and for protecting the interests of investors and other stakeholders.