When developing a CSR strategy, global companies must decide whether to follow OECD Guidelines, ISO 26000, or adapt elements from both that align with their goals and values.
Table of Contents
Question
A global corporation is reviewing existing international principles to develop its’ corporate social responsibility strategy. While the OECD Guidelines and ISO 26000 are in general agreement on most issues there are significant differences to consider. Which set of guidelines should the organization follow?
Answer
The organization should adapt from OECD and ISO 26000 those elements that seem most consistent with their own strategic goals and values.
Explanation
The most appropriate approach for the global corporation is to carefully review both the OECD Guidelines for Multinational Enterprises and ISO 26000 Guidance on Social Responsibility, and then adapt the elements from each that are most consistent with the organization’s own strategic objectives, core values, and unique circumstances.
While the OECD Guidelines and ISO 26000 share many similarities and are generally aligned on most corporate social responsibility issues, there are some notable differences between the two sets of standards.
The OECD Guidelines are government-backed recommendations from 38 OECD countries, focusing on responsible business conduct for MNEs. In contrast, ISO 26000 provides voluntary guidance from a non-governmental standards organization, offering best practices and recommendations that can be useful for all types of organizations.
Rather than wholly adopting one set of guidelines over the other, the global corporation would be best served by taking a customized approach – critically evaluating both the OECD Guidelines and ISO 26000, identifying the specific elements from each that make the most sense for the company’s particular CSR strategy, and then adapting those pieces into a cohesive and comprehensive program that supports its overarching business goals and organizational values.
This allows the company to leverage the most relevant and beneficial aspects of these two important sets of international CSR guidelines in a way that is tailored to its unique needs and situation. The key is to ensure the chosen components from the OECD and ISO standards are well-aligned with each other and with the corporation’s strategic objectives.
SHRM Senior Certified Professional (SHRM-SCP) certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the SHRM-SCP exam and earn SHRM-SCP certification.