Social metrics in the process industry: background, theory and development work

Figures & data

Figure 1 Sustainability Index for process industry.

Table 1 Social sustainability within the UN Global Compact, GRI, ISO 26000 and DJSI/SAM.

Global frameworks	Social sustainability components
UN Global Compact	Human rightsPrinciple 1. Businesses should support and respect the protection of internationally proclaimed human rightsPrinciple 2. Make sure that they are not complicit in human rights abusesLabourPrinciple 3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargainingPrinciple 4. The elimination of all forms of forced and compulsory labourPrinciple 5. The effective abolition of child labourPrinciple 6. The elimination of discrimination in respect of employment and occupationAnti-corruptionPrinciple 10. Businesses should work against corruption in all its forms, including extortion and bribery
GRI	Labour practices and decent workPerformance indicator aspects: employment, labour/management relationships, occupational health and safety, training and education, and diversity and equal opportunityHuman rightsPerformance indicator aspects: investment and procurement practices, non-discrimination, freedom of association and collective bargaining, child labour, forced and compulsory labour, security practices and indigenous rightsSocietyPerformance indicator aspects: community, corruption, public policy, anti-competitive behaviour and complianceProduct responsibilityPerformance indicator aspects: customer health and safety, product and service labelling, marketing communications, customer privacy and compliance
ISO 26000	Principles of social responsibilityPrinciples: accountability, transparency, ethical behaviour, respect for stakeholder interests, respect for the rule of law, respect for international norms of behaviour and respect for human rightsCore subjects of social responsibilityCore subjects: organisational governance, human rights, labour practices, the environment, fair operating practices, consumer issues and community involvement and development
SAM Corporate Sustainability Assessment	Social dimensionComponents: social reporting, labour practice indicators and human rights, human capital development, talent attraction and retention, corporate citizenship and philanthropy, and stakeholder engagement

Table 2 Examples of social aspects in corporate sustainability and responsibility reporting.

Corporate sustainability and responsibility reporting

Application of the GRI and the UN Global Compact reporting indexCode of conduct and ISO standardsHigh level of expertise and continuous competency development, occupational safety, employee performance and well-being, and leadership cultureSustainable supply chainEthical principlesEmployee statisticsMonitoring (e.g. sick leave days, training days, and costs and bonuses).Human rights, local community relationships and dialogue with stakeholders

Sources: Ruukki (2012), Outokumpu (2011, 2012) and Outotec (2012).

Table 3 Social sustainability indicators.

Social sustainability indicators	Examples of sub-indicators
Location	Worldwide Governance Indicators
Supply chain	Social risk management covering the whole supply chain of the factory (practices of suppliers, contractors, sub-suppliers and sub-contractors) Factory covered by ISO 26000 and the UN Global Compact
Social innovations	Development of new social sustainability benchmarks or innovations such as principles, standards or practices
Labour practices	Commitment to international standards (e.g. ILO labour standards, ISO 26000, GRI and UN Global Compact) on working conditions Code of conduct
Training, education and competency management	Average hours/days of training and education for all employees/per employee provided per yearSkills management and competency development programme
Reporting	CSR policy and reporting Local crisis/risk communication plan/strategy Local communities
Occupational health and safety	Safety principles and standards covering at least safe practices, safety training, safety audits and continuous monitoring Demonstration of continuous monitoring of improvement in safety and health performance over the last 5 yearsCoverage of occupational health services and continuous monitoring and reporting
Legal aspects	Collective rightsSalary and termination of employmentWorking hours and leavesEmployee rightsYoung employeesCompany liabilities

Table 4 Legal aspects in social sustainability.

Issues	Legislative elements
Collective rights	Right to form labour unionsCollective agreement on terms of employmentRight to strike
Salary and termination of employment	Minimum salaryLength of period of noticeProbationary period
Working hours and leaves	Maximum working hoursOvertime compensationLength of a working weekLength of the annual leave
Employee rights	Anti-discrimination legislationOccupational health serviceMonitoring of industrial safety by authorities
Young employees	Minimum age of employeesEmployment of minors
Company liabilities	Vicarious liabilityLiability insuranceCriminal responsibility of a corporation

Ruukki. 2012. “Corporate Responsibility Report 2012.” Accessed April 11. http://www.ruukki.com/Corporate-responsibility/Corporate-responsibility-report-2012.

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