Contents
Preface
Background Information
What is ISO 26000 and who is it for?
How does ISO 26000 encourage sustainable development?
What are the opportunities for early implementers?
Key Elements of ISO 26000
Implementation Workbook
- A. Paint a portrait of your business
- B. Evaluate your situation for each of the ISO 26000 seven core subjects
- Table 1 Relevance of core subjects for our business
- Table 2 CSR programs and activities already established in our business
- C. Public reporting
- D. Engaging your stakeholders
- Table 3 Stakeholder and core subject worksheet
- E. Plans for improvement
- F. Claiming credit for your use of ISO 26000
The Seven Core Subjects: Definition, Principles and Action Suggestions
Note
This handbook has been prepared by ECOLOGIA as an independent project, to encourage adoption and implementation of ISO 26000. We have based it on the Final Draft International Standard, and on all the information available to us as Expert Delegates. ECOLOGIA participated in the ISO 26000 Working Group on Social Responsibility for five years, from its first plenary session in 2005 to the final official vote in September 2010.
This handbook is not in any way intended to replace the entire ISO 26000 document. For more information about ISO and ISO 26000, see http://www.iso.org/sr For more information about ECOLOGIA’s work in the process of creating this standard, see http://www.ecologia.org/isosr/index.html To purchase the complete official ISO 26000 document (100 pages), you can contact your National Standards Body. ISO 26000 will be available in many languages.
Randy Kritkausky and Carolyn Schmidt
ECOLOGIA
PO Box 268, Middlebury Vermont 05753 USA
Tel. +1-802-623-8075
E-mail: ecologia@ecologia.org
Website: www.ecologia.org
Copyright © 2010, ECOLOGIA
Use and Licensing Information
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You are free to share - to copy, distribute and transmit this Handbook - under the following conditions:
Attribution: you must attribute this Handbook to ECOLOGIA, including our name and website address (www.ecologia.org)
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Waiver: any of these conditions can be waived (set aside) if you get permission from ECOLOGIA. Please contact us with any requests.
Preface to Version 1
This is the first version of ECOLOGIA’s handbook for implementers of ISO 26000, designed for use by small and medium sized enterprises. Your pioneering efforts will model the sustainable development practices that social responsibility can bring to a business. ISO 26000 carries within it the high hopes and expectations of its creators and of future generations who depend on us to pass on the natural, social and economic resources that we have inherited or created.
BACKGROUND INFORMATION
What is ISO 26000, and who is it for?
For many successful businesspeople, being socially responsible is just a part of who they are and why they are in business: to provide useful products and services, to provide jobs and development opportunities for their communities, to make the world a better place. In many countries, these “socially responsible entrepreneurs” have been quietly making a difference by acting on their values and principles, and inspiring others. They have the spirit of social responsibility already.
However, in many sectors and many parts of the world, people and businesses lack the spirit or understanding of being responsible, or they lack the knowledge or incentive to realize the importance of their actions for the well-being and very survival of other people and the environment. ISO 26000 is a response to the urgent need for all people, from all parts of the world, to become more motivated to have a positive impact on those around them, through the way they do business and live their lives.
ISO 26000 is a guidance standard on social responsibility designed for use by any organization. It can be used by business leaders to plan and implement actions to improve their sustainability – economically, socially, and environmentally.
ISO 26000 was created by a diverse group of experts, representing many different countries, stakeholder groups , and points of view. Work began in 2005 and was completed in 2010. Creation of the standard was organized by the International Standardization Organization , ISO, based in Geneva Switzerland. Since 1947 ISO has developed over 17,000 standards to encourage world trade and quality production. Previous well-known ISO standards include ISO 9000 (quality control) and ISO 14000 (environmental management systems). Unlike ISO 9000 and 14000, ISO 26000 is a voluntary guidance standard and is not intended for certification.
How does ISO 26000 encourage sustainable development?
Sustainable development means growth and changes that work to improve human conditions and standards of living, while protecting our shared environment – the life-sustaining natural world. ISO 26000 provides information and decision-making tools for its users to identify ways they can improve their operations to contribute to improving life for the people, organizations and surroundings they work and live in.
ISO 26000 is meant for every organization, of every size, in every part of the world. It is designed to be flexible, and to provide leaders with guidelines and choices. The main requirement for users is that they genuinely should care about their contributions to their communities – they should want to develop and maintain a corporate culture of respect for others and attention to being environmentally, socially and economically responsible in their actions and decisions.
What are the opportunities for early implementers?
ISO 26000 provides broad guidance, but does not offer specific instructions. Businesses which take the step to implement ISO 26000 themselves over the next several years (2010 – 2012) will have the opportunities to experiment, to see what works for them and what doesn’t, and what could be improved. In the spirit of “continuous improvement”, these first implementers of ISO 26000 will have a head start on developing their corporate social responsibility programs, being models for others, and shaping a more sustainable future for their communities and the world.
ECOLOGIA has prepared this handbook especially for small and medium sized businesses who want to be among the first implementers of ISO 26000. The process will assist you in portraying and reporting on your business strengths. It can alert you to problem areas. It will encourage you to identify and communicate with your stakeholders, and will help you to choose your priorities. There are several ways you can benefit from this process:
1) You may generate more effective promotion and marketing plans, focusing on the value-added social responsibility components of your business;
2) Through dialogue with your stakeholders, you can improve relationships and also find useful guidance for your business decisions;
3) By reporting on your current situation in each of the core subject areas, you can earn trust and establish yourself as a business which is committed to social responsibility.
Key elements of ISO 26000: stakeholders, core subjects, and reporting
Stakeholders are those people and groups that are affected by the actions of your business. These can include workers, suppliers, community residents, consumers, and investors. Communicating with them is one of the best ways a business can find out where it is doing a good job, and where it could improve.
Core Subjects - ISO 26000 identifies seven core subjects for socially responsible activities. These are all relevant to every business and organization, no matter its size or its sector. Implementers of ISO 26000 should evaluate their actions in each of the core subjects, to identify what they are doing in their current practices, and to set priorities for improvements.
The seven core subjects are:
- organizational governance – practicing accountability and transparency at all levels of your organization; using leadership to create an organizational culture which uses core values of social responsibility when making business decisions
- human rights – treating all individuals with respect; making special efforts to help people from vulnerable groups
- labour practices – providing just, safe and favorable conditions for workers
- the environment – identifying and improving environmental impacts of your operations, including resource use and waste disposal
- fair operating practices – respecting the law, practicing accountability and fairness in your dealings with other businesses, including your suppliers
- consumer issues – providing healthy and safe products, giving accurate information, and promoting sustainable consumption
- community involvement and development – getting involved in the betterment of the local communities that your organization operates in; being a good neighbor
Reporting This is a valuable tool for engaging stakeholders and for promoting your achievements. Early implementers of ISO 26000 should report on activities and decisions in as many of the seven core subjects as they can. If they do not address a core subject, they need to: (1) explain why they omitted it, and (2) include it in a plan for consideration in the future.
Third-party involvement or “attestations” can strengthen your reports and make your social responsibility claims more credible to reviewers and to the public.
While ISO 26000 is not designed for certification, it provides a framework for implementers to use various third party verification mechanisms, including formal certification to other standards, to enhance the credibility of particular claims made within the ISO 26000 reporting framework. For example, quality claims could be backed up by ISO 9000 certification; food safety claims by regional or national organic certification.
IMPLEMENTATION WORKBOOK FOR ISO 26000
The next six pages (pages 6 – 12) should be completed by your business’s management team, working as a group. It will not be useful or effective if it is filled out by one individual. For ISO 26000 to work, it must be a team effort.
A. First, paint a portrait of your business as it is right now.
1. Describe your business – what it does, what it produces and sells, etc, who it employs, and where it is located.
2. Identify your key business partners – suppliers, customers, etc.
3. Describe your current corporate social responsibility programs, if any, in your own words.
4. Does social responsibility already play a role in your decisions and actions? If so, explain in your own words, how and why it is part of your business.
B. Evaluate your situation for each of the ISO 26000 seven core subjects. You will identify what you are already doing, and examine suggestions for future actions.
1. Learn about the seven core subjects. (Pages 13 - 19 of this handbook provide more information on each of these core subjects).
2. How important do you think each of the seven core subjects is to your business and its social responsibility? Fill in Table 1, “Relevance of Core Subjects for Our Business.”
Table 1: Relevance of Core Subjects for Our Business
Core Subjects | Highly Important | Important | Not very important |
Organizational governance |
Practicing accountability and transparency at all levels; leadership promotes responsibility |
Human rights |
Treating all individuals with respect; making efforts to help members of vulnerable groups |
Labour practices |
Providing just, safe and favorable conditions to workers |
Environment |
Identifying and improving environmental impacts of your operations, including resource use and waste disposal |
Fair operating practices |
Respecting the law; treating all partners fairly, including your suppliers |
Consumer issues |
Providing healthy and safe products; giving accurate information on their use |
Community involvement and development |
Being involved as a good neighbor in your local community |
Filling out Table 1 should have helped your entire management team to be more comfortable with the relevance of the seven core subjects for your business. If you have not achieved a consensus on these topics, take time to discuss this further, before moving on to Table 2.
3. Next, in Table 2 ,write what you are already doing for each of the ISO 26000 core subjects.
Core Subject | CSR programs and activities already established
| IMPORTANT: These can be formal or informal. |
Organizational Governance | |
Human rights | |
Labour practices | |
Environment | |
Fair operating practices | |
Consumer issues | |
Community involvement and development | |
4. With your management team, read pages 13-19, “ISO 26000-The Seven Core Subjects for Social Responsibility”. Pay particular attention to the action suggestions listed under each subject.
1. Circle action suggestions that you are already doing. ISO 26000 has helped you to identify socially responsible actions that you should take credit for. Check to be sure that you have listed these in Table 2 on page 8, and add in to Table 2 any actions that you had missed.
2. Identify and highlight suggestions that you do not practice at this time, but might want to include in plans for the future. Be realistic about what you can accomplish with your resources.
3. Leave unmarked, or cross out, any action suggestions which do not apply to you or which you feel you cannot implement at this time.
You should use the information in Table 1 “Relevance of Core Subjects for Our Business” and Table 2 “ CSR Programs and Activities Already Established in Our Business” to begin outlining your own internal report about your social responsibility actions, and also to begin anticipating how your stakeholders and the public will engage with you. That is why this internal assessment step comes before the following sections, on public reporting and stakeholder engagement.
C. Public reporting
1.We recommend that your management team begin the public phase of your ISO 26000 implementation with a report that honestly and accurately describes your current situation. This report itself is an act of social responsibility.
2.A primary goal for reporting is to publicly establish your commitment to social responsibility, regardless of existing shortcomings. Keep your report brief, accessible and reader-friendly. Organize your report to include a section on each of the ISO 26000 seven core subjects. Identify the audience(s) for your report – see Table 3.
3.To ensure that your report is credible, we recommend that you involve third parties. This can include informal ‘attestation’ or written comments from different stakeholder groups (including suppliers and customers), reports of audits, and certifications such as Fair Trade, ISO 9001, Green Food, etc. For example, ECOLOGIA may be able to provide attestation for your implementation efforts in the United States and/or in China.
4.To establish your credibility as a business striving to achieve and improve its social responsibility, you and your management team need to discuss problems, not avoid them. The SR report should be an information-sharing and communication effort to reach out to and improve relations with stakeholders. It should not be viewed as primarily an advertising vehicle. If you have public relations or marketing personnel, be sure that they understand the goals of the SR report.
5.In reporting, include plans for improvement in a section such as “the way forward”; in future reports you can discuss your progress. (See Section E for more information on this topic.)
6.As early implementers of ISO 26000, your experience will make you a valuable source of advice for others. Describing how you have used ISO 26000, where it was helpful, where you had problems, will be a contribution to newcomers to this process.
7. At this point in the implementation process you will have completed a public report. It can be used to engage shareholders, investors, customers, stakeholders and the local community. It is important to publish or distribute the report in an accessible manner (online; print copies for those who lack electronic access, etc.)
D. Engaging Your Stakeholders
Stakeholders are people or groups who are affected by the actions of your business. Often they also have the ability to affect you. This is why ISO 26000 emphasizes stakeholder involvement. As an early implementer, you may find that stakeholder engagement is new, challenging, even intimidating. You should proceed with this phase of ISO 26000 in a manner that is comfortable for your management team. Do not attempt to engage all stakeholders on all issues at the beginning. Prioritize core subjects and related stakeholders, focusing on those where you and stakeholders can most realistically move forward together within the limits of your and their resources.
1.Identify your stakeholders for each core subject. Write their names in the boxes of Table 3.
Table 3 “Stakeholder and Core Subject Worksheet”
Stakeholders: Employees/ Workers Purchasers Clients Customers Consumers Owners / Investors Government officials Local / regional community residents
Suppliers / contractors (supply chain)
Organizational governance
Human rights
Labour practices
Environment
Fair operating practices
Consumer issues
Community involvement and development
2. Start with one or two topics and stakeholder groups, and get feedback on your current situation. The goal here is to establish trust and start a dialogue. Engage your stakeholders to work with you to build consensus around your successful corporate social responsibility efforts, and to suggest ways to improve. Explain your viewpoints, and listen to theirs. Use this input to identify areas of action that are important to your stakeholders that you may have underestimated or ignored. Refer to Table 1 “Relevance of Core Subjects for Our Business” and Table 2 “ CSR Programs and Activities Already Established in Our Business.” Begin outlining a plan for improvement (Section E below) and communicate these ideas to your stakeholders; this shows that you are a responsive partner.
E. Plans for Improvement
This is the final step for the first round of implementation of ISO 26000. After you have discussed and reported on what you have already done, you will have many ideas about new ways to build on your achievements, to keep on improving your corporate social responsibility and your “triple bottom line” of positive environmental, social, and economic impacts.
Select one or two of the core subjects to concentrate on, and draw up a two page plan of improvement. This will become part of future reports and stakeholder engagement. Your management team, stakeholders, and attestors can use this to evaluate your commitment to continual progress in implementing principles of social responsibility.
When you draw up a plan of improvement, be sure to keep it realistic, and allocate enough resources (money, time, people with authority within your organization) to make it work.
CONGRATULATIONS!! WHEN YOU HAVE COMPLETED THE STEPS ABOVE (A – E) YOU HAVE BECOME AN IMPLEMENTER OF ISO 26000.
F. Claiming Credit for your Use of ISO 26000
Now that you have begun to implement ISO 26000, you may want to communicate this fact to your customers, people in your supply chain upstream and downstream, local government officials, investors, and other stakeholders. ECOLOGIA thinks that it is important to do this. However, because ISO 26000 is not for certification purposes, ISO is extremely sensitive to any use of the name "ISO 26000" that could imply that an organization or company has been, or needs to be, certified to the standard.
ISO recommends that users say:
“ [your organization’s name] recognizes ISO 26000 as a reference document that provides guidance on social responsibility.”
and /or
“[your organization’s name] has used ISO 26000 as a guide to integrate social responsibility into our values and practices.”
Reference: WWW.iso.org/sr Downloaded October 20, 2010.
We recommend that you claim credit for using ISO 26000, using this wording, in your communications, including:
- brochures, handouts, posters, etc.
- sustainability and CSR reports
- your website
- any written communication with your stakeholders.
ISO 26000 - The Seven Core Subjects for Social Responsibility
Summary of Definitions, Principles, and Action Suggestions
A note about the action suggestions: most apply to all businesses and other organizations, but some will be most appropriate for operations in regions and countries in different stages of development. You decide which action suggestions in each subject will be most useful for your organization.
1. Organizational Governance
Definition and Principles:
Organizational governance refers to the way a business is run. The principles are: accountability (making sure that people who act for the business are held responsible for their actions), transparency (openness in explaining how the business operates, makes decisions, handles money, etc.), ethical conduct (treating others with honesty and fairness), consideration of stakeholders’ interests, and obeying the laws. Following good governance principles will help the business to improve its social, environmental and economic “triple bottom line”. This benefits the business, all of its stakeholders, the natural environment and the community in which the business operates.
Action suggestions:
-
Create and model a company culture where the principles are practiced
- Efficiently use financial, natural and human resources, while ensuring fair representation of historically under-represented groups (including women and racial and ethnic groups) in senior positions in the organization
- Balance the needs of the business and its stakeholders, including immediate needs, and those of future generations
- Establish a permanent two-way communication process between the business and its stakeholders
- Encourage greater participation by employees in decision making on social responsibility issues
- Delegate authority proportionately to the responsibilities assumed by each member or employee of the business
- Keep track of decisions to ensure they are followed through, and to determine responsibilities for the results of the business’ activities, either positive or negative.
2. Human Rights
Definition and Principles
“Human rights” refers to respectful treatment of all individuals, regardless of any of their personal characteristics, just because they are human beings.
Action suggestions
- Find out about, and identify, human rights impacts related to your business activities. (This is known as practicing “due diligence” on the issue.)
- Resolve grievances - Establish fair mechanisms for dealing with human rights grievances if and when they are raised by your employees and other stakeholders.
- Help vulnerable groups
Identify the vulnerable groups in your society, and establish mechanisms (hiring practices, etc.) to ensure that your business doesn’t discriminate against them. Vulnerable groups in a particular society can include women, people with disabilities, children, indigenous peoples, and migrant workers and their families. Other characteristics that can make people vulnerable include race, color, age, marital status and family relationships, language, religion, political or other opinion, national, ethnic or social origin.
- Work to give all people equal opportunities and equal treatment as your employees, customers, business partners, etc.
- Protect yourself and consider human rights impacts if you operate in “risk situations”. Risk situations include:
a) conflict or extreme political instability
b)poverty, drought or natural disasters
c) involvement in extractive activities or other activities that might significantly affect
natural resources (water, forests, land, atmosphere) or disrupt communities
d) operating near communities of indigenous peoples, so that you may alter the natural
environment and land-use practices that they depend on for survival
d) activities that affect or involve children
e) the widespread expectation that you will need to pay bribes and/or break laws in order to
operate (corruption)
f) complex supply chains that involve work performed on an informal basis without legal
protection
For those who are operating under any or all of these conditions, it is important to consider potential impacts on human rights, and to plan to have a positive, not negative, impact on the vulnerable people.
- Respect civil and political rights - Respect individuals’ rights to freedom of opinion and expression, to peaceful assembly and association, to seek and impart information, to due process and a fair hearing before taking disciplinary measures
- Respect economic, social and cultural rights - Respect individuals’ rights to health, education, food and culture. Businesses can identify ways they can act to improve vulnerable people’s access to these.
- Avoid complicity with human rights violations
Complicity means staying silent and benefiting while knowing that abuses are being carried out by others you are doing business with. Avoid complicity by making your best efforts to find out how people are treated by other organizations in your supply chain / value chain. Take measures to prevent cruel, inhuman or degrading treatment and the use of excessive force by those you do business with, or else stop doing business with them.
3. Labour Practices
Definition and Principles
Labour practices refer to fair treatment of all workers, including those who are sub-contracted rather than being regular employees. Labour practices include hiring and promotion of workers; disciplinary and grievance procedures; transfer and relocation of workers; termination of employment; training and skills development; health, safety and industrial hygiene, and any policy or practice affecting conditions at work. Labour practices also include recognition of worker organizations and participation in collective bargaining, including tripartite (business – workers – government) consultation to address social issues related to employment.
Human labour is not a commodity; because workers are human beings, they need protection, and their treatment should not be governed by the same market forces that apply to commodities.
Action suggestions:
-
Recognize that employment relationships involve rights and obligations
Fulfill all legal obligations to workers; eliminate discrimination in hiring and dismissals.
Avoid contracting with partners, suppliers or sub-contractors who use unfair, exploitative or abusive labour practices.
Where operating internationally, give priority to the employment and advancement of nationals of the host country, including sourcing and distributing through local enterprises where practical.
- Provide good conditions of work and social protection
Comply with national laws and regulations; provide decent conditions of work in wages, hours of work, weekly rest holidays, health and safety, and maternity protection.
Pay wages directly to workers.
- Support social dialogue
Social dialogue involves negotiations, consultations and information exchanges between employers and employees. This should involve independently elected worker representatives or trade unions; it can also involve government where broader issues are at stake.
- Promote and maintain health and safety at work
Understand and control the health and safety risks involved in activities.
Have a “safety first” policy; provide safety equipment and training needed for prevention of occupational diseases, accidents, and dealing with emergencies
- Encourage human development
- Provide skills development and career training opportunities;
- Respect the family responsibilities of workers by providing reasonable working hours and policies and facilities (such as child care facilities and parental leave) that can help workers achieve a work-life balance
- Establish joint labour-management programs that promote health and well-being.
4. Environment
Definition and Principles
Since our lives depend on the natural environment, people and organizations have the responsibility to act to reduce damage to the environment, and to improve conditions of air, soil, water, and ecosystems. Businesses should incorporate these four principles when working to improve their environmental impact:
- Environmental responsibility – accept responsibility for the environmental burdens caused by your activities, products and services; act to improve your own performance and that within your sphere of influence
- Precautionary approach – When there are threats of serious damage to the environment or to human health, you should not wait for total certainty before taking measures to avoid or limit the damage; when carrying out human health and environmental risk assessments, it is better to err on the side of caution.
- Environmental risk management – implement programs to assess and reduce environmental risks from activities, products and services, from a life-cycle perspective.
- Polluter pays – each business should bear the cost of pollution caused by its activities, products and services; the business should internalize the cost of pollution (pay for cleaning up its discharge itself, for example, not dump it into the public air or water). There can be many economic and environmental benefits of preventing pollution rather than waiting until damage has been done to human health and to the environment.
Action suggestions:
- Prevent pollution, or reduce emissions of pollutants into the air, water and soil as much as possible
- Use sustainable, renewable resources wherever possible
- Act to limit greenhouse gas emissions, which cause climate change; consider ways to reduce and adapt to the climate change that is already occurring
- Protect and restore the natural environment
- Conserve water in business operations
- Practice life-cycle management – consider all the steps of a manufacturing process, and all the links in the supply chain and value chain right to the end of a product’s life and how it is disposed of; look for ways to make these steps as environmentally friendly as possible
- Look for cleaner and more energy-efficient production techniques
- Use environmentally sound technologies and practices
- Practice environmental procurement – evaluate suppliers of goods and services on whether they also are environmentally friendly
5. Fair Operating Practices
Definition and Principles
Businesses can use their relationships with other businesses to promote positive outcomes. By building good long-term relationships, businesses are most likely to develop reliable partners, and to practice effective social responsibility. Respect for the rule of law, accountability, transparency, and honesty are the key principles to put into action to achieve fair operating practices.
Action suggestions:
- Practice honesty in business dealings
o don’t ask for or accept bribes;
o don’t attempt to break laws through use of political influence
- Promote social responsibility throughout your value chain/ supply chain; and stimulate demand for socially responsible goods and services:
o In procurement and purchasing decisions, use criteria that select socially responsible products and companies;
o examine your value chain/supply chain and be sure that you are paying enough to enable your suppliers to fulfill their own responsibilities;
o promote broader adoption of social responsibility through networks of colleagues;
o treat suppliers and customers/consumers fairly, including prompt payment of bills and prompt attention to problems.
- Respect property rights
o Avoid counterfeiting or piracy;
o pay fair compensation for property you acquire or use;
o conduct investigations to be sure that you have legitimate ownership before you
use or dispose of property.
6. Consumer Issues
Businesses have responsibilities to their consumers, such as truthful advertising and marketing, providing clear and helpful user information, minimizing risks from use of products or services, and providing support services and recall procedures. Stimulating sustainable consumption and respecting consumer rights are aspects of social responsibility. Satisfied consumers will strengthen the reputation of a business.
Action suggestions:
-
Promote sustainable consumption
- Offer consumers socially and environmentally beneficial products and services
- Offer products and services that operate as efficiently as possible, considering the full life
cycle
- Breed animals in a way that respects their physical integrity and avoids cruelty
- Eliminate or minimize negative health and environmental impacts of products and services, such as noise and waste
- Design products so that they can easily be reused , repaired or recycled
- Reduce waste by minimizing packaging material and, if appropriate, offer recycling and disposal services
- Provide consumer service, support and dispute resolution
- Protect consumer privacy when handling personal data
- Implement fair marketing and advertising practices (be honest)
- Provide clear and sufficient information about prices, terms, conditions and costs
- Protect consumers’ health and safety; design and test products to ensure this
- Pay particular attention to the information needs of vulnerable individuals (for example, those with physical or mental disabilities including limited vision or hearing, or poor reading ability)
7. Community involvement and development
All businesses should recognize their long-term interest in the sustainability of the communities in which they operate. Every business is a stakeholder in its community; it depends on the community and also affects its development. By providing employment, all businesses can make an important contribution to reducing poverty and promoting economic development.
Action suggestions:
|