Latin American companies pioneer ISO 26000 implementation

by Karina Toledo

Two large Latin American companies, Ecopetrol and Sodimac, are among the first organizations worldwide to pioneer implementation of ISO 26000:2010, Guidance on social responsibility, by aligning their social responsibility (SR) practices with the voluntary guidance provided in the new International Standard.

Ecopetrol is Colombia's largest company, with some 6 700 employees, 24 000 contractors and a turnover of USD 7 billion in 2009. It is a leader in the Latin American oil industry and is known for its commitment to sustainable development.

Sodimac has 57 superstores in Chile selling construction and home improvement products. As the largest retailer in the sector, it employs nearly 14 500 employees with sales exceeding USD 1.5 billion, and additional outlets in Argentina, Colombia and Peru.

Both companies have a track record of best practice, and have incorporated SR organically into their respective business management systems, while also considering such a strategy as a competitive advantage in a climate of increasing societal demands for greater transparency and accountability.

Ecopetrol and Sodimac are characterized by their proactive stances and the pursuit of continual improvement towards sustainable development. Both demonstrated early leadership by incorporating ISO 26000 guidelines ahead of its publication in November 2010.

No passing fashion

In Latin America, local businessmen have come to understand that SR is not a passing fashion or superficial change that involves cleaning up their image, or “greenwashing”, nor is it another form of philanthropy. SR is a business management approach that has gained ground rapidly in international markets. It is changing the business world since it is an assurance of ethics and quality that goes beyond minimum legal standards.

Through the experience, example and leadership of outstanding companies that incorporate SR into their management systems, the concept has come to mean the development of responsible practices that add value to an organization, with a strategic vision that encompasses economic, financial, social and environmental dimensions.

Ecopetrol and Sodimac are marking the path forward for other Latin American companies by demonstrating that ISO 26000 is a guide that allows organizations to work in a sustainable manner at local, regional and national level.

Ecopetrol: aligning with ISO 26000

Ecopetrol began publishing annual SR reports in 2006 using its own methodology. In 2009, the company decided to move to sustainability reporting in accordance with Global Reporting Intitiative (GRI) guidelines, an internationally recognized standard that allows an organization to compare its sustainability performance with others.

“Before we worked on the GRI report, we undertook an exercise to diagnose the degree of alignment with ISO 26000 social responsibility principles, actions and expectations,” said Javier Gutierrez, President of Ecopetrol. “This allowed us to see where we have major strengths and where we still have to improve.”

Sodimac: ISO 26000 “a breakthrough”

Sodimac decided to integrate its SR practice into its business strategy in 2006 as a prelude to setting a goal of becoming not only the largest company in the sector, but also "the best", giving employees and suppliers the opportunity to positively impact their customers and communities.

“We recognize ISO 26000 as a breakthrough because, as the main SR standard, it enables us to adopt common social responsibility criteria, and gives us clear guidelines for implementing SR in any organization,” said Sandro Solari, General Manager Corporate, Sodimac. “Therefore, we will work to align our sustainability management tools with the principles and key issues provided in the new ISO 26000 standard.”

The company supports the development of ISO 26000, reflected in its participation at the May 2010 plenary meeting of the ISO Working Group on Social Responsibility (ISO/WG SR) as a representative of the industry stakeholder category of the Chilean delegation.

Karina Toledo	Javier Gutierrez	Sandro Solari
Communications Manager of the Chilean company, Vincular E-mail: karina.toledo@vincular.cl	President of Ecopetrol, Colombia	General Manager Corporate, Sodimac, Chile