Community-Related Voluntary Standards

Abstract

Businesses have long been called upon to comply with a range of formal laws and regulations in various areas related to sustainability-related responsibilities including laws and regulations pertaining to the environmental impact of their operations, the employment relationship, working conditions and health and safety standards. However, apart from satisfying the requirements of local governments with respect to permits and licenses necessary for engaging in certain activities in the community, businesses generally are not heavily constrained by legal guidelines with respect to their community involvement and development activities. This is an area in which voluntary standards have played an important role in providing business with ideas for objectives for their community involvement. Although voluntary standards focusing specifically on the relationship of businesses and the communities in which they operate are still evolving, lessons can be drawn from many widely recognized normative frameworks, principles and guidelines such as the United Nations Sustainable Development Goals, the United Nations Global Compact, the OECD Guidelines for Multinational Enterprises, the United Nations Guiding Principles on Business and Human Rights and the Future-Fit Business Framework. Specialized standards can be used as reference points for support of sustainability-related initiatives in local communities, such as requiring that recipients of grants and other investments for sustainable sourcing and agricultural activities adhere to the guidance developed by the Sustainable Agriculture Initiative Platform. Additional guidance comes from guidelines established for companies engaged in extractive activities where the potential for adverse impact on local communities is especially high (e.g., Equitable Origin). The ISO 26000 Guidance on Social Responsibility includes community involvement and development among its core subjects and businesses and other organizations will also be impacted by relevant standards on their key stakeholders, particularly investors, that require attention to responsible actions toward local communities (e.g., Principles for Responsible Investment and IFC Performance Standards on Environmental and Social Sustainability) Impacts on local communities are also required by various voluntary sustainability reporting frameworks.