ISO/PRF TS 30423

Human resource management -- Compliance and ethics metrics cluster

Management des ressources humaines -- Indicateurs de mesure pour la conformité et l'éthique

Standards Content (sample)

TECHNICAL ISO/TS
SPECIFICATION 30423
First edition
Human resource management —
Compliance and ethics cluster
PROOF/ÉPREUVE
Reference number
ISO/TS 30423:2020(E)
ISO 2020
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ISO/TS 30423:2020(E)
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ISO/TS 30423:2020(E)
Contents Page

Foreword ........................................................................................................................................................................................................................................iv

Introduction ..................................................................................................................................................................................................................................v

1 Scope ................................................................................................................................................................................................................................ 1

2 Normative references ...................................................................................................................................................................................... 1

3 Terms and definitions ..................................................................................................................................................................................... 1

4 Number and type of grievances filed ............................................................................................................................................... 1

4.1 General ........................................................................................................................................................................................................... 1

4.2 Purpose .......................................................................................................................................................................................................... 2

4.3 Formula ......................................................................................................................................................................................................... 2

4.4 How to use .................................................................................................................................................................................................. 3

5 Number and type of concluded disciplinary actions filed ......................................................................................... 3

5.1 General ........................................................................................................................................................................................................... 3

5.2 Purpose .......................................................................................................................................................................................................... 4

5.3 Formula ......................................................................................................................................................................................................... 4

5.4 How to use .................................................................................................................................................................................................. 5

6 Percentage of employees who have completed training on compliance and ethics .......................6

6.1 General ........................................................................................................................................................................................................... 6

6.2 Purpose .......................................................................................................................................................................................................... 6

6.3 Formula ......................................................................................................................................................................................................... 6

6.4 How to use .................................................................................................................................................................................................. 7

7 Disputes referred to external parties ............................................................................................................................................. 7

7.1 General ........................................................................................................................................................................................................... 7

7.2 Purpose .......................................................................................................................................................................................................... 8

7.3 Formula ......................................................................................................................................................................................................... 8

7.4 How to use .................................................................................................................................................................................................. 8

8 Number, type and source of external (including audit) findings and actions arising

from these .................................................................................................................................................................................................................... 9

8.1 General ........................................................................................................................................................................................................... 9

8.2 Purpose .......................................................................................................................................................................................................... 9

8.3 Formula ......................................................................................................................................................................................................10

8.4 How to use ...............................................................................................................................................................................................11

9 Intended users .....................................................................................................................................................................................................11

10 Contextual factors.............................................................................................................................................................................................12

11 Predictive factors ..............................................................................................................................................................................................13

Bibliography .............................................................................................................................................................................................................................14

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ISO/TS 30423:2020(E)
Foreword

ISO (the International Organization for Standardization) is a worldwide federation of national standards

bodies (ISO member bodies). The work of preparing International Standards is normally carried out

through ISO technical committees. Each member body interested in a subject for which a technical

committee has been established has the right to be represented on that committee. International

organizations, governmental and non-governmental, in liaison with ISO, also take part in the work.

ISO collaborates closely with the International Electrotechnical Commission (IEC) on all matters of

electrotechnical standardization.

The procedures used to develop this document and those intended for its further maintenance are

described in the ISO/IEC Directives, Part 1. In particular, the different approval criteria needed for the

different types of ISO documents should be noted. This document was drafted in accordance with the

editorial rules of the ISO/IEC Directives, Part 2 (see www .iso .org/ directives).

Attention is drawn to the possibility that some of the elements of this document may be the subject of

patent rights. ISO shall not be held responsible for identifying any or all such patent rights. Details of

any patent rights identified during the development of the document will be in the Introduction and/or

on the ISO list of patent declarations received (see www .iso .org/ patents).

Any trade name used in this document is information given for the convenience of users and does not

constitute an endorsement.

For an explanation of the voluntary nature of standards, the meaning of ISO specific terms and

expressions related to conformity assessment, as well as information about ISO's adherence to the

World Trade Organization (WTO) principles in the Technical Barriers to Trade (TBT), see www .iso .org/

iso/ foreword .html.

This document was prepared by Technical Committee ISO/TC 260, Human resource management.

Any feedback or questions on this document should be directed to the user’s national standards body. A

complete listing of these bodies can be found at www .iso .org/ members .html.
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ISO/TS 30423:2020(E)
Introduction

ISO 30414 highlights guidelines on the following core human capital reporting (HCR) areas:

— compliance and ethics;
— costs;
— diversity;
— leadership;
— organizational culture;
— organizational health, safety and well-being;
— productivity;
— recruitment, mobility and turnover;
— skills and capabilities;
— succession planning;
— workforce availability.

This document deals specifically with the cluster of metrics in the compliance and ethics area.

Compliance with codes of ethics and internal policies is a major challenge for all kind of organizations.

ISO 30414:2018, 4.7.2, describes the significance of the compliance and ethics metrics.

The metrics within the compliance and ethics cluster, as documented in ISO 30414, are:

1) Number and type of grievance filed.

A grievance is a formal complaint within the workplace. There are many reasons as to why a

grievance can be raised, e.g. harassment, discrimination.
2) Number and type of concluded disciplinary actions.

A disciplinary action means the process for dealing with job-related behaviour that does not meet

expected and communicated workplace regulations.
3) Percentage of employees who have completed training on compliance and ethics.

This metric is defined as the percentage of employees who have completed training on the content

of business ethics, e.g. the code of conduct of the organization, compliance rules or moral dilemmas

in a given period.
4) Disputes referred to external parties.

This metric indicates the work environment where the external resolution of internal disputes

becomes necessary. The number of workforce-related disputes that are reported as being referred

to third parties with appropriate jurisdiction provides a picture of the organizational climate.

5) Number, type and source of external audit findings and actions arising from these.

This document describes the following components for each of the above metrics:
— description
— purpose
— formula
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ISO/TS 30423:2020(E)
— how to use
— intended user(s)
— contextual factors
— predictive factors.
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TECHNICAL SPECIFICATION ISO/TS 30423:2020(E)
Human resource management — Compliance and ethics
cluster
1 Scope

This document describes the elements of compliance and ethics. This document provides the formula

for comparable measures for internal and external reporting.

This document also highlights issues that need to be considered when interpreting the compliance

data, especially when deciding on the appropriate intervention internally and when reporting these to

external stakeholders (e.g. regulators, investors).
2 Normative references

The following documents are referred to in the text in such a way that some or all of their content

constitutes requirements of this document. For dated references, only the edition cited applies. For

undated references, the latest edition of the referenced document (including any amendments) applies.

ISO 30400, Human resource management — Vocabulary
3 Terms and definitions

For the purposes of this document, the terms and definitions given in ISO 30400 apply.

ISO and IEC maintain terminological databases for use in standardization at the following addresses:

— ISO Online browsing platform: available at https:// www .iso .org/ obp
— IEC Electropedia: available at http:// www .electropedia .org/
4 Number and type of grievances filed
4.1 General

ISO 30414:2018, 4.7.2.1, defines the compliance and ethics associated with the workforce in

organizations.

Each organization should define what is meant by “grievance(s)” for their organization and ensure all

relevant internal and external parties are informed and educated about this definition(s). Any grievance

should be considered formal at the point a grievance is recorded (reported) and/or an investigation

has begun. All “formal grievances” should then be included in the analytics and reporting processes.

To assist in this process, all organizations should develop a recording and management process and

procedure to capture and manage all formal grievances. Depending on the size of the organization,

this procedure may use simple worksheets. Larger organizations may require more sophisticated

technology solutions.

As industry sectors and organization size have a direct impact on the interpretation of these metrics,

each organization should determine, document, keep current and inform all relevant stakeholders of

what the targeted compliance should be for each of the metrics. Each organization should also define

what is “significant” in terms of variation from targeted compliance for each of the compliance metrics.

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ISO/TS 30423:2020(E)
4.2 Purpose

Effective categorization and analysis of grievances will allow for a greater understanding of the cause

and potentially allow for proactive responses. Organizations should categorize grievances.

Example categorization of a grievance:
— harassment;
— discrimination
— direct: directly against the person or group;
— indirect: via interpretation of a policy;
— assault;
— verbal;
— physical.

Further categorization can be applied to all grievances to recognize the number of grievances dealt

with internally and the number of grievances dealt with externally.
4.3 Formula

The calculation of the number of grievances should align with the financial year, the annual budgeting

cycle or both. The point in time for calculation is the number of grievances recorded as active at the end

of each measurement period, e.g. end of month one, end of quarter two, end-of-year totals.

Example of a time frame:

Company A’s financial year and budgeting cycle begins on 1 January and concludes on 31 December.

Reporting is monthly.

The calculation is based on the year-to-date addition of all types of grievance determined for calculation.

The example in Table 1 aggregates all the categories of grievances. This formula should also be applied

to each category.
Table 1 — Calculation of year-to-date number of grievances filed
Period No of grievances Formula Calculation Total
A B C D
1 January 3 +A1 3 3
2 February 5 +A1+A2 3+5 8
3 March 4 +A1+A2+A3 3+5+4 12
4 April 4 +A1+A2+A3+A4 3+5+4+4 16
5 May 4 +A1+A2+A3+A4+A5 3+5+4+4+4 20
6 June 2 +A1+A2+A3+A4+A5+A6 3+5+4+4+4+2 22
Total year-to-date
as of 30-06-2020 22 22 22
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ISO/TS 30423:2020(E)
4.4 How to use
Table 2 — Comparative view — Number of grievances filed
6 months to Comparative 2019 Comparative 2018 Comparative 2017
Grievance type
30-06-2020 as at 30-06-2019 as at 30-06-2018 as at 30-06-2017
Harassment – sexual 2 5 7 10
Harassment 2 7 10 15
Discrimination – direct 4 10 12 15
Discrimination –
7 5 2 0
indirect
Assault – verbal 7 4 2 0
Assault – physical 0 1 5 7
Total year-to-date as of
22 32 38 47
30-06-2020

The example in Table 2 indicates a significant drop in direct discrimination and physical assault over

the measurement period. The results also indicate verbal assault and indirect discrimination are on

the rise through the measurement period. These results, on face value, may not be a comprehensive

assessment of the current situation. Further investigation is warranted. For example, this rise may

be the result of increased awareness by the workforce of what defines these two issues. Further

investigation may support this, and the resultant contextual explanation can highlight the evidence

uncovered. Organisations may also report improvements in the reduction of grievance incidents, e.g.

number of days since the last grievance or number of grievance free days in a nominated period.

Table 3 — Comparative view internal resolution versus external resolution of grievances

6 months to Comparative 2019 Comparative 2018 Comparative 2017
Grievance type
30-06-2020 as at 30-06-2019 as at 30-06-2018 as at 30-06-2017
Internal resolution 26 20 10 7
External resolution 6 12 28 37
Total year-to-date as of
32 32 38 47
30-06-2020

The example in Table 3 indicates a positive trend in the number of grievances resolved internally.

Once established, the reporting should include the comparison of previous periods with the current

period and past years with the current year. Three-to-five years is a typical comparison period. This

measurement period will allow for trends to be established and further allow an organization to better

manage expectations and outcomes by establishing targets for future comparison.
5 Number and type of concluded disciplinary actions filed
5.1 General

ISO 30414:2018, 4.7.2.2, defines the compliance and ethics associated with the workforce in

organizations.

Each organization should define what is meant by “disciplinary action(s)” for their organization and

ensure all relevant internal and external parties are informed and educated about this definition(s).

All disciplinary actions should be documented and, to assist in this process, organizations should

develop a recording and management process and procedure to capture and manage all disciplinary

actions. Depending on the size of the organization, this procedure may use simple worksheets. Larger

organizations may require more sophisticated technology solutions.
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ISO/TS 30423:2020(E)

As industry sectors and organization size have a direct impact on the interpretation of these metrics,

each organization should determine, document, keep current and inform all relevant stakeholders of

what the targeted compliance should be for each of the metrics. Each organization should also define

what is “significant” in terms of variation from targeted compliance for each of the compliance metrics.

5.2 Purpose

Effective categorization and analysis of concluded disciplinary actions will allow for a greater

understanding of the cause and potentially allow for proactive responses. Organizations should

categorize concluded disciplinary actions.
...