ISO 26000
International guidance for social responsibility practices
Basel III
Global framework for bank capital, leverage, and liquidity standards
Quick Verdict
ISO 26000 offers voluntary social responsibility guidance for all organizations, enhancing sustainability and stakeholder trust. Basel III mandates strict capital and liquidity rules for banks, ensuring financial stability. Companies adopt ISO 26000 for ethical leadership; banks follow Basel III for regulatory compliance.
ISO 26000
ISO 26000:2010 Guidance on social responsibility
Key Features
- Non-certifiable guidance standard for social responsibility
- Seven cross-cutting principles underpinning all actions
- Seven holistic core subjects for impact assessment
- Stakeholder engagement to prioritize relevant issues
- Integration throughout governance, strategy, and operations
Basel III
Basel III: Finalising post-crisis reforms
Key Features
- Strengthened CET1 capital requirements and buffers
- Non-risk-based leverage ratio minimum
- Liquidity Coverage Ratio for 30-day stress
- Net Stable Funding Ratio for funding stability
- Enhanced Pillar 3 disclosure templates
Detailed Analysis
A comprehensive look at the specific requirements, scope, and impact of each standard.
ISO 26000 Details
What It Is
ISO 26000:2010 is a voluntary international guidance standard on social responsibility (SR). It provides a conceptual framework and practical advice for all organizations to address impacts on society and environment through transparent, ethical behavior. Its holistic, principles-based approach emphasizes context-specific application via stakeholder engagement, rather than prescriptive requirements.
Key Components
- **Seven principlesAccountability, transparency, ethical behavior, respect for stakeholder interests, rule of law, international norms, human rights.
- **Seven core subjectsOrganizational governance, human rights, labor practices, environment, fair operating practices, consumer issues, community involvement.
- No fixed controls; focuses on integration.
- Non-certifiable; uses self-assessment and transparent reporting.
Why Organizations Use It
Enhances sustainability commitment, risk management, ESG alignment, and stakeholder trust. Builds operational resilience, competitive edge, and credibility without certification burdens. Supports SDGs, OECD, GRI integration.
Implementation Overview
Phased: materiality assessment, stakeholder engagement, policy integration, training, monitoring. Applies universally across sizes, sectors, geographies. Leverages existing systems like ISO 14001/45001; emphasizes continuous improvement and transparent communication.
Basel III Details
What It Is
Basel III is the international prudential regulatory framework issued by the Basel Committee on Banking Supervision (BCBS) following the 2007-2009 financial crisis. It aims to strengthen bank resilience by enhancing capital quality and quantity, introducing leverage and liquidity constraints, and improving supervision and disclosure. It employs a risk-based approach augmented by simple, non-risk-based metrics for robustness.
Key Components
- **Three PillarsPillar 1 (minimum capital ratios: CET1 4.5%, Tier 1 6%, Total 8%; leverage ratio 3%; LCR/NSFR 100%), Pillar 2 (supervisory review/ICAAP), Pillar 3 (comparability-focused disclosures).
- Capital buffers (conservation 2.5%, countercyclical, G-SIB/D-SIB).
- Built on Basel II, with finalisation reforms (output floor, revised RWAs).
- Compliance through national laws, no global certification.
Why Organizations Use It
Mandated for internationally active banks via domestic regulation; reduces systemic risk, constrains leverage, boosts liquidity resilience, lowers funding costs, enhances comparability and market discipline.
Implementation Overview
Multi-phased enterprise program: gap analysis, data/IT upgrades, governance, training. Targets large global banks; involves ongoing reporting, stress testing, no formal audit but supervisory assessments.
Key Differences
| Aspect | ISO 26000 | Basel III |
|---|---|---|
| Scope | Social responsibility core subjects, principles, governance | Bank capital, leverage, liquidity, risk management |
| Industry | All organizations, all sectors, global | Internationally active banks, financial sector |
| Nature | Voluntary guidance, non-certifiable | Mandatory prudential standards, supervisory enforcement |
| Testing | Self-assessment, stakeholder engagement, reporting | ICAAP stress tests, supervisory review, audits |
| Penalties | No legal penalties, reputational risks | Fines, capital add-ons, business restrictions |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about ISO 26000 and Basel III
ISO 26000 FAQ
Basel III FAQ
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