GRI 417: Marketing and Labeling 2016
EFFECTIVE DATE: 1 JULY 2018
Introduction
GRI 417: Marketing and Labeling 2016 contains disclosures for organizations to report information about their impacts related to marketing and labeling, and how they manage these impacts. The Standard is structured as follows:
The rest of the Introduction section provides a background on the topic, an overview of the system of GRI Standards and further information on using this Standard.
- Section 1 contains a requirement, which provides information about how the organization manages its marketing and labeling-related impacts.
- Section 2 contains three disclosures, which provide information about the organization’s marketing and labeling-related impacts.
- The Glossary contains defined terms with a specific meaning when used in the GRI Standards. The terms are underlined in the text of the GRI Standards and linked to the definitions.
- The Biblogrpahy lists authoritative intergovernmental instruments and additional references used in developing this Standard.
Background on the topic
This Standard addresses the topic of product and service information and labeling and marketing communications. This includes customer access to accurate and adequate information on the positive and negative economic, environmental, and social impacts of the products and services they consume – both from a product and service labeling and a marketing communications perspective.
Fair and responsible marketing communications, as well as access to information about the composition of products, and their proper use and disposal, can help customers to make informed choices.
These concepts are covered in key instruments of the Organisation for Economic Co-operation and Development: see the Bibliography.
1. Topic management disclosures
An organization reporting in accordance with the GRI Standards is required to report how it manages each of its material topics.
An organization that has determined marketing and labeling to be a material topic is required to report how it manages the topic using Disclosure 3-3 in GRI 3: Material Topics 2021 (see clause 1.1 in this section).
This section is therefore designed to supplement – and not replace – Disclosure 3-3 in GRI 3.
REQUIREMENTS
- 1.1 The reporting organization shall report how it manages marketing and labeling using Disclosure 3-3 in GRI 3: Material Topics 2021.
2. Topic disclosures
Disclosure 417-1 Requirements for product and service information and labeling
REQUIREMENTS
The reporting organization shall report the following information:
- a. Whether each of the following types of information is required by the organization’s procedures for product and service information and labeling:
- i. The sourcing of components of the product or service;
- ii. Content, particularly with regard to substances that might produce an environmental or social impact;
- iii. Safe use of the product or service;
- iv. Disposal of the product and environmental or social impacts;
- v. Other (explain).
- b. Percentage of significant product or service categories covered by and assessed for compliance with such procedures.
Guidance
Background
Customers and end users need accessible and adequate information about the positive and negative environmental and social impacts of products and services. This can include information on the safe use of a product or service, the disposal of the product, or the sourcing of its components. Access to this information helps customers to make informed purchasing choices.
Disclosure 417-2 Incidents of non-compliance concerning product and service information and labeling
REQUIREMENTS
The reporting organization shall report the following information:
- a. Total number of incidents of non-compliance with regulations and/or voluntary codes concerning product and service information and labeling, by:
- i. incidents of non-compliance with regulations resulting in a fine or penalty;
- ii. incidents of non-compliance with regulations resulting in a warning;
- iii. incidents of non-compliance with voluntary codes.
- b. If the organization has not identified any non-compliance with regulations and/or voluntary codes, a brief statement of this fact is sufficient.
- 2.1 When compiling the information specified in Disclosure 417-2, the reporting organization shall:
- 2.1.1 exclude incidents of non-compliance in which the organization was determined not to be at fault;
- 2.1.2 if applicable, identify any incidents of non-compliance that relate to events in periods prior to the reporting period.
Guidance
Guidance for Disclosure 417-2
The incidents of non-compliance that occur within the reporting period can relate to incidents
formally resolved during the reporting period, whether they occurred in periods prior to the
reporting period or not.
Background
Providing appropriate information and labeling with respect to economic, environmental, and social impacts can be linked to compliance with certain types of regulations, laws, and codes. It is, for example, linked to compliance with regulations, national laws, and the Organisation for Economic Co-operation and Development (OECD) OECD Guidelines for Multinational Enterprises. It is also potentially linked to compliance with strategies for brand and market differentiation.
The display and provision of information and labeling for products and services are subject to many regulations and laws. Non-compliance can indicate either inadequate internal management systems and procedures or ineffective implementation. The trends revealed by this disclosure can indicate improvements or a deterioration in the effectiveness of internal controls.
Disclosure 417-3 Incidents of non-compliance concerning marketing communications
REQUIREMENTS
The reporting organization shall report the following information:
- a. Total number of incidents of non-compliance with regulations and/or voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by:
- i. incidents of non-compliance with regulations resulting in a fine or penalty;
- ii. incidents of non-compliance with regulations resulting in a warning;
- iii. incidents of non-compliance with voluntary codes.
- b. If the organization has not identified any non-compliance with regulations and/or voluntary codes, a brief statement of this fact is sufficient.
- 2.2 When compiling the information specified in Disclosure 417-3, the reporting organization shall:
- 2.2.1 exclude incidents of non-compliance in which the organization was determined not to be at fault;
- 2.2.2 if applicable, identify any incidents of non-compliance that relate to events in periods prior to the reporting period.
Guidance for Disclosure 417-3
The incidents of non-compliance that occur within the reporting period can relate to incidents
formally resolved during the reporting period, whether they occurred in periods prior to the
reporting period or not.
Background
Marketing is an important method of communication between organizations and customers, and is subject to many regulations, laws, and voluntary codes, such as the International Chamber of Commerce (ICC)’s Consolidated Code of Advertising and Marketing Communication Practice.
An organization is expected to use fair and responsible practices in its business and dealings with customers. Fair and responsible marketing requires the organization to communicate transparently about the economic, environmental, and social impacts of its brands, products, and services. Fair and responsible marketing also avoids any deceptive, untruthful, or discriminatory claims, and does not take advantage of a customers’ lack of knowledge or choices.
Bibliography
This section lists authoritative intergovernmental instruments and additional references used in developing this Standard. Authoritative instruments:
- Organisation for Economic Co-operation and Development (OECD), OECD Guidelines for Multinational Enterprises, 2011. Additional references:
- International Chamber of Commerce (ICC), Consolidated Code of Advertising and Marketing Communication Practice, 2011.