SA8000SA8000 vs. vs. BSCIBSCI

Socially responsible procurement Socially responsible procurement (ethical sourcing)(ethical sourcing)

Ethical SourcingEthical Sourcing

””Socially responsible procurement (ethical Socially responsible procurement (ethical sourcing) aims to set contract conditions that sourcing) aims to set contract conditions that encourage suppliers to ensure that during the encourage suppliers to ensure that during the contract period goods and services have been contract period goods and services have been produced in conditions where human rights and produced in conditions where human rights and core labour standards are respected. core labour standards are respected.

In effect, suppliers must comply with international In effect, suppliers must comply with international human rights conventions, such as the ILO human rights conventions, such as the ILO conventions, the UN Convention on the Rights conventions, the UN Convention on the Rights of the Child, legislation on minimum wages and of the Child, legislation on minimum wages and working hours in the production country, and working hours in the production country, and general environmental, health and safety general environmental, health and safety requirements.”requirements.”

What is BSCI?What is BSCI?

The Foreign Trade Association (FTA) is The Foreign Trade Association (FTA) is Europe´s premier association for trade policy Europe´s premier association for trade policy and global supply chains. Members are and global supply chains. Members are national trade associations and companies. national trade associations and companies.

The Foreign Trade Association, or FTA, The Foreign Trade Association, or FTA, formed the Business Social Compliance formed the Business Social Compliance Initiative, or BSCI, in 2003.Initiative, or BSCI, in 2003.

The BSCI is a non-profit organisation under The BSCI is a non-profit organisation under the legal roof of the Foreign Trade the legal roof of the Foreign Trade Association, based in Brussels.Association, based in Brussels.

What is BSCI?What is BSCI?

The BSCI is the European social monitoring The BSCI is the European social monitoring system for ethical sourcing.system for ethical sourcing.

When started about ten years ago some When started about ten years ago some brands and retailers saw this as a German brands and retailers saw this as a German ‘operation’ ‘operation’

BSCI’s link with Social Accountability BSCI’s link with Social Accountability International SAI and its SA8000 Social International SAI and its SA8000 Social Standard give credibility to the BSCI code Standard give credibility to the BSCI code and work. and work.

Business Social Compliance Business Social Compliance Initiative (BSCI) Initiative (BSCI)

Member companies have to implement the BSCI Member companies have to implement the BSCI Code of conduct focusing on the core of ILO Code of conduct focusing on the core of ILO conventions, human and labour rights and conventions, human and labour rights and requesting the conduct of social audits in the requesting the conduct of social audits in the supply chain of the members. supply chain of the members.

The BSCI currently recognises SA8000 as its best The BSCI currently recognises SA8000 as its best practice and promotes a progressive adhesion of practice and promotes a progressive adhesion of the supply chain to the ILO conventions , and the supply chain to the ILO conventions , and supports the continuous improvement of the supports the continuous improvement of the social performance of suppliers.social performance of suppliers.

Business Social Compliance Business Social Compliance Initiative (BSCI) Initiative (BSCI)

The BSCI is not a certification system. The BSCI is not a certification system.

Purpose of the instrument Purpose of the instrument - implementation- implementation

Business Social Compliance Business Social Compliance Initiative (BSCI)Initiative (BSCI)

BSCI procedure includes a self-assessment BSCI procedure includes a self-assessment tool for suppliers, which aims at correcting tool for suppliers, which aims at correcting critical issues in advance and saving time critical issues in advance and saving time during auditing. during auditing.

Business Social Compliance Business Social Compliance Initiative (BSCI)Initiative (BSCI)

BSCI is an BSCI is an auditing and qualificationauditing and qualification system system striving for continuous improvement.striving for continuous improvement.

The most important part of the BSCI The most important part of the BSCI is the is the qualification of the suppliers. qualification of the suppliers.

Many suppliers need assistance after the audits Many suppliers need assistance after the audits to implement the corrective actions to to implement the corrective actions to sustainably improve their social performance. sustainably improve their social performance.

They receive this qualification by the BSCI They receive this qualification by the BSCI Members or service providers being experts in Members or service providers being experts in this field.this field.

Business Social Compliance Business Social Compliance Initiative (BSCI)Initiative (BSCI)

ImplementationImplementation Independent auditing companies accredited Independent auditing companies accredited

by Social Accountability International, or SAI, by Social Accountability International, or SAI, help enforce the BSCI. help enforce the BSCI.

The auditors monitor and record each BSCI The auditors monitor and record each BSCI member's business practice and workplace member's business practice and workplace standards, and then the standards, and then the audited BSCI audited BSCI member plugs these results into a member plugs these results into a databasedatabase shared among all members. shared among all members.

This strict monitoring process helps each This strict monitoring process helps each business strive and qualify for the SA8000 business strive and qualify for the SA8000 workplace standard formed by SAI. workplace standard formed by SAI.

BSCIBSCI

The database is for members only, and The database is for members only, and suppliers do not receive a public certificate for suppliers do not receive a public certificate for having passed a BSCI audithaving passed a BSCI audit. .

In cases where an initial audit identifies In cases where an initial audit identifies serious serious issues,issues, corrective action may be required to corrective action may be required to address and resolve these issues before the re-address and resolve these issues before the re-audit. audit.

During the implementation of corrective action, During the implementation of corrective action, as a principle, BSCI members would like to as a principle, BSCI members would like to maintain all existing business relationships maintain all existing business relationships while suppliers achieve full compliance.while suppliers achieve full compliance.

BSCIBSCI

As well as a common code of conduct, the As well as a common code of conduct, the BSCI has also developed a common BSCI has also developed a common monitoring system for all its members. monitoring system for all its members.

The core idea is to move from being a buyer- The core idea is to move from being a buyer- to a supplier-driven monitoring system. to a supplier-driven monitoring system.

BSCIBSCI

Rather than all buyers having to monitor all Rather than all buyers having to monitor all their suppliers, in practice leading to several their suppliers, in practice leading to several buyers monitoring the same supplier, the buyers monitoring the same supplier, the BSCI system aims to synchronise the BSCI system aims to synchronise the monitoring, making only one audit per monitoring, making only one audit per supplier necessary.supplier necessary.

The results of the audits will then be entered The results of the audits will then be entered

into a common database, in which the BSCI into a common database, in which the BSCI members can search for information members can search for information regarding their current and/or future regarding their current and/or future suppliers. suppliers.

BSCIBSCI

Previously, retailers have seldom or never Previously, retailers have seldom or never shared such important information regarding shared such important information regarding suppliers with their competitors.suppliers with their competitors.

Hence, a consequence of the BSCI attempt to Hence, a consequence of the BSCI attempt to define corporate responsibility is define corporate responsibility is that that stronger alliances between European stronger alliances between European retailers are being created. retailers are being created.

BSCIBSCI

After completing the audit, the auditor will After completing the audit, the auditor will prepare a Social Audit Report. prepare a Social Audit Report.

This report is then submitted to the audited This report is then submitted to the audited company and to the supplier’s trading company and to the supplier’s trading partner. partner.

If the supplier has initiated the audit itself, a If the supplier has initiated the audit itself, a copy of the Social Audit Report shall be sent copy of the Social Audit Report shall be sent to its customer(s) participating in the BSCI.to its customer(s) participating in the BSCI.

BSCIBSCI

As per the BSCI, the supplier is to be monitored As per the BSCI, the supplier is to be monitored (audited) every three years, provided no (audited) every three years, provided no adverse remarks were made in the previous adverse remarks were made in the previous audit. audit.

However, the maximum timeframe of the However, the maximum timeframe of the corrective action phase is 12 months after the corrective action phase is 12 months after the initial or re-audit respectively. initial or re-audit respectively.

BSCI audits are carried out by SA 8000 auditors, BSCI audits are carried out by SA 8000 auditors, and are designed to guarantee the same basic and are designed to guarantee the same basic rights for employees as the SA 8000 standard.rights for employees as the SA 8000 standard.

SA8000SA8000

SAI: Social Accountability SAI: Social Accountability International :International :

Is a NGO with headquarters in USA, Is a NGO with headquarters in USA, composed of investors from different composed of investors from different sectors: workers and trade unions, sectors: workers and trade unions, enterprises, governments and NGOsenterprises, governments and NGOs

SA8000SA8000

The SAI formed the SA8000 standard in 1997. The SAI formed the SA8000 standard in 1997.

While While not a standardnot a standard mandated by the mandated by the International Organization for Standardization, International Organization for Standardization, or ISO, it follows a similar accreditation and or ISO, it follows a similar accreditation and certification model. certification model.

Certification is granted by international Certification is granted by international certification bodies accredited and monitored by certification bodies accredited and monitored by SAI. The procedure corresponds to those used in SAI. The procedure corresponds to those used in connection with the ISO 9000 and 14000 connection with the ISO 9000 and 14000 standards. standards.

SA8000SA8000

The Standard The Standard SA 8000SA 8000 is a management system is a management system tool on working conditions and regulations tool on working conditions and regulations compliance. compliance.

It aims at improving working conditions It aims at improving working conditions worldwide, by imposing strict rules to worldwide, by imposing strict rules to organisations and involving the entire supply organisations and involving the entire supply chain. chain.

It is based on core ILO conventions, Universal It is based on core ILO conventions, Universal Declaration on Human Rights and the United Declaration on Human Rights and the United Nations Convention on Children's Rights, as well Nations Convention on Children's Rights, as well as management systems (ISO 9000 and 14000). as management systems (ISO 9000 and 14000).

SA8000SA8000

SA8000 standard has become a worldwide SA8000 standard has become a worldwide reference in working regulations and labour reference in working regulations and labour rights management system, mainly because it rights management system, mainly because it proposes a proposes a certifiable management systemcertifiable management system..

Many other standards and initiatives cover the Many other standards and initiatives cover the

same core ILO conventions, often under the same core ILO conventions, often under the form of sectoral codes of conduct, guidelines form of sectoral codes of conduct, guidelines and recommendations.and recommendations.

This standard is the benchmark against which This standard is the benchmark against which companies and factories measure their companies and factories measure their performance.performance.

SA8000SA8000

Purpose - CertificationPurpose - Certification

The SA 8000 certificate is valid for three years.The SA 8000 certificate is valid for three years.

Companies are given surveillance audits once Companies are given surveillance audits once every six months during this period to ensure every six months during this period to ensure stability and progress of the standard. stability and progress of the standard.

Renewal audits take place once every three Renewal audits take place once every three years.years.

The differencesThe differences

The BSCI system currently recognizes the social The BSCI system currently recognizes the social management systems standard SA8000 as its best management systems standard SA8000 as its best practice. practice.

The BSCI Code of Conduct was developed in The BSCI Code of Conduct was developed in partnership with the Social Accountability International partnership with the Social Accountability International (SAI) initiative as a stepping stone towards SA8000 (SAI) initiative as a stepping stone towards SA8000 certification.certification.

If a company has already been certified against the If a company has already been certified against the SA8000 standard, implementation of the BSCI Code of SA8000 standard, implementation of the BSCI Code of Conduct is not requested as long as the SA8000 Conduct is not requested as long as the SA8000 certificate is valid.certificate is valid.

The differencesThe differences

The BSCI is not a certification system and The BSCI is not a certification system and therefore does not issue a certificate. therefore does not issue a certificate.

The cover page of the audit report outlining The cover page of the audit report outlining the results and the validity of the audit can the results and the validity of the audit can be displayed in the factory premises and be be displayed in the factory premises and be used as proof of the audit.used as proof of the audit.

The differencesThe differences

BSCI Code  emphasis on “legal minimum BSCI Code  emphasis on “legal minimum and/or industry standards” wage.and/or industry standards” wage.

SA8000 emphasis on the right of supply SA8000 emphasis on the right of supply

chain workers to a chain workers to a living wageliving wage instead of – instead of – “legal minimum and/or industry standards”.“legal minimum and/or industry standards”.

The differencesThe differences

SA 8000 requires more systematic SA 8000 requires more systematic procedures and controls and sustainable procedures and controls and sustainable improvements, while BSCI focuses on specific improvements, while BSCI focuses on specific points or items; points or items; BNW (BNW (basic needs wage/ basic needs wage/ living wageliving wage ) ) is a mandatory is a mandatory clause for SA clause for SA 8000 but only a reference for BSCI.8000 but only a reference for BSCI.

The differencesThe differences

BSCIBSCI In case of conflict between international / In case of conflict between international /

national rules: national rules:      - more stringent rule(s) apply      - more stringent rule(s) apply

The differencesThe differences

BSCI Audit is, although much is similar to BSCI Audit is, although much is similar to SA8000 certification audits, there are SA8000 certification audits, there are differences in the audit protocols due to differences in the audit protocols due to specific BSCI requirements and the very specific BSCI requirements and the very nature of a gap analysisnature of a gap analysis as compared with a as compared with a certification auditcertification audit

The differencesThe differences

SA8000 audits are performed in line with SA8000 audits are performed in line with ISO17021:2011 and require surveillance ISO17021:2011 and require surveillance audits every six months during a certification audits every six months during a certification cycle of 3 years. cycle of 3 years.

If a company meets BSCI requirements then If a company meets BSCI requirements then they are not re-audited usually for 3 years.they are not re-audited usually for 3 years.

The differencesThe differences

SA8000 can be done without buyers SA8000 can be done without buyers requirement and can use as a marketing tool requirement and can use as a marketing tool whereas BSCI should be done with Buyers whereas BSCI should be done with Buyers approval only.approval only.

The differencesThe differences

SA8000 is not addressing Environment but SA8000 is not addressing Environment but BSCI.BSCI.

SA8000 standard have some extraction from SA8000 standard have some extraction from ISO and BSCI from SA8000ISO and BSCI from SA8000

( This is an internal training material)( This is an internal training material)