BSCI an Overview

8/10/2019 BSCI an Overview

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THE CHALLENGE BEHIND RESPONSIBLE SOURCING

In the context of globalisation and international competition, many companies

source labour-intensive goods from developing and newly industrialised countries.However, working conditions in these countries often do not comply withbasic labour standards, such as those established by the International LabourOrganization (ILO). To address this issue, many companies and associations havecreated individual codes of conduct and monitoring systems.

The proliferation of individual codes, varying audit procedures and divergingapproaches, has resulted in audit duplications within the same factory. This leads to

unnecessary efforts, confusion about requirements, lack of transparency, lack ofaccountability, and higher costs for companies as well as their suppliers.

The Business Social Compliance Initiative (BSCI) works to tackle these challenges byoffering a broad platform for cooperation.

A business-driven initiative for companies

committed to improving working

conditions in the global supply chain

BSCI INFORMATION KIT


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THE BSCI, A DEVELOPMENT-ORIENTED APPROACH

The BSCI is a business-driven initiative for companiescommitted to improving working conditions in the globalsupply chain. The BSCI unites hundreds of companiesaround one common Code of Conduct and supportsthem in their efforts to build an ethical supply chainby providing them with a step-by-step development-oriented system, applicable to all sectors and allsourcing countries.

The BSCI Code of Conductis built on the most importantinternational Conventions protecting workers rights,notably the ILO Conventions and recommendations. All

BSCI member companies commit to implement the Codein their supply chains.

The BSCI supports companies by providing them witha range of interlinked activities and tools to achieve asocially compliant supply chain:

Monitor

Empower Engage

Unite

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freedom of association and the right tocollective bargaining are respected

no discrimination is practised

child labour is prohibited

legal minimum and/or industry standardswages are paid

working hours are compliant with national

laws and do not exceed 48 hours regular +12 hours overtime

there is no forced labour and disciplinarymeasures

the workplace is safe and healthy

the environment is respected

there is a policy for social accountability

there is an anti-bribery and anti-corruptionpolicy

GOALS OF BSCI CODE OF CONDUCT

BSCI is a great resource for

companies struggling withsuppliers social responsibilityin risk countries. The BSCICode of Conduct provides afra me wo rk th at we are gra du allyimplementing across our supplychain worldwide...BSCI is theonly existing system for so cialcompliance that offers such a

broad scope.

Henrik Kirketerp

Director Dansk Supermarked

The German Business EthnicsNetwork (DNWE) has awar ded theBSCI for having taken a leadingrole in providing a solution forcompanies to respond to a keychallenge in business ethnics...BSCI and its members havedecided to go this challengingpa th , whic h de se r ve s su pp or tand acknowledgement.

Prof. Dr. Albert LohrChairman DNWE


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MONITORING SOCIAL COMPLIANCE IN

SUPPLY CHAINSThe BSCI provides companies with practical

management instruments to implement BSCIs Codeof Conduct and monitor improvements of workingconditions in the supply chain. Only independentexternal auditingcompanies accredited by theinternational organisation Social A ccountabilityAccreditation Services (SAAS) are authorised toperform BSCI audits.

To optimise the BSCI process, audit results areshared in a common databaseamong BSCIsparticipants. This helps avoid multiple audits along

with unnecessary costs and time spent for thecompanies and the suppliers.

By 2010, more than 20,000 audits were performedthroughout our network. The audit results showthe effectiveness of our system. In 2010, initialaudits results showed 28% of suppliers reached theBSCI compliant level. After corrective action plans,re-audits revealed that the number of compliantcompanies had increased to 51%. In the spirit of

continuous improvement, the BSCI encouragesthose BSCI compliant suppliers to apply for SA8000certification.

Definitely not successful Reconsider relationswith supplier

Successful Consider obtainingSA8000 certification

Correction Phase and Advanced Capacity Building

Self-Assessment

Successful

N

ot

successful

N

ot

successful

Communication and Awareness Raising

External Init ial Audit (every 3 years)

BSCI Social Requirements(mandatory)

Best Practice(voluntary)

Corrective Action Plans

BSCI Social Requirements(mandatory)

Best Practice(voluntary)

External Re-Audit

(max 12 monthsafter previous Audit)

Internal Social Audit

(every 3 years)*

Internal Corrective

Action Plan

Internal Corrective

Phase

Set-up an I nternal Social Management System*

*This part of the methodology applies only to the primary production sector

BSCI Code of Conduct

EMPOWERING BSCI MEMBER COMPANIES

AND SUPPLIERSAlongside the monitoring process, the BSCI providescapacity buildingactivities to both membercompanies and suppliers in Europe and in sourcingcountries. We do this in various ways: throughinitial awareness-raising sessions; e-learning tools;in-house trainings; info seminars; and advanced

issue-specific workshops. These activities helpbuild the knowledge, skills and ownership requiredto achieve sustainable improvements in socialcompliance.

The focus and content of the capacity buildingsessions are adapted to the priority issues andmain non-compliances in a given country or region.

In 2010, we reached more than 2,800 supplierrepresentatives through capacity building sessions.

BSCI SUPPLIERS AND MEMBERS

TRAINED PER COUNTRY IN 2010

China (1274) Belgium(285) Bangladesh (364) India (190) Thailand (167) Vietnam (162)

Turkey (101) Taiwan (94) Germany (72) Morocco (39) Netherlands (35) South Africa (34)

Switzerland (33) Romania (17) Greece (15) Brazil (5)

(PARTICIPANTS)


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ENGAGING WITH STAKEHOLDERSOften, non-compliance with labour rights is linkedto political, economical or cultural issues that

affect not only individual workplaces but alsoentire sectors and countries. To find sustainablesolutions to these challenges, the BSCI developsactive dialogue and cooperation with a widerange of stakeholders such as governments,trade unions, NGOs, business associations,buyers and suppliers. In order to maximiseour impact we employ various channels,such as dialogues, partnerships and

joint capacity building efforts.

In sourcing countries, such

as China, India, Bangladesh,Vietnam, Turkey and others,the BSCI initiates andsupports regular RoundTables on corporate socialresponsibility. The Round Tables provide a forum fordiscussion between local stakeholders on how theycan work together to improve working conditionsand ensure local ownership of the issue.

At international level, we initiate discussions andjoin forces with various stakeholders, such asinitiatives which aim to improve social compliance.

This approach allows us and our partners to scaleup existing initiatives, create synergies, avoidoverlap and increase impact.

In various European countries, National ContactGroups offer a platform for BSCI participants to

come together and learn from each othersexperiences. National Contact Groups reach

out to stakeholders in their country toexchange views and share expertise on

responsible supply chain management.

At institutional level, our StakeholderBoardprovides us with guidance on

key challenges and trends. Madeup of representatives from

trade unions, NGOs, policymakers and business associations, the StakeholderBoard initiates, approves and advises on policies toensure and strengthen BSCIs ongoing contributionto better working conditions.

CONTACT

The BSCI welcomes your questions,feedback and ideas. Please feel free tocontact us at:

Business Social

Compliance Initiative

172, avenue de Cortenbergh

1000 Brussels - Belgium

Tel: + 32-2-741-64-01

[email protected]

www.bsci-intl.org


OUR PARTICIPANTS

The BSCI is a fast growing initiative open to retailers,importers, brands and manufacturers. Our methodologyapplies to all sectors, and our participants are involved in

importing all types of goods, such as clothing, electronicsand food products.

Our participants are actively involved in the BSCI: fromdecision making processes to concrete implementationof the BSCI development-oriented system in sourcingcountries.

More than 700 participants have committed to implementthe BSCI Code and system in their supply chains.Membership of the BSCI comes with specific obligations,and we closely monitor participants commitments andfollow up actions, to ensure we keep working towards ourcommon goal.

The full list of BSCI participants is available on our website:www.bsci-intl.org

Round Tablesin SourcingCountries

StakeholderBoard

Stakeholderengagementin European

Countries

InternationalCooperation

Documents

BSCI an Overview