BSCI report

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BSCI Audit Summary Report

NAME OF THE PRODUCER : MILLION CONCEPT ELECTRONIC(SHENZHEN) CO., LTD.

DBID : 342987

DATE OF THE AUDIT : 09/09/2014

All rights reserved. No part of this publication may be reproduced, translated, stored in a retrieval system, or transmitted, in any form or by any ,means electronic, mechanical, photocopying, recording or otherwise, be lent, re-sold, hired out or otherwise circulated without the FTA’s consent.

This is an extract of the BSCI Audit Report, which is available in the BSCI Platform.© Foreign Trade Association (FTA), 2013 - The English version is the legally binding One.

Producer InformationName of producer : Million Concept Electronic(Shenzhen) Co., Ltd.

DBID number : 342987

Audit ID : 21307

Address : No.98 Xiashanmen Rd, Songgang Town, Bao'an District,Shenzhen

Province : Guangdong Country : China

Management Representative : Mr. Phil Young

Contact person: Phil Young

Sector : Non-Food Industry Type : Health Industry

Product group : other health products (pleasespecify) Product Type : Bluetooth Smartphone accessory

Audit DetailsType of audit : Full Audit Re-Audit

Sub type of audit : Combined audit Special investigation-RUC

Special investigation-Other

Unannounced/Semiannounced

Audit date : 09/09/2014 Audit Duration : 2.500

Audit methodology : Industrial Primary Production

Auditing Company : SGS

Auditing Company Branch : SGS CHINA

Auditing company address : SGS Bldg, No.4 Jianghao Industrial Park, No.430 Jihua Road, Bantian, LonggangDistrict,,,Shenzhen

Lead Auditor Name(SA8000Certificate Number) : Landy Lan (A8496)

Team Member Name(SA8000Certificate Number) : Jemik Zheng (SAI/SA8000BAT/014/07/P/004 )

Audit Results for Part B tier ITotal Score Part B tier I: Good Improvements Needed Non-Compliant

Total Number of deviations in crucial questions : 0 / 35

Agreed date for closing theCorrective Action Plan ( If applicable ) :

09/12/2014

Contingencies to be reported : Aborted Partially Conducted Combined With Other SystemsDesktop Review Others

Audit Results for Part B tier II (Only relevant if Primary Production Methodology is used)

Please refer to section "Sampled Units Tier II" and "Audit Sample CAP B"


Name of the producer : Million Concept Electronic(Shenzhen) Co., Ltd.

DBID : 342987 and Audit Id : 21307 Audit Date : 09/09/2014

Audit Type : Full Audit Audit Methodology : Industrial

Tier I

Page 2/14BSCI Audit Summary Report This is an extract of the BSCI Audit Report, which is available in the BSCI Platform.© Foreign Trade Association (FTA), 2013 - The English version is the legally binding one.

Score Interpretation

Good Improvements Needed Non-Compliant Under “Grace Period”

Minor deviations are identified in no morethan 2 questions per chapter; thesequestions are not marked as crucial.

Deviations are identified in less than half of the totalnumber of questions per chapter. No deviations arefound in questions marked as crucial.

Deviations are identified in half or more of the total number ofquestions per chapter. One deviation in a question marked ascrucial is sufficient to assess the entire chapter as non-compliant.

Not Available

Audit Master Data Part A

For more details of the company, see complete Master Data in the on-line Audit Report

General information on the ProducerName of producer : Million Concept Electronic(Shenzhen) Co., Ltd.

Address : No.98 Xiashanmen Rd, Songgang Town, Bao'an District,Shenzhen

Year of foundation : 2003

Legal status : Private

Turnover (in euros ) : 25000000.000

Main contact person : Phil Young

Language spoken : Chinese

Valid GlobalG.A.P Certificate : Yes No

Other Social audit : Yes No Social audit name :

Auditors’ notes

Producer’s background

Chapter summaryChapter Chapter Summary

B.3. Working Hours

Based on cross checked the production records, workers interview and theprovided attendance records and payroll records provided by the factory, nonegative evidence was identified during the audit. Based on the providedattendance records from Sep 2013 to the audit day and the payroll recordsfrom Sep 2013 to Aug 2014, 8 hours per day from 7:45-11:45 or 8:00-12:00 and 13:15-17:15 or 13:30-17:30 from Monday to Friday as regularworking hour was carried out for all workers except injection workshop with3 shifts from 8:00-16:00, 16:00-24:00, 24:00-8:00 with 2 weeks in turn.Workers normally overtime worked 0-2 hours on regular days and 8 hourson Saturday. The maximum overtime working hour identified was 2 hoursper day,12 hour a week and 56 hours per month.

B.4. Compensation

Based on the provided attendance records from Sep 2013 to the audit dayand the payroll records from Sep 2013 to Aug 2014, all workers were paidby hourly rate. All workers were paid with at least RMB1808/month asregular pay rate which met the local legal requirement. And the factoryprovided 150% and 200% of regular pay rate for overtime working onregular days and rest days respectively which was in line with the local legalrequirement. The factory provided all employees with retirement, injury,medical and unemployment insurance and 9 employees with child-bearinginsurance. The factory provided all employees with paid statutory holidaysand at least 5 days paid annual leave to all workers who served the factoryover one year.





Tier I



Good Improvements Needed Non-Compliant Under “Grace Period”

Minor deviations are identified in no morethan 2 questions per chapter; thesequestions are not marked as crucial.

Deviations are identified in less than half of the totalnumber of questions per chapter. No deviations arefound in questions marked as crucial.

Deviations are identified in half or more of the total number ofquestions per chapter. One deviation in a question marked ascrucial is sufficient to assess the entire chapter as non-compliant.

Not Available

Part B Tier I - Overall Summary

Chapter Full Audit Results(21307 and 09/09/2014)

B.1. Management Practice

B.2. Documentation

B.3. Working Hours

B.4. Compensation

B.5.1. Child Labour

B.5.2. Young Workers

B.6. Forced Labour / DisciplinaryMeasures / Prison LabourB.7. Freedom of Association andCollective BargainingB.8. Discrimination, Harassmentand Abuse

B.9. Working Conditions

B.10. Health and Social Facilities

B.11. Occupational Health andSafety (OHS)B.12. Dormitories (if notapplicable, go to B.13)

B.13. Environment

Total

G IN NC NA %

83.33

83.33

80.00

100.00

100.00

100.00

100.00

100.00

100.00

71.43

87.50

92.31

100.00

60.00

89.57





Tier I



Good Minor deviations are identified in no more than 2 questions per chapter; these questions are not marked as crucial.

Improvements Needed Deviations are identified in less than half of the total number of questions per chapter. No deviations are found in questions marked as crucial.

Non-compliant Deviations are identified in half or more of the total number of questions per chapter. One deviation in a question marked as crucial is sufficient to assess the entire chapter as non-compliant.

Under “Grace Period” Not Available

Not Applicable Requirements do not match to the company structure

Not Rated Only applicable for re audits; if a question was rated “+” in the previous full audit or re-audit the auditor will mark the question NR

In House Production Structure

Department Function in production Number ofWorkers

Number ofshifts

Shift 1

From To

Shift 2

From To

Shift 3

From To

Production Injection 26 3 8:00 AM 4:00 PM 4:00 PM 12:00 AM 12:00 AM 8:00 AM

Production SMT, Assembly, Packing 103 1 7:45 AM 11:45 AM 1:15 PM 5:15 PM

Production Silk-screen printing,Metal assembly, office 112 1 8:00 AM 12:00 PM 1:30 PM 5:30 PM

In House employment Structure at the time of the audit

Total number of workers : 241

Male Female

Permanent workers 88 Permanent workers 153

In management position 4 In management position 3

On probation 8 On probation 15

National migrants 70 National migrants 120

Salaried workers 16 Salaried workers 42

Temporary workers (odd jobbers) 0 Temporary workers (odd jobbers) 0

Apprentices 0 Apprentices 0

With disabilities 0 With disabilities 0

Cross-border migrants 0 Cross-border migrants 0

Production based workers 68 Production based workers 108

Pregnant 0

On maternity leave 0





Tier I


Outsourced structure

Location/ AddressUnit Function in

the chainContactperson

Businessrelation

-shipsince Address City State Country

Distanceto the

companyin km

Mainproduct

Certificatesand socialaudits (if

applicable)

Numberof

workers

Part ofthe

ISMS(if

applic-able)

Part ofthe

auditsample

ShenzhenShiyuanPlasticCo.,Ltd

subsupplier Mr. Liu 2008 SonggangShenzhenGuangdongChina 8 PlasticsNo 35

DongguanJieshunNumericalControlEquipmentCo., Ltd

subsupplier Mr. Zhang 2005 Humen DongguanGuangdongChina 30 PCB No 69





Tier I


Dormitories (if applicable)

No Data Available for Dormitories





Tier I


Corrective Action Plan (CAP) B Tier I

Chapters and Subchapters Crucial Score CAP ResponsiblePerson

Deadlinedate

B.1. Management Practice

B.1.1. Management Pactice No ( - )[Minus]

Initial audit on Sep 9, 2014: Finding: The factorydidn’t establish the documents on workforcecapacity and capacity planning as well as thecosting and capacity to match delivery ordercontracts' expectations. 工厂没有制定生产能力和产能规划的文件以及成本计算和成本能力规划控制文件. Itviolated BSCI checklist B.1.1. NecessaryImprovement: The factory should establish thedocuments on workforce capacity and capacityplanning as well as the costing and capacity tomatch delivery order contracts' expectations. 工厂应制定生产能力和产能规划的文件以及成本计算和成本能力规划控制文件以确保客户的货期。

Mr. Phil Young 09/12/2014

B.1.7. Management Pactice No ( - )[Minus]

Intial audit on Sep 9, 2014: Finding: The factorydidn’t provide relevant evidence to show two-way communication meetings taken placebetween management and workers regularly atleast twice per year. 工厂没有每年至少2次就关于劳动者权益和社会责任方面与员工进行双向沟通。 Itviolated BSCI checklist B.1.7. NecessaryImprovement: The factory should communicatebetween management and workers regularly atleast twice per year. 工厂应每年至少2次就关于劳动者权益和社会责任方面进行双向沟通。


Chapter Score Good Improvements Needed Non-CompliantNumber of deviations in crucialquestions 0 of 3

Fulfillment Percentage 83.33% B.2. Documentation

B.2.1. Documentation No ( - )[Minus]

Initial audit on Sep 9, 2014: Finding1:Thefactory didn't provide the fire safety certificate orrecords for all factory buildings. 工厂没有提供所有厂房建筑的消防验收合格证或备案供审核。 It violatedFire Prevention Law of the People's Republic ofChina Article 11&13. Necessary Improvement:The factory should obtain the fire safetycertificate or records for all factory buildings. 工厂应取得所有厂房的消防竣工验收合格证或备案记录。Finding2:The factory didn’t provide the buildingstructure safety certificates for all the factorybuildings for review during the audit. 审核期间工厂未提供所有厂房的建筑竣工验收合格证供审核。 Itviolated Construction Law of the People'sRepublic of China, Article 61. NecessaryImprovement: The factory should obtain buildingstructure safety certificates for all factorybuildings. 工厂应取得所有厂房的建筑竣工验收合格证。



Fulfillment Percentage 83.33% B.3. Working Hours

B.3.4. Working hours No ( - )[Minus]

Initial audit on Sep 9, 2014: Finding: Based onthe attendance records from Sep 2013 to theaudit day and payroll records from Sep 2013 toAug 2014 provided by the factory, about 80%workers‘ monthly overtime working hourexceeded 36 hours except Feb 2014 and up to56 hours with about 50 hours on average. 根据工厂提供的2013年9月至审核当天的考勤记录以及2013年9月至2014年8月的工资记录显示，除2014年2月份意外的其他月份约80%的员工的月加班时间超过36小时，最高到56小时，平均月加班约为50小时。 It violatedChina Labor Law, Article 41. NecessaryImprovement: The factory should make sure theworking hours in line with the local legalrequirment. 工厂应确保员工的工作时间符合法规要求。






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Fulfillment Percentage 80.00% B.9. Working Conditions

B.9.3. Working Conditions No ( - )[Minus]

Intial audit on Sep 9, 2014: Finding: The factorydidn’t conduct indoor air quality testing for thesoldering-tin&silk-screen printing workshop. 工厂没有对焊接和丝印车间进行空气质量测试。 It violatedWorkplace Occupational Health MonitoringAdministration Regulation, Article 20. NecessaryImprovement: The factory should arrangerelevant test for mentioned workshop annually atleast and take follow up action as necessary. 工厂应对以上车间至少每年进行一次空气质量测试并根据报告内容作出相关跟进。


B.9.4. Working Conditions No ( - )[Minus]

Intial audit on Sep 9, 2014: Finding: The factorydidn’t conduct noise testing for the punching&metal assembly workshop. 工厂没有对冲压和柱仔车间进行噪音测试。 It violated WorkplaceOccupational Health Monitoring AdministrationRegulation, Article 20. Necessary Improvement:The factory should arrange relevant test formentioned workshop annually at least and takefollow up action as necessary. 工厂应对以上车间至少每年进行一次噪音测试并根据报告内容作出相关跟进。



Fulfillment Percentage 71.43% B.10. Health and Social Facilities

B.10.2.1. Social Facilities No ( - )[Minus]

Initial audit on Sep 4, 2014: Finding:The factorydidn't provde effective drinking water test reportfor the tap water. 工厂没有提供车间饮用的自来净化水的有效的饮水测试报告。 It violated BSCI checklistB.10.2.1. Necessary Improvement: The factoryshould obtain the drinking water test report forthe tap water provided in the workshop . 工厂应获得车间饮用的自来水的测试报告.



Fulfillment Percentage 87.50% B.11. Occupational Health andSafety (OHS)

B.11.1.5. Risk Assessment andMonitoring No ( - )

[Minus]

Initial audit on Sep 9, 2014: Finding: The factorydidn’t arrange occupational health examinationfor parts of workers who engaged in hazardouspost, such as the factory didn't arrangeoccupational health examination for three silk-screen printing workers and didn't arrange re-check for workers in need as per the examinationreport. 工厂未给部分接触职业危害的员工安排职业健康体检，例如抽样中工厂给3名丝印员工提供职业健康体检，未根据体检结果给有需要做复查的员工安排复查。 Itvioalted Law of the People's Republic of China onPrevention and Control of Occupational Diseases,Article 36. Necessary improvement: The factoryshould arrange occupational health examinationto workers who engaged in hazardous factor andarrange recheck . 工厂应为接触职业危害作业的员工提供职业健康体检并给需要做复查的员工安排复查。


B.11.3.1. Personal ProtectiveEquipment No ( - )

[Minus]

Initial audit on Sep 9, 2014: Finding: The factoryprovided one off mask instead of dust-proofmasks to welding workers. 工厂提供给焊接员工的口罩为普通的一次性口罩而非防尘口罩。 It violated Lawof the Peoples Republic of China on Preventionand Control of Occupational Diseases，Article 23.Necessary improvement: The factory shouldprovide proper PPE to workers who engagedhazardous work. 工厂应为有职业危害作业的员工提供合适的劳保用品。


Initial audit on Sep 9, 2014: Finding: The





Tier I









B.11.3.3. Personal ProtectiveEquipment No ( - )

[Minus]

welding workers didn't wear masks duringworking. 焊接员工在操作中未佩戴口罩。 It violatedProduction Safety Law of the People’s Republic ofChina (2009 Amendment), Article 37. Necessaryimprovement: The factory should provide properPPE to workers and educate employees to wearpersonal protective equipment properly. 工厂应为有职业危害作业的员工提供合适的劳保用品并教育员工合理佩戴。



Fulfillment Percentage 92.31% B.13. Environment

B.13.1. Environment No ( - )[Minus]

Initial audit on Sep 9, 2014: Finding: The factorydidn't provide EIA report and approval for reviewduring the audit. 工厂没有提供环评报告和环评批复供审核。 It violated Law of the People's Republic ofChina on the Environmental Impact Assessment(2002), Article 22. Necessary improvement: Thefactory shall conduct EIA and obtain approvalfrom environmental authority. 工厂应对工厂进行环境评价并取得环评批复。


B.13.3. Environment No ( - )[Minus]

Initial audit on Sep 9, 2014: Finding1: Thefactory didn’t provide evidenc to prove that thefactory submitted the hazardous waste toqualified vendor for disposal. 工厂没有提供证据显示有将危险废弃物交由有资质的单位进行回收. It violatedLaw of the People’s Republic of China on thePrevention and Control of EnvironmentalPollution by Solid Wastes (2004) Article 59.Necessary improvement: The factory shouldtransfer all hazardous wastes to licensed vendorfor proper disposal and keep relevant wastetransfer manifest. 工厂应将危废交由有资质的单位进行回收并保留相关转移记录。 Finding2: About 10empty chemical containers outside of thechemical warehouse were stored in the open air.化学品仓外有约10个化学品空桶露天存放。 It violatedStandard on Pollution Control of HazardousWaste Storage (GB18597-2001), Article 6.3.9.Necessary improvement: The factory shouldensure hazardous waste was stored in wind-proof, rain-proof and sun-proof area. 工厂应确保危废储存在防风，防雨和防晒的地方。



Fulfillment Percentage 60.00%

Total Audit Results for Part B Tier ITotal Score Good Improvements Needed Non-CompliantTotal number of deviations incrucial questions 0 of 35

Overall fulfillment percentage 89.57%





Tier I









Part C: Audit Findings

Chapter

C.1. Policy

C.2. Planning and Implementation

C.3. Management Review

C.4. Control of Subcontractors /Suppliers / Sub-suppliers

C.5. Control of Homeworkers

C.6. Compensation

C.7. Child Labour

C.8. Outside Communication

Total





Tier I







Workers Interview Sheet

Workers Interview Sheet

Workers Male workers number Female workers number % of the total workforce

Total 2 8 4.15

Workers aged < 18 years interviewed 0 0 0.00

Apprentices interviewed 0 0 0.00

Disabled persons interviewed 0 0 0.00

Full time workers interviewed 2 8 4.15

Part time workers interviewed 0 0 0.00

Seasonal workers interviewed 0 0 0.00

Migrant workers interviewed 2 8 4.15

Pregnant workers interviewed 0 0.00

Interview methods used number (how many)Number of Individual interviewsconducted 5

# of people interviewed in Group(s) 5

# of Interviews conducted on site 10

# of Interviews conducted off site 0

Was an interpreter used? Yes NoLanguage(s) used for workerinterviews Chinese

No. ofinterview

Essentials (If the number of rows is not enough, please add pages as needed and include with theattachments).

1 For child labour issue, all interviewees claimed that their original ID cards were checked during hiring process. Acopy of the IDs were needed to hand in to the HR staff. No child labor was identified during the audity.

2 For forced labour issue, the workers confirmed that PPEs and tools were provided by the factory free of charge.No any form of deposit, such as holding ID cards or money was required by the factory. They could access toiletand water freely anytime, and leave the factory after shift.

3 For discrimination issue, the workers said that local and migrant workers were treated the same. No pregancy testwas required on women before hiring. They have equal opportunity on training, OT, and promotion.

4 For discipline practice issues, the interviewees said that the management was kind to them. No fine was used inthe factory. They would only be warned for breaking the factory rules.

5 For health and safety issue, the workers claimed that regular trainings were provided to them on health andsafety. No serious injury case ever happened in the factory. PPEs, such as masks were provided to them free ofcharge. Fire drills were conducted twice a year in the factory.

6 For working hour issue, all interviewees said their normal working hours were 8 hours per day and 40 hours perweek. The working hours were recorded by punching IC card. All workers claimed that they could be arrangedovertime work 2 hours at night and 8 hours on Saturday according to production arrangement.

7 For wage issue, the interviewed workers said wages were paid by cash before 7th of next month. All productionworkers were paid by hourly rate. At least RMB 1808/month were paid as basic wage. Overtime wages were paid150% and 200% of the normal rate on weekdays and rest days respectively. Paid annual leaves, etc. wereprovided to employees.

8 All interviewees said that the factory signed the labour contracts when they entered the factory, and one copywas issued to them.

9 For freedom of association issue, the interviewees said they could complain to the factory manager directly or bysuggestion box.





Tier I







Child and Young Workers Record Sheet

No Data Available for >Child and Young Workers Record Sheet





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Overall Producer Pictures

No Photos Available





Tier I


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BSCI report