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Free Trade. Sustainable Trade.
Information Kit on BSCI 2.0 for ProducersEnabling Social Responsibility in Global Supply Chains
Improving Working Conditions in Factories and Farms Worldwide
ProteCtIon oF the envIronment
oCCUPAtIonAL heALth And SAFety
FAIr remUnerAtIon
SPeCIAL ProteCtIon For yoUng WorKerS
deCent WorKIng hoUrS
no PreCArIoUS emPLoyment
no dISCrImInAtIon
no Bonded LABoUr
the rIghtS oF Freedom oF ASSoCIAtIon And CoLLeCtIve BArgAInIng
ethICAL BUSIneSS BehAvIoUr
no ChILd LABoUr
11 Principles of the Code of Conduct
new BSCI Audits from may 2015
The new BSCI Code of Conduct, launched in 2014, brings concrete changes for BSCI participants, but also for production facilities that are audited. With BSCI 2.0, factories and farms will have additional responsibilities in the improvement of working conditions. BSCI 2.0 will also lead to major changes in the auditing process.
Whereas the official launch of BSCI 2.0 is scheduled for January 2016, 2015 will be a transitional year: BSCI participants will have the possibility to carry out BSCI 2.0 audits from May 2015 if they feel sufficiently prepared. As a consequence, you might be asked to undergo a BSCI 2.0 audit in 2015 by your buying companies. Therefore getting prepared for BSCI 2.0 is of strategic importance.
the BSCI Code of Conduct
The BSCI Code of Conduct is a set of values and principles that all BSCI participating companies and their business partners commit to implementing along the supply chain.
A reference documentThe BSCI Code of Conduct is based on the most important international labour standards protecting workers’ rights. It sets out 11 core labour rights, which BSCI participants commit to implement and monitor with their business partners within their supply chains. The 2014 version has been reinforced with new principles such as ‘No Precarious Employment’ and ‘Ethical Business Behaviour’.
What it means for youYour customers’ involvement in BSCI means that you must commit to the BSCI Code of Conduct principles and terms of implementation. You will receive the Code of Conduct from your customer, which you are to sign. You will also receive the Code of Conduct A3 poster which includes the 11 labour principles and the BSCI approach, and will be required to clearly display this document to all employees in your factory or farm. This demonstrates your commitment to improving working conditions in your workplace.
As a business partner producing for one or several BSCI participants, this information kit will give you an overview of the BSCI system and what is expected from you once you have been involved by your customer.
the BSCI vISIon: SoCIAL ComPLIAnCe IS A mUSt For BUSIneSSeS
BSCI is a business-driven initiative for companies committed to social responsibility in their supply chain, regardless of their size, sector or industry. BSCI offers companies one common Code of Conduct and a holistic system - known as BSCI 2.0 - to foster better working conditions in global supply chains.
BSCI and its participants believe that compliance with local regulations and core social standards defined by international organisations such as the International Labor Organization (ILO) is an opportunity for commercial companies. Improving working conditions is an important way for companies to mitigate risks and protect their reputation. Additionally, it maximises efficiency by reducing costs, improving productivity and enhancing strategic management within supply chains.
Why enterIng the BSCI ProCeSS IS A BUSIneSS oPPortUnIty For yoU
BSCI’s over 1,500 participants include international retailers, importers and brand companies operating in a diverse range of sectors from textiles to food, footwear and electronics. Therefore, going through the BSCI process not only radically reduces the frequency of social compliance audits but also enables producers' profiles to be visible to hundreds of buying companies and beyond, as BSCI audits are internationally recognised.
how to Prepare for BSCI 2.0 Audits
1. Sign the BSCi Code of ConduCt Make sure you have received the ultimate version of BSCI Code of Conduct (2014) from your BSCI customer. Sign and display the Code of Conduct A3 poster in the appropriate language on the premises of the site to be audited.
2. nominAte A key ContACt perSon You should appoint a key contact person in charge of: • Providing information to BSCI participants • Maintaining the data in the BSCI platform • Participating in BSCI workshops • Leading the preparation of the BSCI audit
3. ColleCt AppropriAte informAtionUse templates provided by BSCI in the BSCI System Manual, including:• Business Partner Information• Supply Chain Mapping• Smallholders Self-Assessment• Working Hours Form• Fair Remuneration Quick Scan• Stakeholder mapping• Young Workers’ Data• Grievance Mechanism• Remediation Plan
4. Self-ASSeSS your performAnCe And StArt Building your mAnAgement SyStemGoing through BSCI requirements will help you not only prepare for the audit, but also understand the possible gaps between your business practices and the BSCI Code of Conduct 2.0.
Identifying these gaps and managing them with a continuous improvement approach is the better path to building a social management system.
5. go to the BSCi plAtformOnce your profile has been created by the BSCI participant, you will receive a login and password to enter the platform. You can use BSCI platform to post general information on your company in preparation for the audit. After the audit, you can use it to post your remediation plan (based on the BSCI template) and check your social performance progress. You can also register for free workshops on the BSCI Academy.
For more information, please check the BSCI System Manual.
BSCI 2.0 modeL
BSCI 2.0 SyStem: vALUIng reSPonSIBLe entrePreneUrShIP
With the BSCI 2.0 system, participants aim at developing social responsibility throughout their supply chain. It means they commit to engaging and empowering their significant business partners in order that they can reach a sufficient level of social performance. The final objective is that business partners can manage their social improvement process autonomously. Amongst the responsibilities you are given through the BSCI Code of Conduct, the following are the most important:• Develop a social management system: You should develop a set of systematic
processes to analyse, control and reduce discrepancies with the BSCI Code of Conduct
• Build a solid grievance mechanism: This is necessary to better involve workers and local stakeholders and systematically receive, track, resolve and communicate with them, about any concern they may have with the workplace
• Map your supply chain: Prioritise your most important business partners and cascade BSCI requirements to them
• Develop the remediation plan following a BSCI audit: This should include an assessment of root-causes when discrepancies with the BSCI Code are found
You will find useful templates, documents and guidelines to implement these requirements in the BSCI System Manual.
BSCI PARTICIPANTS
THEIR BUSINESS PARTERSSignificant business partners
to be audited (factories & farms)
SELF-ASSESSMENT & DATA COLLECTION
Other significant business partners (traders, importers, etc.)
BSCI Code Integration & Observance
RISK ANALYSISINTERNAL
MANAGEMENT SYSTEMREPORTING &
ACCOUNTABILITY
Values & principles Terms of implementation
SkillsProcesses
Controlsfeed
s
feed
s
feeds
SUPPLY CHAIN MONITORING & CONTINUOUS IMPROVEMENT
1
2
3
4
5
BSCI CODE INTEGRATION & OBSERVANCE
BSCI FULL AUDIT - Every 2 years
Remediation plan
No follow-up audit needed
FOLLOW-UP AUDITValidity 12 months
BSCI AUDITS
A - B - C - D - E - Z T
Audit rating:
CAPA
CITY
BUI
LDIN
G AC
TIVI
TIES
& TO
OLS
SOCIAL MANAGEMENT SYSTEMSupply chain monitoring - Root cause analysis - Grievance mechanism
The 13 performance areas of BSCI 2.0 audits cover the Code of Conduct values and principles. By breaking it down into separate, measurable components, the Performance Areas provide a guide to its implementation. Audits evaluate the company’s progress across all of the Performance Areas and all areas are important: auditees need to reach for performance improvements across the whole range.
Some of the Performance Areas, however, are critical and of a different order. Notably, flagrant and proven infringements of certain fundamental principles will trigger immediate action and an overall rating is not delivered. Instead the company receives Zero Tolerance status. The Performance Areas concerned are: child labour; bonded labour; ethical behaviour; and any case of immediate threat to workers’ life, health and safety.
A neW rAtIng SyStem to enCoUrAge ProgreSS
In every performance area, the auditors assessment for each question will deliver one of three ratings: • Yes, for satisfactory evidence that the company has mastered the requirements for
the Area
• No, for unsatisfactory evidence
• Partially, for situations in which some satisfactory evidence is found, but not sufficiently to indicate a ‘Yes’ rating
The overall audit rating is the combination of ratings for each of the Performance Areas, and reflects the extent to which the company has integrated the BSCI Code of Conduct into its culture and operations. There are five possible ratings (see table below). Auditees need to be aware that performance below the level of ‘D’ is unacceptable and will entail close oversight of the company by BSCI participants. With a ‘C’ or ‘D’ rating, the auditee may not represent a high risk for BSCI participants but a follow-up audit is needed. An ‘A’ or ‘B’ rating indicates the company can continue to manage its own process of capacity building and continuous improvement.
BSCI AUdIt rAtIng: reSULtS And ConSeqUenCeS
rAting WHAT IT MEANS FOR THE AUDITEE
A outstanding
Audit is valid for 2 years, no need for a follow-up audit.
B good
Audit is valid for 2 years, no need for a follow-up audit.
C Acceptable
The auditee develops a Remediation Plan within 60 days following the completion of the audit. A follow-up audit is needed.*
d insufficient
The auditee develops a Remediation Plan within 60 days following the completion of the audit. A follow-up audit is needed.*
e unacceptable
The auditee may represent a high risk for BSCI participant. A follow-up audit is needed.*
Zero tolerance Immediate actions are required from all BSCI participants working with the auditee. (The BSCI Zero Tolerance Protocol is to be followed)
*No follow-up audit within one year means a new full audit is needed
The Business Social Compliance Initiative is a leading business-driven initiative for companies committed to improving working conditions in factories and farms worldwide. We unite more than 1,500 companies around a development-oriented system applicable to all sectors and sourcing countries. BSCI is an initiative of FTA, the leading business association of European and international commerce that promotes the values of free trade and sustainable supply chains. (www.fta-intl.org)
BSCI 2.0 Audits: What to expect
For more information contact: [email protected]
c/o Foreign Trade Association (FTA)Avenue de Cortenbergh 1721000 Brussels - Belgium
Tel. +32 2 762 05 51www.bsci-intl.orgwww.bsci-cn.org [email protected] [email protected]
Agriculture: managing and monitoring Farms
By agriculture, BSCI means all facilities producing: Fresh fruits and vegetables including premium preparations; fresh herbs; wine (sourced directly from the winery); flowers and ornamentals; nuts (sourced directly from the farm) and aquaculture and fisheries (sourced directly from the farm). These auditees are responsible for: • Supply chain mapping: Classifying their
farms based on their social performance and potential risks through a supply chain mapping exercise
• Evaluating social performance: The auditee is requested to nominate an internal auditor to visit farms from which it sources fresh fruits and vegetables and to formally assess the social performance of only a sample of farms
• Continuous improvement: Supporting the farms in the continuous improvement of working conditions (e.g. remediation plan)
Specific documentation is available for agriculture facilities in the BSCI System Manual.
reSoUrCeS
• Register for training workshops on the BSCI Academy• Find documents on the Code of Conduct, training and audit report on the BSCI Platform• Find the list of auditors here• Find the Code of Conduct A3 poster here• Find information on the Code of Conduct on the website here.
