Free Trade. Sustainable Trade.
Information Kit on BSCI 2.0 for Producers
Enabling Social Responsibility in Global Supply Chains
Improving Working Conditions in Factories and
Farms Worldwide
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.
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 document
The 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 you
Your 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.
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.
11 Principles of the Code of Conduct
THE RIGHTS OF FREEDOM OF
ASSOCIATION AND COLLECTIVE
BARGAINING
no discrimination
Fair remuneration
decent working
hours
OCCUPATIONAL health
and safety
no child labour
SPECIAL protection
for young workers
no precarious
employment
no bonded labour
protection of
the environment
ethical business
behaviour
How to Prepare for BSCI
2.0 Audits
BSCI 2.0 model
BSCI PARTICIPANTS
BSCI Code Integration & Observance
1
feeds
INTERNAL
MANAGEMENT SYSTEM
RISK ANALYSIS
REPORTING &
ACCOUNTABILITY
feeds
Skills
Processes
Controls
feeds
2
SUPPLY CHAIN MONITORING & CONTINUOUS IMPROVEMENT
THEIR BUSINESS PARTERS
3
Significant business partners
to be audited (factories & farms)
Other significant business partners
(traders, importers, etc.)
BSCI CODE INTEGRATION & OBSERVANCE
SELF-ASSESSMENT & DATA COLLECTION
4
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.
Terms of implementation
SOCIAL MANAGEMENT SYSTEM
Supply chain monitoring - Root cause analysis - Grievance mechanism
CAPACITY BUILDING ACTIVITIES & TOOLS
Values & principles
BSCI AUDITS
BSCI FULL AUDIT - Every 2 years
Audit rating:
5
A
-
B
-
C
-
D
-
E
-
Z T
Remediation plan
No follow-up
audit needed
FOLLOW-UP AUDIT
Validity 12 months
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.
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 information
Use 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 system
Going 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 platform
Once 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 Audits: What to Expect
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.
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
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.
c/o Foreign Trade Association (FTA)
Avenue de Cortenbergh 172
1000 Brussels - Belgium
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.
BSCI Audit Rating: Results and Consequences
For more information contact: [email protected]
Agriculture: Managing and
Monitoring Farms
Tel. +32 2 762 05 51
www.bsci-intl.org
www.bsci-cn.org
[email protected]
[email protected]
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)