The BSCI Commitment Formula1 BSCI participants are committed to honour the BSCI Code of Conduct and Terms of Implementation working towards continuous improvements in working conditions in their supply chains. With the BSCI commitment formula, BSCI participants can follow up on their progress, compare their performance against their peers (Figure 1) and redefine their implementation strategy as needed. FTA secretariat will quarterly monitor and follow up on BSCI participants’ performance and require remediation to those performing below the minimum engagement required. FTA secretariat will publicly report consolidated data on the progress of BSCI participants on a quarterly basis. Overall average performance Peers’ average performance Your company’s performance Figure 1. Example of visualisation of company performance available to BSCI participants 1 Referenced in BSCI System Manual as Annex 11 The BSCI Commitment Formula 1/4 I. Description of the Commitment Formula Elements 1. CONTINUOUS IMPROVEMENT Continuous improvement is a BSCI value and relates to BSCI participants’ approach to systematically look for and achieve incremental changes in order to have a positive and sustainable impact in their supply chain. 2. SOLID DUE DILIGENCE PROCESS AND CASCADE EFFECT Every BSCI participant has the responsibility to define the BSCI implementation strategy (including capacity building and audit scope) based on a human rights due diligence process, which covers their entire supply chain. In order to conduct a solid due diligence process, the following must be considered by the BSCI participant: 2.1. All countries, particularly those where higher risks of BSCI Code of Conduct nonobservance could exist; 2.2. All areas within a company, including own production units, if they represent a risk concerning embedding the BSCI Code of Conduct; 2.3. All business partners, particularly those with production activity, either industrial and/or agricultural. For agricultural work environment, a specific audit methodology is to be used, as provided by the BSCI system. 3. GOALS The commitment formula consists of goals (3), targets (10) and key performance indicators (KPIs) (18) following the methodology of the United Nations Sustainable Development Goals (SDGs). The BSCI Commitment Formula 2/4 The BSCI Commitment Formula 3/4 4. MINIMUM LEVEL OF ENGAGEMENT BSCI participants with insufficient engagement level will be notified by the FTA secretariat and/or the National Contact Group Chair or Coordinator. No improvement on these minimum levels of activity over an annual basis will trigger the membership exclusion process. Metric Measurement Minimum engagement per quarter Login on the platform Number of logins to the platform 1 Orphan producers Avoidance of 100% orphan producers Yes Invalid audits Invalid audits in the system <50% Producer list Producer list in the system Producer list is created in system within 6 months from joining Automatic RSP release Number of automatic RSP releases <10 per quarter 5. MEMBER EXCLUSION PROCESS In line with the FTA policy, an exclusion process 2 may be triggered as a result of members’ insufficient engagement, as shown in the below flow chart. 2 Exclusion of Liability clause: FTA and its directors, officers, employees or agents shall not be liable vis-à-vis any party (e.g. the members, the producers, the auditors) for any damages of any kind (e.g. whether losses, debts, liabilities, costs, claims, actions, demands, expenses, or charges) caused by FTA or its directors, officers, employees or agents in direct or indirect relation to any services or activities by FTA or the content of this document, with the sole exception of fraud, as recommended by FTA legal advisors. The BSCI Commitment Formula 4/4
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