What is Business Social Compliance Initiative – BSCI

BSCI :- What is Business Social Compliance Initiative (BSCI Certification)

The BSCI is a European social monitoring system for ethical sourcing that was founded by the Foreign Trade Association in Brussels (FTA). The Business Supply Chain Initiative (BSCI) is a business-driven initiative for companies committed to improving working conditions in the global supply chain. BSCI brings together hundreds of companies around a single Code of Conduct and supports them in their efforts to build an ethical supply chain by providing a step-by-step development-oriented system applicable to all sectors and all sourcing countries.
The BSCI Code of Conduct is based on the most important International Conventions that protect workers’ rights, most notably the ILO Conventions and recommendations. All BSCI participants agree to put the Code into action in their supply chains. BSCI assists businesses by offering a variety of interconnected activities and tools to help them achieve a socially compliant supply chain.

Who established BSCI?

The Foreign Trade Association (FTA) was established as a non-profit organization in 1977. This organization represents the interests of importing retailers in foreign trade issues and advocates on their behalf. Companies and associations from ten EU countries are among the members. The FTA then formally established BSCI in March 2003 to develop the tools and procedures for the BSCI Programme. The BSCI Member companies commit to the BSCI’s objectives and, as a result, involve their suppliers in the system.

The 11 Code of Conduct principles that BSCI participants commit to implementing in their supply chains are as follows:

1. The rights to Freedom of Association and Collective Bargaining
2. No Discrimination
3. Fair Remuneration
4. Decent Working Hours
5. Occupational Health and Safety
6. No Child Labour
7. Protection of Young Workers
8. No Precarious Employment
9. No Bonded Labour
10. Protection of the Environment
11. Ethical Business Behaviour

BSCI Membership

BSCI has 2 membership systems.

• Regular membership is available to retail, trading, brand, and importing companies that play an active role in the supply chain by incorporating their suppliers into the BSCI auditing and qualification process.
• Associate membership is open to any company, association, or institution that supports the initiative but does not implement the BSCI process.

Which businesses required BSCI audits?

Subcontractors and manufacturing units (Subject to specific requirement and consent from the customer) BSCI Audit Process.

BSCI Benefits

By taking part in amfori BSCI members can:
• Improve the social performance of their supply chain
• Reduce cost and increase efficiency
• Have a clear and consistent approach that highlights best practices
• Improve the resilience of their business to industry and market changes
• Improve their businesses’ reputation by meeting the expectations of your customers and stakeholders

Applying for the audit

Only companies that actively supply BSCI Members are eligible to be audited in accordance with the BSCI Code of Conduct. The audit must be conducted through the BSCI platform and approved by the BSCI member in charge of the supplier.

Preparation for the Audit

The supplier must sign the Terms of Implementation prior to the first BSCI audit. The supplier acknowledges the values and principles of the BSCI Code of Conduct and commits to taking appropriate measures in accordance with the BSCI Code of Conduct principles. The supplier must agree to audits by approved auditing firms and grant them permission to conduct confidential interviews with employees, make copies of documents, photograph production facilities, and document required for audit in the BSCI platform.
Each producer is asked to complete the BSCI self-assessment questionnaire prior to an audit. This gives auditors a good first impression and helps them plan their audits. The audit plan is then given to the supplier, along with a list of documents required for the audit.

Supplier audit (on-site)

Authorized auditors conduct an on-site audit, they look to see if the supplier follows the BSCI Code of Conduct guidelines. Audits can be scheduled, semi-scheduled, or unscheduled. Semi-announced audits are the most common type and are performed within a one-month time frame without disclosing the exact date of the audit to the producer. The audit starts with an opening meeting where the purpose and process of the audit are explained. Following that, auditors inspect the manufacturing facilities, interview managers and employees, and review the documentation.

Audit Report

Any deviations from the BSCI Code of Conduct requirements are documented by the auditors and countersigned by the supplier.. Depending on the degree of fulfilment, the audit result may lie between
A = Outstanding to E = Unacceptable.
A document containing the audit results (including photographs of the situation on-site) in the BSCI platform, which can be accessed by the supplier and its customers who have BSCI membership.

How long is a BSCI audit valid for?

Amfori BSCI complete audits with an overall rating of ‘A’ or ‘B’ (Very Good or Good) are valid for two years.

Documents required for Amfori BSCI Certification?

The organization shall demonstrate compliance related to below-mentioned requirements:
• The Legal (Factory Act.)
• Social (Policies, Procedures and related documents)
• Health and Safety
• Environmental
• Social (Policies, Procedures and related documents)

Is BSCI Audit Mandatory?

No, that isn’t the case. The BSCI audit is a voluntary activity in which participants agree to adhere to the BSCI Code of Conduct. When it comes to receiving tenders and purchase orders from clients, suppliers who are BSCI compliant have an advantage.