In the context of globalisation and international competition, many companies source labour-intensive goods from developing and newly industrialised countries. However, working conditions in these countries often do not comply with basic labour standards, such as those established by the International Labour Organization (ILO). To address this issue, many companies and associations have created individual codes of conduct and monitoring systems.
SA8000 and BSCI are some of the monitoring systems. The audit process helps to identify the better suppliers who can take on more business as non-conforming suppliers drop out of the supply chain.
2. Ethical Sourcing
”Socially responsible procurement (ethical sourcing)
aims to set contract conditions that encourage
suppliers to ensure that during the contract period
goods and services have been produced in
conditions where human rights and core labour
standards are respected.
In effect, suppliers must comply with international
human rights conventions, such as the ILO
conventions, the UN Convention on the Rights of
the Child, legislation on minimum wages and
working hours in the production country, and
general environmental, health and safety
requirements.”
3. What is BSCI?
The Foreign Trade Association (FTA) is Europe´s
premier association for trade policy and global
supply chains. Members are national trade
associations and companies.
The Foreign Trade Association, or FTA, formed the
Business Social Compliance Initiative, or BSCI, in
2003.
The BSCI is a non-profit organisation under the
legal roof of the Foreign Trade Association, based in
Brussels.
4. What is BSCI?
The BSCI is the European social monitoring system
for ethical sourcing.
When started about ten years ago some brands and
retailers saw this as a German ‘operation’
BSCI’s link with Social Accountability International
SAI and its SA8000 Social Standard give credibility
to the BSCI code and work.
5. Business Social Compliance
Initiative (BSCI)
Member companies have to implement the BSCI
Code of conduct focusing on the core of ILO
conventions, human and labour rights and
requesting the conduct of social audits in the supply
chain of the members.
The BSCI currently recognises SA8000 as its best
practice and promotes a progressive adhesion of
the supply chain to the ILO conventions , and
supports the continuous improvement of the social
performance of suppliers.
7. Business Social Compliance
Initiative (BSCI)
BSCI procedure includes a self-assessment tool for
suppliers, which aims at correcting critical issues in
advance and saving time during auditing.
8. Business Social Compliance
Initiative (BSCI)
BSCI is an auditing and qualification system striving
for continuous improvement.
The most important part of the BSCI is the
qualification of the suppliers.
Many suppliers need assistance after the audits to
implement the corrective actions to sustainably
improve their social performance.
They receive this qualification by the BSCI Members
or service providers being experts in this field.
9. Business Social Compliance
Initiative (BSCI)
Implementation
Independent auditing companies accredited by
Social Accountability International, or SAI, help
enforce the BSCI.
The auditors monitor and record each BSCI
member's business practice and workplace
standards, and then the audited BSCI member
plugs these results into a database shared among
all members.
This strict monitoring process helps each business
strive and qualify for the SA8000 workplace
standard formed by SAI.
10. BSCI
The database is for members only, and suppliers do
not receive a public certificate for having passed a
BSCI audit.
In cases where an initial audit identifies serious
issues, corrective action may be required to address
and resolve these issues before the re-audit.
During the implementation of corrective action, as a
principle, BSCI members would like to maintain all
existing business relationships while suppliers
achieve full compliance.
11. BSCI
As well as a common code of conduct, the BSCI has
also developed a common monitoring system for all
its members.
The core idea is to move from being a buyer- to a
supplier-driven monitoring system.
12. BSCI
Rather than all buyers having to monitor all their
suppliers, in practice leading to several buyers
monitoring the same supplier, the BSCI system aims
to synchronise the monitoring, making only one
audit per supplier necessary.
The results of the audits will then be entered into a
common database, in which the BSCI members can
search for information regarding their current
and/or future suppliers.
13. BSCI
Previously, retailers have seldom or never shared
such important information regarding suppliers with
their competitors.
Hence, a consequence of the BSCI attempt to
define corporate responsibility is that stronger
alliances between European retailers are being
created.
14. BSCI
After completing the audit, the auditor will prepare
a Social Audit Report.
This report is then submitted to the audited
company and to the supplier’s trading partner.
If the supplier has initiated the audit itself, a copy
of the Social Audit Report shall be sent to its
customer(s) participating in the BSCI.
15. BSCI
As per the BSCI, the supplier is to be monitored
(audited) every three years, provided no adverse
remarks were made in the previous audit.
However, the maximum timeframe of the corrective
action phase is 12 months after the initial or re-
audit respectively.
BSCI audits are carried out by SA 8000 auditors,
and are designed to guarantee the same basic
rights for employees as the SA 8000 standard.
16. SA8000
SAI: Social Accountability
International :
Is a NGO with headquarters in USA,
composed of investors from different
sectors: workers and trade unions,
enterprises, governments and NGOs
17. SA8000
The SAI formed the SA8000 standard in 1997.
While not a standard mandated by the International
Organization for Standardization, or ISO, it follows
a similar accreditation and certification model.
Certification is granted by international certification
bodies accredited and monitored by SAI. The
procedure corresponds to those used in connection
with the ISO 9000 and 14000 standards.
18. SA8000
The Standard SA 8000 is a management system
tool on working conditions and regulations
compliance.
It aims at improving working conditions worldwide,
by imposing strict rules to organisations and
involving the entire supply chain.
It is based on core ILO conventions, Universal
Declaration on Human Rights and the United
Nations Convention on Children's Rights, as well as
management systems (ISO 9000 and 14000).
19. SA8000
SA8000 standard has become a worldwide
reference in working regulations and labour rights
management system, mainly because it proposes a
certifiable management system.
Many other standards and initiatives cover the
same core ILO conventions, often under the form of
sectoral codes of conduct, guidelines and
recommendations.
This standard is the benchmark against which
companies and factories measure their
performance.
20. SA8000
Purpose - Certification
The SA 8000 certificate is valid for three years.
Companies are given surveillance audits once every
six months during this period to ensure stability and
progress of the standard.
Renewal audits take place once every three years.
21. The differences
The BSCI system currently recognizes the social management
systems standard SA8000 as its best practice.
The BSCI Code of Conduct was developed in partnership with
the Social Accountability International (SAI) initiative as a
stepping stone towards SA8000 certification.
If a company has already been certified against the SA8000
standard, implementation of the BSCI Code of Conduct is not
requested as long as the SA8000 certificate is valid.
22. The differences
The BSCI is not a certification system and therefore
does not issue a certificate.
The cover page of the audit report outlining the
results and the validity of the audit can be
displayed in the factory premises and be used as
proof of the audit.
23. The differences
BSCI Code emphasis on “legal minimum and/or
industry standards” wage.
SA8000 emphasis on the right of supply chain
workers to a living wage instead of – “legal
minimum and/or industry standards”.
24. The differences
SA 8000 requires more systematic procedures and
controls and sustainable improvements, while BSCI
focuses on specific points or items; BNW (basic
needs wage/ living wage ) is a mandatory clause
for SA 8000 but only a reference for BSCI.
25. The differences
BSCI
In case of conflict between international / national
rules:
- more stringent rule(s) apply
26. The differences
BSCI Audit is, although much is similar to SA8000
certification audits, there are differences in the
audit protocols due to specific BSCI requirements
and the very nature of a gap analysis as compared
with a certification audit
27. The differences
SA8000 audits are performed in line with
ISO17021:2011 and require surveillance audits
every six months during a certification cycle of 3
years.
If a company meets BSCI requirements then they
are not re-audited usually for 3 years.
28. The differences
SA8000 can be done without buyers requirement
and can use as a marketing tool whereas BSCI
should be done with Buyers approval only.
29. The differences
SA8000 is not addressing Environment but BSCI.
SA8000 standard have some extraction from ISO
and BSCI from SA8000