BSCI factory inspection
一、How to become a BSCI member
Many Chinese suppliers or traders are inquiring about how to become members of the BSCI organization. Although the BSCI organization currently has over 1000 members, there are still many factories that need to apply for BSCI review that cannot obtain authorization from BSCI members (Take RSP), resulting in the inability to complete the review.
The official regulations of BSCI regarding becoming a BSCI member require that in order to join BSCI, one must first become a member of the European Foreign Trade Association (FTA). In the FTA's articles of association, it is stipulated that the FTA by laws template that companies whose main activity is manufacturing in defined risk countries are not eligible for any kind of FTA membership (Companies whose main production activities are located in high-risk countries cannot be admitted as members of the FTA organization.)
RISK COUNTRIES LIST is mainly developed based on recommendations from purchasers, the United Nations Human Rights Development Index, and the Corruption Index (Transparency). According to the official list of countries released by BSCI, almost all countries in Africa and all countries in Asia except Japan are among them. Of course, some companies in Hong Kong, such as Watsons and ESPRIT, have been able to join the BSCI organization as members due to their operations in Europe. Chinese panda fireworks once joined the BSCI organization, but were only applied for by the German department, and the Chinese headquarters was even completely unaware of it. They withdrew in 2012. As mentioned above, domestic trading companies who want to join the BSCI organization as members will generally not receive approval.
二、BSCI Membership Mechanism Description
1. BSCI is an organization that advocates for compliance with social responsibility in the business community, mainly composed of members such as retail companies and associations, importers, and production companies in Europe. It is a monitoring system for compliance with social responsibility in the European region.
2. BSCI member buyer
We know that BSCI certification is almost universally recognized as a social responsibility ethical standard for major retailers and buyers in Europe. Currently, we have over 1300 member merchants from 11 countries, which is commonly referred to as BSCI member buyers, such as LIDL, AVE, Hema, ICA, ALDI, Lindex, M&S, MGB, Tom Tailor, and so on.
3. BSCI-RSP Approval
RSP stands for Audit Management Rights
The core requirement for BSCI members holding RSPs is to initiate and authorize audits. BSCI factory inspection cannot be conducted without the approval of RSP members. RSP is just an action that a member customer needs to take, which is to agree to the factory's application for BSCI in the BSCI system.
4. How to apply for BSCI certification?
The prerequisite for BSCI certification audit is to obtain RSP approval from BSCI member buyers before applying for BSCI certification to the audit agency. Generally, factories cannot apply for BSCI factory inspection without authorization from BSCI buyers. Every enterprise needs RSP approval from buyer members when applying for BSCI certification audit. Even if the factory passes BSCI certification itself, it is not qualified to do this, and it must be the final BSCI member customer, So please do not confuse.
5. How can buyers with BSCI membership apply?
If your buyer is a BSCI member, you can have the member send a letter containing the BSCI platform account and password to your company through the BSCI platform; Then select the audit impartial bank, forward the letter to the impartial bank, fill out the application form and scan the declaration back to the impartial bank, and then proceed with BSCI certification work.
6. What about buyers without BSCI membership?
You can seek help from our company.
三、Comparison table of the review status of new and old versions of BSCI
After considering the needs of all relevant parties, the BSCI Steering Committee has decided that from May 1 to December 31, 2015, BSCI participants can independently decide whether to audit and monitor the manufacturer's factory based on the 2009 or 2014 version of the Code of Conduct based on their actual preparation. Starting from January 1, 2016, BSCI audits can only be conducted based on the 2014 version of the Code of Conduct. To facilitate the understanding of the audit characteristics of the new and old versions, the differences between the two are listed in the table below for reference:
project | 2009 Edition | 2014 Edition | notes |
Review rating And deadline | Good =2 minutes and 3 years Improvements Needed =1 minute 1 year Non-compliant =0分 3 months | A:Outstanding follow-up within two years B：Good follow-up within two years C：Submit a rectification plan within 60 days of acceptance and follow up within one year D：Insufficient Same C E：Submit the rectification plan within 60 days if not accepted, and follow up within one year. It is recommended that members arrange for follow-up review as soon as possible ZT：Notify the BSCI Secretariat and relevant members through the BSCI platform within 24 hours of zero tolerance | Increased difficulty in reviewing version 14 |
Reviewer Days |
Within 100 people, 1.5 people per day 101-250 people 2.5 person days 251-500 people 3 person days |
Within 50 people, 1.5 people per day 51-100 people 2 person days 101-250 people 3 person days 251-550 people 3.5 person days | Increased audit fees for version 14 |
Audit scale |
The implementation time is relatively long, The audited party is relatively familiar with the standards |
The new standards to be implemented, The audited party is not familiar with the standards | The 14th edition has stricter evaluation criteria |
Audit content | 13 major projects | 13 major items, including the newly added 'Prohibition of Unsecured Employment' and 'Business Ethics' | Added audit content for version 14 |
actively participate in |
No additional forms need to be filled out, The form is filled out by the auditor | Seven major forms need to be filled out, including business partner information, supplier diagrams, work hour tables, etc | Addition of preparation materials for version 14 |
四、How to respond to the new BSCI factory inspection standard - Beide provides you with accurate interpretation
1. What is BSCI
BSCI - Business Social Code of Conduct, Business Social Standards Action (BSCI) aims to implement a unified set of procedures to monitor and promote the social responsibility performance of companies producing related products through continuous improvement of development policies. Many European brands and retailers such as C&A, Coop, Esprit, Metro Group, and OBI all recognize BSCI certification.
Currently, more and more discussions on the human rights situation are focused on the situation of developing countries or newly industrialized countries that produce consumer goods. Improving the social standards of producing countries that provide their retailers has become a very important agenda for many companies in industrialized countries. The problems faced by suppliers around the world include child labor, forced labor, lack of safety in the workplace, inability to even meet minimum wages, interference with union establishment, obstruction of employee representatives' work, excessive working hours, overtime, and various forms of discrimination that may exist. To address these issues, companies, traders, and industry associations from the retail and industrial industries in Europe and around the world have developed codes of conduct. These codes are usually based on the main labor conventions of the International Labour Organization (ILO), with the aim of improving working conditions in supplier countries. Many countries have established monitoring systems for these codes of conduct, including Finland, France, Germany, the Netherlands, Sweden, the United Kingdom, and Canada. The purpose of these codes of conduct and related supervisory systems are very similar, and even their content is similar. The numerous standards make it difficult for retailers to bear their social responsibilities. Their suppliers also face the same situation; They need to meet an increasing number of requirements and audit procedures. Therefore, there is an urgent need for concerted action in the retail and industrial sectors.
2. Thirteen requirements of BSCI
B. 1 Management Practice
B. 2 Documentary evidence
B. 3 working hours
B. 4 Remuneration
B. 5 Child labor/underage employees
B. 6 Forced Labor/Prisoner Labor/Disciplinary Measures
B. Freedom of Association/Collective Bargaining
B. 8 Discrimination
B. 9 Working conditions
B. 10 Health and Social Welfare Facilities
B. 11 Occupational Safety and Health
B. 12 Dormitory
B. 13 Environment
3. Benefits of BSCI certification for factories
3.1. Fulfill or meet the customer's requirements
3.2. One certification meets the requirements of different customers, reducing the number of times different buyers come to inspect the factory at different times
3.3. Enhance the image and status of the factory
3.4. Improving the management system
3.5. Improving Relationships with Employees
3.6. Improving productivity to increase profits
3.7. Minimize potential business risks such as work-related injuries or fatalities, legal proceedings, or lost orders
3.8. Laying a solid foundation for long-term development
4. On site requirements for BSCI audit
When conducting on-site audits, the following areas will be reviewed and evaluated:
-Fire hydrants, fire extinguishers, fire alarm bells, and their installation locations
-Safety exits, safety passage lines, and their markings/signs
-Hardware facilities related to safety: equipment, personnel, training, etc.
-Machinery and equipment: maintenance records, protective measures
-Special equipment:
-Chemical treatment: secondary containers, MSDS forms, PPE, chemical warehouses, ventilation facilities, waste areas
-Power facilities: distribution room, distribution box, line safety, job training, generator
-Room temperature, ventilation, and lighting conditions
-Warehouse: explosion-proof lights, fire-fighting facilities
-Overall cleanliness and hygiene
-Sanitary facilities (cafeteria, restroom, and drinking water area)
-Necessary welfare and convenience facilities, such as first aid room, first aid kit, cafeteria/dining area, drinking area, etc.
-Dormitory/housing situation (such as providing employees).
5. Document requirements for BSCI audit
5.1 Factory floor plan and organizational structure diagram
-5.2 Work hour records, overtime records, payroll, piece count records, and bank transfer records of all employees
-5.3 Labor contracts for all employees
-5.4 Personnel files of all employees (such as entry registration forms, copies of ID cards, etc.), leave records, resignation employee application forms, and salary payment records
-5.5 Factory Rules and Regulations and Employee Reward and Punishment Records
-5.6 Social insurance payment vouchers and relevant approvals
-5.7 Other government department approvals or permits, such as comprehensive time system or other types of overtime approvals
-5.8 Production equipment list, acceptance and maintenance records of special equipment, annual inspection records, and usage licenses (such as elevator and boiler safety annual inspection). Various special equipment employee work licenses (such as forklift driver's license, electrician's license, etc.)
-5.9 Fire drills, fire training records, and fire facility inspection records
-5.10 Business License, National and Local Tax Registration Certificate, Construction Engineering Fire Protection, and Completion Acceptance Certificate
-5.11 Hygiene permit, kitchen worker health certificate, physical examination records of underage employees, and job registration certificate, etc
-5.12 Employee safety and health training and job training records, chemical personnel training records
-5.13 Record of work-related accidents and training certificates for first aid personnel
-5.14 Pollutant Discharge Permit, Hazardous (Hazardous) Waste Discharge Permit, Chemical List, Material Safety Data Sheet for Chemicals, Waste Treatment Procedure Document
-5.15 Assessment of risks and personal protective equipment required for each position
五、Explanation of BSCI Business Social Responsibility Standards System
The BSCI Business Social Compliance Initiative (BSCI) is a program initiated by the Foreign Trade Association (FTA) to implement a common monitoring system of social standards for the retail industry, industry, and importers, and to improve the social responsibility of suppliers in their respective countries.
1. System Introduction
Currently, more and more discussions on the human rights situation are focused on the situation of developing countries or newly industrialized countries that produce consumer goods. Improving the social standards of producing countries that provide their retailers has become a very important agenda for many companies in industrialized countries. The problems faced by suppliers around the world include child labor, forced labor, lack of safety in the workplace, inability to even meet minimum wages, interference with union establishment, obstruction of employee representatives' work, excessive working hours, overtime, and various forms of discrimination that may exist. To address these issues, companies, traders, and industry associations from the retail and industrial industries in Europe and around the world have developed codes of conduct. These codes are usually based on the main labor conventions of the International Labour Organization (ILO), with the aim of improving working conditions in supplier countries. Many countries have established monitoring systems for these codes of conduct, including Finland, France, Germany, the Netherlands, Sweden, the United Kingdom, and Canada. The purpose of these codes of conduct and related supervisory systems are very similar, and even their content is similar. The numerous standards make it difficult for retailers to bear their social responsibilities. Their suppliers also face the same situation; They need to meet an increasing number of requirements and audit procedures. Therefore, there is an urgent need for concerted action in the retail and industrial sectors.
With the increasing international attention to these issues, it is even more urgent to develop common actions. Many international groups have voluntarily submitted this issue for internal discussion, such as the United Nations' Global Action Plan, the Organization for Economic Cooperation and Development's (OECD) Multinational Enterprise Principles, and the World Trade Organization (WTO), all of which are considering incorporating social standards into multilateral trade regulations.
The European Commission also issued a joint communiqu é on social issues in 2002. Some companies and associations, such as the Foreign Trade Association, have also participated in discussions and initiated actions. However, the European retail industry places more emphasis on voluntary principles rather than mandatory enforcement, and complies with corresponding government and organizational regulations in the international community. Since 2002, the Foreign Trade Association (FTA), headquartered in Brussels, Belgium, has been committed to establishing a common platform for many different codes of conduct and supervisory systems in Europe, and laying the foundation for establishing a common European supervisory system. Between 2002 and 2003, major retail companies and associations held multiple seminars to establish a framework for such systems. In March 2003, the FTA officially established the Business Compliance Social Responsibility Initiative (BSCI), with the aim of developing implementation measures and procedures for the European Business Compliance Social Responsibility Plan.
2. Advocate for the business community to comply with social responsibility organizations
a) Goal
Improving the social standards of the supplier's country as part of the company's social responsibility as a member of the global economy. This will be a long-term and sustained process jointly undertaken by suppliers, governments, and stakeholders in other supplier countries.
Act as a communication bridge for companies, employee representatives, non-governmental organizations, and other groups in civil society. A common supervisory system helps to convince consumers that the retail industry has adopted a socially responsible attitude. The excellent transparency of the system enables it to gain internal and public credibility.
Provide a feasible supervision system that is internationally applicable and aimed at helping suppliers comply. Each member company and association should consider each supplier as a partner in this process. The action involves various consumer products, but currently it is mainly focused on textiles, clothing, footwear, and toys. BSCI does not intend to replace other validation systems.
Bringing economic advantages to suppliers and retail companies. By implementing a common social standard supervision system in the production premises of suppliers, not only can repetitive and redundant audits be avoided, but also time and cost savings can be achieved. Adhering to social responsibility standards can also improve supplier productivity and product quality, while high-quality products can also make retailers more competitive.
Act as a platform for exchanging knowledge and perspectives among members of BSCI. I hope to combine the extensive experience and professional opinions of the participants.
Committed to collaborating with other similar systems. This cooperation can take the form of taking the same actions or mutual recognition. Believing itself to be a part of an international effort to bring sustainable improvement to the world's supply chain in terms of social conditions.
b) The organization is a non-profit organization headquartered in Brussels, Belgium. All companies or associations from Europe and beyond can become members of BSCI. BSCI mainly provides solutions for the retail industry, and is also open to importers and producers of various consumer goods to join.
There are two types of membership, namely formal membership and informal membership. Formal members are retailers, traders, and producers who actively participate in and include suppliers in the BSCI qualification certification and review process. An informal member is any company, association, or organization that is interested in the process but not directly involved. The board of directors has the right to decide on the admission and dismissal of BSCI members. Any member who intends to withdraw from BSCI can submit a written notice six months before the end of each year.
Once joined, members must commit to summarizing support and promoting their goals. Especially the commitment to audit its suppliers and include them in the process of complying with social responsibility. This review and inclusion should be conducted within a reasonable time frame, which is mutually agreed upon by the members and the representative committee. Members are obligated to pay membership fees in accordance with the BSCI payment system. If you do not comply with or fail to fulfill your membership obligations, you may be disqualified from membership.
Only formal members have the right to vote.
BSCI consists of the following main components
Member Board:
The board of directors consists of all formal and informal members. The board of directors shall convene at least twice a year, mainly responsible for formulating long-term plans and making strategic decisions. The main responsibilities include budget, activities, procedures, and structure. Conventional decisions are passed by a simple majority. When it comes to existing decisions, such as those involving the structure of BSCI, a two-thirds majority vote is required to pass.
The board of directors may establish working groups to address special issues. A permanent working group is the leadership group. The leadership group is responsible for developing relevant systems and their components, proposing specific suggestions, and then submitting them to the member board of directors. Each participating country has a representative who participates in the leadership group. Other individuals with relevant professional knowledge will also be invited to attend the meetings of the leadership group.
Representative Committee:
The representative committee shall consist of at least three senior members representing the members of the board of directors and one representative from the secretariat. The representative of the member board of directors shall be appointed by the member board of directors, which shall reflect the country and geographical distribution of the member board of directors. A representative committee is a formal representative of the government and other institutions in public. It needs to publish announcements regularly. The representative committee is held frequently as needed, but at least twice a year. All decisions were approved by a simple majority vote.
The representative committee may elect a member as a spokesperson. The spokesperson must be a representative of a company.
The members of the committee are elected every two years. Can be elected as a member three times in a row for a total of six years.
Advisory Committee:
The Advisory Committee represents the majority of stakeholders concerned with social interests, mainly composed of representatives from trade unions, non-governmental organizations, suppliers, import and export business associations, the European Commission, the International Labour Organization (ILO), and a representative from the United Nations Global Action Plan. The Advisory Committee convenes twice a year to provide recommendations on monitoring social standards and the issues that BSCI itself faces. The advisory committee also handles complaints arising from audit activities. The appointment period for members of the advisory committee is two years. Can be appointed three times for a total of six years.
Secretariat:
The Secretariat is under the jurisdiction of the Foreign Trade Association. Its main task is to handle the administrative work of the organization, which includes:
-Supervision procedures for organizing BSCI
-Preparation for meetings of the member board of directors and representative committees
-Develop and implement management measures proposed by member boards of directors
-Clarify issues raised by member companies and associations involved in the action
-Manage BSCI's database
-Provide assistance to the representative committee as an external representative
-Public relations
Note: The budget is based on the membership fees paid by members and donations from third parties as the funding for their activities. The annual budget and membership fees are determined by the member board of directors.
3. Principles
The social requirements of BSCI are based on relevant:
-Relevant International Labour Organization (ILO) Conventions
-United Nations Convention on the Rights of the Child
-United Nations Convention on the Elimination of All Forms of Discrimination
-United Nations Declaration of Human Rights
-The Organization for Economic Cooperation and Development (OECD) Principles for Multinational Enterprises
In addition to the above principles, some basic environmental requirements are also included in BSCI's requirements. In addition to the audit requirements made by member companies, further ecological and other production related requirements may be included in the supervision and audit procedures.
4. Review the company's participation conditions
At present, only independent audit companies that have passed the qualification level appraisal and have been selected by BSCI will be entrusted to implement BSCI social responsibility audits. This ensures the best audit quality while also avoiding expensive and bureaucratic appraisal methods.
In addition to certification, the selected auditing company for implementing social responsibility supervision must meet certain prerequisites and comply with certain conditions.
-The selected audit company must exist in the region where the most important supplier is located and have sufficient agency to carry out supervision and audit activities. This is a necessary condition in terms of regional specific experience and optimization of the audit process.
-The auditing company must sign a written contract with BSCI to establish the terms of the contract for cooperation between the two parties.
-The following BSCI terms must be complied with:
-Audit can only be carried out when commissioned by BSCI member companies or suppliers
-BSCI questionnaires and guidelines must be used during the audit process.
-The audit results must be comprehensively recorded in writing and verifiable
-Auditors and auditing companies must collaborate with local non-governmental organizations and employee representatives
-The auditors hired must have high quality and be prepared to receive regular training, as well as further education and qualification level assessment by SAI. At the same time, they must also:
-Absolute independence, fairness, and integrity, ready to conduct regular inspections at all times
-Having professional experience in relevant fields, such as social responsibility auditing, workplace safety, quality management, etc
-Familiar with local business and language, possessing excellent psychological qualities, communication and communication skills
-The audit results are only available for use by the audited company and relevant BSCI member companies.
5. Audited performance
Before accepting the audit, the supplier should first submit the existing audit report and certificate to the audit company. If a valid SA8000 certification certificate or equivalent recognized certificate involving the BSCI scope is submitted, no further audit measures are required. If the supplier is currently undergoing SA8000 certification or certification to similar standards, the same applies.
Principle: The audit is conducted in accordance with the BSCI management manual and audit guidelines. The purpose of the audit is to assist suppliers in improving their social standards. To ensure consistency in the application of BSCI goals and principles, BSCI audit questionnaires should be used in all audit processes.
Program:
a) The procedure is based on the principles stipulated in the BSCI Code of Conduct. It includes all relevant social responsibility and environmental requirements. Confirming and implementing the BSCI Code of Conduct is a fundamental condition of contracts between BSCI members and suppliers. Suppliers and their subcontractors must accept and implement the code of conduct as part of the contract.
b) This program starts with supplier self-assessment. This assessment provides initial information on the supplier's supply chain and supplier performance, and defines the priority and urgency of further audits.
c) The audit requirements are proposed by BSCI member companies or by the supplier themselves. Qualified audit companies identified by SAI must use the BSCI audit survey questionnaire, audit report, and BSCI audit guidelines. The entire audit process includes three parts:
A. Main information
B. BSCI Social Responsibility Requirements
C. Industry best practices, such as SA8000 or equivalent certification schemes. Currently, BSCI recognizes SA8000 as its best practice.
d) If deficiencies are found during the audit process, the auditing company must discuss and record a mutually agreed corrective plan with the audited company. Corrective measures taken in response to non conformities found in Part B of the audit questionnaire are mandatory. The implementation of corrective measures developed for the issues in Part C is a voluntary choice, but it is recommended that it may help meet SA8000 or related certification standards
e) The correction and improvement of supplier issues are carried out by BSCI members, their representatives, or the supplier themselves. The timing and degree of implementation of corrective measures are determined by BSCI members themselves, partially based on the special nature of the required measures. The termination of business relations between BSCI members and suppliers is the final solution, but if the supplier fails to comply with the due diligence obligations outlined in Part B of the audit within the agreed reasonable period, the termination of business relations is inevitable.
f) The audit results should be provided to suppliers and BSCI member companies, and may be discussed among them. Some supplier related information will be retained in BSCI's database.
g) The payment method for expenses incurred during the monitoring process of auditing, improving activities, and implementing necessary corrective measures shall be directly discussed by BSCI members and their suppliers.
h) The audit process should be repeated every 3 years, starting with the initial audit. The frequency of supervision and certification required for suppliers who pass SA8000 or other recognized relevant standards depends on the requirements of their respective systems.
i) The BSCI supervision system will establish a complaint mechanism. Establish local round table discussions with stakeholders. These meetings will be used to discuss and publicly disclose complaints in the supervision system activities. For complaints regarding other standard certifications, it is necessary to consult the complaint mechanism of the relevant certification agency.
6. Promote sustainable improvement processes in supplier countries
The ultimate goal of BSCI is to promote sustainable improvement in supplier countries. Governments, trade associations, trade unions, non-governmental organizations, and other civil society organizations should be responsible for improving social standards in their respective countries. These organizations need to bear the burden of improvement and apply the relevant processes to them. Round table talks or other platforms for communication and cooperation can help achieve this goal. BSCI will encourage and promote all efforts towards these goals in supplier countries.
BSCI will also support:
-Further training of supplier management and their employees
-Guide and consult with retail company management
-Train internal auditors, supply chain management personnel, and purchasers in supply and retail companies
-Provide learning materials on best practices and business case analysis
-Economically support suppliers in implementing and improving social standards
Improvement can be achieved through monitoring, providing guidance, and granting qualifications to suppliers by BSCI member companies or service providers
-Provide training, guidance, and consultation within BSCI member companies
-Attracting the participation of local business associations and other local stakeholders
-Initiate and assist in establishing local support structures
-Encourage government action, bilateral development assistance, and involve international organizations
7. BSCI's partners include the European Commission and all government agencies involved in BSCI funding or any other specific support.