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BSCI

Summary

The Business Social Compliance Initiative is the broadest business-driven platform for the improvement of social compliance in all supplier countries and for all consumer goods. BSCI is an initiative of European retail companies initiated by the Foreign Trade Association (FTA), Brussels. The BSCI has around 100 members that support the Code of Conduct. Their suppliers of these retail companies need to comply with the social standard of the Code of Conduct. Suppliers also need to take responsibility for producers who sell primary products to them. The BSCI code of conduct is built on internationally recognised labour standards protecting workers rights, in particular the ILO Core Labour Conventions. It is based on a development approach, and aims at continuously improving the social performance of suppliers, encouraging them to apply for SA8000 certification.

Objective  Is the focus of the standard on economic, social, environmental, food safety or organic issues?
Social:
Improve social standards in supplier countries as part of companies social responsibility. Improve transparency of the whole supply chain
awareness raising and encourage supplier. countries to develop/improve social systems (rules & regulations.)
Why?  Who is asking you to use this system? Is it a market requirement or a voluntary system?
BSCI is a voluntary system, an initiative of European retail companies: started in 2003 in textile sector; since 2007 scope is extended to the retail/food market.
Scope of the standard  What kind of processes within your organisation/company should be changed according to the standard’s criteria? Most systems look at the production process, and/or look at the processing of the produce. Some systems look at organisational processes as well, e.g. if democratic structures are in place, how support departments are organized (HRM/financial), if internal control systems are in place, if ILO labour conditions are implemented, etcetera. Additionally the processes of your suppliers or service provider can be part of the standards’ scope as well. This means that you are responsible for the sustainability of their (or part of their) actions as well.
organisational processes Y: aspects related to labour conditions
(on-farm) production Y: part B BSCI Requirements is audited for producers
processing Y: part B and part C Best Practice (SA8000) is being audited for processing units. However, part C is not compulsory. Unit is audited and advice given whether SA8000 is feasible.
supplier/service provider Y
Who can apply?  Not every code or standard can be used by every actor within the supply chain. Some are just targeted to a specific group within the chain, others focus on the complete chain. You can think of the following parties: producers/producer group, processor, exporter/trader, importer, retailer.  
producers/producer groups Y: application for BSCI is done upon request of the client, who are BSCI members. BSCI audits can be conducted in any production facility worldwide (main supplier countries are currently in Asia).
processor Y: same
exporter/trader Y: supplier does not only take responsibility for own activities but also for producers who sell primary products to him.
importer Importers are often member of BSCI
retail Retailers are often member of BSCI
Products  Most systems focus on specific products, product groups or sectors. Please look carefully if you produce falls under the scope of the standard.
All consumer goods, but main focus textiles, clothes, shoes en toys.
Markets  Although most systems are used worldwide, they often have their origin or focus in a specific country or region. Some countries/regions prefer a certain code or standard.
BSCI members are mostly based in Europe. Up coming membership in Asia.
For het list of members click here
Benefits  A very legitimate question is what this specific certification means to you. Does it provide you access to markets, or even to niche markets? Does it guarantee a better price, or maybe even a premium on top of a minimum price? Does it create  better access to support services?  
market access Y: only for specific clients who demand BSCI
access to niche market N
premium N
other N
Support services  To be able to comply with the requirements of such systems, you may need some support. Various experts in the field of certification are available and can give this (paid/free) support. BSCI can arrange for support to implement the code. Are still in early stages of setting up local support networks. Aim is to offer these services for low tariff by sharing costs between BSCI, retailers and external parties.
Adaptations/investments   Policy describing social responsibility company. Train workers on BSCI requirements. Accurate payslips for all workers, including casual workers. Company has to keep copies of ID cards. Occupational health and safety measures and records. Access to potable drinking water. Freedom of association and collective bargaining. Ensure chemicals, diesel do not leak into ground. Internal audits by qualified staff.
Costs & Time  Working with these certification systems and implementing the necessary steps is often not an easy task. You have to be aware of the many implications and adaptations you may have to make. This section gives some examples of the kind of investments you to have to think of. In principle the exporter advances payment audit and charges the producer groups. Only 10% of producer groups will be audited. Charges will be divided (in proportion) over all producer groups.
- self assessment costs
- audit costs = fee of auditor ( 1x per 3 years)
- corrective actions costs
- ONLY for members: an annual membership fee
System characteristics  In this section you will find a link to the standard itself and some main points of attention.
The system is built on a general code of conduct to be complied with by every member and its suppliers. BSCI has developed a stepwise approach for improving social standards: you must show progress in improving your social standards. It is a monitoring and factory development system rather than certification. Works towards SA8000 certification BSCI member share audit results with each other within a joint database. The social standards included in BSCI´s Code of Conduct are based on the international Conventions of the International Labour Organization (ILO), major United Nations Conventions and OECD guidelines for multinational enterprises. For documents on rules and regulations of BSCI click here
Verification    
internal inspection Y: first you have to do a self assesment
external inspection - Independent auditing companies accredited by SAI, which has issued SA 8000 standard.
- A corrective action plan is drawn up by the auditor.
- Few auditors in Africa are currently able to carry out BSCI audits.
- Audit results and reports will be included in Sedex database
Type of label  One of ways to show that a product complies with a specific standard is to label it. Some codes or standards do not use a label at all. Nevertheless, most choose to carry a Business to Business (B2B) or a Consumer label.
N
Who's behind it?  What is the origin of the standard, and who has initiated the idea? Who is the owner of the certification system?
BSCI is a non-profit organisation. It has been set up by European retail companies and is open for importers and brand manufacturers: company driven.
Trends  The trend section is mainly based on future perspectives of the standard. Are they going to expand to other products, other markets? Is there increasing interest from markets for this specific certification? What can you expect in the coming period?
New system for the food sector.
Growing demand from (up market) retail sector.
Started few years ago in Asia, now also starting in Latin America and Africa. They are planning training- and support programmes in both continents. Workshops in Kenya (October 2008) and Egypt (November 2008), and will then integrate the suppliers in South- and Central America in 2009. For the time being, the focus is on fresh fruits and vegetables, but in the future they expect also suppliers of other products, including aquaculture or commodities like cocoa or tea, to be included.
Contact Karin Bogaers
  website BSCI
   
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