a business-driven initiative for companies

committed to improving working

conditions in the global supply chain

the challenge Behind responsiBle sourcing

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.
The proliferation of individual codes, varying audit procedures and diverging
approaches, has resulted in audit duplications within the same factory. This leads to
unnecessary efforts, confusion about requirements, lack of transparency, lack of
accountability, and higher costs for companies as well as their suppliers.
The Business Social Compliance Initiative (BSCI) works to tackle these challenges by
offering a broad platform for cooperation.

Bsci inForMation kit

 the Bsci, a deVelopMent-oriented approach
The BSCI is a business-driven initiative for companies
committed to improving working conditions in the global
supply chain. The BSCI unites hundreds of companies
around one common Code of Conduct and supports
them in their efforts to build an ethical supply chain Monitor
by providing them with a step-by-step development-
oriented system, applicable to all sectors and all
sourcing countries.
The BSCI code of conduct is built on the most important Unite
international Conventions protecting workers rights,
notably the ILO Conventions and recommendations. All
BSCI member companies commit to implement the Code
Empower Engage
in their supply chains.
The BSCI supports companies by providing them with
a range of interlinked activities and tools to achieve a
socially compliant supply chain:

goals oF Bsci code oF conduct

BSCI is a great resource for

freedom of association and the right to
collective bargaining are respected
no discrimination is practised
child labour is prohibited
$ only existing system for social
$
$ legal minimum and/or industry standards
$
wages are paid
$
working hours are compliant with national
$ laws and do not exceed 48 hours regular +
$
$
$
$ 12 hours overtime
there is no forced labour and disciplinary
measures
the workplace is safe and healthy
the environment is respected
there is a policy for social accountability
companies struggling with
suppliers social responsibility
in risk countries. The BSCI
Code of Conduct provides a
framework that we are gradually
implementing across our supply
chain worldwide...BSCI is the
compliance that offers such a
broad scope.
henrik k irketerp
Director Dansk Supermarked
The German Business Ethnics
Network (DNWE) has awarded the
BSCI for having taken a leading
role in providing a solution for
companies to respond to a key
challenge in business ethnics...
BSCI and its members have
decided to go this challenging
path, which deser ves suppor t
and acknowledgement.

there is an anti-bribery and anti-corruption prof. dr. alber t lohr

Chairman DNWE
policy

Bsci inForMation kit

 Monitoring social compliance in
supplychains
The BSCI provides companies with practical
management instruments to implement BSCIs Code
of Conduct and monitor improvements of working
conditions in the supply chain. Only independent
external auditing companies accredited by the
international organisation Social Accountability
Accreditation Services (SAAS) are authorised to
continuous improvement, the BSCI encourages
those BSCI compliant suppliers to apply for SA8000
certification.
BSCI Code of Conduct
Communication and Awareness Raising
Set-up an Internal Social Management System*

perform BSCI audits. Self-Assessment

Internal Corrective
Action Plan
To optimise the BSCI process, audit results are Internal Social Audit
(every 3 years)*
shared in a common database among BSCIs
Internal Corrective
participants. This helps avoid multiple audits along Phase
External Initial Audit (every 3 years)
with unnecessary costs and time spent for the
companies and the suppliers. Corrective Action Plans
BSCI Social Requirements Best Practice
(mandatory) (voluntary)
By 2010, more than 20,000 audits were performed
Not successful

Not successful
Correction Phase and Advanced Capacity Building
throughout our network. The audit results show
Successful

the effectiveness of our system. In 2010, initial External Re-Audit

audits results showed 28% of suppliers reached the BSCI Social Requirements
(mandatory)
Best Practice
(voluntary)

BSCI compliant level. After corrective action plans, (max 12 months Successful Consider obtaining
after previous Audit) SA8000 certification
re-audits revealed that the number of compliant Definitely not successful Reconsider relations
with supplier
companies had increased to 51%. In the spirit of *This part of the methodology applies only to the primary production sector

Empowering BSCI member companies BSCI SUPPLIERS AND MEMBERS

andsuppliers TRAINED PER COUNTRY IN 2010 (PARTICIPANTS)
Alongside the monitoring process, the BSCI provides
capacity building activities to both member
companies and suppliers in Europe and in sourcing
countries. We do this in various ways: through
initial awareness-raising sessions; e-learning tools;
in-house trainings; info seminars; and advanced
issue-specific workshops. These activities help
build the knowledge, skills and ownership required
to achieve sustainable improvements in social
compliance.

The focus and content of the capacity building

sessions are adapted to the priority issues and
main non-compliances in a given country or region.

In 2010, we reached more than 2,800 supplier

representatives through capacity building sessions. China (1274) Belgium (285) Bangladesh (364) India (190) Thailand (167) Vietnam (162)

Turkey (101) Taiwan (94) Germany (72) Morocco (39) Netherlands (35) South Africa (34)

Switzerland (33) Romania (17) Greece (15) Brazil (5)

 Engaging with stakeholders
Often, non-compliance with labour rights is linked
to political, economical or cultural issues that
affect not only individual workplaces but also
entire sectors and countries. To find sustainable
solutions to these challenges, the BSCI develops
active dialogue and cooperation with a wide
range of stakeholders such as governments,
trade unions, NGOs, business associations,
buyers and suppliers. In order to maximise Round Tables
in Sourcing
our impact we employ various channels, Countries
such as dialogues, partnerships and
joint capacity building efforts.
Stakeholder
In sourcing countries, such Board
as China, India, Bangladesh, Stakeholder
Vietnam, Turkey and others, engagement
in European
the BSCI initiates and Countries
supports regular Round
Tables on corporate social
responsibility. The Round Tables provide a forum for
discussion between local stakeholders on how they
can work together to improve working conditions
and ensure local ownership of the issue.
Our participants
The BSCI is a fast growing initiative open to retailers,
importers, brands and manufacturers. Our methodology
applies to all sectors, and our participants are involved in
importing all types of goods, such as clothing, electronics
and food products.
Our participants are actively involved in the BSCI: from
decision making processes to concrete implementation
of the BSCI development-oriented system in sourcing
countries.
More than 700 participants have committed to implement
the BSCI Code and system in their supply chains.
Membership of the BSCI comes with specific obligations,
and we closely monitor participants commitments and
follow up actions, to ensure we keep working towards our
common goal.
The full list of BSCI participants is available on our website:
www.bsci-intl.org
BSCI INFORMATION KIT
At international level, we initiate discussions and
join forces with various stakeholders, such as
initiatives which aim to improve social compliance.
This approach allows us and our partners to scale
up existing initiatives, create synergies, avoid
overlap and increase impact.
In various European countries, National Contact
Groups offer a platform for BSCI participants to
come together and learn from each others
experiences. National Contact Groups reach
out to stakeholders in their country to
exchange views and share expertise on
responsible supply chain management.
At institutional level, our Stakeholder
Board provides us with guidance on
International
key challenges and trends. Made
Cooperation
up of representatives from
trade unions, NGOs, policy
makers and business associations, the Stakeholder
Board initiates, approves and advises on policies to
ensure and strengthen BSCIs ongoing contribution
to better working conditions.
Contact
The BSCI welcomes your questions,
feedback and ideas. Please feel free to
contact us at:
Business Social
Compliance Initiative
172, avenue de Cortenbergh
1000 Brussels - Belgium
Tel: + 32-2-741-64-01
info@bsci-intl.org
www.bsci-intl.org