amfori BSCI – For Better Business, Improve Social Performance

In this modern-day world where every organization is striving to achieve greater business heights by making most of its resources. One such resource which is exploited by organizations around the globe is its workforce to achieve the desired results, to have control over the rights of the workforce working for the organization various social compliance audits are on offer.

By complying with such social compliance an organization demonstrates its responsibility towards the welfare of its workforce and creates a socially responsible image in the market, which in turn attracts some greater business opportunities around the globe. The complete control and monitoring of the supply chain in all aspects might be a difficult undertaking if suppliers are around the world. In addition to product quality, protection for workers and social norms are essential aspects in the choice of a supplier. While certain countries have rigorous workers’ rights legislation, other parts of the world do not have equivalent safe conditions.

BSCI (Business Social Compliance Initiative) has the objective to promote the protection of social standards throughout the supply chain across every industry internationally. BSCI enables the monitoring of suppliers throughout the supply chain by implementing a common code of conduct and a single implementation system.

The BSCI (Business Social Compliance Initiative) is now known as amfori BSCI. Amfori is a membership organization formed by the leading brands based in Brussel, Belgium, having it strong network of representatives in around 14 countries. Amfori provides members with a powerful framework and cutting-edge technologies for managing the social and environmental performance of their suppliers and projecting future trends.

Let us understand more about amfori BSCI and how you can implement it with your suppliers.

WHAT IS BSCI (Business Social Compliance Initiative)?

BSCI (Business Social Compliance Initiative) is formed as a non-profit organization. In the year 2003, it was set up as an initiative of the Foreign Trade Association to achieve convergence in the field of corporate social responsibility. The amfori BSCI has brought hundreds of companies under one umbrella by issuing one common Code of Conduct.

The amfori BSCI Code of Conduct is based on the International conventions protecting worker’s rights.

• The International Labor Organization (ILO) conventions & declarations.
• The United Nations (UN) principles on Business & Human Rights.
• Organization for Economic Co-operation & Development (OCED) guidelines.

It is mandatory for the companies involved in the BSCI to observe this code of conduct, to inform their workers about their rights & responsibilities, and motivate their business partners in the protection of their employees and provide complaints and suggestion systems for employees.

The amfori BSCI Code of Conduct is structured around the following 11 social principles:

• Collective Bargaining Rights and Freedom of Association.
• Fair Remuneration.
• No Discrimination.
• Occupational Health & Safety.
• Protection of the Environment.
• Decent working hours.
• Ethical business behavior.
• No bonded labor.
• No Child Labor.
• Special protection for young workers.
• No precarious employment.

HOW THE BSCI AUDIT IS DONE?

Audit Application

Only the suppliers who are having business with the members of the Amfori BSCI can be audited as per the Code of Conduct set by the Amfori BSCI. So that means if you want to Audit your supplier you have to become a member of the Amfori BSCI and disclose the names of all of your suppliers.

If you are a supplier, then your customer must be a member of the Amfori BSCI then only you can be audited for the amfori BSCI.

The Suppliers of the Amfori BSCI members are obliged to conduct the audit at their facility to demonstrate their cooperation with the customer. It is decided by the Amfori BSCI participant itself to conduct audits of which suppliers on which date and can even specify the auditing company to conduct the audit.

There are certain criteria set by the Amfori BSCI which must be fulfilled by the BSCI participant. For example, one such criterion of the Amfori BSCI is that the members must audit at least one-third of its suppliers within the three years and the remaining third within the next three years.

PQSmitra helps our customers to understand many such criteria regarding the Amfori BSCI social compliance.

SELF-ASSESSMENT

Before the on-site audit, the suppliers are encouraged to carry out a self-Assessment which is available on the BSCI platform, by conducting self-assessment organizations become familiar with the requirements of the Amfori BSCI and can be prepared for on-site audit.

The types of audits conducted by the verifying are mainly of three types:

1. Fully announced audits – The manufacturers are informed about the audit date.
2. Partial announced audits – The manufacturers are informed about the one-month window between which the audit will take place.
3. Unannounced audits – In this manufacturers are not intimated about the audit

ON-SITE AUDIT

The on-site Audit is conducted by the third-party auditing body; the on-site audits can only be conducted by bodies that are approved by the Amfori BSCI. The on-site Audit is carried out in accordance with Amfori BSCI 2.0.

AUDIT & RE-AUDIT

Over the course of the audit, the auditors document the deviations he observes in accordance with the requirements of the Amfori BSCI Code of Conduct. Thus on the basis of the compliance observed at your facility the result of the audit is decided. The result of the audit is rated by the grading system where “A” stands for outstanding whereas “E” stands for unacceptable. These audit reports are uploaded on the BSCI platform. Where customers and suppliers have access to the Audit results for their reference.

When the score received in the on-site audit is C, D, or E it is the compulsion to have a re-audit or follow-up audit to ensure and verify the corrective actions implemented. The re-audit or follow-up audit is more focused on the problems identified rather than the overall activities. It is expected from the supplier to take the required corrective within the period of 12 months. If fail to do so then the necessity of a complete audit is necessary.

About PQSmitra

PQSmitra provides Social Compliance Consultation for Industries Ranging from Manufacturing, Textile to Supply Chain. With over 20 years of experience in quality assurance & Social Compliance, we at PQSmitra are ready to help your business build meaningful Ethical Business and offer handholding right from Self-Evaluation to closing the final Corrective Action Plan Report (CAPR).