BSCI

Code of Conduct

© SAAS 2010
 About BSCI
• The Business Social Compliance Initiative is a
membership organization open to retail, brand and
importing companies dedicated to improvement of
working conditions in their supply chain.
• To create consistency and harmonization, Foreign
Trade Association began in 2002 to establish a
common platform for European companies and to lay
the groundwork for a common European monitoring
system for social compliance.
• The BSCI system offers companies a common social
management system to improve working conditions in
supply chains worldwide.
• The BSCI members implement the BSCI Code through
a combination of external monitoring and collaborative
capacity building activities that ensure sustainable
improvement in labor practices.
• The BSCI Code establishes a minimum social standard
in import markets and is linked to the SA8000
standard.
© SAAS 2010
 BSCI and SAAS

•SAAS provides technical assistance to BSCI

by monitoring the auditing companies
assessing the BSCI code audits through a
series of office and witness audits.
•SAAS, with BSCI, has defined the
appropriate organizational requirements for
BSCI auditing companies and, through a
sampling process, assures consistent and
quality BSCI audits.

© SAAS 2010
About BSCI

© SAAS 2010
 About BSCI

Normative documents:
• BSCI Code of Conduct
• BSCI self assessment
• BSCI Management Manual
• BSCI Social Audit Report
• BSCI Audit Guidelines
• SAAS Procedure 225

© SAAS 2010
 BSCI Process

Step 1: BSCI Code of Conduct Review

Step 2: Self-Assessment

Step 3: BSCI Audit

Step 4: Implementing a Corrective Action

Plan

Step 5: Measuring Improvement © SAAS 2010

 10 Elements

1. Legal Compliance
2. Freedom of Association and Right to
Collective Bargaining
3. Prohibition of all forms of discrimination
4. Payment of legal minimum wage
5. No excessive working hours
6. Health and safety at the work place
7. Prohibition of child labor
8. Prohibition of force label and disciplinary
measures
9. Respect of environment issues
10. Establishment of an anti-bribery and anit-
corruption policy
© SAAS 2010
 Legal Compliance

• Compliance with all applicable national

laws and regulations, industry minimum
standards, ILO and UN conventions, and
any other relevant requirements

© SAAS 2010
 Freedom of Association &
Collective Bargaining

• The right to join trade unions of their

choice, have representation and partake
in bargaining

* In countries with legal restrictions there

must be an independent alternative

© SAAS 2010
 Prohibition of Discrimination

• No discrimination shall be tolerated in:

• Hiring
• Remuneration
• Access to training
• Promotion, termination or retirement
• Or based on :
– gender, age, religion, race, caste, social
background, disability, ethnic and national
origin, nationality, membership in workers
organizations including unions, political
affiliation, sexual orientation or any other
personal characteristic

© SAAS 2010
 Compensation

• Wages must meet legal minimum wages

• If minimum wage does not cover living
expenses additional income is desired
• Deductions from wages as disciplinary
measures are forbidden
• Supplier companies shall ensure that
wage and benefits composition are
detailed clearly and regularly for workers

© SAAS 2010
 Working Hours

• Supplier shall comply with national laws

and industry standards on working
hours.
• Work hours should not exceed 48 hours
a week on a regular basis
• Overtime hours are to be worked solely
on a volunteer basis and should not
exceed 12 hours
• One free day every six work day shall be
provided to employees

© SAAS 2010
 Working Health & Safety

• A clear set of procedures and

regulations must be established and
followed regarding
– Occupational health & safety, specifically the
use of protective gear, clean bathrooms, to
access to water. Sanitary food storage

• Management will appoint a health care

representative to implement health &
safety system

© SAAS 2010
 Prohibition of Child Labor

• Child labor is forbidden as defined by

ILO, UN conventions and national law.
• Working conditions resembling slavery
or harmful to health are forbidden
• Employer must provide support to
enable children to remain in school until
no longer a child.

© SAAS 2010
 Prohibition of Forced Labor &
Disciplinary Measures

• All forms of forced labor, such as lodging

deposits or the retention of identity
documents from personnel upon
commencing employment are forbidden
as is prisoner labor that violates human
rights

• The use of corporal punishment, mental

or physical coercion and verbal abuse is
forbidden

© SAAS 2010
 Environment & Safety Issues

• Procedures and standards for waste

management, handling and disposure of
chemicals and other dangerous
materials, emissions and effluent
treatment must meet or exceed minimum
legal requirements.

© SAAS 2010
 Management Systems

• The supplier company shall define and

implement a policy for social
accountability.

• Management system that can implement

BSCI code shall be established.

• Management shall address employees

concerns with non compliance of the
code.

© SAAS 2010
 Terms of Implementation

• All suppliers are obliged to take the

measures necessary to implement and
monitor the BSCI Code of Conduct
• Management Responsibilities
• Employee Awareness
• Record-Keeping
• Complaints and Corrective Action
• Supplier and Sub-Contractors
• Monitoring

© SAAS 2010