BSCI - Business Social Compliance Intitative :

Background :
In the context of globalisation and international competition, companies have outsourced the production of labour intensive goods to developing and newly industrialised countries, especially in Asia.

The working conditions in these sourcing countries are often poor. While labour laws and policies exist, national governments tend to be lenient when it comes to enforcement. Companies which source from these countries risk damaging their reputation, especially as consumers increasingly care about the working conditions under which the goods they buy are produced.
Improving social standards in the producing countries supplying companies in industrialised nations has therefore become a very important topic on many companies' agendas.

The creation of the BSCI :
To improve social compliance in the supply chain, companies and associations from the retail and industrial sector have created individual Codes of Conduct and monitoring systems. While such efforts have brought some improvement to the situation of workers, the mushrooming of individual approaches has led to inefficiency and high costs for retail companies and suppliers as a consequence of factories being audited several times based on various Codes and auditing procedures.

To create consistency and harmonisation, the Brussels based Foreign Trade Association (FTA) began in 2002 to establish a common platform for the various European companies Codes of Conducts and monitoring systems and to lay the groundwork for a common European monitoring system for social compliance. In 2002 and 2003, retail companies and associations held several workshops to determine the framework for such a system. In March 2003 the FTA formally founded the Business Social Compliance Initiative (BSCI). The experience and the know-how gained by companies and associations from their monitoring systems were cornerstones for the development of the approach and management instruments of the BSCI. In the spring of 2004 the development phase was achieved and since then the system has been implemented worldwide.

Objectives of BSCI :
The ultimate goal of the BSCI is to improve the working conditions in the global supply chain worldwide.

This goal can only be achieved through a strong commitment to implement the system. That is why the BSCI requires its members to accept the BSCI Code of Conduct and implement it in their supply chain. The BSCI members also commit themselves to involve at least 2/3 of their buying volume or number of direct suppliers of goods into the BSCI system within 3½ years after joining the initiative.

This commitment covers those countries that are important sourcing markets and which have been defined by the BSCI as risk countries with regard to social compliance criteria. BSCI members are free on an individual basis to implement the BSCI process anywhere beyond this scope.

The BSCI recognises the difficulties suppliers face in meeting labour standards requirements within the intense competitive climate in which they operate. BSCI aim at a stepwise implementation of the BSCI requirements stipulated in BSCI Code of ConductCode of Conduct. BSCI do not insist that our members cease commercial relations with suppliers who are not respecting social requirements. BSCI advocate a development oriented approach through which BSCI help suppliers to implement social requirements progressively. To find sustainable solutions to the problems, and support suppliers with training and capacity building activities.
Those suppliers who meet all BSCI requirements are encouraged to go further and comply with BSCI best practice, the SA8000 social management system and certification developed by Social Accountability International (SAI).


The BSCI Code
The BSCI Code of Conduct is based on the most important international Conventions protecting the workers’ rights such as the International Labour Organisation (ILO) Conventions and other important Declarations of the United Nations, the OECD guidelines for multinational enterprises and the UN Global Compact.

BSCI Code includes the ten following key elements to improve the worker´s situation:
1) freedom of association and the right to collective bargaining
2) prohibition of all forms of discrimination
3) prohibition of child labour
4) prohibition of forced labour and disciplinary measures
5) compensation: minimum wages/living wages
6) working hours
7) health and safety at the workplace
8) environmental and safety issues
9) implementation of a policy for social accountability
10) establishment of an anti-bribery and anti-corruption policy

The members are requested to adopt, sign and disseminate the BSCI Code of Conduct both internally and in their supply chain to inform employees and suppliers about the company’s dedication to social compliance and the BSCI development approach. This step ensures that all parties in the company and its supply chain are informed about their responsibility in the process. In doing so BSCI Members express their wish to do business with suppliers who take social responsibility seriously.

Source : BSCI