SA8000 vs BSCI 08.04.2014

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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.

SA8000 and BSCI are some of the monitoring systems. The audit process helps to identify the better suppliers who can take on more business as non-conforming suppliers drop out of the supply chain.

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SA8000 vs BSCI 08.04.2014

  1. 1. SA8000 vs. BSCI Socially responsible procurement (ethical sourcing)
  2. 2. Ethical Sourcing ”Socially responsible procurement (ethical sourcing) aims to set contract conditions that encourage suppliers to ensure that during the contract period goods and services have been produced in conditions where human rights and core labour standards are respected. In effect, suppliers must comply with international human rights conventions, such as the ILO conventions, the UN Convention on the Rights of the Child, legislation on minimum wages and working hours in the production country, and general environmental, health and safety requirements.”
  3. 3. What is BSCI?  The Foreign Trade Association (FTA) is Europe´s premier association for trade policy and global supply chains. Members are national trade associations and companies.  The Foreign Trade Association, or FTA, formed the Business Social Compliance Initiative, or BSCI, in 2003.  The BSCI is a non-profit organisation under the legal roof of the Foreign Trade Association, based in Brussels.
  4. 4. What is BSCI?  The BSCI is the European social monitoring system for ethical sourcing.  When started about ten years ago some brands and retailers saw this as a German ‘operation’  BSCI’s link with Social Accountability International SAI and its SA8000 Social Standard give credibility to the BSCI code and work.
  5. 5. Business Social Compliance Initiative (BSCI)  Member companies have to implement the BSCI Code of conduct focusing on the core of ILO conventions, human and labour rights and requesting the conduct of social audits in the supply chain of the members.  The BSCI currently recognises SA8000 as its best practice and promotes a progressive adhesion of the supply chain to the ILO conventions , and supports the continuous improvement of the social performance of suppliers.
  6. 6. Business Social Compliance Initiative (BSCI)  The BSCI is not a certification system.  Purpose of the instrument - implementation
  7. 7. Business Social Compliance Initiative (BSCI)  BSCI procedure includes a self-assessment tool for suppliers, which aims at correcting critical issues in advance and saving time during auditing.
  8. 8. Business Social Compliance Initiative (BSCI)  BSCI is an auditing and qualification system striving for continuous improvement. The most important part of the BSCI is the qualification of the suppliers.  Many suppliers need assistance after the audits to implement the corrective actions to sustainably improve their social performance.  They receive this qualification by the BSCI Members or service providers being experts in this field.
  9. 9. Business Social Compliance Initiative (BSCI) Implementation  Independent auditing companies accredited by Social Accountability International, or SAI, help enforce the BSCI.  The auditors monitor and record each BSCI member's business practice and workplace standards, and then the audited BSCI member plugs these results into a database shared among all members.  This strict monitoring process helps each business strive and qualify for the SA8000 workplace standard formed by SAI.
  10. 10. BSCI  The database is for members only, and suppliers do not receive a public certificate for having passed a BSCI audit.  In cases where an initial audit identifies serious issues, corrective action may be required to address and resolve these issues before the re-audit.  During the implementation of corrective action, as a principle, BSCI members would like to maintain all existing business relationships while suppliers achieve full compliance.
  11. 11. BSCI  As well as a common code of conduct, the BSCI has also developed a common monitoring system for all its members.  The core idea is to move from being a buyer- to a supplier-driven monitoring system.
  12. 12. BSCI  Rather than all buyers having to monitor all their suppliers, in practice leading to several buyers monitoring the same supplier, the BSCI system aims to synchronise the monitoring, making only one audit per supplier necessary.  The results of the audits will then be entered into a common database, in which the BSCI members can search for information regarding their current and/or future suppliers.
  13. 13. BSCI  Previously, retailers have seldom or never shared such important information regarding suppliers with their competitors.  Hence, a consequence of the BSCI attempt to define corporate responsibility is that stronger alliances between European retailers are being created.
  14. 14. BSCI  After completing the audit, the auditor will prepare a Social Audit Report.  This report is then submitted to the audited company and to the supplier’s trading partner.  If the supplier has initiated the audit itself, a copy of the Social Audit Report shall be sent to its customer(s) participating in the BSCI.
  15. 15. BSCI  As per the BSCI, the supplier is to be monitored (audited) every three years, provided no adverse remarks were made in the previous audit.  However, the maximum timeframe of the corrective action phase is 12 months after the initial or re- audit respectively.  BSCI audits are carried out by SA 8000 auditors, and are designed to guarantee the same basic rights for employees as the SA 8000 standard.
  16. 16. SA8000 SAI: Social Accountability International : Is a NGO with headquarters in USA, composed of investors from different sectors: workers and trade unions, enterprises, governments and NGOs
  17. 17. SA8000  The SAI formed the SA8000 standard in 1997.  While not a standard mandated by the International Organization for Standardization, or ISO, it follows a similar accreditation and certification model.  Certification is granted by international certification bodies accredited and monitored by SAI. The procedure corresponds to those used in connection with the ISO 9000 and 14000 standards.
  18. 18. SA8000  The Standard SA 8000 is a management system tool on working conditions and regulations compliance.  It aims at improving working conditions worldwide, by imposing strict rules to organisations and involving the entire supply chain.  It is based on core ILO conventions, Universal Declaration on Human Rights and the United Nations Convention on Children's Rights, as well as management systems (ISO 9000 and 14000).
  19. 19. SA8000  SA8000 standard has become a worldwide reference in working regulations and labour rights management system, mainly because it proposes a certifiable management system.  Many other standards and initiatives cover the same core ILO conventions, often under the form of sectoral codes of conduct, guidelines and recommendations.  This standard is the benchmark against which companies and factories measure their performance.
  20. 20. SA8000  Purpose - Certification  The SA 8000 certificate is valid for three years.  Companies are given surveillance audits once every six months during this period to ensure stability and progress of the standard.  Renewal audits take place once every three years.
  21. 21. The differences  The BSCI system currently recognizes the social management systems standard SA8000 as its best practice.  The BSCI Code of Conduct was developed in partnership with the Social Accountability International (SAI) initiative as a stepping stone towards SA8000 certification.  If a company has already been certified against the SA8000 standard, implementation of the BSCI Code of Conduct is not requested as long as the SA8000 certificate is valid.
  22. 22. The differences  The BSCI is not a certification system and therefore does not issue a certificate.  The cover page of the audit report outlining the results and the validity of the audit can be displayed in the factory premises and be used as proof of the audit.
  23. 23. The differences  BSCI Code emphasis on “legal minimum and/or industry standards” wage.  SA8000 emphasis on the right of supply chain workers to a living wage instead of – “legal minimum and/or industry standards”.
  24. 24. The differences  SA 8000 requires more systematic procedures and controls and sustainable improvements, while BSCI focuses on specific points or items; BNW (basic needs wage/ living wage ) is a mandatory clause for SA 8000 but only a reference for BSCI.
  25. 25. The differences BSCI  In case of conflict between international / national rules: - more stringent rule(s) apply
  26. 26. The differences  BSCI Audit is, although much is similar to SA8000 certification audits, there are differences in the audit protocols due to specific BSCI requirements and the very nature of a gap analysis as compared with a certification audit
  27. 27. The differences  SA8000 audits are performed in line with ISO17021:2011 and require surveillance audits every six months during a certification cycle of 3 years.  If a company meets BSCI requirements then they are not re-audited usually for 3 years.
  28. 28. The differences  SA8000 can be done without buyers requirement and can use as a marketing tool whereas BSCI should be done with Buyers approval only.
  29. 29. The differences  SA8000 is not addressing Environment but BSCI.  SA8000 standard have some extraction from ISO and BSCI from SA8000
  30. 30. ( This is an internal training material)

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