Quanzhou guanghui bags co., ltd BSCI summary audit report

Auditee : QUANZHOU GUANGHUI BAGS CO., LTD.
Audit Date From : 27/11/2017
Audit Date To : 27/11/2017
Expiry Date of the Audit : Please refer to the producer profile in the BSCI platform
Auditing Company : CTI (Centre Testing International Corporation)
Auditor’s Name(s) : Judie Xiao(Lead), Peter Yao
Auditing Branch (if applicable) :
This is an extract of the on line Audit Report.The complete report is available in the BSCI Platform.
Access www.bsciplatform.org, for entitled users only.
All rights reserved. No part of this publication may be reproduced, translated, stored in a retrieval system, or transmitted, in any form or by any, means electronic,
mechanical, photocopying, recording or otherwise, be lent, re-sold, hired out or otherwise circulated without the FTA’s consent.
This is an extract of the BSCI Audit Report, which is available in the BSCI Platform. © Foreign Trade Association (FTA), 2013 - The English version is the legally binding One.
Created with EO.Pdf for .NET trial version. http://www.essentialobjects.com.
Producer : QUANZHOU GUANGHUI BAGS CO.,
LTD.
DBID : 374954 and Audit Id : 112705 Audit Date : 27/11/2017
Audit Type : Full Audit
Page 1/12
Generated on:06/12/2017

Rating Definitions
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Main Auditee Information
Name of producer : QUANZHOU GUANGHUI BAGS CO., LTD.
DBID number : 374954
Audit ID : 112705
Address : No.51, Xizhuang Road, Xianjing Industrial Zone, Licheng District Quanzhou
Province : Fujian Country : China
Management Representative : Juhua Yu
Contact person: Shiyou Guan Sector : Non-Food
Industry Type : Textiles, clothing, leather Product group : hangbags, belts and shoes
Product Type : BAGS
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Audit Details
Audit Range : Full Audit Follow-up Audit
Audit Scope : Main Auditee Main Auditee & Farms
Audit Environment : Industrial Agricultural
Audit Announcement : Fully-Announced Fully-Unannounced Semi-Announced
Random Unannounced Check (RUC) : No
Audit extent (if applicable) : none
Audit interferences or contingencies (if applicable) : none
Overall rating : C
Need of follow-up : Yes If YES, by : 27/11/2018
Rating per Performance Area (PA)
PA 1 PA 2 PA 3 PA 4 PA 5 PA 6 PA 7 PA 8 PA 9 PA 10 PA 11 PA 12 PA 13
D B A C B D A A A A A A A
Executive summary of audit report
QUANZHOU GUANGHUI BAGS CO., LTD. is located at the No.51, Xizhuang Road, Xianjing Industrial Zone, Licheng District, Quanzhou City, Fujian Province,
China. This is a Local Limited Company. The total land area occupied by the facility is about 400 square meters. They have started their operation since 2010.
The auditee is specialized in the manufacturing of bags; main production activities included cutting, sewing, buttoning, inspection and packing.
A total of 64 employees including 38 female employees and 24 male employees are currently working in the factory. The ages ranged from 22-60 years old.
There are 53 production employees (including sample making, warehouse, QA, packing etc) and 11 non-production employees (including financial, HR and
office staff). The proportion of local employees to migrant employees is 3 to 5. Migrant workers mostly come from other provinces in China, such Sichuan,
Jiangxi and Yunan etc. All employees are hired by the factory directly. There are 64 employees present on the day of audit.
In view of the facilities, the auditee consists of one 6-storey building used as warehouse, office and production. No dormitory, canteen or kitchen are available
for employee.
The employees work for 5 days a week in one shift. The normal working hour is from 8:00 to 18:00 with 120 minutes’ break from 12:00 to 14:00. Face scan
attendance system is used for time keeping and every employee should scan their faces when they go in and out the workshop. Employees’ wages are
calculated on a monthly-rated basis and paid monthly. There is no obvious peak season in the factory.
Additional Auditor Remarks:
1). Working hour records from October 2016 to November 26, 2017 and payroll records from October 2016 to September 2017 were provided for review.
2). The local minimum wage standard was set as RMB 1350 per month or RMB 7.76 per hour (1350/21.75/8) before July 1, 2017 and RMB 1500 per month or
RMB 8.62 per hour (1500/21.75/8) since July 1, 2017.
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Ratings Summary
Auditee's background information
Auditee's name : QUANZHOU GUANGHUI BAGS CO., LTD. Legal status : Limited Company
Local Name : 泉州光泉州光辉辉包袋有限公司包袋有限公司
(91350502563385266Q)
Year in which the auditee was founded : 2010
Address : No.51, Xizhuang Road, Xianjing Industrial
Zone, Licheng District
Contact person (please select) : Shiyou Guan
Province : Fujian Contact's Email : guan@ghbags.cn
City : Quanzhou Auditee’s official language(s) for written
communications :
Chinese
Region : North East Asia Other relevant languages for the
auditee :
N/A
Country : China Website of auditee (if applicable) : None
GPS coordinates : None Total turnover (in Euros) : 3000000.00
Sector : Non-Food Of which exports % : 100.00
Industry : Textiles, clothing, leather Of which domestic market % : 0.00
If other, please specify : Production volume : 100000 pieces per month
Product Group : hangbags, belts and shoes Production cost calculation : Yes
If other, please specify : Lost time injury calculation cost : No
Product Type : BAGS
Auditee's employment structure at the time of the audit
Total number of workers : 64 Total number of workers in the production unit to be monitored (if applicable) : 0
MALE WORKERS FEMALE WORKERS
Permanent workers 38 24
Temporary workers 0 0
In management positions 4 7
Apprentices 0 0
On probation 0 0
With disabilities 0 0
Migrants (national citizens) 18 22
Migrants (foreign citizens) 0 0
Workers on the permanent payroll 26 38
Production based workers 22 31
With shifts at night 0 0
Unionised 0 0
Pregnant - 0
On maternity leave - 0
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Finding Report
Performance Area 1 : Social Management System and Cascade Effect
Full Audit [Audit Id - 112705] Audit Date: 27/11/2017 PA Score: D Deadline date:27/01/2018
GOOD PRACTICES:
None
AREAS OF IMPROVEMENT:
Based on management and workers' interview and document review,the auditee had set up some management procedures alignment with BSCI
Code of Conduct. However, based on satisfactory evidence, the main auditee did not respect this principle.
根据管理层及员工访谈，文件审核，受审核方制定了一些BSCI行为准则的相关程序文件。但是，基于令人满意的证据，主要受审核方没有完全尊重这个原
则。
1.1 - It was noted that the social management system was not implemented effectively, and some areas of improvement were detected on Performance
Area 1, 2, 4, 5, 6 and 7.
管理体系不完善，在执行领域1, 2, 4, 5, 6和7有待完善和提高。
1.4 - It was noted that the auditee's workforce capacity was not properly organized to meet the expectations of the delivery orders or contracts, which led
to overtime hours exceeding legal requirement.
受审核方产能没有合理安排以满足订单需要。
Remarks from Auditee:
Performance Area 2 : Workers Involvement and Protection
Full Audit [Audit Id - 112705] Audit Date: 27/11/2017 PA Score: B Deadline date:27/01/2018
GOOD PRACTICES:
None
Based on site observation, management and workers' interview and document review, the auditee had established the management procedure to
ensure the workers involvement and information exchange on workplace issue. The auditee established annual training plan to provide training to
employees to know their right and responsibility. However, based on satisfactory evidence, the main auditee did not respect this principle.
根据现场观察，管理层及员工访谈，文件审核，受审核方有建立程序来选举员工代表，确保员工的参与及在工作问题上的交流。受审核方制定了年度的培
训计划，提供培训让员工了解自己的权利与职责。但是，基于令人满意的证据，主要受审核方没有完全尊重这个原则。
2.5 - It was noted that the auditee did not estimate or take action to improve the effectiveness of the grievance mechanism.
受审核方未评估和采取措施以提高申诉机制的有效性。
Performance Area 3 : The rights of Freedom of Association and Collective Bargaining
Full Audit [Audit Id - 112705] Audit Date: 27/11/2017 PA Score: A Deadline date:
GOOD PRACTICES:
None
Based on site observation, management and workers' interview and document review, there is no labor union in the company, 3 workers
representatives voted by all employees on May 24, 2017. Employees could raise their concerns through suggestion box, workers representative or
management directly. Based on satisfactory evidence, the main auditee respected this principle.
根据现场观察，管理层及员工访谈，文件审核，受审核方没有工会，有3名于2017年5年24日由所有员工选举的员工代表。工人可以向意见箱，员工代表，管
理层直接表达自己的意见。基于令人满意的证据，主要受审核方尊重这个原则。
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Performance Area 4 : No Discrimination
Full Audit [Audit Id - 112705] Audit Date: 27/11/2017 PA Score: C Deadline date:27/01/2018
GOOD PRACTICES:
None
Based on site observation, management and workers' interview and document review, the auditee established the Anti-discrimination policy and
implement it accordingly. No discrimination was found during this audit. However, based on satisfactory evidence, the main auditee did not respect
this principle.
根据现场观察，管理层及员工访谈，文件审核，受审核方有建立反歧视的政策，并按要求执行。本次审核，未发现歧视。基于令人满意的证据，主要受审核
方没有完全尊重这个原则。
4.2 - It was noted that the auditee did not provide the satisfaction level survey records for review.
受审核方没有提供员工满意度调查的记录。
Performance Area 5 : Fair Remuneration
Full Audit [Audit Id - 112705] Audit Date: 27/11/2017 PA Score: B Deadline date:27/01/2018
GOOD PRACTICES:
NONE
Based on site observation, management and workers' interview and document review, the wages paid to employees complied with legal requirement
and the paid public holidays and other benefit are provided for all employees. However, based on satisfactory evidence, the main auditee did not
respect this principle.
根据现场观察，管理层及员工访谈，文件审核，受审核方按法规要求为工人提供工资，并提供了法定假工资等其他福利。但是，基于令人满意的证据，主要
受审核方没有完全尊重这个原则。
5.4 - It was noted that the auditee did not consider the living wage when it paid wages to employees.
受审核方支付员工工资时没有考虑员工最低生活需求。
5.5 - Through reviewing the social insurance payment receipts of October 2017, it was noted that 39 out of 64 employees did not participate pension
insurance, unemployment insurance, medical insurance, work-related injury insurance or maternity insurance. The auditee did not buy commercial
accident insurance to cover the rest of the employees who did not participate in work-related injury insurance either. In case of accident, these
employees （not covered by work-related injury insurance or commercial accident insurance） would not be protected. The reason why not all eligible
employees participated in the social insurance was because some employees were reluctant to participate in the social insurance and costs were too
high if all employees participated in the social insurance. Reference law/regulation: Article 72 and 73 of the PRC Labor Law
根据受审核方提供的2017年10月的社保收据，受审核方64名员工中39名没有参加养老保险，工伤保险，生育保险, 医疗保险和失业保险。受审核方也没有
为未购买工伤保险的39名员工购买商业工伤保险。(有些不愿意买社保和成本太高)。依据《依据中华人民共和国劳动法（1994）第七十二条，第七十三条
Performance Area 6 : Decent Working Hours
Full Audit [Audit Id - 112705] Audit Date: 27/11/2017 PA Score: D Deadline date:27/01/2018
GOOD PRACTICES:
NONE
Based on site observation, management and workers' interview and document review, the auditee had established working hours policy, and the
auditee's regular working hours are 40 hours per week, workers rest at least one day in every seven days. However, based on satisfactory evidence,
the main auditee did not respect this principle.
根据现场观察，管理层及员工访谈，文件审核，受审核方有建立工时政策，且受审核方的正班工时为40小时每周，工人每七天至少休息一天。但是，基于令
人满意的证据，主要受审核方没有完全尊重这个原则。
6.2 - It was noted that overtime hours exceeded the legal requirement. Through document review, auditors found that the monthly overtime hours of 10 out
of 10 randomly selected employees were 66 in September 2017 (Most current month); the monthly overtime hours of 10 out of 10 randomly selected
employees were 60 in March 2017 (random month); the monthly overtime hours of 10 out of 10 randomly selected employees were 58 in June
2017(random month). According to management interview and employee interviews, the auditee was in shortage of workers, so workers had to work
overtime to meet order delivery date. Reference law/regulation: Article 41 of the PRC Labor Law
审核中发现，加班时间超过法规要求。通过文件审核，审核员发现在抽取的2017年9月份（当前月）的考勤中，10名随机抽取的员工中有10人月加班时间为
66小时；2017年3月份（随机月）的考勤中，10名随机抽取的员工中有10人月加班时间为60小时；2017年6月（随机月）的考勤中，10名随机抽取的员工中有
10人月加班时间为58小时。(员工短缺，有些订单交期很紧张，所以工人需要加班来完成订单生产)。依据《中华人民共和国劳动法》第41条
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Performance Area 7 : Occupational Health and Safety
Full Audit [Audit Id - 112705] Audit Date: 27/11/2017 PA Score: A Deadline date:27/01/2018
GOOD PRACTICES:
None
Based on site observation, management and workers' interview and document review, the main auditee had established policy on health and safety
and implement it accordingly, such as one manager was appointed to in charge of health and safety issues, safety trainning would be provided for
employees regularly. However, based on satisfactory evidence, the main auditee did not respect this principle.
根据现场观察，管理层及员工访谈，文件审核，受审核方有建立健康安全的政策并按要求执行，如，指定一名管理层负责健康安全事宜，定期给员工提供安
全培训。但是，基于令人满意的证据，主要受审核方没有完全尊重这个原则。
7.2 - Through reviewing the social insurance payment receipts of October 2017, it was noted that 39 out of 64 employees did not participate pension
insurance, unemployment insurance, medical insurance, work-related injury insurance or maternity insurance. The auditee did not buy commercial
accident insurance to cover the rest of the employees who did not participate in work-related injury insurance either. In case of accident, these
employees （not covered by work-related injury insurance or commercial accident insurance） would not be protected. The reason why not all eligible
employees participated in the social insurance was because some employees were reluctant to participate in the social insurance and costs were too
high if all employees participated in the social insurance. Reference law/regulation: Article 72 and 73 of the PRC Labor Law
根据受审核方提供的2017年10月的社保收据，受审核方64名员工中39名没有参加养老保险，工伤保险，生育保险, 医疗保险和失业保险。受审核方也没有
为未购买工伤保险的39名员工购买商业工伤保险。(有些不愿意买社保和成本太高)。依据《依据中华人民共和国劳动法（1994）第七十二条，第七十三条
7.3 - It was noted that 23 workers were conducted the occupational health examinations on June 14, 2017 and the occupational health examinations
indicated that 10 out of 23 workers might be suffering from the occupational disease in relation to his or her occupation. However, no follow up health
examinations were arranged for those 10 workers.（The management did not know the requirement）. According to the PRC Law of Prevention and
Control of Occupational Diseases article 36
审核发现23名员工在2017年6月14日安排职业病体检，体检记录显示10名员工有异常需要复查。但是审核方没有为这些员工安排复查。（管理层表示不了
解这些要求）。依据《中华人民共和国职业病防治法》第三十六条
7.4 - It was noted that workers or worker representatives were not involved in the OHS risk assessment.
员工或员工代表未参与风险评估。
7.6 - It was noted that two cutter workers on the 1/F did not wear earplugs. （Workers did not like to wear personal pretective equipments because they felt
uncomfortable.) Reference law/regulation: the Safety Manufacturing Law Article 37
发现1楼冲床车间2名员工没有戴耳塞。(员工感觉不舒服)。依据《中华人民共和国安全生产法》第37条
7.8 - It was noted that the auditee didn’t post the accident and emergency procedure onsite.
发现受审核方现场未张贴应急处理程序。
7.17 - It was noted that one buttoning machine was not installed with steel ring, three single sewing machines were not installed with needle guards and
one sewing machine was not installed with upper belt guard. (Lack of effective management). Reference law/regulation: Safety Manufacturing Law
Article 29
1台钉扣车没有安装铁环，3台平车没有安装护指器和1台针车没有安装皮带轮上防护罩。（缺乏有效管理)。依据《中华人民共和国安全生产法》第29条
Performance Area 8 : No Child Labour
GOOD PRACTICES:
None
Based on site observation, management and workers' interview and document review, the auditee had established procedure regarding prohibition
child labor and remedial measure on child labor. As per procedure on hiring and HR management, the company would authenticate ID cards through
eye-measurement, interview, physical appearance comparison. The copy of identification card for all employees would be kept in personnel file.
During this audit, through documents review (reviewing personnel file, identification card and roster, etc), workers interview and management
interview, there was no child labor and young worker identified. The youngest worker hired by the company was 22 years old. Based on satisfactory
evidence, the main auditee respected this principle.
根据现场观察，管理层及员工访谈，文件审核，受审核方有建立禁止使用童工的程序及童工补救措施。依照程序及HR管理层，公司会通过目视、访谈、与员
工比对等方式去鉴别身份证。每位员工的身份证的复印件保存在人事档案里。在本次审核中，通过文件审核（如人事档案、身份证、员工花名册等）、员工
访谈及管理层访谈，没有发现童工及未成年工。最小员工的年龄是22岁。基于令人满意的证据，主要受审核方尊重这个原则。
Performance Area 9 : Special protection for young workers
GOOD PRACTICES:
None
Based on site observation, management and workers' interview and document review, the auditee had established procedure regarding Young
Worker Protection Management Procedure and implemented it accordingly. No young worker was found during this audit. The youngest worker hired
by the company was 22 years old. Based on satisfactory evidence, the main auditee respected this principle.
根据现场观察，管理层及员工访谈，文件审核，受审核方有建立未成年工人保护程序，并按要求执行。本次审核，未发现未成年工。最小员工的年龄是22
岁。基于令人满意的证据，主要受审核方尊重这个原则。
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Performance Area 10 : No Precarious Employment
GOOD PRACTICES:
None
Based on site observation, management and workers' interview and document review, the auditee had established procedure regarding Hiring
Procedure and implemented it accordingly. The auditee signed labor contract with each employees within one month after hiring and employees
obtained one copy. Based on satisfactory evidence, the main auditee respected this principle.
根据现场观察，管理层及员工访谈，文件审核，受审核方有建立雇佣程序，并按要求执行。受审核方在员工入职一个月内与每位员工签订劳动合同，同时会
给一份复印件给员工。基于令人满意的证据，受审核方尊重这个原则。
Performance Area 11 : No Bonded Labour
GOOD PRACTICES:
None
Based on site observation, management and workers' interview aund docment review, the auditee had established procedure regarding on
prohibition bonded labor and implemented it accordingly. No deposit or ID card was withheld by the auditee. No illegal disciplinary measure was
noted in this audit. No bonded labor was found during this audit. Based on satisfactory evidence, the main auditee respected this principle.
根据现场观察，管理层及员工访谈，文件审核，受审核方有建立强迫劳动程序，并按要求执行。受审核方没有收押金或扣押证件。没有发现违法的纪律处
罚。本次审核，未发现强迫劳动。基于令人满意的证据，主要受审核方尊重这个原则。
Performance Area 12 : Protection of the Environment
GOOD PRACTICES:
None
Based on site observation, management and workers' interview and document review, the auditee had established the procedure to ensure its
business model in line with local environmental law. The auditee obtained the environmental impact assessment report & approval. Based on
satisfactory evidence, the main auditee respected this principle.
根据现场观察，管理层及员工访谈，文件审核，受审核方有建立程序来确保其生产活动符合当地环境法规。受审核方编制了环境影响评估报告及获得了环
评批复。基于令人满意的证据，主要受审核方尊重这个原则。
Performance Area 13 : Ethical Business Behaviour
GOOD PRACTICES:
None
Based on site observation, management and workers' interview and document review, the auditee had established Anti-bribery And anti-corruption
Procedure, and they had given training to employees for this issue. Based on satisfactory evidence, the main auditee respected this principle.
根据现场观察，管理层及员工访谈，文件审核，受审核方有建立反贿赂及反腐败的程序，并给员工提供相关的培训。基于令人满意的证据，主要受审核方尊
重这个原则。
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Summary
Audit Type Date Audit Id PA1 PA2 PA3 PA4 PA5 PA6 PA7 PA8 PA9 PA10 PA11 PA12 PA13 Overall Rating
Full Audit 27/11/2017 112705 D B A C B D A A A A A A A C
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Producer Photos
External photo(s) of the production unit(s)
auditee name.JPG
Photo of non-conformity
punching worker did not wear ear plug.JPG
Photo of the inside of the main production hall
evacuation plan.JPG
External photo(s) of the production unit(s)
production building.JPG
sewing machine no finger protective guard.JPG
finger protective guard.JPG
Photo first aid facilities
first aid kit.JPG
Photo of the code of conduct on display
COC.JPG
finished goods warehouse.JPG
Photo of fire safety equipment
fire alarm exit sign and emergency light.JPG
Photo of the sanitary facilities
drinkable water.JPG
inspection workshop.JPG
fire extinguisher.JPG
Photo of the sanitary facilities
toilets.JPG
material warehouse.JPG
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fire hydrant.JPG
address.JPG
packing workshop.JPG
button machine no protective ring.JPG
attendance machine.JPG
punching workshop.JPG
imcomplete belt guard.JPG
evacuation arrow.JPG
sewing workshop.JPG
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Quanzhou guanghui bags co., ltd BSCI summary audit report

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