BSCI System Manual v. 11-11-2014
BSCI System Manual Approved Version by the BSCI Steering Committee on 11-11-2014
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BSCI System Manual v. 11-11-2014
Edition History: Approved by the BSCI Steering Committee on 11 November, 2014
Layout: The Factory Brussels Further information: A PDF version of the BSCI System Manual version 2014 can be downloaded for free at www.bsci-intl.org.
Copyright FTA 2014
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BSCI System Manual v. 11-11-2014
ACKNOWLEDGEMENTS The BSCI System Manual could not have been realised without the great support of the BSCI Governance Bodies. The BSCI Secretariat would like to acknowledge the contributions of the following individuals and their affiliated organisations: Auditing WG: Aldin Hilbrands (Royal Ahold), Pirjo Heiskanen (Tuko Logistics), Lary Brown (Esprit), Margaret Chan (Metro Group), Anke Ehlers (Aldi Süd), Marc Hörburger (Walser Group), Philipp Ilbertz (Aldi Nord), Annette Koch (Gerry Weber),Klaas Gerd Nuttbohm (Aldi Süd), Camilla Sandberg (RNB), Anna-Leena Teppo (Marimekko), Rochelle Zaïd (SAAS) Capacity Building WG: Regina Wenzel (Karstadt), Lary Brown (Esprit), Tina Ivarsson (Iduna), Kaman Kwan (Karstadt), Gry Oexenholt (Dansk Supermarked), Ken Daniel Petersen (IC Companys), Maik Stockmann (L.A. Sports), Federica Süβ (Gries Deco Company), Astrid Walter (Miles Fashion), Pia Westergreen (JYSK) Food and Primary Production WG: Leon Mol (Royal Ahold),Vanessa Baumes (REWE Group), Perihan Demir (Metro Group), Tina Hildebrandt (Edeka), Ben Horsbrugh (Univeg), Charlotte Lommel (Clama), Josef Lüneburg-Wolthaus (REWE Group), Tuuli Luoma (Kesko), Koen Maes (Special Fruits), Chris Meskens (Morubel), Goran Klintberg (Systembolaget),Valentine Papeians (Delhaize Group), André Radlinsky (Migros), Raphael Schilling (Coop Switzerland), Fabian Schlesinger (Aldi Nord). System WG: Marjut Lovio (Kesko), Kristina Areskog Bjurling (Axfood), Maren Barthel (HermesOTTO International), Erik Hollman (Aldi Nord), Günther Kabbe (REWE Group), Claudia Landgraf (Tom Tailor), Marius Lang (Migros), Niels Hother Madsen (JYSK / Bettenwelt), Reidar Magnus (Intersport), Nina von Radowitz (Metro Group), Eckhard Spanier (Peek & Cloppenburg), Anna Vetsch (Coop Switzerland). The Stakeholder Council: Daria Cibrario (Chair - ECLT Foundation), Simone De Colle (IESEG School of Business, Paris), Carien Duisterwinkel (Solidaridad), Mattias Forsberg (Save the Children), Anthony Miller (UNCTAD), Bo Viktor Nylund (UNICEF), Christian Rousseau (Testachats), Alice Tepper Marlin (Vice-chair - Social Accountability International), Luc van Liedekerke (European Business Ethics Network) The BSCI Steering Committee: Bernardo Cruza (Chair - El Corte Inglés), Maren Barthel
(Boehm) (Vice-chair - Otto Group), Monique Ansink (EXCELLENT Products BV), Lary Brown (Esprit), Anke Ehlers (ALDI Süd), Anita Falkenek (Axstores, Ahléns), Pirjo Heiskanen (Tuko Logistics), Megan Hellstedt (Delhaize Group) Content and coordination: Lorenz Berzau, BSCI Managing Director; Veronica Rubio, BSCI Senior Manager Strategic Issues; Anastasia Spathi, BSCI Auditing Manager; Olga Orozco, BSCI Senior Advisor.
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BSCI System Manual v. 11-11-2014
TABLE OF CONTENTS EXECUTIVE SUMMARY ................................................................................................................. 11 DOCUMENT ROADMAP ................................................................................................................ 12 DEROGATION NOTE ...................................................................................................................... 14 LIST OF ACRONYMS ....................................................................................................................... 15
PART I - Understanding the BSCI Implementation Strategy 1.
The Business Social Compliance Initiative (BSCI) ................................................... 17 1.1.
Relations between BSCI Participants and their Business Partners .......................................... 18
1.2.
Exchange and Interaction ............................................................................................................................... 19
2.
How to use the BSCI Code of Conduct ........................................................................... 21 2.1.
Structure .................................................................................................................................................................. 21 Figure 1: The structure of the BSCI Code of Conduct .......................................................................................... 21
2.2.
Content ..................................................................................................................................................................... 21
2.3.
Endorsement ......................................................................................................................................................... 22
2.4.
Refusal ...................................................................................................................................................................... 23
3.
How to Develop the BSCI Implementation Strategy ................................................ 24 3.1.
Commit to Improvement................................................................................................................................. 24
3.2.
Rely on Values ...................................................................................................................................................... 25
3.3.
Observe the Law .................................................................................................................................................. 26
3.4.
Act Diligently ......................................................................................................................................................... 26
3.5.
Map the Supply Chain ....................................................................................................................................... 27 Figure 2: Taking Action in the Supply Chain – Approaches and Consequences ....................................... 31
3.6.
Involve Workers .................................................................................................................................................. 33
3.7.
Involve the Purchasing Department ......................................................................................................... 34 Figure 3: Involving the Purchasing Department: Potential Challenges and Solutions ........................ 35 Figure 4: Distinguish Direct and Indirect Sourcing ............................................................................................. 36
3.8.
Involve Stakeholders......................................................................................................................................... 36
3.9.
Set up a Grievance Mechanism .................................................................................................................... 37
3.10. Stop Business ........................................................................................................................................................ 38
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4.
How to Build Capacities .................................................................................................... 40 4.1.
Building Capacity for BSCI Participants .................................................................................................. 41
4.2.
Building Capacity for Business Partners ................................................................................................ 42 Figure 5: Target audience and learning objectives ............................................................................................. 43
4.3.
5.
Building Capacity For the Auditing Companies .................................................................................. 43
How to Engage Stakeholders ........................................................................................... 45 5.1.
Meaningful Engagement.................................................................................................................................. 45
5.2.
Identification of the Relevant Stakeholder Groups, Organisations and Individuals ........ 46 Figure 5: Potential Stakeholder Groups to Support in BSCI Implementation ........................................... 46
5.3.
Prioritisation of the Relevant Stakeholders .......................................................................................... 46 Figure 6: Ways to Engage with Stakeholders ........................................................................................................ 47
5.4.
6.
Cooperation with Stakeholders ................................................................................................................... 47
How to do Monitoring ........................................................................................................ 50 6.1.
BSCI Audits ............................................................................................................................................................. 50 Figure 7: Different Types of Acceptable Social Audits ........................................................................................ 51 Figure 8: BSCI Audit Types ............................................................................................................................................ 52
6.2.
BSCI Audit Rating ................................................................................................................................................ 53 Figure 9: BSCI Audit Rating: Questions and Values ............................................................................................. 54 Figure 10: BSCI Rating per Performance Area ...................................................................................................... 54 Figure 11: BSCI Audit Rating: Results and Consequences ................................................................................. 56
6.3.
Audit Validity ........................................................................................................................................................ 56 Figure 12: BSCI Audit Validity ...................................................................................................................................... 57
6.4.
Audit Scope and Audit Extent ....................................................................................................................... 57 Figure 13: Scope of the BSCI Audit ............................................................................................................................. 59
6.5.
Select the Auditing Company ........................................................................................................................ 60
6.6.
Schedule the Audit.............................................................................................................................................. 61
6.7.
Prepare for the Audit ........................................................................................................................................ 61
6.8.
Audit Execution.................................................................................................................................................... 64
6.9.
Follow-up and Continuous Improvement .............................................................................................. 66
6.10. BSCI Audit Integrity Programme ................................................................................................................ 67 6.11. Auditor Competency ......................................................................................................................................... 69
7.
How to do Remediation ..................................................................................................... 73 Figure 14: Informal versus Formal Remedy Mechanisms ................................................................................. 74
8.
How to do Communication ............................................................................................... 75 8.4.
The Responsibility to Communicate ......................................................................................................... 75
8.5.
Building a Progressive Approach for Communication .................................................................... 76
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PART II - Understanding the BSCI Audit - For Auditors 1.
How to Fill Out the BSCI Audit Report .......................................................................... 79 1.1.
Audit Duration ...................................................................................................................................................... 79 Figure 15: Minimum Duration of a Full Audit and Minimum Number of Worker Interviews ............ 80 Figure 16: Minimum Duration of a Follow-up Audit .......................................................................................... 80
1.2.
Rating Definitions ............................................................................................................................................... 81
1.3.
Cover Page .............................................................................................................................................................. 81
1.4.
General Information .......................................................................................................................................... 81
1.5.
Audit Data Evidence .......................................................................................................................................... 81
1.6.
Fair Remuneration Quick Scan .................................................................................................................... 83
1.7.
Young Workers Data ......................................................................................................................................... 83
1.8.
Grievance Mechanism....................................................................................................................................... 83
1.9.
Supply Chain Mapping...................................................................................................................................... 84
1.10. Stakeholders Mapping ...................................................................................................................................... 84 1.11. Interview Evidence ............................................................................................................................................ 85 1.12. Main Auditee ......................................................................................................................................................... 87 1.13. Sampled farms (if applicable) ...................................................................................................................... 88
2.
Interpretation Guidelines per Performance Area ................................................... 88 2.1.
Social Management Systems and Cascade Effect................................................................................ 88
2.2.
Workers Involvement and Protection...................................................................................................... 95
2.3.
The rights of Freedom of Association and Collective Bargaining .............................................. 99
2.4.
No Discrimination.............................................................................................................................................102
2.5.
Fair Remuneration ...........................................................................................................................................106
2.6.
Decent Working Hours...................................................................................................................................114
2.7.
Occupational Health and Safety.................................................................................................................119
2.8.
No Child Labour .................................................................................................................................................141
2.9.
Special Protection for Young Workers...................................................................................................147
2.10. No Precarious Employment.........................................................................................................................152 2.11. No Bonded Labour ...........................................................................................................................................157 2.12. Protection of the Environment ..................................................................................................................162 2.13. Ethical Behaviour ..............................................................................................................................................166
3.
How to Draft the Findings Report ................................................................................170
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PART III - Understanding the BSCI Audit From the Auditee Perspective 1.
How to Compile the Business Partner Information ..............................................173 1.1.
Company Data.....................................................................................................................................................174
1.2.
Supply Chain Mapping....................................................................................................................................175
1.3.
Decent Working Hours...................................................................................................................................175
1.4.
Fair Remuneration Quick Scan ..................................................................................................................176
1.5.
Stakeholder Mapping ......................................................................................................................................177
1.6.
Young Workers Data .......................................................................................................................................178
1.7.
Grievance Mechanism.....................................................................................................................................178
2.
Understanding the Requirements per Performance Area..................................178 2.1.
Social Management Systems and Cascade Effect..............................................................................179
2.2.
Workers Involvement and Protection....................................................................................................184
2.3.
The rights of Freedom of Association and Collective Bargaining ............................................187
2.4.
No Discrimination.............................................................................................................................................190
2.5.
Fair Remuneration ...........................................................................................................................................192
2.6.
Decent Working Hours...................................................................................................................................197
2.7.
Occupational Health and Safety.................................................................................................................201
2.8.
No Child Labour .................................................................................................................................................218
2.9.
Special Protection for Young Workers...................................................................................................223
2.10. No Precarious Employment.........................................................................................................................226 2.11. No Bonded Labour ...........................................................................................................................................229 2.12. Protection of the Environment ..................................................................................................................233 2.13. Ethical Behaviour ..............................................................................................................................................236
3.
How Farms are Involved in the Monitoring Process (if applicable)................239
4.
Understanding the Interviews Conducted by the BSCI Auditor ........................240
5.
Understanding the BSCI Audit Report .......................................................................240
6.
How to Draft the Remediation Plan ............................................................................241
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PART IV - Templates Template 1: Business Partner Information........................................................................244 Template 2: Supply Chain Mapping.......................................................................................250 Template 3: Smallholders Self-Assessment .......................................................................252 Template 4: Working Hours Form .........................................................................................256 Template 5: Fair Remuneration Quick Scan ......................................................................257 Template 6: Stakeholder Mapping ........................................................................................259 Template 7: Young Workers Data ..........................................................................................261 Template 8: Grievance Mechanism .......................................................................................263 Template 9: Remediation Plan ...............................................................................................264
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PART V - Annexes Annex 1 – How to Start with the BSCI Platform .................................................................267 Annex 2 - BSCI Classification of Sectors, Industries and Product Groups ................272 Annex 3 – How to Set Up a Social Management System (SMS) .....................................275 Figure 17: Elements of the Social Management System ..................................................................................276 Figure 18: Characteristics of a Good Record Keeping System .......................................................................280 Figure 19: Elements of Triangulation Technique ...............................................................................................281
Annex 4– How to Set Up a Grievance Mechanism .............................................................285 Figure 20: Example of a Grievance Mechanism Form ......................................................................................289 Figure 21: Example of How to Analyse a Grievance .........................................................................................291
Annex 5 – BSCI Zero Tolerance Protocol .............................................................................293 Annex 6 – Most Relevant Documents for the BSCI Audit ...............................................297 Annex 7 - BSCI Buyers Checklist .............................................................................................301 Annex 8 - Quick Assessment of Social Audits from Other Systems ............................303 Figure 22: Non-Negotiable Requirements Quick-Scan .....................................................................................306
Annex 9 – BSCI Code of Conduct version 2014 – Poster version .................................308 Annex 10 – How Business Enterprises are Involved in BSCI ........................................309 Annex 11 – The BSCI Commitment Formula version 2010 ...........................................310 Annex 12 - The BSCI Code of Conduct version 1/2014 (hyperlink)
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EXECUTIVE SUMMARY The BSCI System Manual 2014 has been developed by the BSCI Secretariat and BSCI Governance Bodies to illustrate and explain the changes made by the BSCI Code of Conduct version 1/2014. It is publically available to internal and external stakeholders, but addresses in particular: o
o
BSCI Participants and their significant business partners (particularly producers). They are all business enterprises committed to improving working conditions in their supply chains Auditing companies and other service providers with whom BSCI works to build capacities in the supply chain
The BSCI System Manual is the necessary reference to clarify any doubt or concern. It is particularly recommended for corporate social responsibility, purchasing and other strategic departments that lead the culture of the company. The BSCI System Manual explains: o o o o o
How to conduct due diligence and integrate the BSCI Code of Conduct into the core business culture How to map the supply chain and set priorities How to cascade the values and principles of the BSCI Code of Conduct along the supply chain How to build partnerships and use the leverage related to participating in BSCI How to prepare and maximise the value of social audits
BSCI organises continuous trainings to build capacities and deepen understanding of the BSCI System. This BSCI System Manual and the BSCI Audit Report have a revision cycle of 18 months. Feedback is collected during the first 12 months of the cycle either through the BSCI Governance Bodies (internal feedback) or by email to:
[email protected].
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DOCUMENT ROADMAP The BSCI System Manual is organised into five parts. o
Part I: Understanding the BSCI Implementation Strategy: This part addresses all audiences and sets the grounds to understand BSCI mechanisms. All other parts in the System Manual refer to Part I and provide additional explanations.
o
Part II: Understanding the BSCI Audit – For auditors: This part addresses the auditor as it explains the BSCI Audit approach and methodology. Other audiences would benefit from reading it.
o
Part III: Understanding the BSCI Audit – From the auditee perspective: This part addresses the auditee (business partner to be monitored) by guiding it through all the steps to successfully prepare for the BSCI Audit. Other audiences would benefit from reading it.
o
Part IV: Templates: These templates can be used by any business enterprise to request information from a third party to initiate its mapping process. They are also used by the auditee to gather information, which will be evaluated during the audit.
o
Business Partner Information Supply Chain Mapping Smallholders Self-Assessment Working Hours Form Fair Remuneration Quick Scan Stakeholder Mapping Young Workers Data Grievance Mechanism Remediation Plan
Part V: Annexes: These annexes provide further information on some of the key aspects touched upon in the System Manual:
How to Start with the BSCI Platform BSCI Classification of Sectors, Industries and Product Groups How to Set Up a Social Management System How to Set Up a Grievance Mechanism BSCI Zero Tolerance Protocol Most Relevant Documents for the BSCI Audit BSCI Code of Conduct 2014 Poster version How Business Enterprises are Involved in BSCI The BSCI Commitment Formula version 2010
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These annexes are additional tools to support BSCI Participants in assessing their supply chains:
BSCI Buyers Checklist Quick Assessment of Social Audits from Other Systems BSCI Code of Conduct 1/2014 full version
In every chapter of the System Manual, the main audiences are identified according to the topics under discussion. Company representatives may choose to read only the most relevant chapters to better understand their roles in BSCI. For BSCI Participants. E.g. brands, retailers, importers
For Business Partners not to be monitored. E.g. traders, producers
For Business Partners to be monitored. E.g. producers
For Auditing Companies
In addition, chapters are marked with different arrows depending on the implementation phase they refer to:
Scoping and assessing
Acting and integrating
Knowing and showing
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DEROGATION NOTE
The BSCI System Manual 2014 overrules all precedent documents related to the BSCI Code of Conduct version 2009. The documents below are applicable and coherent with the System Manual: Official BSCI Documents Operational documents: BSCI Code of Conduct including all attachments and official translations BSCI Participants' Logo and Guidelines for Use BSCI Audit Report Communicate Your Engagement: Manual for Participants on BSCI Communication BSCI Classification of Risk Countries and related Briefing Paper Audit Integrity Programme: Operating Procedures FTA By-laws Memo Clarifications regarding the New FTA Framework Contract with the Auditing Companies Position Papers: BSCI Position Paper on Prison Labour in China BSCI Position Paper on Sumangali BSCI Position Paper on Living Wages Cooperation agreements: Cooperation Agreement between China National Textile & Apparel Council (CNTAC) and Foreign Trade Association (FTA) Memorandum of Understanding with ICTI Care Foundation Memorandum of Understanding with GLOBAL GAP Memorandum of Understanding with GSCP Memorandum of Understanding with Vinos de Chile
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Publication Date: Jan-14 2014 Dec-14 TBD Jan-14 Mar-11 Jun-11 Jul-13 Dec-13 Abr-14 Dec-13 May-07 Dec-08 Abr-09 Mar-12 Mar-14
BSCI System Manual v. 11-11-2014
LIST OF ACRONYMS
BSCI CSR FTA GRASP GRI HR ILO ISO IT KPI NGO OECD OHS PPE RSP RUC SAAS SAI SMETA SMS SWOT UN
Business Social Compliance Initiative Corporate Social Responsibility Foreign Trade Association GLOBALG.A.P. Risk Assessment on Social Practice Global Reporting Initiative Human Resources International Labour Organization International Organization for Standardization Information Technology Key Performance Indicator Non-Governmental Organisation Organisation for Economic Co-operation and Development Occupational Health and Safety Personal Protective Equipment Responsibility Random Unannounced Check Social Accountability Accreditation Services Social Accountability International Sedex Members Ethical Trade Audit Social Management System Strengths, Weaknesses, Opportunities and Threats United Nations
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PART I: Understanding the BSCI Implementation Strategy
Part I Understanding the BSCI Implementation Strategy
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PART I: Understanding the BSCI Implementation Strategy
1. The Business Social Compliance Initiative (BSCI)
Chapter 1 begins by briefly introducing BSCI. The chapter also describes interrelations between different business enterprises and how they are involved in the BSCI implementation process. These are the documents related to the chapter: o o o o
BSCI Code of Conduct and Appendices (Annexed to this Manual) Greeting letters for business partners Annex 1: How to Start with the BSCI Platform Annex 11: The BSCI Commitment Formula version 2010
Business Social Compliance Initiative (BSCI) is a business-driven initiative for companies committed to improving working conditions in factories and farms worldwide. The initiative was created in 2003 by the Foreign Trade Association (FTA) to offer companies a common Code of Conduct and a holistic system towards achieving social compliance in the supply chain. As an international system with its secretariat based in Brussels, Belgium, BSCI was established by and for its Participants: retail and importing companies that operate across a wide range of business sectors and industries. BSCI Participants and their business partners are committed to implementing the BSCI Code of Conduct version 1/2014. The BSCI Code of Conduct defines the values and principles for responsible business practices in the supply chain. When a company has signed the BSCI Code, the signature represents its public commitment to responsible business. In addition, BSCI Participants are measured against the BSCI Commitment Formula. BSCI Participants and their business partners: o o o o
Work towards improving working conditions in their supply chains in a step-by-step development approach Integrate the BSCI Code of Conduct into their business enterprise culture Act diligently Seek early detection of risks and impacts with the support of relevant stakeholders through meaningful dialogue and engagement
Stakeholders are individuals, communities or organisations that are affected by and may affect an organisation’s products, operations, markets, industries, and outcomes.
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1.1.
PART I: Understanding the BSCI Implementation Strategy
Relations between BSCI Participants and their Business Partners
A company can be involved in BSCI directly or indirectly: o
o
Directly: The company becomes a member of FTA and endorses BSCI in its Declaration of Membership. It is a BSCI Participant. Indirectly: The company is a significant business partner of one or more BSCI Participants. This company: May or may not have production work environments Agrees upon the BSCI Code of Conduct and the relevant Terms of Implementation for Business Partners depending if they are going to be monitored within BSCI or not
IMPORTANT: Only business partners with production working environments can be monitored within BSCI. Business partners that cannot be monitored (e.g. trading offices or companies offering logistics or technical services), will sign the Code with the Terms of Implementation for Business Partners. The concept of Responsibility (RSP): The relations between BSCI Participants and their business partners in the BSCI system are tied together by the concept of Responsibility (RSP). This concept is a foundation of the BSCI system and directly relates to the exercise of due diligence over the supply chain. Only BSCI Participants can hold RSP in relation to their business partners to be monitored (producers). RSP empowers BSCI Participants to: o Encourage their business partners to integrate the BSCI Code into core business practices o Define the path towards improvements for the business partners that shall be monitored (e.g. by defining when to initiate the monitoring process as well as follow- up) o Cooperate with other BSCI Participants that share common business partners The RSP status is managed through the BSCI Platform. BSCI Participants hold responsibility for all their business partners included in the BSCI Platform. In addition, BSCI Participants can hold the status of Lead RSP Holder if they intend to have a stronger influence over the monitoring process, which includes: o Defining the timing of a BSCI Audit o Selecting the auditing company o Authorising BSCI Audits (both full and follow-up) o Releasing RSP in favour of another BSCI Participant, upon request BSCI recommends that BSCI Participants have internal policies to define: o Under which circumstances they should take the Lead RSP Holder status, if available o Under which circumstances they may withdraw that responsibility For more information, see BSCI System Manual Part V – Annex 1: How to Start with the BSCI Platform.
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1.2.
PART I: Understanding the BSCI Implementation Strategy
Exchange and Interaction
To facilitate open and constructive dialogue among business partners and stakeholders, BSCI offers several platforms for exchange and interaction. Democratic Governance: Since FTA (hence BSCI) is a Civil Association, the General Assembly is the highest decisionmaking body. The General Assembly delegates its power for running BSCI activities to the BSCI Steering Committee, which is composed of company representatives nominated by the participants themselves. Additionally, the Stakeholder Council provides stakeholders with an active voice in the governance of the initiative. BSCI Working Groups: BSCI Participants shape BSCI’s development through their membership in BSCI Working Groups. Working Groups present a crucial opportunity to exchange learnings and information among peers. National Contact Groups: National Contact Groups (NCGs) are formal or informal platforms of exchange organised in countries where there is a significant number of BSCI Participants to justify common strategies and regular exchanges of information. The NCGs are not part of BSCI or FTA governance. BSCI Platform: This IT tool offers the possibility to seek and store information concerning the supply chain. Depending on whether the company is directly involved in BSCI (BSCI Participant) or indirectly (business partner of one or more BSCI Participants), the level of access and user rights are different. Auditors are key users of the BSCI Platform as the BSCI audit process is organised using this tool. See http://www.bsciplatform.org/home Capacity Building Sessions: These sessions present many opportunities for exchange among peers. They benefit BSCI Participants and their business partners. See http://www.bsci-intl.org/bsci-academy Stakeholder Round Tables: These sessions aim at developing a regular and meaningful dialogue with local stakeholders in sourcing countries. They offer many opportunities to learn about local stakeholders’ expectations, activities and constraints. The round tables are not part of BSCI or FTA governance. Secretariat: The BSCI Secretariat develops and maintains the BSCI system and related tools for all actors involved. It also serves as a liaison between BSCI Participants and specific stakeholders (e.g. trade unions, non-governmental organisations (NGOs), certification schemes, governments).
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PART I: Understanding the BSCI Implementation Strategy
Key Messages The Business Social Compliance Initiative o o o
All business enterprises involved in BSCI are committed to improve working conditions, engage with stakeholders and endorse the BSCI Code of Conduct and Appendices A business enterprise is involved in BSCI either by becoming a BSCI Participant or by being a business partner in the supply chain of one or more BSCI Participants Open and constructive dialogue among business partners and stakeholders is crucial for a sustainable implementation of BSCI
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PART I: Understanding the BSCI Implementation Strategy
2. How to use the BSCI Code of Conduct
Chapter 2 explains the structure of the BSCI Code and how it can be used by BSCI Participants and their business partners. This chapter also lists options for the business partners of BSCI Participants that refuse to sign the Code. These are the documents related to the chapter: o o
BSCI Code of Conduct and Appendices (Annexed to this Manual) Greeting letters for business partners
2.1.
Structure
The BSCI Code of Conduct is composed of a set of documents that must be read together:
BSCI Code of Conduct
Terms of Implementation for BSCI Participants
Terms of Implementation for Business Partners
Terms of Implementation for Business Partners
to be monitored
BSCI Reference
BSCI Glossary
Figure 1: The structure of the BSCI Code of Conduct
2.2.
Content
The BSCI Code of Conduct: o o
Demands observance of the law Provides a shared ethical and responsible approach to develop business partnerships, which empowers workers through international trade
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o o
PART I: Understanding the BSCI Implementation Strategy
Builds on the International Labour Organization’s (ILO’s) Fundamental Conventions, which apply to all countries Aligns with the UN Guiding Principles on Business and Human Rights and similar international standards
2.3.
Endorsement
BSCI Participants can share the BSCI Code of Conduct with their business partners: o o o o
As a stand-alone document attached to the terms of purchase or contracts As a reference in a clause of the contract Fully integrated in the contract or terms of purchase Fully integrated in their own codes of conduct
The BSCI Code of Conduct can be integrated in these documents but it has to be respected in its entirety. It is not acceptable to change or to eliminate any part, principle or value of the BSCI Code. Disclaimer: If BSCI Participants decide to change the layout of the BSCI Code of Conduct, the following paragraph must be included at the top of the document: “The document herein is a literal translation of the BSCI Code of Conduct version 1/2014. As a Business Enterprise which has endorsed the BSCI Code of Conduct, we have adapted the document into our own layout to better contribute to the BSCI cascade effect.” Legal clause: This is an example of legal clause that BSCI Participants can integrate in purchase contracts to make business partners endorse the BSCI Code of Conduct: “The [Business Partner …] hereby acknowledges that it has been made aware of, and fully adheres to, the contents and requirements of the BSCI Code of Conduct and related Terms of Implementation, [reproduced in annex hereto / available upon request / a copy of which has been provided to the Business Partner/…], and that such documents will be deemed to form an integral part of this [Agreement/Contract/…].” Business partners of BSCI Participants can share the BSCI Code of Conduct in their own supply chains in the same way. IMPORTANT: Once it has been signed, the BSCI Code and Terms of Implementation provide business enterprises with the legal framework to request information on the social responsibility of the signee. This is particularly important if the company is going to be audited as no audit can be conducted without the previous signature of the Code and relevant Terms of Implementation.
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PART I: Understanding the BSCI Implementation Strategy
Production facilities must post the BSCI Code of Conduct in poster version to inform the workforce. See BSCI System Manual Part V – Annex 9: BSCI Code of Conduct 2014 Poster Version.
2.4.
Refusal
Some business enterprises may refuse to sign the Code of Conduct and related Terms of Implementation. If faced by this situation, BSCI Participants or their business partners must consider if they: o Can still get reliable information on their business partners’ social performance in other ways (e.g. other social audit reports) o Can use the leverage of BSCI Participants sourcing from the same business partner to get the business partner to sign the Code o Stop the business relation because the risk of working with unwilling business partners is too high For information on stopping business, see BSCI System Manual Part I - Chapter 3, subchapter 3.10.: Stop Business.
Key Messages How to use the BSCI Code of Conduct o o o o o
Business enterprises can endorse the BSCI Code of Conduct as a stand-alone document or if it is integrated in other documents (e.g. terms of purchase) The BSCI Code and Terms of Implementation provide business enterprises with the legal framework to request information on the social responsibility of the signee Business enterprises at every level of the supply chain should also request their business partners to sign the BSCI Code Business enterprises need a policy on what to do with business partners that are unwilling to sign and commit to the BSCI Code and Terms of Implementation Business enterprises cannot be audited without having previously signed the BSCI Code and relevant Terms of Implementation
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3. How to Develop the BSCI Implementation Strategy
Chapter 3 discusses how to develop the BSCI implementation strategy. Some aspects of strategy apply to all business enterprises regardless of direct or indirect involvement in the initiative. This chapter also details the methodology of operational processes such as the business partner mapping exercise. These are the documents related to the chapter: o
Countries’ Risk Classification
o o o o o
Template 1: Business Partner Information Template 2: Supply Chain Mapping Template 3: Smallholders Self-Assessment Template 6: Stakeholders Mapping Template 8: Grievance Mechanism
o o o o o o
Annex 3: How to Set Up a Social Management System Annex 4: How to Set Up a Grievance Mechanism Annex 5: BSCI Zero Tolerance Protocol Annex 6: Most Relevant Documents for the BSCI Audit Annex 7: BSCI Buyers Checklist Annex 8: Quick Assessment of Social Audits from Other Systems
o
BSCI Audit Report
3.1.
Commit to Improvement
The BSCI Code represents a company’s public commitment to socially responsible business in the supply chain. To make the Code as effective as possible, it should be used as a policy for the company. Buy-in and cooperation from the CEO and senior management is essential. Company functions closest to the sustainability side of the supply chain (e.g. CSR managers) will find the BSCI Code and Appendices applicable in their day-to-day work. Cooperation between departments will ensure that, eventually, all departments incorporate the BSCI Code into the business activities. To assimilate the BSCI values and principles into the organisational culture and operations, BSCI Participants as well as their business partners in the supply chain need to:
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Establish short-, medium- and long-term goals Set procedures that integrate the BSCI Code Communicate and engage with internal and external stakeholders Integrate the learnings from operations on a regular basis
The success of socially responsible enterprises relies on: o o
The seriousness of their commitment The degree to which the core values have been embedded in the business culture
Both aspects of success will present continuous challenges when: o o
Defining medium- and long-term business strategies Taking decisions to address imminent risks
3.2.
Rely on Values
Values and principles exist to guide individual behaviours and choices. In a company, different individuals with different values and principles coexist. To ensure that a company behaves according to its values and principles, internal procedures need to be written and implemented. These procedures need to be coherent with the values and principles endorsed by the company so individuals are: o o
Compelled to act upon those values and principles Guided by those values and principles when facing difficult decisions or dilemmas
Business enterprises directly or indirectly involved in BSCI share the same values of empowerment, cooperation and continuous improvement. Importance of the values: Why are these three core values important? o They represent the business enterprise culture o They strengthen the business enterprise’s credibility o They provide a foundation for developing partnerships o They facilitate decision-making when faced with a dilemma o They guide day-to-day responsible entrepreneurship o They distinguish business enterprises involved in BSCI from those that are not
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Observe the Law
The BSCI Code of Conduct reflects universally-accepted international conventions, which most countries have already integrated into legislation. Business enterprises that respect the law most likely follow the BSCI Code of Conduct already. Obeying the domestic law is in any case the first obligation of business enterprises whether or not: o Companies are directly or indirectly involved in BSCI o Their social performance is going to be monitored within the BSCI system In case of contradiction between the domestic law and the BSCI Code of Conduct, the stipulation that provides the highest protection to workers and the environment prevails. At the same time, BSCI Participants must be vigilant to avoid putting their business partners in a situation where the business partner faces the dilemma of being in breach of domestic law in order to satisfy the BSCI Participant’s demands. IMPORTANT: Going beyond workers protection provided by domestic law is not the same as being in breach of the law.
3.4.
Act Diligently
Anticipation: Practicing due diligence aims at anticipating potential risks or harms before they occur by: o o o
Attitudes: Developing analytical approaches to build relationships Systems: Designing internal systems to understand and assess risks Resources: Providing processes and resources for preventing and mitigating negative impacts
Community expectations: Due diligence relates to the expectations that the relevant community has on a business enterprise’s behaviour. Although the specific expectations may vary from one community to another, the overall expectation that society has put on business enterprises to behave ethically and responsibly continues to increase dramatically. Society including governments, consumers and shareholders requests solid and convincing answers from the business community. Gathering information: In order to respond to these expectations, gathering and assessing information on the supply chain is crucial. Balance expectations with resources: Aiming at full coverage and transparency of the entire supply chain is unrealistic: businesses need to scope, prioritise and balance societal expectations and resources.
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Early detection: Early detection allows a business to address injuries, quality problems or complaints before they escalate. This allows the company to: o o o
Strengthen its reputation Support a more stable business environment Save money
IMPORTANT: No business enterprise should suggest that its sole motivation to support early detection of labour and human rights abuses in the supply chain (and at production sites) is reputational, and by extension financial. Business enterprises that have endorsed the BSCI Code of Conduct should see it as a non-negotiable pillar of the company identity. The application of the BSCI Code of Conduct should be part of the plan, even if there is no imminent crisis or threat identified by critics.
3.5.
Map the Supply Chain
Mapping is an exercise to visualise the relations among the different business partners in the supply chain. It allows BSCI Participants and their business partners to define: o Who the actors are o How significant they are for the business o What level of leverage is possible o Which actions must be taken
3.5.1. Gathering Information Sources of information: The following sources of information are useful for the mapping exercise: o o o o o
Stakeholders: Information from relevant stakeholders Grievance mechanism report: Internal or external Self-assessment: Questionnaires or equivalent Commercial visits: Buyers or the purchasing team Social audit reports (if available)
Not all information has the same relevance. Therefore, it needs to be classified. This is one example of how to classify information according to its reliability:
Evidence
Grievance
Statement
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Anecdotes
Irrelevant information (Rumours)
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IMPORTANT: Business partners that will be monitored within the BSCI system will pay special attention to the effectiveness of their record keeping as auditors’ work relies heavily on records verification. Effective record keeping directly depends on having an effective Social Management System. For more information, see BSCI System Manual Part V: o Annex 3: How to Set Up a Social Management System o Annex 6: Most Relevant Documents for the BSCI Audit
3.5.2. Defining Scope Not all business enterprises are eligible to be involved in BSCI. BSCI Participants need to define how and where they are going to use BSCI. They will take into consideration the: o BSCI mission: BSCI aims at improving working conditions in the supply chain. Therefore, BSCI Participants will not use BSCI for different purposes o Geographic area: BSCI Participants need to analyse their supply chains to understand where production is carried out o Specific social risks: BSCI Participants may face additional social risks related to their business models, sectors or sourcing regions o Significance of their business partners: BSCI Participants need to prioritise where to allocate their efforts and resources
3.5.3. Classify and Select Business Partners Both BSCI Participants and their business partners need to classify and select: o Companies with which they do business o Companies for which additional verification is needed In general, for any company, significant business partners: o Represent a large share of the purchasing volume o Have an impact on the reputation of the company o Are potentially related to significant risks of adverse human rights (either directly or indirectly) Out of all significant business partners, some: o Are more significant than others o Present more social risks than others There are several resources to draw on to classify and select business partners:
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o
Countries’ Risk Classification: BSCI classifies countries according to six governance dimensions. For more information: http://www.bsci-intl.org/bsci-list-risk-countries-0
o
Least developed countries: These countries represent a heightened likelihood of risks. For more information: http://www.un.org/en/development/desa/policy/cdp/ldc/ldc_list.pdf
o
Sector-related accumulated experience from purchasing personnel. By drawing on this experience, a company may develop a list of aspects considered risky:
Use of agents to subcontract workers Manufacturing of goods that is often done using homeworkers, like embroidery or other handcrafts Products coming from areas where children’s education is not granted Food crops that are collected using extensive manual labour
o
Media and NGO reports: Companies may use these reports to get insight on risks in specific areas.
o
Information-gathering techniques such as:
o
Self-assessment questionnaires
Audit reports
Interviews or checklists
Diagraming techniques: a company devotes different levels of investment and vigilance to its business partners, depending on where they are placed in the diagram. These are some examples that can be useful: The arc of human rights priorities Diagram of Risks - likelihood versus severity Strengths, Weaknesses, Opportunities and Threats (SWOT analysis)
IMPORTANT: The more complex the supply chain, the more a company will need to use several sources of information to identify risks and business partners. BSCI offers BSCI Participants and their business partners a set of templates and annexes to gather information on their potential or existing business partners. For more information, see BSCI System Manual: o Part IV: Template 2: Supply Chain Mapping Template 3: Smallholders Self-Assessment o Part V - Annex 7: BSCI Buyers Checklist
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Business partner overview For BSCI Participants and their business partners
For BSCI Participants and their business partners to be monitored
BSCI Template 1: Business Partner Information
BSCI Template 1: Business Partner Information
Annex 7: BSCI Buyers Checklist
BSCI Template 2: Supply Chain Mapping Part III: 1. How to Compile the Business Partner Information
3.5.4. Take Action Once business partners are classified and selected, BSCI Participants as well as their business partners must decide what the best option is for handling those relationships. This decision needs to be taken at the management level and adapted regularly to account for new information or new business partners. The following chart helps to visualise the different approaches and related consequences.
APPROACH
CONSEQUENCE o
Assume
o o
The company acknowledges that a certain business partner represents a risk for the company The company deliberately accepts the risk without engaging in special efforts to control it A manager needs to approve the decision and bear the consequences if something goes wrong
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The company is aware of the risks The company defines extra efforts to handle the risks The company implements actions to minimise the impact or likelihood of risk that the business partner brings to the company The company allocates financial resources to support the defined efforts A person responsible for those efforts closely follows-up on reducing the risks
o
The company shares its responsibility and authority with another business enterprise so it controls the risks on its behalf. These are some examples: A brand requires an importer to control producers’ risks on its behalf A producer requires a recruitment agency to look after the workforce on its behalf
o
The cascade effect can be very efficient when both parties exchange information regularly and share responsibility and resources Full transfer of responsibility is no longer acceptable. Companies are expected to know and act accordingly to avoid the adverse impact they may have as well as the adverse impacts on the right holders themselves.
Cascade
o
o
The company adjusts its requirements to eliminate or reduce the risks These are some examples: A brand stops business with an importer that does not disclose satisfactory information on the sourcing location A company only sources from local and well-known partners
o
Full avoidance is not feasible. Companies always assume certain risks
Avoid
Figure 2: Taking Action in the Supply Chain – Approaches and Consequences
3.5.5. Decide which Business Partners to Monitor
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Only BSCI Participants take this decision: BSCI Participants ultimately decide which of their business partners are to be monitored. In the BSCI system, monitoring relates to BSCI Audits, which can only be done through the BSCI Platform and by following BSCI specifications. Other ways of verification can be complementary, but they are not part of the BSCI system. The decision to monitor business partners within BSCI or not is done: o Directly: The BSCI Participant identifies the business partners to be monitored and integrates them as part of its pool of producers in the BSCI Platform o Indirectly: The BSCI Participant transfers its responsibility to another business partner to identify which business partners are to be monitored. This occurs when the BSCI Participant relies on: The choice made by other BSCI Participants (e.g. their importers are also BSCI Participants) The advice and information from an intermediary in the supply chain to build the pool of producers to be monitored Reasons to monitor: Significant business partners are to be monitored if: o o o
They have a production work environment The level of trust about their social performance is not acceptable Their level of maturity is insufficient to maintain a good social performance
IMPORTANT: The BSCI Audit protocol has been designed to verify production working environments. Other working environments such as trading offices, logistics companies or specialised technical support are not part of the scope of BSCI. Signature of the Code: These business partners must sign the BSCI Code of Conduct and Terms of Implementation for Business Partners to be involved in the BSCI monitoring process, which includes their agreement to receive BSCI Audits. Reasons not to monitor: BSCI Participants will decide not to monitor business partners if: o o
They do not have a production work environment (e.g. agent) The level of trust about their social performance is acceptable because: They provide regular and accurate information on their own social performance and the social performance of their business partners They hold a valid certificate or audit from an equivalent social scheme: - SA8000 Certificate: If the producer holds a valid SA 8000 certificate, the related BSCI Participant will present a copy of the certificate to the BSCI Secretariat for verification and eventual uploading on the BSCI Platform. This producer does not need to be monitored as long as it is covered by the valid certificate - Other social schemes: If the producer claims to have a valid social audit or certificate from another system, the related BSCI Participant shall use the
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BSCI Quick Assessment of Social Audits from Other Systems to evaluate the extent to which certain non-negotiable criteria are covered by the system in question. To consult the BSCI Quick Assessment, see BSCI System Manual Part V – Annexes. Signature of the Code: These business enterprises will not be monitored against BSCI. However, the BSCI Participant will ask them to sign the Code and relevant Terms of Implementation. With this signature, these business partners commit to proactively share information on their social compliance and/or their supply chains. Sourcing from a BSCI Participant: BSCI Participants do not have production work environments. Hence they cannot be monitored. Furthermore, their endorsement of and commitment to BSCI is usually reliable enough for fellow Participants. However, in some cases, a BSCI Participant sourcing from another may need additional information and updates on the implementation of BSCI in its supply chain. This occurs, for example, when participant A sources from participant B and the producers linked to participant B are irrelevant for participant A. In this case, two options are possible: o o
Participant B includes producers in the BSCI system that are relevant for participant A Participant B discloses the information on the relevant producers so participant A can include these producers under its own responsibility
Similar to any other business enterprise, producers may request audits for some of their own business partners.
These audits can be: o o o
Part of their Social Management System Internal audits Second-party audits
IMPORTANT: Producers that source directly from farms include these farms as part of their Social Management System and regularly conduct internal audits to verify working conditions at the farm level. For more information, see BSCI System Manual Part III: Understanding the BSCI Audit – From the auditee perspective
3.6.
Involve Workers
Every company should find a way to strengthen workers involvement and their voices within the company. Making workers aware of their rights and responsibilities is an investment, which contributes to:
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Productivity Quality of products and services Better governance Better social development within and outside the company
Assessment: There is not a universal way of assessing the level of workers involvement but these are some questions that can be used in the process: o o o o o o o o
Is the workforce stable or is there high turnover? Are there many migrant workers (who in principle have less understanding of the host country’s laws)? How is the relation with local unions? Is there a workers representative freely elected by the workers? Are workers directly hired or subcontracted? Is there a competent person in charge of human resources? Is there a competent person in charge of occupational health and safety, including risk assessment and remediation? Are there any possibilities to raise complaints?
More information can be found in Part II and Part III: Performance Area: Workers Involvement and Protection. Internal training: Management and workers need a minimum level of competence to promote genuine involvement of workers. Internal trainings will help to close the communication gaps and create the internal habit of involving workers.
3.7.
Involve the Purchasing Department
Buying departments have first-hand information on the different business partners. Therefore, they are in the best position to support a robust BSCI implementation strategy. From the BSCI Participant perspective, purchasing departments need to be involved in BSCI implementation at several steps: o o o o
Mapping the supply chain Developing the implementation strategy Implementing the strategy Reviewing the processes
Challenges and constraints: Involving the purchasing department is not always easy and may include some challenges and constraints. The chart below helps in understanding the possible constraints and solutions to develop a solid BSCI strategy.
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Possible constraints:
Possible solutions
Buyers have information only about their immediate interlocutor (e.g. agent) but they have little information about where the agent sources from.
Include the Code of Conduct and Terms of Implementation as part of the contracts. This provides the legal framework to request more information on the supply chain from intermediaries.
Buyers may have classified business partners based on price, quality and delivery time. They may have no interest in revising this classification to include social risks.
Involve buyers in the mapping and prioritisation of business partners so they better understand the link between social risks and quality risks. Provide them with the BSCI Countries’ Risk Classification.
Buyers receive incentives for selecting the cheapest source.
Influence the decision-maker to create incentives for buyers to include social performance as part of their selection criteria.
Buyers may not have the time or the expertise to understand the information gathered on social performance (e.g. reading an audit report).
Set a clear procedure on how to understand the information on business partner social performance and/or CSR strategies. Develop a quick scan tool that translates BSCI Audit results into guidelines for them.
Buyers visit factories but may not have the time or expertise to ask producers key questions on social performance.
Provide buyers with a checklist which serves this purpose, e.g. Annex 7: BSCI Buyers Checklist available in the BSCI System Manual Part V – Annexes. In addition, conduct internal trainings on a regular basis.
Figure 3: Involving the Purchasing Department: Potential Challenges and Solutions
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To-do-list: If buyers are not yet involved in the BSCI implementation, define together the immediate to-do list: o
o
Update purchasing contracts: Include the Code of Conduct and Terms of Implementation in the purchasing contracts to cover at least the significant business partners Supply chain overview: Classify the information on the supply chain by distinguishing:
How many
Sourcing countries
Low level of commercial relation stability Direct sourcing from a producer
High level of commercial relation stability Any social certificate or similar social claim
Indirect sourcing using agents, importers or brokers
Low level of commercial relation stability High level of commercial relation stability Any social certificate or similar social claim
Figure 4: Distinguish Direct and Indirect Sourcing o o
Social risk communication: Define together the communication procedure between departments to identify any potential or actual risk associated with business partners. Business consequences: Define together what the business consequence should be for business partners that do not show any interest in improving their social performance (i.e. when is the right time to stop business with the business partner?). For more information see BSCI System Manual Part I – Chapter 3, subchapter 3.10.: Stop Business.
3.8.
Involve Stakeholders
Stakeholders are individuals, communities or organisations who are affected by and may affect an organisation’s products, operations, markets, industries, and outcomes. Mapping and engaging stakeholders are integral and indispensable parts of business enterprises’ due diligence. Benefits to engage: There is a long list of benefits of why to engage with stakeholders such as:
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o o
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They bring to attention specific issues, markets and actors in the supply chain They influence public perception of social performance in the supply chain They help to assess risks and set priorities They hold unique and specific knowledge about local actors, issues and circumstances that otherwise may be difficult or impossible to obtain by a BSCI Participant or its business partner They complement or challenge information gathered through social audits They collaborate to find root causes and build capacities to close existing gaps
For more information, see BSCI System Manual Part I - Chapter 5: How to do Stakeholder Engagement.
3.9.
Set up a Grievance Mechanism
A grievance mechanism represents the final step in acting as a diligent business enterprise. Therefore, all companies, regardless if they are going to be monitored or not, shall implement or participate in a grievance mechanism. If the company is going to be monitored, the set up and effectiveness of the mechanism will be checked by the auditor. Benefits: The benefits of setting up an operational grievance mechanism include: o
o
o
o
Communication: It represents an additional channel of communication with both internal stakeholders (workers) and external stakeholders (e.g. community) to anticipate any risk or harm before it escalates Relations: It strengthens company relations with workers: if workers realise that they can not only share their concerns but also receive timely solutions, they will feel more motivated and willing to work better. This can lead to better quality products and services and improved productivity Confidence: It strengthens confidence about the way to manage the business enterprise and relate to the workforce, which will be well-perceived during any audit and/or visit from existing and potential clients Awareness: It serves as a great vehicle to raise workers’ awareness on their rights and obligations. Workers can learn if certain claims are justified or not if the conclusions are openly shared (respecting the necessary confidentiality of the worker)
For more information see BSCI System Manual: o Part IV - Template 8: Grievance Mechanism o Part V - Annex 4: How to Set Up a Grievance Mechanism IMPORTANT: Grievance mechanisms must be set up with genuine commitment to hear workers’ voices and to carry out a fair follow-up. Otherwise, the effect would be counterproductive.
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3.10. Stop Business The BSCI Code of Conduct inspires all actors in the supply chain to use their leverage to promote long-lasting responsible business behaviour. It does not aim to guarantee a company’s social performance. Reason to stop business: The fundamental reason to stop business is outright lack of trust provoked by the business partner’s behaviour. Trust can be breached suddenly, but it is often tested following several warnings.
For example, the business partner: o o o o o
Does not disclose information on its production sites or provide accurate information Does not engage its own business partners to provide information on a regular basis Does not verify that its business partners implement their remediation plans Shows clear unwillingness or incapacity to align to the BSCI Code Compromises the integrity of the audit by means of bribery, falsification or misrepresentation in the supply chain. For more information, see BSCI System Manual Part V – Annex 5: BSCI Zero Tolerance Protocol
Before stopping business: These are some aspects to take into consideration before stopping business or ending contracts with a business partner: o o o o
Is stopping business the best alternative? What may be the adverse impacts on the business if the partnership ends? Can the issue be solved in another way? Is there a better business partner alternative?
Endemic problems: Some deficiencies on social performance relate to endemic problems in the sector, region or country. This makes it more difficult to find other alternatives. It also makes it crucial to engage with stakeholders so they understand the reasons to stop business and support the necessary changes. Procedure: Every business has to choose how and when to make the decision of stopping business. However, the decision should always be based on agreed upon procedures that include: o
Clear and communicated rationale: The rationale needs to be communicated and made available to all business partners so they are aware of it even before entering into commercial relations. The rationale should be translated into a cancellation or rescission clause in the contract, which would be the most stringent manner to enforce the BSCI Code of Conduct.
o
Stakeholder engagement: Business enterprises shall engage with consumers and other stakeholders on a regular basis to be transparent about their business models and the
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reasons why they would stop business with partners based on social performance. o
Warning procedure: Business enterprises shall set up a procedure to issue warnings before stopping business. This will also help the company in the process of seeking alternative business partners.
o
Communication procedure: Business enterprises shall have a communication procedure to deal with cases where the related business partner has been targeted by the media. In such a case, the decision of stopping business needs to be analysed with extreme diligence as it might end up being totally counterproductive and raise stakeholder concerns.
o
Stop business or contracts: Business contracts and/or business relations should stop according to the agreed terms and after the agreed warnings. Stopping business because of a business partner’s unwillingness to implement a necessary measure to respect an obligation of the BSCI Code of Conduct does not alter contractual agreements (e.g. financial obligations from existing contracts need to be honoured).
Key Messages BSCI Implementation Strategy o o o o o o o o
Policy: The BSCI Code can be used as policy for the company and it must be incorporated into the business enterprise’s culture Mapping: Each company must do its own mapping and classification of business partners Scoping: The scoping process requires: a) gathering and keeping information; b) classifying significant business partners; c) setting priorities Production environment: Business enterprises with no production working environment cannot be monitored within BSCI Engagement: Purchasing departments and stakeholders - in particular workers - need to be engaged in the development of the BSCI implementation strategy Grievance: A grievance mechanism represents the final step in acting as a diligent business enterprise Stop business: Business relations or contracts should never be stopped as a direct consequence of an audit result but instead be based on a clear and open procedure Follow up: The BSCI implementation strategy is not a static exercise but it needs to be regularly revised
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4. How to Build Capacities
Chapter 4 describes the steps to identify the skills and capacities needed to successfully implement the BSCI Code of Conduct. In addition, this chapter provides recommendations on how to address any qualification or skill gaps. It also overviews the capacity building activities provided to BSCI Participants and their business partners and auditors. These are the documents related to this chapter: o o
BSCI training materials BSCI Academy
o o o
Annex 1: How to Start with the BSCI Platform Annex 4: How to Set Up a Grievance Mechanism Annex 9: BSCI Code of Conduct 2014 Poster version
To react to dynamic market expectations, business enterprises continuously need to build skills, capacities and expertise. This applies to: o o
Business enterprises that have endorsed the BSCI Code of Conduct and want to successfully integrate it into the business culture Auditing companies and other service providers that want to excel in the market
Gap analysis: The continuous learning process shall start by conducting a gap analysis to: o o o o o
Identify the type of abilities and knowledge missing in the company structure Define a plan to address the gap Define the best tools to transfer knowledge within the structure Prioritise the areas where the lack of abilities and knowledge may put business at risk Allocate a realistic budget to address the gap
Capacity building plan: Once the gap analysis has been conducted, business enterprises shall initiate their own capacity building and follow up on the progress. A capacity building plan may be as simple as defining: o o o
The number of individuals and/or departments that need training The respective areas of knowledge to be addressed in a year The key indicators that will show that the knowledge has been effectively achieved
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The means for training and allocated time
Workshops for all audiences: BSCI offers capacity building workshops for all audiences related to the system. BSCI workshops: o Are posted in the BSCI Academy o Can be face-to-face o Can be e-learning courses The success of these workshops depends on a business enterprise’s ability to: o Have previously identified the capacities needed o Select the right course o Invite the right audience to learn about the topic(s) Besides building capacities at their own companies, BSCI Participants and their business partners need to understand the missing capacities in their respective supply chains so they can provide support towards filling those gaps. BSCI Participants shall invite their business partners - particularly those that are going to be monitored or those are already included in the monitoring process - to relevant BSCI workshops.
4.1.
Building Capacity for BSCI Participants
Mandatory training: BSCI Participants shall attend a BSCI workshop on the BSCI system within the first six months after having joined FTA and, in turn, the initiative. Furthermore, BSCI Participants should use these BSCI workshops to update new personnel (e.g. CSR staff, buyers). After this training, BSCI Participants should have sufficient background information to understand: o BSCI values and principles o The due diligence approach as part of their social responsibility o How to map their supply chains and define significant business partners to be monitored o How to analyse the information provided in the BSCI Audit Report o The best ways to follow up on business partners’ continuous improvement (particularly remediation plans) o The information available through BSCI to strengthen their strategic decisions BSCI Platform: Learning how to best use the BSCI Platform is essential and enables the BSCI Participant to succeed in the implementation. The best way to learn about this tool is by using it regularly. However, BSCI Participants need at least a basic understanding of this tool. This information is available through webinars. For more information, see BSCI System Manual Part V – Annex 1: How to Start with the BSCI Platform. Topics and audience: The BSCI Secretariat develops workshops on specific topics related to the successful implementation of the BSCI Code. BSCI Participants can use the different governance
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channels to suggest new topics and/or new audiences to be included in the BSCI capacity building activities. IMPORTANT: BSCI Participants should verify that their internal personnel in charge of sourcing and contracting (e.g. buyers) are properly instructed about the meaning of BSCI audit rating and that they act accordingly. For more information, see BSCI System Manual Part I – Chapter 6, subchapter 6.2.: BSCI Audit Rating.
4.2.
Building Capacity for Business Partners
Regardless if they are going to be monitored or not, BSCI Participants’ business partners play a critical role to: o o
Cascade the BSCI values and principles through the supply chain Allow the BSCI Participant to detect early on any potential risks and impacts in the supply chain
For these reasons, BSCI Participants shall verify that their business partners have sufficient knowledge of the BSCI system so they can work with them in a cooperative manner .
For business partners not to be monitored (e.g. importers), the BSCI Secretariat may organise workshops upon the request of BSCI Participants.
For business partners to be monitored (producers)
Aim of the workshops: BSCI offers workshops for producers to build their necessary capacities to: o Understand the expectations of the market in terms of their social performance o Integrate the long-lasting and continuous improvement defined by the monitoring process Face-to-face workshops are organised in the countries from which BSCI Participants source the most. If the producer is based in a country where BSCI does not organise face-to-face workshops, the company will need to make additional efforts to understand BSCI as its peers, in other countries, do. The company can use the BSCI System Manual for self-learning and/or seek additional external support.
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Learning objectives
Target audience o
Producer management level
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o o o o o o
Understanding the labour rights and obligations that apply to the workforce, in the given sector and region Implementing a Social Management System Conducting risk assessments Analysing the root causes of non-observance Following-up on the progress of the Remediation Plan Handling grievance mechanisms Organising internal auditing. Conducting internal audits is a good practice for all producers to monitor their progress
IMPORTANT: Business partners that produce fresh fruits and vegetables are asked to conduct internal audits on the packing houses and the farms they use. Therefore, an internal auditor must be appointed and trained for this purpose. o
Workers training
o o o o o
The social commitment assumed by their employer (e.g. by explaining the BSCI Code in a poster version; see BSCI System Manual Part V- Annex 9: BSCI Code of Conduct 2014 Poster version) Their rights and duties at the workplace Grievance mechanism procedure and accessibility Regular health and safety risk assessments How to maintain a healthy work environment Specific health and safety requirements relevant for their own tasks (e.g. a worker handling chemicals needs to be specifically diligent in ways which do not apply to other workers)
Figure 5: Target audience and learning objectives
4.3.
Building Capacity For the Auditing Companies
Auditors are key actors in the BSCI system. Their ability and their knowledge determine the quality of the information gathered through the BSCI Audit. Auditor competence: Minimum qualifications and specific training requirements are stated in the Auditing Company Framework Contract with FTA as well as in the BSCI System Manual. Furthermore, there are two skills that auditors may identify as relevant, in their gap analysis:
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1. Systemic Thinking This technique allows auditors to gain deeper insights into challenging situations and complex domains. Auditors may need this ability to evaluate business social performance in relation to its larger context. 2. Interpretation of the norms Although social auditors do not necessarily have a legal background, it is essential that they understand the applicable laws in the right way. When the literal reading of the norm may cause problems with interpretation, the auditor shall: o Seek to understand the purpose of the law and avoid absurd conclusions o Be well-aware of the hierarchy of the different norms and authorities that issue those norms to prevent any contradiction o Use BSCI’s mission and values to frame the interpretation of the auditee’s social performance
Key Messages Building Capacity o
Across the supply chain: Capacity building needs to be applied across the supply chain, at all company levels with workers involved
o
Gap analysis: It is necessary to evaluate the skills that are missing in order to create a capacity building plan
o
BSCI offer: BSCI provides a variety of opportunities to build capacities on different topics, for different audiences
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5. How to Engage Stakeholders
Chapter 5 describes practical issues to help understand the process for stakeholder engagement. This includes mapping stakeholders and setting up alliances with them on different fronts. According to the stakeholder type, different kinds of cooperation can be achieved. These are the documents related to this chapter: o
Template 6: Stakeholder Mapping
o
Annex 4: How to Set Up a Grievance Mechanism
5.1.
Meaningful Engagement
Challenges: When trying to transfer the BSCI Code of Conduct into business practice, business enterprises confront internal and external challenges: 1. Reservations to support the changes needed 2. Lack of resources to make sustainable changes 3. Lack of influence to convince business partners to endorse the BSCI Code of Conduct at the operational level These are only a few examples of challenges. They remind companies that they cannot successfully embed the BSCI Code of Conduct alone. They need to find allies. Engagement can take place among: o o
Internal stakeholders External stakeholders
Meaningful engagement relies on: o o o
Aptitude: None of the parties intend to convince the other of their views or approaches, but instead they concentrate on shared goals Interest: They seek long-lasting solutions rather than short-term demands Regularity: The agenda agreed upon is followed up on a continuous basis and not just in case of immediate crisis
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Identification of the Relevant Stakeholder Groups, Organisations and Individuals
The table below shows potential stakeholder groups at different BSCI implementation stages. The table is drawn from the perspective of the BSCI Participant. However, it gives inspiration for any company to identify its specific stakeholders.
Relation
Internal Stakeholders (inside the company)
External Stakeholders
BSCI stages Policy, scoping and assessing (rules and strategyoriented)
-Top management -Sourcing/buying department -Compliance/legal department -Local buying offices
-Business partners -BSCI Secretariat -Trade union federations -Civil society organisations
Acting and integrating (task-oriented)
-Sourcing/buying department -Local buying office -Workers
-Business partners -BSCI Secretariat -Other BSCI Participants -BSCI Country Representatives -Specialised UN agencies (The ILO, UNICEF) -Government agencies -Local trade unions
Knowing and showing (communication and accountabilityoriented)
- CSR department - Compliance department - Communication department
-Advocacy groups -Consumers -BSCI National Contact Groups -Business Partners -Trade unions -Business partners’ workers -Government agencies
Figure 5: Potential Stakeholder Groups to Support in BSCI Implementation Business partners to be monitored (producers) can find additional information in the BSCI System Manual Part III: Understanding the BSCI Audit from the auditee perspective.
5.3.
Prioritisation of the Relevant Stakeholders
The prioritisation of stakeholders depends on: o o
Their level of influence on the community and other stakeholders Their level of interest in the company’s activity
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The table below defines the ways to engage with the different stakeholders depending on their level of influence and interest:
High Manage Closely Collaborate
Inform
Consult
Influence
Keep Satisfied Involve
Low
Interest
High
Figure 6: Ways to Engage with Stakeholders
IMPORTANT: Business partners that are not going to be monitored must ensure close engagement and consultation with the related BSCI Participant(s).
5.4.
Cooperation with Stakeholders
Business enterprises should cooperate with stakeholders that have the highest level of influence and interest in their business. From the BSCI Participant perspective, these are the three major groups of stakeholders to cooperate with:
5.4.1. Business Partners Engaging business partners already prioritised through due diligence is key. These are examples of fruitful engagement with business o o o o
partners:
Follow up on challenges and improvements concerning their social performance in a regular way Build common expertise on the effectiveness of their due diligence Exchange information on their respective stakeholder engagement strategies and outcomes Support them to implement existing remediation plans
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5.4.2. Other BSCI Participants BSCI Participants belong to a unique network of like-minded business enterprises that have subscribed to the same Code of Conduct. BSCI offers easy ways to identify fellow BSCI Participants that share business partners (e.g. same producer) to discuss strategies and to coordinate activities. As much as possible, BSCI Participants shall: o Act in a coordinated fashion with their peers o Send the same coherent messages to external stakeholders on the ways in which they endorse the BSCI Code of Conduct Acting in a coherent and collective manner increases BSCI’s leverage and the positive impact. This is particularly relevant for small and medium size enterprises that may have less bargaining power. These o o o o o
are
examples
of
fruitful
engagement
with
other
BSCI
Participants:
Join forces to send strong signals to governments that are failing to protect their citizens Exchange information on their respective approaches to engage stakeholders Request a common business partner to sign the BSCI Code of Conduct and related Terms of Implementation Support the implementation of a remediation plan Respect the monitoring strategy defined by the BSCI Participant that holds RSP
5.4.3. Cooperation with Other External Stakeholders The root causes of deficient social performance can lie outside the supply chain. Engaging with the relevant external stakeholders can lead to a sustainable solution. These are examples of fruitful engagement with external stakeholders: o o
Governments and international organisations such as the ILO: Cooperation with them may support the application of the labour law in the sourcing country Trade unions in the sourcing countries: Cooperation with them may help to raise awareness of workers’ rights and obligations; it may be fruitful cooperation for when handling grievances
IMPORTANT: Mapping and genuinely engaging with stakeholders is not an isolated exercise as they relate to finding sustainable solutions. BSCI can be used as a strong and reliable network to create leverage. This is particularly important to increase the impact of a remediation plan. o
Use clusters: Engage with other BSCI Participants related to the same producer, same sector or even same region (e.g. when the problem is endemic)
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Industry associations: Contact relevant industry associations to support the creation of common solutions for the industry Specialised NGOs: Regularly consult and inform specialised NGOs that can help regionally, nationally and/or internationally Trade unions: Consult local trade unions that have unique insight and information, to take into consideration Local labour inspectors: Verify to which extent local labour inspectors can play a role in strengthening the remediation process International Labour Organization (ILO) Local office: In many sourcing countries, the ILO has a local office. The support and insight from these offices may be critical BSCI Secretariat: The BSCI Secretariat can play a key role in coordinating voices to send strong messages to relevant stakeholders
BSCI Participants may not have the means through which to address these external stakeholders individually. However, the BSCI Secretariat can support in the coordination.
Key Messages Stakeholder Engagement o o o
Business enterprises cannot successfully embed the BSCI Code of Conduct alone. They need to seek allies Business enterprises identify and prioritise their relevant stakeholders through a mapping exercise Cooperation with key stakeholders is a powerful tool that greatly increases leverage and impact in the field
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6. How to do Monitoring
Chapter 6 details the BSCI monitoring process for business partners. This chapter explains how a BSCI Audit is arranged and performed. This includes the entire process from requesting and scheduling an audit to performing and following up on the audit results. Different types of monitoring are described. At this point the significant business partner that is going to be monitored: o Has already been identified as a producer o Becomes the auditee or main auditee For more information, see Part II and Part III of the BSCI System Manual. These are the documents related to this chapter: o
BSCI Audit Report
o
Template 1: Business Partner Information
o o o o
Annex 1: How to Start with the BSCI Platform Annex 3: How to Set Up a Social Management System Annex 5: BSCI Zero Tolerance Protocol Annex 6: Most Relevant Documents for the BSCI Audit
6.1.
BSCI Audits
In the BSCI System, audits can be:
The auditee appoints an internal person to assess: o Its own social performance o The social performance of its business partners (e.g. farms) Internal Internal audits are: o Conducted in a systematic manner o By a qualified person o Embedded in the Social Management System
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IMPORTANT: Business partners that produce fresh fruits and vegetables are asked to conduct internal audits on the packing houses and the farms they use. For more information, see Part III of the BSCI System Manual.
A qualified assessor produces an independent verification of the auditee’s social performance. For BSCI implementation, these audits can only be conducted: o For a producer that belongs to one or more BSCI Participants’ supply chains o By BSCI approved auditing companies o Using the BSCI Audit Report and audit scopes o If scheduled and reported via the BSCI Platform External Auditors: o Validate the information provided by the auditee o Gather satisfactory evidence by means of documentary checks, interviews and site visits o Rate the outcome of each of the 13 Performance Areas according to the BSCI rating system o Issue a Findings Report and/or verify the auditee’s continuous improvement disclosed in the Remediation Plan
Figure 7: Different Types of Acceptable Social Audits
IMPORTANT: BSCI Audits can only be organised with a BSCI Participant’s approval. If a producer finds it necessary (based on a risk assessment) to conduct a BSCI Audit of one of its business partners, it will need to organise this in coordination with its linked BSCI Participant. The producer cannot take this approach unilaterally. Independent verification: BSCI Audits represent an independent verification of the auditee’s social performance and auditors document the results in the Findings Report. They support: o The auditee to define its path towards continuous improvements o The BSCI Participant to understand its social risks and impacts and to take the necessary measures Performance Areas: The auditee’s path towards continuous improvements is defined through the 13 Performance Areas against which the auditee is evaluated. The Performance Areas are the translation of the BSCI Code of Conduct principles into measurable practices.
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These are the 13 BSCI Performance Areas: o o o o o o o o o o o o o
Social Management System and Cascade Effect Workers Involvement and Protection The Rights of Freedom of Association and Collective Bargaining No Discrimination Fair Remuneration Decent Working Hours Occupational Health and Safety No Child Labour Special Protection for Young Workers No Precarious Employment No Bonded Labour Protection of the Environment Ethical Business Behaviour
BSCI Audits can be:
Full audits
Follow-up audits
Fully Announced
Semi-announced
Fully Unannounced
The auditee is informed of the date of the audit
The auditee is informed of the “timeframe” when the audit will be conducted
The auditee is not informed of the date of the audit. The audit can take place at any time without previous communication
Figure 8: BSCI Audit Types Full audits: o o o
Cover all 13 Performance Areas Initiate a BSCI Audit cycle The auditor: Generates and validates the producer profile data Issues a full Findings Report Defines the sample of farms to be audited (if applicable), which will remain defined until the next full audit is due
Follow-up audits: o o o o
Do not cover all Performance Areas but only those where the auditor identified findings Occur in between full audits to follow-up the continuous improvement Relate to the Remediation Plan drafted by the auditee, based on the findings identified by the auditor Take place within a maximum of 12 months following the previous audit (either full audit or follow-up audit)
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The auditor: Updates the producer profile with all the new data (if applicable) Verifies the progress of the producer using the Remediation Plan or the previous Findings Report as a reference (whichever is more complete) Issues a new Findings Report with noted actions completed Identifies and reports new findings that were not identified in the previous Findings Report (if relevant)
IMPORTANT: BSCI Participants may request a follow-up on only part of the findings. In that case, the auditor must report under “General Information” in the Audit Report: o Audit range: Follow-up o Audit extent: Limited extent (follow-up of a few Performance Areas only) o Details to justify the choice: The Performance Areas which are evaluated during the audit.
6.2.
BSCI Audit Rating
The overall rating reflects to which extent the auditee has integrated the BSCI Code into its daily business culture and operations. It is a result of the combination of ratings per Performance Area. Rating per question: In every Performance Area, each question can be answered by the auditor: o
YES: The auditor finds the amount of evidence satisfactory
o
NO: The auditor finds the amount of evidence unsatisfactory
o
PARTIALLY: The auditor finds some satisfactory evidence
The rating for each Performance Area relates to the answers given by the auditor, as each answer has a numerical value. The table below shows the values, which depend on the answer and the type of question:
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Figure 9: BSCI Audit Rating: Questions and Values Rating per Performance Area: The values per question are added up and translated into a fulfilment percentage per Performance Area. This fulfilment percentage determines the rating for each Performance Area.
Rating per Performance Area
Fulfilment percentage
A
86% to 100%
B
71% to 85%
C
51% to 70%
D
30% to 50%
E
0% to 29%
Figure 10: BSCI Rating per Performance Area
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Overall rating: Depending on the different combinations of ratings per Performance Area, the auditee will receive a final audit result.
A combination of ratings per Performance Area where:
Rating
o o
Minimum 7 Performance Areas rated A No Performance Areas rated C, D or E
These are three examples:
A Outstanding
A A A A
A A A
A
A
A
A
A A
A A A A
A A A
A
A
A
B
B B
A A A A
A
B
B
B
B
B B
o o
A A
B
A A A A
A A
B
B
B
B
B
B B
A A A A
A B
B
B
B
B
B
B C
B
B B
B
B
B
B
C
C C
o o
B B B
Acceptable
The auditee has the level of maturity to maintain its improvement process without the need for a follow-up audit.
Maximum 2 Performance Areas rated D No Performance Areas rated E
These are three examples:
C
The auditee has the level of maturity to maintain its improvement process without the need for a follow-up audit.
Maximum 3 Performance Areas rated C No Performance Areas rated D or E
These are three examples: Good
Consequence
A A A A
A A
A
A
A
C
C
C C
A A A A
A B
B
B
B
C
C
C D
C C C C
C
C
C
C
C
C
D D
C
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The auditee needs follow up to support its progress. Following the completion of the audit, the auditee develops a Remediation Plan within 60 days.
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Maximum 6 Performance Areas rated E
These are three examples:
D
A A A A A A
A
A
A
A
D
D D
A A A B
C
C
C
D
D
D E
E
E
E
E
E E
Insufficient B B
D D D D D D
o
D
The auditee needs follow up to support its progress. Following the completion of the audit, the auditee develops a Remediation Plan within 60 days.
Minimum 7 Performance Areas rated E
These are three examples: A A A A
A A
E
E
E
E
E
E
E
A A B B
C D
E
E
E
E
E
E E
E Unacceptable
E
E
E
E
E
E
E
E
E
E
E
E
E
A Zero Tolerance issue was identified (see BSCI System Manual Part V – Annex 5: BSCI Zero Tolerance Protocol)
Zero Tolerance
BSCI Participants shall closely oversee the auditee’s progress as the producer may represent a higher risk than other business partners.
Immediate actions are required. The BSCI Zero Tolerance Protocol is to be followed.
Figure 11: BSCI Audit Rating: Results and Consequences
IMPORTANT: The auditor must trigger an alert in case of flagrant child labour, bonded labour, imminent risk to workers’ health and/or lives and unethical behaviour. In these cases, the auditee does not receive an overall rating but instead it receives a status of Zero Tolerance. For more information on the Zero Tolerance process, see BSCI System Manual Part V – Annex 5: BSCI Zero Tolerance Protocol.
6.3.
Audit Validity
Rating A or B: BSCI full audits are valid for 2 years, unless follow-up audits are to be conducted. This is the case for producers that receive an overall rating of A or B. Producers rated A and B are eligible to receive a Random Unannounced Check in the period between the two full audits.
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Rating C, D or E: When an auditee receives an overall rating of C, D or E after a full audit, this audit is valid until the follow-up audit is conducted. The follow-up audit shall be conducted on the date defined in the Remediation Plan but it can only take place up to a maximum of 12 months after the last audit: o o
If the result of the follow-up audit shows improvements (A or B rating) then the audit is valid until the full audit is due If the result of the follow-up audit is C, D or E, the audit is valid until the next follow-up audit is due provided that the period between two full audits never exceeds 2 years
Figure 12: BSCI Audit Validity
6.4.
Audit Scope and Audit Extent
Main auditee: In general, the main auditee is defined as the legal entity that has signed the Code and Terms of Implementation for business partners to be monitored. (Main auditee = One legal entity = One production facility). The length of the audit is calculated based on the number of workers who work at that legal entity. This number shall include the direct as well as the subcontracted workers. o
Subcontracted workers: Workers related to another company form part of the scope of the audit. Therefore, information about their wages, working hours and contracts must be available for auditors’ verification. These are the most common cases: Security services Cleaning services Catering on site Subcontracted production workers
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Main auditee and sampled farms: When the main auditee sources fruits and vegetables directly from farms (without any intermediary process), these are the particularities to be taken into consideration: o Audit scope: the scope of the audit shall include both the main auditee and a sample of farms, provided that the main auditee: Has set up a Social Management System to internally monitor the social performance of its farms (owned or independent) Has internally audited at least two farms before the first full audit is conducted. The auditee has the obligation to continuously monitor the social performance of 2/3 of the farms that are significant for its business. However, this coverage is only expected after three years of having initiated the BSCI monitoring process Farms owned by the main auditee which are included under the same management shall always be included as part of the audit scope The auditor seeks evidence of this information before the audit is scheduled. If these criteria are met, the auditing company will include a sample of farms as part of the audit scope. In a full audit, auditors will select a sample of 10% of the farms involved in the Social Management System (minimum 2, maximum 10 farms). In the follow-up audit, auditors will not increase the sample defined in the full audit. BSCI does not determine how the auditee or the auditors select the farms. It is, however, recommended to take into consideration the risks and the significance of the farm with regard to overall production. o
Audit Extent: If the auditee and or/related farms hold a valid GlobalGAP Certificate, the auditor will not monitor: o Performance Area 7: Occupational Health and Safety o Performance Area 12: Protection of the Environment The audit duration is reduced by 30% in this case. The auditor will report this, in the Audit Report, under “General Information”, “Audit extent”: “Combined with other system(s)”.
When to define the scope: The scope of the audit is defined in a timeframe that starts with the audit request and ends with the audit scheduling. Through the BSCI Platform, the BSCI Participant makes the audit request by selecting the auditee and work environment, as shown in the table below. The auditing company receives this information and schedules the audit accordingly.
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Main Auditee Industrial work environment
X
Agricultural work environment
X
Farms (Only if internally audited prior to the BSCI Audit)
X
Figure 13: Scope of the BSCI Audit Lack of information: It may be that the BSCI Participant lacks sufficient information on the structure of the auditee so it requests an audit with the wrong scope (e.g. the BSCI Participant requests an audit that includes main auditee + farms, but the potential auditee does not source directly from farms). The auditing company must seek clarification on the structure of the potential auditee before scheduling the audit. Hiding information: If the auditee hides information on its real structure, and if the misrepresentation is uncovered at the time of the audit, the auditor shall report this in the Executive Summary. The misrepresentation shall be rated under the Ethical Behaviour Performance Area. Exceptional limitation of the scope: The scope of the BSCI Audit can be reduced on an exceptional basis with specific approval from the BSCI Secretariat. Auditing companies can limit the scope in one case only: The BSCI Participant wants to only monitor the production unit that relates to its business. The auditing company collects clear evidence that: o The unit to be audited is clearly and physically separated from the rest of the organisation o There is no workforce movement or exchange between the unit to be audited and the rest of the units in the organisation Consequences of limiting the scope: If the scope of the audit is limited to one production facility or unit: o The audit duration is calculated based on the number of workers in the audited production facility or unit (instead of the total number of workers in the legal entity) o In the BSCI Platform: The name of the auditee in the producer profile will not correspond to the legal entity but to the production facility or unit The name of the auditee will clearly indicate that the scope of the audit does not correspond to the entire legal entity(e.g. Producer Name (production unit 1)) The auditor reports the limited scope under “Audit extent” in the General information section of the Audit Report
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Applicable Audit Reports: The BSCI Audit Report is automatically generated by the BSCI Platform, based on the information validated during the audit scheduling. The Platform will generate: o An Audit Report for the main auditee only Or o An Audit Report for the main auditee and the sampled farms IMPORTANT: Cases of Zero Tolerance will be investigated using a different report.
6.5.
Select the Auditing Company
Only auditing companies that have signed the Framework Contract with FTA are entitled to conduct BSCI Audits. The list of auditing companies can be found at the following link: http://www.bscidirectory.org/auditors/view/fa.php BSCI does not define: o o o o
Who selects the auditing company Who pays for the audit Whether or not the same auditing company needs to conduct both the full audit and its follow-up audit How much BSCI Audits cost
BSCI Participants may decide to work with one specific auditing company for all the BSCI Audits they organise. BSCI Participants should select the auditing companies by taking the following aspects into consideration: o
Capacity: Auditing companies should be approached early enough to plan the audit and assign the auditor who has the right competencies. Requesting audits 3 or 4 months in advance is a good practice.
o
Price: BSCI determines the minimum length of a BSCI Audit but every auditing company defines its own service rate. A good audit requires good preparation, expertise and professionalism (prior, during and after the audit). Low cost audits may end up being expensive if they do not provide the information needed.
o
Potential conflict of interest: Although auditing companies have mechanisms in place to avoid entering into conflicts of interests, it is important to keep in mind this issue when selecting the auditing company. These are cases where impartiality becomes compromised:
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6.6.
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The auditor had previously provided training and/or technical advice to the auditee The audit is not paid for beforehand but the price depends on the results The same auditing company is used over time with the same individual auditor. Long-lasting auditor-auditee relations can compromise the objectivity of the auditor and the quality of the monitoring process
Schedule the Audit
Audit Schedule: BSCI Audits can only be scheduled through the BSCI Platform. When a BSCI Participant wants to schedule an audit, these are the steps to be followed: o Verify that the potential auditee is part of its producers list o Take the Responsibility (RSP) for the potential auditee o Click the “Request Audit” button to schedule an audit and use that pop-up window to: Select the audit time range Select an audit type (full or follow-up audit) Select the auditing company and branch if applicable Select the announcement of the audit: - Fully announced - Fully unannounced - Semi announced Select the scope of the audit: - Main auditee - Main Auditee + Farms o
The Audit company receives the request via the BSCI Platform and: Confirms the request Fixes a date for the audit Appoints an auditor Informs the main auditee of the date of the audit (in case of an announced audit) Informs the BSCI Participant (RSP holder) in all cases
IMPORTANT: Audit requests can also be initiated by BSCI Participants’ business partners or auditors. For all possible scenarios and related process details, refer to the BSCI Platform tutorials and capacity building workshops.
6.7.
Prepare for the Audit
6.7.1. For BSCI Participants
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Provide information to the auditee: BSCI Participants shall ensure producers understand how their social performance is going to be monitored. To that aim, BSCI Participants shall ensure their producers have access to up-to-date information: o By referring them to the BSCI website and BSCI Platform (with log-ins) o By keeping buying departments (or responsible personnel) updated on the audit scheduling Resources management: o Pre-define who will pay for the full audit and/or the follow-up audit o
Allocate budget for specific training activities
o
Allocate budget in case a Zero Tolerance issue needs to be followed up
o
Assess the kinds of competencies that company staff lack and determine how to overcome the gap (e.g. how many people in the company know how to read and understand a social audit report?). For more information on how to read the audit report, see BSCI System Manual Part II: Understanding the BSCI Audit For Auditors.
Interaction with other BSCI Participants: BSCI Participants shall have a good overview of how many other BSCI Participants are linked to the producer they intend to audit. This overview shall help them anticipate the leverage they might have to promote improvements in the auditee’s social performance.
6.7.2. For BSCI Auditors
Understand the context of the auditee: The auditor shall take the necessary measures to understand the auditee’s reality. These are the most common practices: o Verify distance and geography, which are not only relevant to organise the logistics but also relevant to understand workers reality: the way they commute to work, the distance to schools, to hospitals and/or other regular administrative offices (e.g. banks) o Verify particular contexts (gender, social hierarchy, migration, homeworkers, youth situation) o Pre-calculate a fair remuneration as accurately as possible concerning the region and sector Understand the sector of the auditee: The auditor shall take the necessary measures to ensure he/she understands the auditee’s sector. These are the most common practices: o Verify the existence of specific trade unions o Verify the existence of specific collective bargaining agreements o Verify if there are discrepancies in the remuneration o Verify the legislation that is applicable (e.g. for industry or for agriculture) o Take account of the production structure
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Pre-define the sample of farms (when applicable and possible). Very often the sample is defined during the audit
Make sure to have all relevant documents upfront. This includes: o The off-line Audit Report (Excel version, printed version) o The Code of Conduct with the Terms of Implementation for Business Partners to be involved in the BSCI monitoring process (signed by the auditee) o Copy of the Remediation Plan template (to provide to the auditee when relevant)
6.7.3. For the Auditee (Producer)
Legal framework: Verify that the BSCI Code of Conduct with the related Terms of Implementation have been signed and sent back to the BSCI Participant or related business partner. RSP Holder: Verify which BSCI Participant holds the responsibility for the audit. This information is available in the BSCI Platform. Login for the BSCI Platform: Verify that all necessary resources and the progress page are accessible via the producer profile in the BSCI Platform. The login can be recovered by going to www.bsci-platform .org/ask admin Seek information: The BSCI System Manual is the best ally for developing a good understanding of the expectations for being a responsible business enterprise. Further information is also available via the: o
o o
o
BSCI website: http://www.bsci-intl.org/ BSCI e-learning tools (accessed via http://www.bsci-intl.org/bsci-academy) BSCI Workshops (see BSCI Academy) BSCI Platform: http://www.bsciplatform.org BSCI national websites: China: http://www.bsci-cn.org/ The Netherlands: http://www.bsci-nl.org/ Switzerland: http://www.bsci-ch.org/ Service providers: BSCI Service Provider Directory
Gather internal information: The auditee will collect as much information as possible on the way it carries out its business. It shall identify the possible challenges or gaps, if possible before the audit. These are the requirements which are most commonly missing:
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Lack of Social Management Systems and written procedures. For more information, see BSCI System Manual Part V – Annex 3: How to Set Up a Social Management System Lack of regular training for management on social responsibility issues Lack of regular training for workers on their rights and obligations, occupational health and safety issues and access to grievance mechanisms Lack of a grievance mechanism to deal with complaints Lack of financial resource allocation to improve working conditions Deficiencies in the infrastructure needed for production
Install effective record keeping: Effective record keeping is an integral part of a good management system, and therefore helps to embed BSCI principles and values in the business culture. Furthermore, reliable record keeping supports: o o
Meeting legal and ethical obligations Transparency in the decision-making process
For more information on effective record keeping, see BSCI System Manual Part V: o o
Annex 3: How to Set Up a Social Management System Annex 6: Most Relevant Documents for the BSCI Audit
Verify business partners: The auditee shall verify if its commercial relations with other companies present risks towards harming workers’ rights or human rights. To do so, it shall assess their management practices. These are the most common examples to pay extra attention to: o Security services o Recruitment agencies o Cleaning services o Catering onsite o Subcontractors, particularly if they use homeworkers Identify and execute improvement actions: The auditee should envision how to make the necessary improvements even before the BSCI Audit. This proactive approach allows a greater sense of ownership over the process, which shall become evident during the audit. Provide the auditing company with preliminary data: The auditee can use the related BSCI templates to inform the auditing company about its structure. For more information, see BSCI System Manual Part III: Understanding the BSCI Audit from the auditee perspective.
6.8.
Audit Execution
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Every BSCI Audit shall follow these steps: Conduct the opening meeting: The auditor shall use this opportunity to explain the dynamic and purpose of the BSCI Audit to the auditee. Collect evidence: The auditor collects evidence on the auditee’s social performance by: o Verifying documentation o Visiting and analysing the production facilities and units o Conducting interviews with management, workers representative(s) and workers from different areas Evaluate the social performance: The auditor evaluates the different Performance Areas from a holistic perspective to capture the auditee’s overall social performance in the best way. Elaborate on the Findings Report: The auditor consolidates both “Good practices” as well as “Areas of improvement” for the auditee in the Findings Report. The findings are to be drafted per Performance Area, as a combination of the several pieces of evidence gathered per question. Conduct a closing meeting: The auditor takes this opportunity to explain the findings. All questions and concerns shall be addressed at this crucial meeting. In this open dialogue, the auditor suggests deadlines to implement the necessary improvements. However, the auditee will come up with the final Remediation Plan once the root cause analysis has been conducted. The auditee can also ask the auditor to transcribe the allegations or comments with regard to some conclusions. Both the management as well as the workers representative shall sign the Findings Report to acknowledge the conclusion of the audit, even if they do not agree with all the content. The auditor reminds the auditee that it has 60 working days to submit the Remediation Plan into the BSCI Platform. The auditor may provide a copy of the Remediation Plan template. The plan is based on the Findings Report. IMPORTANT: The execution of the audit can be compromised in several situations: o Aborted: The audit was scheduled and organised but it did not occur. In this case, the audit report only includes general information but without any evaluation of the Performance Areas. The auditor submits the audit report and indicates that the audit was “Aborted” (under “Audit interferences”) and he/she provides details to justify that choice. o Access denied: The auditee does not allow the auditor to access the site. In this case, the auditor answers NO to all questions in the Performance Areas, which triggers an overall rating of E. The auditor submits the audit report and indicates “Access Denied” (under “Audit interferences”) and he/she provides details to justify that choice. o Partially conducted: The audit is conducted but interrupted, which prevents the auditor from finishing the evaluation. In this case, the auditor answers NO to all questions in the Performance Areas that were not evaluated. This triggers an overall rating of E. The auditor submits the audit report and indicates that the audit was
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“Partially conducted” (under “Audit interferences”) and he/she provides details to justify that choice.
6.9.
Follow-up and Continuous Improvement
Continuous improvement is a core value of the BSCI system. BSCI Participants expect their business partners to continuously improve the working conditions within their companies and supply chains.
6.9.1. For BSCI Participants
The positive impact of BSCI depends on the capacity of BSCI Participants to encourage their business partners to: o Remediate the short- and medium-term findings o Make the necessary long-lasting changes o Integrate the BSCI Code of Conduct into their business culture Regular follow-up: The auditee that receives an overall audit rating which requires follow up (C, D or E) has 60 working days to submit the Remediation Plan to the BSCI Platform. A follow-up audit, to validate the effectiveness of the auditee’s Remediation Plan, is conducted up to a maximum of 12 months after the previous BSCI Audit. In case the auditee fails to deliver a Remediation Plan, the follow-up audit is conducted with the auditor’s Findings Report as reference. The organisation of a follow-up audit at an early stage may be beneficial for keeping the auditee motivated while it is under supervision to make the necessary progress. This is especially recommended if the auditee has an E rating. Attentive follow-up: Experience shows that business partners, in particular those that have been audited, require attentive follow-up and encouragement to understand the short-, mediumand long-term changes needed to embed the BSCI Code into their business practices. Attentive follow-up is relevant at least in the following scenarios: o
The auditee has Zero Tolerance issues: In these cases, the severity of the issues identified during the BSCI Audit demand a specific follow-up, which starts with the alert triggered by the auditor. For more information, see BSCI System Manual Part V – Annex 5: Zero Tolerance Protocol
o
The auditee does not submit the Remediation Plan within 60 days: There may be technical reasons as to why an auditee does not submit its Remediation Plan into the BSCI Platform. Respect for the timeline is an indicator of the auditee’s willingness and
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interest to improve. Failing to respect the 60 day limit shows disregard, which needs to be addressed immediately. o
The auditee has engaged in specific capacity building activities: The BSCI Participant shall verify that the auditee truly attended and engaged in the workshops to which it had committed.
6.9.2. For Business Partners to be Monitored (Auditee)
The Findings Report is the basis for the auditee to develop the related Remediation Plan. The auditee will be proactive and innovative to make improvements in order to embed the BSCI Code in its business culture. When drafting the Remediation Plan, the auditee focuses on the following steps: o o o o o o o
Analysis: Read the Findings Report and, if needed, the entire Audit Report Root cause: Identify the origin of the problem(s) that have been causing the breach Solutions: Identify feasible solutions (distinguish between short-term and long-lasting solutions) Responsibility: Identify a person responsible for the implementation process Budget: Allocate a realistic budget Strategy: Define and respect the implementation steps Monitor: Establish a strategy to monitor improvements
To draft the Remediation Plan, the auditee can use: o The BSCI System Manual o The Remediation Plan available on the BSCI Platform under the producer profile o The information from the Findings Report o The Remediation Plan Template (see BSCI System Manual Part IV –Template 9: Remediation Plan) The auditee is granted 60 working days to draft and submit the final Remediation Plan into the BSCI Platform. In case it fails to do so, the follow-up audit takes the auditor’s Findings Report as reference.
6.10. BSCI Audit Integrity Programme The BSCI Audit Integrity Programme is set up to:
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Ensure BSCI values and principles are upheld during BSCI Audits Ensure the independence and legitimacy of the audit process Ensure integrity of the auditing process and associated activities Ensure consistency in applying the audit process Provide an assessment of auditing company performance Maintain the credibility of the BSCI auditing process
Presenting allegations: Internal and external stakeholders can present to the BSCI Secretariat via email or by phone allegations of presumed unethical practices involving auditing companies, auditors and/or auditees. Allegations are reviewed with further investigations in mind. Final decision: Different governance bodies are involved in the different steps to reach fair solutions. However, the BSCI Steering Committee is ultimately responsible to take any final decision concerning the Integrity Programme. Audit Quality: The BSCI Secretariat oversees the services provided by the auditing companies to safeguard audit quality and integrity of the BSCI system. This oversight, which consists of internal and external monitoring, is undertaken by the BSCI Secretariat and external service providers. Examples of external monitoring include: o
o
Duplicate audits: A BSCI Audit recently conducted is reproduced by a service provider selected for that purpose. The results of the duplicate audit are compared to identify possible deviations or mismatches in the assessment process. An assessment report is issued with conclusions identified. Field surveillance audits: A service provider witnesses an auditing company’s team perform a BSCI Audit. An assessment report is issued with conclusions identified.
BSCI Platform maintenance: The BSCI Secretariat is responsible for the maintenance of the BSCI Platform and for reviewing any data submitted by an auditing company. The BSCI Secretariat verifies that auditing companies submit data in accordance with BSCI auditing requirements as specified by the FTA/BSCI Framework Contract and as stipulated by all the guidelines contained in the BSCI System Manual. Any non-conformity is documented and reported as part of the Integrity Programme. For more information, see the BSCI website: http://www.bsci-intl.org/bsci-integrityprogramme Random Unannounced Check (RUC): RUCs aim at consolidating sustainable improvements of auditees that have reached a satisfactory degree of maturity in their social performance (rating A and B). Indirectly, RUCs can also serve to identify potential integrity issues related to auditing practices. The RUC takes the last BSCI Audit received by the auditee as reference: o Full audit: It covers all Performance Areas o Methodology: It is conducted using the same approach o Rating: It follows the same rating system, which triggers two possible scenarios:
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Equal or higher rating: If the auditee receives the same rating as or if it receives a higher rating than the rating it received at the last full audit, the result indicates a steady or improved level of performance. The auditor may still issue a Findings Report. However, the lack of severity in the findings as well as the maturity of the auditee ensure that no immediate follow up is needed. The audit is valid for 2 years if the rating is A or B. Lower rating: If the auditee receives a lower rating than the rating it received at the last full audit, the result indicates a declining level of performance. The auditor who conducts the RUC issues a Findings Report, which is to be followed-up no later than 12 months after the completion of the RUC. The audit is valid until the next audit is due.
6.11. Auditor Competency 6.11.1. Auditing Company’s Requirements Auditing company approval: Auditing companies are accepted into the BSCI system based on competence and professionalism. The BSCI Steering Committee approves auditing companies based on a BSCI Auditing Working Group recommendation. Once they have been approved, they must sign the FTA Framework Contract, which includes auditing companies’ rights and obligations. Auditing companies must ensure: o
Qualification: The BSCI Secretariat requests that auditing companies work in line with ISO/IEC 17021:– Conformity assessment: Requirements for bodies providing audit and certification of management systems (latest version)
o
Contact person: The BSCI Secretariat requests that auditing companies have a main contact person for the BSCI Secretariat, who attends the BSCI calibration meetings: Senior manager Qualified to conduct BSCI Audits Proficient in English Present at the BSCI calibration meetings The BSCI calibration meetings aim at keeping auditing companies up-to-date on BSCI developments.
o
Regular trainings: The BSCI Secretariat requests that relevant staff of the auditing companies attend additional training and education programmes organised or recommended by the BSCI Secretariat.
o
BSCI Lead Auditor: The BSCI Secretariat requests that BSCI Audits be conducted by one BSCI Lead Auditor or a team of auditors (one member of the team being a Lead Auditor)
o
Auditors’ update: The BSCI Secretariat requests that auditors keep up-to-date, outside of the calibration meetings, on the latest BSCI system developments. Active auditors
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should receive training at least every 18 months. Furthermore, auditing companies shall have mechanisms in place to regularly inform auditors about:
BSCI official decisions BSCI System Manual updates BSCI Memorandums of Understanding Agreements of Cooperation Training material updates
6.11.2. Auditor Requirements BSCI Lead Auditor: Is the ultimate person responsible for the proper execution of the audit. He/she is in charge of: o Communicating with the auditee to collect relevant information to plan the audit o Assigning responsibilities for each audit team member o Conducting the opening meeting o Coordinating the audit team, adjusting the scheduling if necessary depending on the situation encountered onsite o Consolidating the information gathered by the audit team members during the audit with the objective of completing the Findings Report o Conducting the closing meeting o Explaining to the auditee the outcome, findings and good practices observed, if applicable o Submiting the BSCI Audit Report into the BSCI Platform BSCI Auditor: This role corresponds to those who: o Contribute to the execution of the audit o Evaluate the performance of the auditee in the respective areas o Follow the guidance of the lead auditor Training: A BSCI Lead Auditor and a BSCI auditor have successfully passed the required BSCI training. They both demonstrate: o
o
Proficiency in carrying out auditing practices:
ISO 19011: 2011 - Guidelines for Auditing Management Systems
Social Accountability Accreditation Services Procedures 200, 201 and related advisories
Procedure 225, BSCI Assessment Requirements
Professional experience in:
Social auditing and worker interview techniques
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Occupational health and safety protection
Evaluating the auditee’s industry type and business model
In-depth knowledge of:
ILO Conventions and recommendations (see BSCI Reference, which is part of the BSCI Code of Conduct version 1/2014)
Related labour law and cooperative law
Management systems, particularly Social Management Systems
Due diligence for companies and for auditors
The auditee’s working language(s) (e.g. languages used for official documents as well as languages used by the workforce)
Local, regional and international contexts specific to the auditee
Behaviour: While appropriate qualifications are critical to perform BSCI Audits, there are additional qualities expected from BSCI auditors: o
o
Impartiality: Auditors shall not conduct an audit if a conflict of interest compromises their impartiality. Independence and impartiality provide credibility to the auditor’s work Integrity: Auditors must be honest and professional. As they represent the BSCI system in the field, they must honour the BSCI values, principles and mission
Qualified judgement: Auditors base their professional judgement on solid evidence. They avoid bias or personal opinions. An auditor’s professional judgement is based on the following principles: o
o
o
o
Consistency: Auditors shall follow BSCI Audit requirements, related rules, guidelines and associated laws, relevant to the work environment. They only use the BSCI Audit Report available from the BSCI Platform Reality: Auditors shall portray the auditee in the most accurate way possible. Information and findings shall allow the reader to understand the auditee’s social performance. Auditors shall report on the overall atmosphere in which the audit is conducted Respect: Auditors shall be aware that audits are not the core business of the auditee. They take place within a cycle, which differs from the business cycle. Respect for the auditee’s time and resources is paramount Continuity: Auditors shall be aware that their work is part of a long-term improvement process where other actors play a role. Auditors shall make sure their reporting is clear, understandable and related to the progress of the auditee (e.g. if previous BSCI Audits have been conducted, the auditor is obliged to consult previous audit reports and use those as a foundation)
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Full disclosure and retention of records: Auditors shall include in attachment all information that the BSCI Secretariat qualifies as mandatory. The information disclosed aims at providing a comprehensive understanding of the auditee. Documents collected or produced during the audit process shall be filed and made available upon the request of the BSCI Secretariat for a minimum period of six years. Prudence: Auditors may be confronted with situations where reporting certain findings may put individuals at risk (e.g. interviewed workers should be kept anonymous). Protection of individuals and their dignity overrules the principle of full disclosure. Auditors report such issues under “Executive summary of confidential comments” or to their supervisors, who, in turn, would report the undisclosed findings to the BSCI Secretariat.
Key Messages How to do Monitoring o o o o
Audit ratings and all the findings define the path that the auditee needs to follow towards continuous improvement Preparation for the audit is essential for all parties involved: BSCI Participant, auditor and auditee BSCI Audits can cover all Performance Areas or follow up on the findings from previous audits The BSCI Secretariat takes all necessary measures to ensure the integrity of BSCI Audits. This includes close verification of auditors’ competencies
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7. How to do Remediation
Chapter 7 details the process involved in cases where the BSCI Participant or a business partner may cause or may have contributed to negative impacts through business activity. Examples of ways to remediate such (potentially) harmful situations are provided. These are the documents/tools related to this chapter: o o
Template 8: Grievance Mechanism Template 9: Remediation Plan
o o
Annex 4: How to Set Up a Grievance Mechanism Annex 5: BSCI Zero Tolerance Protocol
Cause or contribution to harm: Business enterprises that have caused or contributed to harm individuals or communities have the responsibility to: o Change their behaviour o Provide or contribute to remedies Operational grievance mechanisms and the genuine involvement of workers represent the most valuable means for changing the behaviour of people who were causing or contributing to harm. Business enterprises shall map and keep up-to-date the information concerning the grievance mechanisms relevant to their work. Mitigate impacts: Business enterprises do not have to remediate impacts which they have neither caused nor contributed to. However, if the impacts are linked to their operations, companies shall use their leverage to prevent or mitigate the impacts. In the prevention and mitigation process, companies shall prioritise the following aspects: o Severity: Fundamental rights, which usually refer to bodily harm done to an individual, shall be prioritised For example: Right to Life, Liberty and Security of Person Freedom from Slavery and Servitude Freedom from Torture o Number of affected people: Impacting large numbers of people shall be prioritised o Direct connection: Companies shall prioritise the cases where their own impacts are directly related to the abuse. This does not exclude the responsibility to take actions when the harm is done indirectly by another actor in the supply chain. Clear processes: Business enterprises need to have clear processes in place to respond to allegations and to provide remedies. For example:
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Informal mechanism X
Formal mechanism X
Financial and non-financial compensation
X
X
Prevention of harm such as guarantees of non-repetition
X
X
Apologies, restitution, rehabilitation
Punitive sanctions: administrative and/or penal
X
Figure 14: Informal versus Formal Remedy Mechanisms Formal remediation processes (provided by the state or third-party institutions) offer alternatives when it is not possible to reach an agreement. Examples of institutions that offer these formal mechanisms are: o National Contact Points (in OECD countries) o Legitimate trade unions o Labour offices o Labour dispute resolution organisations o Local community leaders IMPORTANT: With regard to the risk of causing or contributing to gross human rights abuses (e.g. death, slavery and the worst forms of child labour), companies should act on the prudent assumption that they may be legally liable for such abuses. For more information, see BSCI System Manual Part V – Annex 5: BSCI Zero Tolerance Protocol.
Key Messages How to do Remediation o o o o
Business enterprises have the responsibility to cease causing or contributing to harm and they have the responsibility to provide or contribute to remedies Business enterprises shall use all possible channels to understand the extent of potential contributions and allegations Operational grievance mechanisms as well as workers involvement represent valuable means for companies to anticipate and address adverse impacts Business enterprises will map and understand the landscape of grievance mechanisms in the region(s) were they work
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8. How to do Communication
Chapter 8 details the process for adequate “corporate communication”, meaning communicating and valuing company efforts towards stakeholders. Business enterprises are expected to demonstrate their engagement, challenges and progress as an integral part of the BSCI implementation plan. This is the document related to this chapter: o
8.4.
BSCI Practical Communication Manual: “How to communicate on corporate responsibility in the supply chain: a step by step approach”
The Responsibility to Communicate
The communication about BSCI engagement can be sensitive and challenging for many business enterprises involved in the BSCI process: o o
They do not see improvement of working conditions in the international supply chain as part of the core business They are not familiar with the concerns and expectations from stakeholders and fear communication could increase exposure and reputational risks
Increasingly, stakeholders expect companies to communicate about their commitment, efforts and impact to improve working conditions whatever role they have in the supply chain. In fact, companies which do not communicate about their social responsibility efforts are becoming the exception. This refers to the “Know and Show” expectation for responsible enterprises. To overcome the challenges, companies will set a procedure to manage societal expectations in the most effective way. Good communication procedure: These are the characteristics of a good communication procedure: o
Objective: The communication will target external or internal audiences with the objective of showing efforts towards improving working conditions in the international supply chain.
o
Factual: The communication will refer to:
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BSCI implementation strategy and targets The involvement of business partners in a continuous improvement process The awareness and management of improvements as well as negative impacts
o
Reliable: The communication shall be consistent and based as much as possible on objective evidence.
o
Timely: The communication needs to be shared with stakeholders in a timely manner so the company´s credibility is not jeopardised.
o
Coherent with corporate identity: The communication shall be aligned with the other aspects of the brand image or corporate identity. Stakeholders should be able to associate the BSCI endorsement with other aspects of the business behaviour. Building a Progressive Approach for Communication
Business enterprises should aim to develop a progressive approach for communication depending on their: o Size, industry and role in the supply chain o Visibility in the market o Maturity level in the BSCI implementation o Reasons to communicate Furthermore, corporate communication must be progressive when defining priorities on the different sorts of communication. Companies shall conduct a gap assessment to identify areas of communication where they need to strengthen their messages or build capacities. Internal communication: Companies shall show their responsible approach in the supply chain on corporate websites, corporate brochures and in relations with stakeholders. CSR reporting: Companies may choose the best way to report on their corporate social responsibility depending on their level of maturity: o Basic: They report on the social performance in their supply chain (e.g. by using the BSCI Platform to gather and analyse their BSCI key performance indicators) o Advanced: They report results against normalised key performance indicators such as those from Global Reporting Initiative (GRI)
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Key Messages How to do Communication o o o
Business enterprises shall include information management as part of their BSCI implementation strategy Knowing and showing goes beyond unilateral reporting of achievements. It includes stakeholder engagement and information from grievance mechanisms Business enterprises define their communication approaches depending on their maturity
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Part II Understanding the BSCI Audit For Auditors
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BSCI System Manual Part II details information that allows for a better understanding of the BSCI Audit Report. It provides the auditors with in-depth information on: o
How to fill out the BSCI Audit Report
o
How to interpret the different questions in each Performance Area
o
How to approach the monitoring process
BSCI Participants find relevant information in this part of the manual to understand the Audit Report. Business partners to be monitored (auditee) shall read System Manual Part III: Understanding the BSCI Audit from the auditee perspective. Related documents or tools: o
Audit Report blank version (accessible in the Auditor’s Resources area)
o
System Manual Part I, Chapter 6: How to do Monitoring
o
System Manual Part III: Understanding the BSCI Audit from the auditee perspective
1. How to Fill Out the BSCI Audit Report The Audit Report Structure: All information gathered in the BSCI Audit is reported in the BSCI Audit Report. This includes: o o o o o o
Data Evidence Interview Evidence Documentary Evidence Performance Evaluation of the main auditee Performance Evaluation of the sampled farms (if relevant) Findings Report
The chapters in System Manual Part II follow the structure of the BSCI Audit Report and give further explanations and instructions to the auditors on what is expected from them in each part of the Audit Report.
1.1.
Audit Duration
BSCI stipulates the minimum audit duration according to the auditee’s number of workers.
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Full audit duration: The table below shows the minimum duration for full audits as well as the minimum number of worker interviews. Audit duration includes 0, 5 day for reporting.
Facility size in number of workers
Full audit duration in man-days
Number of workers to be interviewed
1-50
1.5
5-10
51-100
2
10-15
101-250
3
15-20
251-550
3.5
20-25
551-800
4
25-30
801-1200
4.5
30-35
1201 +
5
> 35
Figure 15: Minimum Duration of a Full Audit and Minimum Number of Worker Interviews
Follow-up audit duration: The table below shows the minimum duration for a followup audit as well as the number of worker interviews. In this case, the duration does not only relate to the number of workers but also to the number of Performance Areas with findings in the previous audit. The duration includes 0, 5 day for reporting. The number of interviews remains based on the number of workers; the same as for a full audit.
Facility size in number of workers
Findings in 1 to 4 Performance area
5PA
6 PA
7 PA
8 PA
9 PA
10 PA
11 PA
1-50
1
1.5
1.5
1.5
1.5
1.5
1.5
1.5
Findings in 12 or more Performance area equals full audit duration 1.5
51-100
1.5
1.5
1.5
1.5
1.5
1.5
2
2
2
101-250
1.5
1.5
1.5
2
2
2.5
2.5
2.5
3
251-550
1.5
1.5
2
2
2.5
2.5
3
3
3.5
551-800
1.5
1.5
2
2.5
2.5
3
3.5
3.5
4
801-1200
1.5
2
2.5
2.5
3
3.5
3.5
4
4.5
1201 +
1.5
2
2.5
3
3.5
3.5
4
4.5
5
Figure 16: Minimum Duration of a Follow-up Audit
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PART II: Understanding the BSCI Audit – For Auditors
Rating Definitions
For more information, see BSCI System Manual Part I – Chapter 6, subchapter 6.2.: BSCI Audit Rating. Rating definitions are also available for auditors in the off-line Audit Report. 1.3.
Cover Page
The auditor uses this tab to provide basic information on the auditee and auditing company, as well as on the conditions under which the audit has been conducted. Audit details, audit results and auditing company details are part of the cover page.
1.4.
General Information
The auditor uses this tab to provide general information on the conditions under which the audit has been conducted. Audit scope and methodology: Information in this module is automatically generated from the BSCI Platform. The auditor cannot modify that information, but he/she can provide justification for some of the choices (e.g. Zero Tolerance issues or audit interference). Audit duration: The auditor reports the number of workers provided by the auditee, which is taken as the reference to define the duration of the audit. This figure may not correspond to the number of workers at the time of the audit. The auditor is not expected to adjust the audit duration to the new situation. However, the discrepancy must be reported under “Executive Summary”, as it may be a symptom of auditee misrepresentation. Executive summary of the audit report: The auditor uses this field to give an overall description of the auditee and the different circumstances he/she faces during the audit. The auditor shall start the executive summary with a description of the location and facilities (e.g. the auditee is composed of 2 production sites located on the 2nd floor of a 5 floor building, or the auditee is composed of a packing house and a plantation). This tab includes information on the sampled farms, when applicable. Executive summary of confidential comments: The auditor uses this field to report any additional comment, which, due to its nature, needs to be kept confidential.
1.5.
Audit Data Evidence
The auditor uses this tab to gather data evidence from the auditee.
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Auditee’s background information: The auditor shall validate the information provided by the auditee in the preparatory steps. o Valid certificates: Special attention shall be given to the validity of social certificates. E.g. a valid GlobalGAP certificate reduces the audit duration by 30% as Performance Areas related to health and safety and the environment are not verified. Therefore, it is paramount to validate this information. Auditee’s business activities: The auditor shall fill in general external information that concerns the auditee (e.g. legal minimum wage) and compare it with the specific practices of the auditee. The auditor uses the appropriate fields to describe: o o o o
Samples of workers whose working time is verified at the time of the audit Specific situations that led to overtime in the six months prior to the audit Any accident that occurred in the six months prior to the audit Specific information on the workers representative
Auditee’s production structure: The auditor shall validate the information concerning working hours, work at night and shifts, when applicable. Auditee’s production calendar: The auditor shall validate the information provided by the auditee concerning the level of production. Auditee’s social performance management: The auditor shall validate and gather information on the names of the staff in charge of different areas related to social compliance performance. Information on other relevant issues (e.g. high risk production techniques) is also reported here. Auditee’s employment structure: The auditor shall provide the most accurate information on the workforce at the time of the audit, to the best of his/her knowledge. This figure may not correspond to the number of workers reported by the auditee when the audit was originally scheduled. Report discrepancies: The auditor is not expected to adjust the audit duration to the new situation. However, the discrepancy must be reported under “Executive Summary”, as it may be a symptom of auditee misrepresentation. Housing (if applicable): The auditor shall describe the housing facilities provided directly or indirectly by the auditee.
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Fair Remuneration Quick Scan
Prior to the audit, the auditor estimates and calculates living wages in the region. He/she uses this tab to assess the auditee’s ability to provide coherent information on these topics. The auditor shall not aim at comparing his/her own calculation result to the one provided by the auditee. At this point, the auditor is asked to evaluate the level of understanding that management and workers have about: o Living costs of the workforce in the region o Possible gaps existing between the actual remuneration and the fair remuneration figure o Identifying potential actions to fill the gap The auditor may need to consult additional sources to find out more about regional contexts: o Government data (statistics, community development departments) o Local or international NGOs working in the area and addressing the sector o Community groups who may have answers to some of these questions Good practices: The auditee has access to the Fair Remuneration Quick Scan template prior to the audit. The auditor shall acknowledge, under “Good practices” in the Findings Report, if the auditee provides this information including the calculation of fair remuneration. 1.7.
Young Workers Data
The auditor uses this tab to collect information on the young workers engaged by the auditee either directly or indirectly. The auditor reports the number of young workers found in the records on workers. Furthermore, the auditor shall interview 10% of identified young workers (minimum 2, maximum 10) with particular attention given to: o Their access to vocational training o Their access to the grievance mechanism o Their special training on occupational health and safety
1.8.
Grievance Mechanism
The auditor uses this tab to collect information on the grievances lodged either at the auditee or externally. Furthermore, the auditor describes the different steps that the auditee follows to investigate and remediate the grievances.
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Supply Chain Mapping
The auditor uses this tab to collect information on the different business partners of the auditee. Business partners do not need to be named but they need to be acknowledged at least with an identification number. The number can be provided by either the auditee or the auditor to preserve business confidentiality. Different types of business partners can be selected under the column title: “Type of business partners”. If a type of business partner is not included in the list, the auditor shall select “others (please specify)” and specify the type of business partner in the next column. Significance for the auditee: The auditor shall select “high, medium or low” significance for the auditee, based on auditee overviews of business relations, volume, dependency and/or risks. Recruitment agencies and homeworkers are always considered highly significant because they represent an additional social risk for the auditee. Signed BSCI Code of Conduct: The auditor shall report if the business partner has signed the BSCI Code with related Terms of Implementation or not. This evidence shall be collected from auditee records and, if possible, verified with the related business partner. Included in the sampled business partners: The auditor shall note in this column the farms that he/she has selected to be audited. The auditor shall select farms only from those previously integrated in the Social Management System, which have been internally audited by the auditee. This column is not to be used if the scope of the audit does not include sampled farms.
1.10.
Stakeholders Mapping
The auditor uses this tab to collect information on the stakeholders that the auditee has identified as relevant to its business. Stakeholders can be internal (e.g. workers and trade unions) or external (e.g. investors, governments and NGOs). Particular attention shall be paid to verify if the auditee has identified stakeholders for relevant topics. These are the most common topics for which the auditee may engage with stakeholders: o o o o o o
Training Freedom of association Special protection given to vulnerable workers Fight against child labour Grievance mechanism Anti-corruption
These topics apply for both internal and external stakeholders.
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Good practices: The auditee has access to the BSCI Template Stakeholders Mapping prior to the audit. The auditor shall acknowledge, under “Good practices” in the Findings Report, that the auditee has provided this information and has mapped its relevant stakeholders.
1.11.
Interview Evidence
The auditor uses this tab to report: o The interview sample o The interview methods o The findings gathered through interviews Interviews serve as individual sources or to validate or back up other sources of information (e.g. auditee documents). The auditor shall use this tab to enter the interview evidence for both the main auditee as well as interviews at the sampled farms, when applicable. Auditors must interview: o Management: Particularly managers in charge of Human Resources and Occupational Health and Safety (OHS) o Workers representative(s) o Internal auditors: If the audit includes sampled farms o Workers: particularly: Young workers or apprentices Workers’ committee spokesperson Seasonal and/or subcontracted workers Women Night shift workers They may also include: o Trade union representatives o Relevant external stakeholders Interviewing management: Auditors may have the first contact with management either during the preparation of the audit or during the opening meeting, the day of the audit. Interviews with different managers should be conducted in open and constructive dialogue. The auditor shall use these interviews to gather substantial information on the auditee´s social performance: o Explanations on the organisational chart and division of responsibilities o Explanations with regard to drafting and implementing policies and procedures
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o Explanations with regard to hiring practices, grievance management and workers’ trainings o Overview on the latest investments to improve OHS and productivity o Overview on the different business partners and how the company selects them and monitors their social performance o Explanations with regard to the accident protocol o Explanations with regard to the grievance mechanism o Explanations with regard to workers and management trainings o Explanations on its understanding of the BSCI Code of Conduct values and principles Interviewing workers and workers representatives: These interviews are a critical source of information to cross-verify: o The information gathered through documents or interviews with management o The effectiveness and safety of the procedures developed by the auditee Interviews may be the only source of information in case of discrimination, incidents of violence, sexual harassment or illegal disciplinary measures. If this is the case, the auditor shall be extremely vigilant in how to report the findings to avoid adding any risk or problem to the detriment of the interviewee(s). IMPORTANT: Auditors must be aware of the possibility that workers are being coached so that their own answers match other evidence presented by management. Auditors may use different interview techniques to go beyond the surface. Auditing companies shall direct their auditors to follow these guidelines to interview workers, to ensure they: o o o o o o o
Conduct interviews in a respectful way Build trust with different types of workers Are sensitive with gender issues and toward any disadvantaged individuals Select the place for the interview (onsite or offsite) Define the format (individual or group) Protect interviewees from reprisals Are aware of local and cultural contexts
Building trust takes different amounts of time in different cultures. It is the decision of the auditor to determine the duration of an interview, in order to get meaningful results. Elements of the most positive ways to conduct interviews include: o Right setting: Meeting in a neutral setting where workers may feel comfortable o Small talk: Starting with small talk (music, films, sports) to let the worker feel at ease, relaxed and more willing to talk about work subjects
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o Body language: Paying attention to facial expressions, gestures and attitudes o Exploratory: Asking open-ended questions o Comfortable: Listening carefully and not repeating questions if the worker does not seem to understand or is clearly unwilling or uncomfortable to discuss the subject o Sensitive: Changing the topic when emotions are too intense o Neutral: Resisting to make facial expressions of shock, sadness, frustration or other emotions in reaction to what the worker says o No notes: Avoiding note-taking as workers may feel uncomfortable about being recorded o Empathy: Being on the same level as the workers (e.g. sitting on the floor if this is where they are positioned) Child labour: These recommendations apply in case the worker being interviewed is a child found working. The auditor must be particularly vigilant in such cases and, additionally, consider asking the child where she/he would prefer to talk and whether she/he would like anyone else to be present, for example a sibling or a friend. 1.12.
Main Auditee
The auditor evaluates the auditee against the BSCI Code of Conduct version 1/2014. The evaluation is done per Performance Area. The auditor shall answer questions “yes, partially or no” depending on the level of satisfactory evidence. The sources of evidence are reported under the grid called “Evidence”. They can be: o MI: Management interview(s) o WI: Workers interview(s) o WRI: Workers representative interview(s) o DE: Documentary evidence o SO: Site observance Documentary evidence: A site visit is not considered a source of evidence unless backed up by pictures in which case it is reported under documentary evidence. For more information on documentary evidence, see BSCI System Manual Part V – Annex 6: Most Relevant Documents for the BSCI Audit. Interpretation guidelines: Every question under each Performance Area is linked to interpretation guidelines. These are available in the Audit Report to support the auditor in his/her evaluation. Auditors have access to those guidelines in the subsequent chapters. To deepen their understanding, they may also read BSCI System Manual Part III – Understanding the BSCI Audit from the auditee perspective, which guides the auditee. Findings: The auditor consolidates the findings per Performance Area.
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These are some examples of how the section “Findings” can be filled out: o "Based on limited evidence, the main auditee does not respect this principle because … (the auditor describes the deviations/reasons why)." o
“Based on satisfactory evidence, the main auditee partially respects this principle because … (the auditor describes the deviations/reasons why)."
Good practices: If applicable, the auditor also drafts the consolidated good practices per Performance Area. This is an example of how the section “Good practices” can be filled out: "The main auditee exceeds expectations with respect to this principle because… (the auditor describes the good practice(s) and related evidence)."
1.13. Sampled farms (if applicable) This tab is only to be used when farms are part of the audit scope. Auditors shall evaluate the same social performance as applied to the main auditee. The auditor shall create as many questionnaires as sampled farms. Rating: The ratings of the sampled farms do not effect the overall rating of the main auditee. However, the findings at the farms must be included in the Findings Report. The follow up of these findings corresponds to the main auditee in cooperation with the farms. Smallholders: When some or all of the sampled farms are smallholders, the auditor shall use the specific questionnaire that applies to them (Template 3: Smallholders Selfassessment). Smallholders are farms hiring less than 5 workers, or using family workforce. Smallholders are not rated. Cooperatives: The auditor shall pay particular attention if the main auditee is a cooperative of farms, in which case the sampled farms are members of the cooperative.
2. Interpretation Guidelines per Performance Area 2.1.
Social Management Systems and Cascade Effect
Is there satisfactory evidence that the auditee has set up an effective management system to implement the BSCI Code of Conduct?
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An effective management system is crucial to ensure social performance can be integrated into the business model. With a management system in place, the auditee can take ownership over the process and continuously improve. Effectiveness: To verify the effectiveness of the management system, the auditor must at least evaluate:
Coherency check: Furthermore, the auditor shall evaluate if the relevant documents are coherent with the statements provided by key management and workers. This is particularly important in the following cases: o Structure of the company (including different facilities, when applicable) o Organisational chart and reporting lines: Who decides what? o Documented procedures: particularly for hiring, using recruitment agencies, subcontracting, dealing with grievances, training workers, promoting ethical behaviour, following up on BSCI Remediation Plans. o Work instructions, time table, emergency instructions, instructions in case of accidents o Forms: most common contracts used (e.g. permanent workers, seasonal workers, apprentices) o Relevant external documents such as applicable labour law o A collective bargaining agreement (if applicable) o Record keeping: current and old records, contracts with the workforce, contracts with recruitment agencies, contracts with subcontractors, payslips, working
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o Does the auditee’s management understand why its own good social performance is important for BSCI Participants? o Does the auditee’s management understand the importance and benefits of having an effective management system and related procedures in place? o Does the auditee’s management show full commitment towards integrating the BSCI Code into the auditee business culture? o Does the auditee’s management understand the difference between short-term investment and long-lasting solutions? o Does the auditee’s management understand the content of the BSCI Code and Terms of Implementation for business partners to be involved in the BSCI monitoring process? o Does the auditee’s management understand the need to develop internal procedures to integrate the BSCI Code into day-to-day business practices? o Does the auditee’s management understand how business relations are affected by the implementation of BSCI? o Does the auditee’s management understand the need to consult customers and stakeholders to adhere to a continuous improvement approach in day-to-day business practices?
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hours, certificates, inspections, minutes of meetings with workers and workers representatives, accidents, grievance investigations.
Is there satisfactory evidence that a senior manager has been appointed to ensure that the BSCI values and principles are followed in a satisfactory manner? The integration of BSCI in the business culture may involve several staff members. Effectiveness: To verify the effectiveness of the selection of right staff members, the auditor must at least evaluate that: The function:
The individual with this function has: o A good understanding of the BSCI Code of Conduct and Terms of Implementation o A good overview of the supply chain: Which business partners are important (significant) for the business Which stakeholders are relevant for integrating BSCI values and principles into the business culture Coherency check: Furthermore, the auditor shall evaluate if the selection of other company functions is coherent with the BSCI values and principles. Who is in charge of implementing BSCI in the business culture? Who is in charge of following up with the grievance mechanism? Who is in charge of HR? Who is in charge of ensuring that workers receive training relevant to the BSCI values and principles? o Who is in charge of OHS issues? o Do these functions have sufficient skills (by training or by experience) to fulfil their responsibilities? o Do these functions have allocated budget to succeed in the implementation of BSCI principles and values? o o o o
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o Is part of senior management o Actively works towards adhering to the Code of Conduct as part of the business culture o Includes other duties and covers several areas of work such as strategy and business development (if relevant) o Has decision-making power and allocated budget to succeed in the follow-up of BSCI social performance
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Is there satisfactory evidence that the auditee has a good overview of the significant business partners and their level of alignment with the BSCI Code of Conduct? The auditee is required to exercise a minimum duty of care and attention with respect to the selection, management and monitoring of its own significant business partners. Without this overview on whether or not its business partners respect the law and workers’ rights, the auditee and its clients face a social risk. Examples of business partners are: Subcontractors Recruitment agencies Catering service providers Suppliers (including farms)
Effectiveness: To verify the effectiveness of the selection of business partners, the auditor must at least evaluate that the auditee: o Has a management system to select current and future significant business partners o Has instructed relevant staff to take into consideration not only price and quality but also the willingness to respect the BSCI requirements o Monitors current and future significant business partners’ social performance. These verifications can be conducted by either its own personnel (as long as they are qualified to do so) or third parties mandated to conduct such assessments Coherency check: Furthermore, the auditor shall evaluate if the selection of business partners is coherent with the BSCI values and principles. o Does the auditee keep accurate information on its different significant business partners? o Does the auditee know how long business partners have been working with it? o How familiar is the auditee with the ways in which its business partners manage their own businesses? o Does the auditee keep records of any complaints received about its business partners? If yes, how has the auditee dealt with these complaints? Is there satisfactory evidence that the auditee’s workforce capacity is properly organised to meet the expectations of the delivery order and/or contracts? Effective workforce planning allows the auditee to reduce unnecessary subcontracting or overtime, which represent social risks for both the auditee and its clients. The planning still cannot provide necessary guarantees.
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o o o o
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Effectiveness: To verify the effectiveness of the workforce planning, the auditor must at least see that the auditee has realistically calculated the costs of production and delivery times (including labour costs). If so, the auditee will be in a better position to negotiate prices and influence customers’ purchasing practices. Coherency check: Furthermore, the auditor shall evaluate if the planning is coherent with the BSCI values and principles.
Is there satisfactory evidence that the auditee monitors how its business partners observe the BSCI Code of Conduct? The auditee’s monitoring occurs in different steps through a development-oriented approach. It can be done directly or indirectly. Effectiveness: To verify the effectiveness of the business partner monitoring, the auditor must at least evaluate that the auditee: o Has requested significant business partners to sign the BSCI Code of Conduct and relevant Terms of Implementation o Keeps copies of these signed BSCI documents o Includes social performance criteria as pre-requisites to select business partners o Has institutionalised different processes to make necessary business decisions and/or any corrective actions to address risks found in the activities of business partners o Uses various ways to collect information from its business partners: These are some examples: It requests regular transparent reporting related to social risks It conducts internal auditing It requests second-party or third-party audits
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o How reliable is the methodology to plan production, including delivery time? o Does the management have a good understanding of the production rate per production unit? o Does the management have a good understanding of the production rate per worker? o Does the management have a “contingency plan” in case something slows down or interrupts production? o Is the management aware of how much more “overtime” premium would be added to cost, in case it is needed, to match a delivery order? o Does the management discuss workforce capacity with the head of HR and workers representatives? o Who makes the final decision to change regular work capacity if it appears that delivery time will not be met?
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Coherency check: Furthermore, the auditor shall evaluate the coherence of monitoring business partners within the overall auditee business practice. o What mechanisms are being used by the auditee to monitor business partners? o How often does this monitoring take place? o Who is responsible for this monitoring? Is that person or those people competent (as a result of training or experience)? o How are the findings about business partners followed up? o What are the consequences if a business partner fails to observe the BSCI Code? o Who is informed about any relevant problem related to the business partner? o How does the auditee pass on this information (e.g. to a BSCI Participant)?
Infringement of human rights at the workplace or in the supply chain often occurs in a context of: o Absent, vague or insufficient rules of conduct o Lack of or vague working procedures Effectiveness: To verify the effectiveness of the policies and procedures to address adverse human rights impacts, the auditor must at least evaluate that: o Management is aware of the correlation between working conditions and potential human rights violations o Management understands that human rights impacts can be prevented and addressed Coherency check: Furthermore, the auditor shall evaluate the coherence of policies and procedures within the overall auditee business practice. Prevention and remediation of any adverse human rights should at least permeate: o The regular risk assessment conducted in the company (e.g. occupational health and safety risk assessment) o The decision-making process regarding human resources management as well as relations with business partners o The available budget to address impacts and remediate victims (if relevant) o The systematic follow up and review of the measures taken
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Is there satisfactory evidence that the auditee has developed the necessary policies and processes to prevent and address any adverse human rights impacts that may be detected in its supply chain?
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Is there satisfactory evidence that the auditee manages its business relations in a responsible manner? Effectiveness: To verify the effectiveness of the way the auditee manages its business relations, the auditor must at least evaluate: o What communication channels allow business partners to explain their difficulties as well as progress towards aligning to the Code o What is the basis for terminating contracts or business relations o What are the specific clauses in the contracts about ending a business partnership
The auditee does not need to stop business with business partners that do not observe the BSCI Code of Conduct as long as those partners are transparent about their difficulties and take effective actions towards making improvements.
Documents related to this Performance Area
o Job descriptions in which the implementation of BSCI is included o Documentary evidence on production capacity planning o Evidence that the BSCI Code of Conduct and Terms of Implementation have been distributed to significant business partners o Signed BSCI Code of Conduct and relevant Terms of Implementation if farms are part of the scope of the audit o Evidence of business partners’ social performance (quarterly reports, audit reports, valid certificates) o Evidence of qualifications of the person in charge of implementing BSCI o Documentary evidence of the social policy and procedures to implement BSCI
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Coherency check: Furthermore, the auditor shall evaluate that the way in which the auditee manages its business relations is coherent with the BSCI values and principles.
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PART II: Understanding the BSCI Audit – For Auditors
Workers Involvement and Protection
Is there satisfactory evidence that the auditee has good management practices that involve workers and their representatives in sound information exchange on workplace issues? Effectiveness: To verify the effectiveness of the way that the auditee manages its business relations, the auditor must at least evaluate that the auditee: o Has established communication structures to genuinely involve workers and their representatives o Management exchanges information on workplace-related issues with workers and their representatives
o How often do the management and workers meet to discuss about improving working conditions? o Are there minutes of such meetings taken, kept and available for consultation? o How is the workers representative elected? o Are there records of the election process? o Are the elections impacted by undesirable interference from the management? o How does the management follow up on workers’ requests or complaints? o How are the concerns of the most vulnerable workers (e.g. migrants, young workers) taken into account? Is there satisfactory evidence that the auditee defines long-term goals for protecting workers in line with the aspirations of the BSCI Code of Conduct? Effectiveness: The effectiveness of long-term goals cannot be verified as, by definition, they have not yet been implemented. Instead, the auditor shall verify the feasibility. Coherency check: Furthermore, the auditor shall evaluate if the way in which the auditee has defined its long-terms goals is coherent with the BSCI values and principles. o Are the vision, mission and objectives of the company in line with the BSCI Code? o Do the long-term goals reflect a step-by-step approach toward sustainable improvements? o Are the workers and workers representatives genuinely involved in defining these goals?
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Coherency check: Furthermore, the auditor shall evaluate if the way in which the auditee involves workers and their representatives is coherent with the BSCI values and principles.
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o Is the strategic plan to achieve those goals in writing and approved by the competent person (or governance body)? CRUCIAL: Is there satisfactory evidence that the auditee takes specific steps to make workers aware of their rights and responsibilities? Effectiveness: To verify the effectiveness of the steps taken to raise workers’ awareness, the auditor must at least evaluate that:
Coherency check: Furthermore, the auditor shall evaluate how the auditee raises awareness among the workers on their rights and obligations in coherence with the BSCI values and principles. o Do interviews with workers confirm that they have a good level of awareness of their rights and obligations? Are they aware of the content of their contracts? Are they aware of the content of the rules of the workplace? o Is the person in charge of training workers qualified (by qualification or experience) to train them on their rights and obligations? o Do contracts clearly explain workers’ rights and obligations? o Are there mandatory trainings for new workers? o Are special trainings (e.g. in the relevant language) provided for migrant workers? o Are workers trained on occupational health and safety? Are workers trained on how to use the grievance mechanism? (With special attention to young workers) IMPORTANT: Trainings are mandatory for any new worker (even if he or she has been engaged via a recruitment agency). Migrant workers need to be trained and must receive a version of the work contract in a language they understand.
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o Workers who are interviewed have a good understanding of their rights and responsibilities. o Workers’ rights and obligations emanate from: The law Work contracts Job descriptions Working rules of the workplace (as long as these rules abide by the law) o Sources of rights and obligations must be available for workers and their representatives o Workers are regularly trained on their rights and obligations o The BSCI Code of Conduct (not necessarily including the Appendices) is displayed in a visible place of the workplace
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Is there satisfactory evidence that the auditee builds sufficient competence among managers, workers and workers representatives to successfully embed responsible practices in the business operation? Effectiveness: To verify the effectiveness of the capacity building activities taken by the auditee, the auditor must at least evaluate that:
Coherency check: Furthermore, the auditor shall evaluate if the ways in which the auditee builds internal capacities is in coherence with the BSCI values and principles. o How often are directors, managers and workers representatives trained on the content of the BSCI Code? o Is the material for the trainings available? o Do interviews with managers and other decision-makers confirm a good level of awareness on social responsibility and the content of the BSCI Code? o Is the person in charge of the training qualified to train the audience? o Is this person external or internal staff? (If the auditee has internal staff who are sufficiently qualified to train others then it is a very good sign as it shows willingness to build internal capacities). o Are there mandatory trainings, at least for newcomers, on the content of the BSCI Code? Is there satisfactory evidence that the auditee has established, or participates in, an effective operational-level grievance mechanism for individuals and communities? Effectiveness: To verify the effectiveness of the grievance mechanism (established or endorsed by the auditee), the auditor must at least evaluate that: Workers and communities can lodge grievances through such a mechanism. The grievances lodged can relate to the auditee’s actions and/or inactions that represent a potential breach of workers’ or communities’ rights. The written procedure for the grievance mechanism defines: o A person responsible for its administration
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o Trainings are granted for workers representatives, managers and other decisionmakers o The auditee ensures that management regularly receives: Informative sessions on the BSCI Code of Conduct Specific training for human resources, OHS and the grievance mechanism personnel Feedback on the BSCI Audit results and follow up o The auditee has training materials related to BSCI Code content, made available for the management
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o Potential conflicts of interest and how to overcome them (e.g. if a grievance is against the person who administers the mechanism) o Timelines to address grievances o Process for “appeals” or escalation as an additional guarantee o Communication process to ensure that workers and community members have access to the grievance mechanism. This includes workers representatives, seasonal, migrant, temporary, young and female workers o Alternative ways for lodging a complaint (e.g. through a workers representative or directly to the management) o Record system of grievances lodged, including how they were investigated and addressed o Regular survey on the grievance procedure
o Is there a system to keep records on the grievances lodged and the history of the solutions and remediation taken? o Are there additional measures taken to avoid any kind of discrimination to access the grievance mechanism? o Are workers representatives duly informed and involved (when applicable) so grievances are processed and investigated with the utmost guarantees? o Are there indicators of satisfaction among the users?
Documents related to this Performance Area o o o o o o o o o o
Documentary evidence of the workers representative election Documentary evidence of regularly scheduled workers meetings Records of agreements with workers representatives Employment contracts including those related to security personnel, cleaning and other services Job descriptions in which the implementation of BSCI is included Working rules Evidence of a training calendar for workers and management Documentary evidence of training given to workers, management and human resources (e.g. list of attendees with signatures) Documentary evidence of trainer competence Documentary evidence of grievances lodged/investigated (e.g. BSCI Template 8: Grievance Mechanism filled in)
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Coherency check: Furthermore, the auditor shall evaluate how the auditee defines and manages the grievance mechanism in coherence with the BSCI values and principles.
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2.3.
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The rights of Freedom of Association and Collective Bargaining
Freedom of Association: The right of workers to form and join organisations of their own choosing is an integral part of a free and open society. An open and trustworthy dialogue between the management and the workers is the first step towards freedom of association and collective bargaining. When operating in countries where free and democratic trade union activity is unlawful or prohibited, the auditor and auditee will acknowledge the fact that workers are still allowed to freely elect their own representatives.
Restriction of workers’ organisation: A company that restricts workers’ rights to join an organisation or a union, or to associate freely, is very unlikely to maintain good labour practices. These restrictions can be already applied, but very often can be discovered in hidden or subtle forms of discrimination, informal restrictions or intimidation. The importance of training the workers and key management as well as setting up an operational grievance mechanism becomes evident to actively encourage these rights. Is there satisfactory evidence that the auditee respects the right of workers to form unions in a free and democratic way? Effectiveness: To verify the effectiveness of auditee respect for workers’ rights to form unions, the auditor must at least evaluate that: o Workers establish and join workers’ organisations of their own choosing o Workers do not need previous authorisation from the auditee to join or establish a workers’ organisation o Workers’ organisations are formed in a democratic manner Coherency check: Furthermore, the auditor shall evaluate if the ways in which the auditee allows workers’ rights comply with the BSCI values and principles. o Has management interfered to prevent workers’ participation in meetings regarding unions or other workers’ organisations? o Has management discouraged or interfered in the election process of union members or workers representatives? o Has management appointed a “workers representative” to undermine the workers’ democratic election?
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Collective Bargaining: Freedom of association is a separate right from collective bargaining and it can be exercised even when there are no trade unions present. The legitimacy of both the collective bargaining process and collective bargaining agreement is questionable when the essential right of workers’ freedom of association is not respected.
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o Has management made “arrangements” to undermine the company’s obligation to respect the national law on freedom of association? (E.g. Subcontracting some parts of production intentionally to avoid reaching the number of workers required to introduce workers representatives in the business). o Have workers suffered any retaliation for participating (actively or passively) in election processes of workers representatives?
Collective bargaining is the process used by trade unions or workers representatives and employers to negotiate the provisions that reflect the terms and conditions of employment for workers. It confers to them their rights, privileges and responsibilities. Effectiveness: To verify the effectiveness of auditee respect for workers’ rights to bargain collectively, the auditor must at least evaluate that: o Collective bargaining is used to set the rules by which the workplace is regulated and remunerated o Agreements are regularly renegotiated to adapt to new circumstances Coherency check: Furthermore, the auditor shall evaluate how the auditee respects workers’ right to bargain collectively so that this right is in coherence with the BSCI values and principles. o Does the auditee demonstrate understanding of the collective bargaining process? o Do employment contracts include stipulations contrary to a collective bargaining agreement? o Without any justification, do the stipulations of a collective agreement fail to apply to all workers in the same category? o Has the management made “arrangements” to avoid the workers representative or the trade union to negotiate on behalf of the workers? o Has the workers representative received any benefit from the auditee for giving up on certain aspects of the negotiation? o Is there documentary proof of recent or the latest collective bargaining agreement? Is the document available? Has the workers representative explained the content to workers?
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CRUCIAL: Is there satisfactory evidence that the auditee respects workers’ right to bargain collectively?
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Is there satisfactory evidence that the auditee does not discriminate against workers because of their trade union membership? Effectiveness: To verify the effectiveness of auditee non-discriminatory behaviour with respect to unionised workers, the auditor must at least evaluate that:
Coherency check: Furthermore, the auditor shall evaluate how the auditee ensures no discrimination against workers takes place so it is in coherence with the BSCI values and principles. o Are candidates for a working position rejected because of their affiliation to a trade union? o Do workers who are members of a trade union receive less access (or no access at all) to overtime; training; social benefits? o Are union members or sympathisers promoted to higher positions in the company? o Is there any evidence of worker dismissals due to being unionised? Is there satisfactory evidence that the auditee does not prevent workers representatives from accessing or interacting with workers in the workplace? Effectiveness: To verify the effectiveness of non-interference of the auditee, the auditor must at least evaluate that: o The auditee recognises workers representatives’ access to the workers in the workplace o The auditee understands that not allowing a workers representative to access workers in the workplace represents interference with the right of freedom of association o If organised in line with the law, meetings with workers representatives shall be arranged during working hours and workers’ pay cannot be deducted Coherency check: Furthermore, the auditor shall evaluate how the auditee avoids interfering with workers representatives to comply with the BSCI values and principles.
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o Neither workers nor their representatives are discriminated against nor suffer other repercussions because: They freely exercise their right to organise They are members of a trade union They participate in or organise legal activities of their union or workers’ organisation o Any other circumstance occurs that discourages workers from exercising the rights of freedom of association and collective bargaining
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o Are workers representatives present in the production site(s)? o Are there clear mechanisms to allow workers to contact and meet the workers representative? o Are there regular meetings between the workers representative and the management? o Are there grievances lodged with the support of the workers representative? o How is the interaction between workers and their representatives perceived by the auditee?
o Documentary evidence of the workers representative election o Collective Bargaining Agreement (if applicable) o Minutes or documents of meetings that led to the collective bargaining agreement (if applicable) o Recruitment and dismissal procedures and records
2.4.
No Discrimination
Global phenomenon: Discrimination is a global phenomenon that bars people from some occupations, denies them a job altogether or does not reward them according to their merit because of the colour of their skin, gender or social background. Broaden interpretation: In some cultures, discrimination may be very subtle. It is important to broaden the interpretation to include a range of individual characteristics, including race, language, religion and other differentiators as objects of discrimination. Most pervasive forms: The most pervasive forms of discrimination can be found with regard to exploitation of migrant workers, including: Confiscation of passports Failure to provide employment contracts Non-payment or under-payment of wages Illegal deductions from wages Long working hours Substandard living conditions and denial of water and food Use or threats of violence
Directly and indirectly: These kinds of behaviour are not acceptable in companies that belong to BSCI Participants’ supply chains. Companies need to assess, prevent or stop
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o o o o o o o
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Documents related to this Performance Area
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any discriminatory practice in which they may be directly or indirectly involved . They must be extremely vigilant when using labour brokers or recruitment agencies. Such brokers and agencies may bring to business enterprises these kinds of social risks and ultimately might damage commercial relations within international markets. The grounds for discrimination are mentioned in the BSCI Code of Conduct.
CRUCIAL: Is there satisfactory evidence that the auditee takes the necessary measures to avoid or eradicate discrimination in the workplace? Effectiveness: To verify the effectiveness of the measures taken by the auditee to avoid or eradicate discrimination, the auditor must at least evaluate that: o The auditee does not use arguments that could be considered discriminatory when: Hiring In the workplace or as part of any daily work activities
Firing
Promoting or offering training opportunities
Paying social benefits
o The auditee pays particular attention to avoid discrimination against vulnerable groups like disabled workers, pregnant women or migrant workers o The auditee follows the steps towards eradicating discrimination: Internal assessment: Conduct an internal assessment on the most frequent grounds used for discrimination as well as the most common activities through which discrimination may occur (e.g. hiring process)
Root cause analysis: Identify the root causes of discriminatory behaviours
Policy: Draft and enforce a policy to discourage these kinds of behaviours and follow up on the improvements
o The auditee does not use health conditions for discrimination: For example, medical testing, virginity tests, use of contraception or equivalent shall not be used as requirements or preconditions for recruitment; promotion; access to training or any other social benefits
Even in cases where national law requires HIV or other medical testing for public health reasons, the results of these tests cannot be used for discriminatory purposes. Instead, additional measures of protection should be taken.
Coherency check: Furthermore, the auditor shall evaluate how the auditee ensures that no discrimination against workers takes place so it is in coherence with the BSCI values and principles.
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o How transparent are the grounds for a worker to be hired, promoted, or fired? o What are the grounds for workers to be entitled to social benefits? Is overtime allocated as a means of giving “rewards” or “punishment”? o How is the non-discrimination policy enforced? How and how often is management trained on this policy? o How is this policy communicated to business partners, particularly recruitment agencies? What measures are taken in case of any breach of this policy?
Is there satisfactory evidence that the auditee takes the necessary preventative and/or remedial measures to ensure workers are not disciplined, dismissed or otherwise discriminated against because of their complaints against infringements of their rights?
o Workers have the possibility to submit complaints about infringements of their rights without having to fear reprisals o The auditee has the necessary preventive measures in place to avoid discriminatory practices based on reprisals (e.g. instructing the human resources department and supervisors that disciplinary measures or dismissal cannot occur based on such complaints) o The auditee puts in place corrective measures or compensation in cases of unfair dismissal or if other forms of discrimination may have occurred Coherency check: Furthermore, the auditor shall evaluate how the auditee ensures that no discrimination against workers takes place so it is in coherence with the BSCI values and principles. o Are all workers that lodged a grievance still part of the workforce? If not, what are the circumstances under which the worker left the company, or was dismissed? o Does the auditee conduct satisfaction surveys on the grievance mechanism? How often? Are there records available of these surveys? o How are the measures to avoid discipline, dismissal or discrimination translated into the working rules? How and how often is management (including supervisors) trained on these measures?
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Effectiveness: To verify the effectiveness of the measures taken by the auditee to prevent and/or remediate discrimination based on workers’ complaints, the auditor must at least evaluate that:
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Is there satisfactory evidence that the auditee takes the necessary preventative and/or remedial measures so workers are not harassed or disciplined on grounds of discrimination as listed in the BSCI Code?
In addition to the written procedure, the auditee maintains records on disciplinary incidents. Effectiveness: To verify the effectiveness of the measures taken by the auditee, the auditor must at least evaluate that: o The auditee has a written procedure describing reasons for disciplinary measures o The auditee needs to be well-informed on what the national legislation states about which disciplinary measures are legally accepted and which are not o Disciplinary measures cannot be against the law
o Are all workers aware of the reasons for disciplinary measures? o Have workers and their representatives been involved let alone consulted in the development of disciplinary measures and procedures? o Are the minutes of the consultation process kept in auditee records? o Have disciplined workers been interviewed? o How are the disciplinary measures translated into the working rules? How and how often is management (including supervisors) trained on these measures?
Documents related to this Performance Area o o o o o
Documentary evidence on disciplinary procedures Documentary evidence on disciplinary cases and the measures taken Documentary evidence of workers’ performance assessments and procedures Work contracts or agreements, including with recruitment agencies Documentary evidence of grievances lodged/investigated (e.g. BSCI Template 8: Grievance Mechanism filled in)
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Coherency check: Furthermore, the auditor shall evaluate if the measures taken by the auditee are coherent with the BSCI values and principles.
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Fair Remuneration
CRUCIAL: Is there satisfactory evidence that the auditee complies with the government’s minimum wage legislation or the industry standard approved through collective bargaining? The auditor must be aware of the legal minimum wage applicable for the auditee or the valid collective bargaining agreement applicable for the sector or industry. The auditor shall use as a threshold whatever is more favourable for the workers. For information on minimum legal wage and working hours, see the ILO country data: http://www.ilo.org/dyn/travail/travmain.search?p_lang=en Effectiveness: To verify the effectiveness of the auditee’s remuneration practice, the auditor must at least evaluate that:
Coherency check: Furthermore, the auditor shall evaluate that the auditee’s remuneration practice is coherent with the BSCI values and principles. o Part-time workers: Do part-time workers receive at least the minimum wage or relevant industry standard on a “pro-rata” basis? o Piece-rate workers: Does the number of pieces produced in 8 hours amount to no less than the minimum wage per day, defined by law? o In probation: Is the remuneration of workers in probationary periods in accordance with the law? o Hired through agencies: Does the auditee keep records on how, how much and when the agency pays these workers? o In a cooperative: Do the by-laws or internal regulations clearly specify how workers and how the cooperative’s members are remunerated and when? Are specifications on loans and possible advance payments respected and documented? Are these specifications approved in a General Assembly, by the majority, also defined in the by-laws?
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o The auditee does not pay any wage below the minimum established by the law or the collective bargaining agreement o Workers who are paid the minimum wage only have to work regular time. They do not have to reach the minimum wage level by working overtime o The verified payroll sample covers a significant period of time (e.g. 12 months before the date of the audit). However, the period of time taken during a followup audit shall not include the period covered by the previous audit, particularly when the verification aims at validating improvements
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Is there satisfactory evidence that wages are paid in a timely manner; regularly and fully in legal tender?
Effectiveness: To verify the effectiveness of the auditee’s remuneration practice, the auditor must at least evaluate that: o
The auditee respects the three characteristics of wage payment.
Timely: As agreed and communicated to workers prior to their engagement Regularly: With a frequency that allows the worker to make use of her/his earnings without incurring debts Fully in legal tender: The work performed by the workers in regular working hours is to be paid in legal tender only
o The auditee only pays “in kind” if: The payment in kind is done on top of the amount due in legal tender The payment in kind is never done in alcohol or other drugs
Coherency check: Furthermore, the auditor shall evaluate that the auditee’s remuneration practice is coherent with the BSCI values and principles. o Does the auditee pay particular attention to the way seasonal workers and piece rate workers are paid? o How is regular payment agreed and communicated in these cases? What special guarantees are defined by the auditee? o How are transportation and/or housing considered in the remuneration? (If applicable) o How are personal protective equipment and other tools needed to perform the job evaluated by the auditee? (Even if they are not to be considered as part of the remuneration) o Does the auditee pay special attention and act diligently when using “recruitment agencies” or labour brokers? o Is the auditee aware of how and when workers receive payment from the agency? o Does the auditee keep these records as part of its own record keeping? Is there satisfactory evidence that the level of wages reflects the skills and education of workers? Opening meeting: The auditor shall understand the different skills needed in the production lines (according to sector). The opening meeting is an opportunity to set the scene with regard to the skills relevant for the work conducted at the facility. To gather more details, the auditor will also use interviews with:
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o Production line management o Quality management o Senior workers Skills can be achieved by means of both education and experience. The auditor shall take into account workers’ skills even if they cannot be proven by official diplomas. Effectiveness: To verify the effectiveness of the way that the auditee takes skills and education into consideration, the auditor must at least evaluate that:
Coherency check: Furthermore, the auditor shall evaluate how the auditee takes into consideration workers skills to be coherent with the BSCI values and principles. o Are there job descriptions available with the kinds of skills required to perform such jobs? o Is the person in charge of recruitment trained to evaluate the level of competence? o Does the auditee guarantee regular trainings to workers? o Are the people in charge of conducting occupational health and safety risk assessments consulted to determine the type of skills in demand? o Does the auditee have mechanisms in place to ensure more skilful workers pass their knowledge onto junior workers? o Are the workers who are hired to conduct certain tasks in possession of the necessary skills? Are they remunerated accordingly?
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o The auditee takes into consideration skills and education in the hiring process o The auditee adapts the remuneration to the workers’ skills to encourage improvements in quality and stability of the employment relationship o The auditee does not use unskilled workers to conduct qualified jobs. This represents a social risk (e.g. evasion and OHS issues), which will need to be reported in the relevant Performance Area o The auditee does not use highly-skilled workers to conduct low-skilled jobs. If it does, this may represent a sign of discrimination or evasion of the law o The auditee conducts workers’ training on a regular basis to strengthen their skills
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Is there satisfactory evidence that the auditee provides sufficient remuneration that allows workers to meet a decent standard of living?
To verify this question, the auditor must have calculated a living wage estimate relevant for the region and based on the Social Accountability International method or an equivalent reference from governments, trade unions or NGOs. The auditor may need to consult additional sources to find out more about the region: o Government data (statistics, community development departments) o Local or international NGOs working in the area and sector o Community groups may have answers to some of these questions The auditor will indicate the source(s) used for the calculation.
Effectiveness: To verify the effectiveness of the way that the auditee takes decent standards of living into consideration, the auditor must at least evaluate that: o The auditee is aware that fair remuneration concerns all workers regardless if they are permanent or seasonal; regardless if they are directly or indirectly engaged o The auditee has a good understanding about: Living costs of the workforce in the region Possible gaps that exist between the actual remuneration and the fair remuneration figure Identifying potential actions to fill the gaps o Total remuneration provided by the auditee includes: Wages paid for up to 48 regular working hours (or whatever the maximum regular hours are according to local or national law) Social benefits In-kind benefits and bonuses Subsidised or free transportation Subsidised or free living space Subsidised or free canteen services Opportunities for education or training Premium paid overtime
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Opening meeting: The auditor may use the opening meeting as an opportunity to explain the aspects which are taken into consideration for the calculation (e.g. number of family members in the region; diet; transportation costs) and also seek additional feedback from the auditee, if needed.
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o Remuneration does not include the cost of: Uniforms Personal protective equipment Training that is mandatory as part of the job requirement. For example, occupational health and safety training Any tool essential to conduct the job In order to give a monetary value to trainings, the auditor will calculate the training time at the rate of the regular wage. Coherency check: Furthermore, the auditor shall evaluate that the way that the auditee takes into account decent standards of living complies with the BSCI values and principles.
Area of improvement: If the auditor finds out that the total remuneration provided to workers does not allow them to have a decent standard of living in the region, the auditor shall report the finding under “Areas of improvement” in the Fair Remuneration Performance Area. Good practices: The auditor shall acknowledge under “Good practices”, in the Findings Report, when the auditee provides him/her with this information and calculation of fair remuneration (e.g. the auditee uses the BSCI Template 5: Fair Remuneration Quick Scan).
Is there satisfactory evidence that the auditee provides workers with the social benefits that are legally granted? The auditor shall verify if the collective bargaining agreement includes additional social benefits beyond what is mandated by law. If yes, the question is evaluated using the collective bargaining agreement as the threshold. The auditor shall describe which social benefits are missing or not correctly paid.
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o Is the person in charge of recruitment aware of the standard of living in the region? o Does the auditee guarantee regular information to workers on what is considered remuneration? o Are workers representatives consulted when defining the remuneration practice? o Are there grievances lodged related to remuneration as well as the quality of benefits provided? o Are different aspects of remuneration adequately detailed in the payroll?
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Effectiveness: To verify the effectiveness of the way that the auditee pays social benefits, the auditor must at least evaluate that: o The auditee pays the social benefits in addition to the minimum wages and never as a way to allow workers to only attain the minimum o The auditee pays social benefits to all workers regardless if they are: Seasonal workers Paid based on productivity Migrant workers or any other vulnerable group of workers
o
The auditee has signed up for a commercial insurance to cover social benefits Commercial insurance: If the country’s legislation allows the use of commercial insurance to substitute (fully or partially) the public social scheme, the auditor shall evaluate the auditee in a positive manner. If the country’s legislation does not allow such a substitution, but workers are granted equivalent coverage, the auditor indicates that the auditee complies “partially” and he/she specifies the circumstances accordingly.
o If the auditee is granted exceptions from social benefits Exceptions from social benefits: The auditee may submit an approval from the local labour authority or any other authorisation (e.g. from collective bargaining agreements with trade unions), permitting exemptions from social benefits which have been legally granted. Such exceptions shall be:
Issued in line with the corresponding procedure Issued by the legal body with authority to do so Valid for the current period of time Applicable for the auditee
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o The auditee is aware of the social benefit content which usually includes: Old age pension Survivor’s benefit Family benefits and parental leave Medical care Unemployment Sick leave Disability Work-related injury compensation Vacations
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The auditee shall have made available the original document to prove these exemptions. Coherency check: Furthermore, the auditor shall evaluate the way that the auditee provides workers with social benefits is coherent with the BSCI values and principles. o Is the person in charge of recruitment aware of the (legally granted) social benefits for workers and can he/she explain the benefits accordingly in the recruitment process? o Does the auditee guarantee regular information to workers on what are considered social benefits? o Are workers representatives consulted when defining the social benefits? o Are there grievances lodged related to the quality of social benefits that the auditee provides? o Are different aspects of social benefits adequately detailed in the payroll?
CRUCIAL: Is there satisfactory evidence that the auditee ensures that deductions are only taken under the conditions and to the extent prescribed by the law? The auditor shall verify if there are regulations with regard to which deductions are legal and how they can be applied (e.g. collective bargaining agreement or the national law). He/she uses as a threshold the regulation which is more beneficial for workers. Effectiveness: To verify the effectiveness of the way the auditee ensures deductions are legal, the auditor must at least evaluate that: o Deductions applied by the auditee do not result in: Workers earning less than the legal minimum wage
An economic benefit for the auditee
A form of discrimination
o The auditee approach to unproductive time is fair to the workers: The time workers may have spent in required meetings, training sessions or under any other workplace conditions beyond their control. Such time cannot be deducted at the expense of the worker but instead must be absorbed by the employer (e.g. a machine the worker uses is under repair and this negatively impacts her/his productivity)
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Good practices: The auditor shall acknowledge under “Good practices”, in the Findings Report, when the auditee provides commercial insurance in addition to the minimum social benefits required by law.
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If the auditee’s production site is going to be closed down for repairs or reconstruction, the auditee properly communicates the closing period to the workforce in advance
This communication needs to be done with the support of the workers representative to ensure that all workers’ rights are respected
o Deductions cannot be made for the use of objects, buildings or services which are directly necessary for work. That includes entry fees and/or charges for the use of: Tools and machines
Sanitary facilities
Drinking water
Washing facilities
Provisions of protective clothing for workers
Coherency check: Furthermore, the auditor shall evaluate that auditee deductions are coherent with the BSCI values and principles. o Is the person in charge of recruiting personnel aware of applicable deductions and is he/she able to explain the deductions accordingly in the recruitment process? o Does the auditee guarantee regular information to workers on how and under which conditions deductions apply? o Are workers representatives consulted when defining criteria for deductions? o Are there grievances lodged related to potentially unfair deductions?
Documents related to this Performance Area o Documentary evidence of legal deductions for goods and services o Documentation on legal minimum wages relevant for the sector o Documented collective bargaining agreement
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o Deductions for services offered by the auditee (e.g. transportation or food) are charged at local market rates or lower o Use of the services offered by the auditee must always be voluntary o Deductions are not made without the explicit consent of the worker, who always needs to be first consulted to understand the reasons. Only then could she/he choose to give consent or not o Deductions for disciplinary measures only occur under the conditions specified by law, or due to specifications defined in a freely negotiated and established collective bargaining agreement
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o Pay slips for workers and documentary evidence of payments o Fair remuneration quick-scan completed (BSCI Template 5: Fair Remuneration Quick Scan) o Work contracts or agreements, including with recruitment agencies o Personnel data files for all workers (including seasonal workers) o Documentary evidence of additional benefits (commercial insurance if applicable) o Documentary evidence of updated contributions to social insurance funds o Lists of wage ranges and calculations including for piece rate workers 2.6.
Decent Working Hours
Excessive working hours are recurrent in these sectors:
This experience should provide reasons for companies in these sectors to be even more diligent to make the necessary changes.
Is there satisfactory evidence that the auditee does not require more than 48 regular working hours per week, without prejudice to the exceptions recognised by the ILO? Effectiveness: To verify the effectiveness of the way the auditee ensures regular working hours, the auditor must at least evaluate that: o Regular working hours do not exceed: 48 in a week
8 per day
o If there are exceptions, they only apply : For supervisory or management positions
When by law, custom or agreement the hours of work in one or more days of the week total less than eight hours, in which case the remaining days of the week can be extended to nine hours
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o The agricultural sector, particularly when the produce needs to be harvested within a certain time frame to ensure freshness and saleability o The manufacturing industry, where processes cannot be stopped at midproduction o The clothing and textile industry, where companies sourcing from their business partners may often demand that the products are produced within a short time frame. For example, seasonal work involves long hours in a short time span to meet demand
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For workers employed in shifts, if the average number of working hours over a period of three weeks or less does not exceed these limits
For members of the same family employed in the undertaking
For workers subject to a special regime, defined by the local laws (e.g. security guards are often not subjected to regular legal requirements regarding working hours)
These exceptions give flexibility to the limit of daily hours as well as weekly hours. However, average working hours within three months or less cannot exceed 48 hours per week. Coherency check: Furthermore, the auditor shall evaluate how the auditee enforces regular working hours to be coherent with the BSCI values and principles.
Agriculture: For agricultural undertakings, 48 regular working hours per week as well as the exceptional cases mentioned above are recommended. However, additional exceptions related to harvesting time also apply. Is there satisfactory evidence that the auditee request of overtime is in line with the requirements of the BSCI Code of Conduct? Overtime: o Any working hours exceeding the regular hour limit o It must be paid in a premium rate If the national legislation has set a limit of regular working hours below 48 hours per week (e.g. 40 hours per week), working hours exceeding that limit are considered overtime.
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o Is the person in charge of recruitment aware of the legal limits of working hours and the possible exceptions? Can he/she explain workers’ working hours accordingly in the recruitment process? o Are exceptions communicated and agreed upon prior to the recruitment? o How is the definition of shifts reached? Is the workers representative involved in the process? Are the people in charge of occupational health and safety risk assessments consulted? o Are there grievances lodged related to alleged company disregard for regular working hours? o How are customary and/or religious practices taken into account when the auditee defines working hours and shifts? o Are workers aware of the regular working hours and possible exceptions? Are exceptions documented and made available?
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Most countries’ legislations define: o Temporary exceptions where regular working hours can be exceeded. E.g.: Force majeure Threat or actual accident Urgent work to be done to machinery o Overtime limits (e.g. no more than 3 hours per day)
o Premium rate that applies to overtime. E.g.:
25% more than a regular working hour
40% more if overtime occurs on Sunday
Effectiveness: To verify the effectiveness of the way the auditee ensures fair overtime, the auditor must at least evaluate that: o The auditee is aware of the regulation that applies to its own industry o The auditee enforces a procedure for overtime, particularly with regard to temporary exceptions. This procedure: Originates in an agreement between workers representatives and the auditee
Sets the daily limits of work over the exceptional period
Sets the premium rate paid by the auditee
Respects any other criteria defined by law
o Legal permanent exception: If the auditee belongs to a type of industry covered by a legal permanent exception, the auditee keeps updated documentary proof of the agreement that backs up its claim. This agreement must have force of law and define: Type(s) of exceptions
Categories of workers affected
The maximum allowance of additional working hours in each case
The premium rate for overtime which will not be less than 25% more than the regular rate
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o Type of working processes, which, due to their nature, must be carried out in a continuous succession of shifts and for which the national law allows a permanent exception (e.g. national law allows these processes to have 2 shifts of 12 hours instead of 3 shifts of 8 hours per day)
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Coherency check: Furthermore, the auditor shall evaluate the coherence with the BSCI values and principles. o Is overtime voluntarily agreed, unless in cases of temporary exceptions (e.g. force majeure) which need to be described in the contract? o Is overtime exceptional rather than repeatedly added onto regular working hours? o Does the auditee take the necessary measures to ensure that overtime decreases the risk to workers’ health and safety? Are people in charge of occupational health and safety risk assessments consulted? o Is the payment of overtime made in accordance with the law? o Does the auditee take into consideration: The vulnerability of temporary workers, migrant workers and piece rate workers to excessive overtime? The accumulation of fatigue related to shift systems?
The special protection for young workers, pregnant women and night shift workers?
The auditor needs to justify why any identified overtime does not meet any or all of the criteria mentioned above. The auditor pays particular attention to task rate and piece rate workers, as these kinds of arrangements, based on productivity, still need to comply with the requirements for overtime. All these aspects also apply to an agricultural undertaking including if it is organised as a cooperative. CRUCIAL: Is there satisfactory evidence that the auditee grants workers the right to resting breaks in every working day? Effectiveness: To verify the effectiveness of the way that the auditee grants workers the right to rest, the auditor must at least evaluate that: The workers are granted: o Short breaks: Workers are allowed to take short breaks during working hours, especially when the work is dangerous or monotonous, to enable workers to recover their vigilance o Meal break: Workers are allowed to take the necessary time for meal breaks according to the law o Night rest: Workers working during the day must have at least eight hours to sleep/rest within a 24 hour period o Adequate areas: Workers have access to areas where resting breaks can be effective. E.g.: Access to ventilated areas
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Accessible toilets Possibility for changing the physical working position (either sitting down or standing up)
Coherency check: Furthermore, the auditor shall evaluate that the way the auditee grants resting breaks is in coherence with the BSCI values and principles.
CRUCIAL: Is there satisfactory evidence that the auditee grants workers the right to at least one day off in every seven days? Effectiveness: To verify the effectiveness of the way the auditee grants workers the right to rest, the auditor must at least evaluate that the auditee: o Respects relevant regulations for days off in the country or region (e.g. the day off shall follow national law or custom) o Grants a full calendar day off in every seven days, unless a freely negotiated collective bargaining agreement or national law defines otherwise o Have a copy of this collective bargaining agreement (if applicable) accessible for workers and during the audit Coherency check: Furthermore, the auditor shall evaluate if the way the auditee grants one day off is in coherence with the BSCI values and principles. o How are customs or religious practices taken into consideration for the day off? o Are workers informed about the time they have for resting breaks during the day? o Are there grievances lodged concerning potential disrespect for resting breaks?
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o What are the jobs that could require more resting breaks because of danger or monotony? o How are customs or religious practices taken into consideration for defining resting breaks? o Are resting areas effective? o Are workers informed about the time they have for resting breaks during the day? o Are there grievances lodged concerning potential disrespect for resting breaks? o Do accident records indicate more contingencies after long periods of work without resting?
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Documents related to this Performance Area o Documented working rules o Pay slips for workers and documentary evidence of payments o Documentary evidence of the legal permanent exception covering the auditee’s industry o Working time records o Documented overtime procedure including agreements with workers o Documented records of accidents
Occupational Health and Safety
IMPORTANT: If the main auditee holds a valid GlobalGAP Certificate, the auditor must not monitor this Performance Area. The performance of a company in occupational health and safety can be seen from different angles: o Level of observance with the laws and regulations applicable for the business activity or industry o Capacity to detect, assess, avoid and respond to potential threats to workers’ health and safety o Degree of active cooperation with workers (and/or their representatives) when developing and implementing systems towards ensuring occupational health and safety (e.g. by setting up an occupational health and safety committee) o Capacity to protect workers in case of accidents including through compulsory insurance schemes The auditor must be knowledgeable about the regulations on occupational health and safety relevant for the auditee’s activities. 2.7.1. Regulations Is there satisfactory evidence that the auditee observes occupational health and safety regulations applicable for its activities?
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Effectiveness: To verify the effectiveness of how the auditee observes applicable OHS regulations, the auditor must at least evaluate that: o The auditee works in line with the regulations on occupational health and safety relevant for its activities o If the country does not prescribe occupational health and safety regulations for its sector, the auditee seeks alternatives to ensure workers’ right to healthy working and living conditions. This includes: Following international standards and specifications
Involving workers and their representatives in the drafting and enforcement of the internal procedure on occupational health and safety
o Are workers informed on the specific health risks and the necessary protocols they need to follow to overcome those risks? o Are workers and their representatives involved in the definition of occupational health and safety procedures? o Are there grievances lodged concerning potentially unhealthy or insecure working conditions? o Do accident records indicate any contingencies related to a lack of observance towards the OHS regulations? o How is the information from the accident records used to improve the occupational health and safety procedure? Is there satisfactory evidence that the auditee seeks to improve workers’ protection in case of accident, including through compulsory insurance schemes? The auditor has an overview of the auditee’s continuous efforts towards improving the protection of its workforce in case of accidents. The auditor verifies the different ongoing measures that have been put in place. The endorsement of compulsory insurance schemes is one example of these measures. Effectiveness: To verify the effectiveness of the ways in which the auditee seeks to improve workers’ protection, the auditor must at least evaluate that: o The auditee involves workers and their representatives to identify better ways to protect workers from accidents o The auditee provides regular training for workers and management on how to avoid accidents and minimise their impacts o The auditee regularly analyses the accident records to gather lessons learned and adjust the protocols accordingly
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Coherency check: Furthermore, the auditor shall evaluate that the ways in which the auditee grants healthy working and living conditions is coherent with the BSCI values and principles.
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Coherency check: Furthermore, the auditor shall evaluate how the auditee seeks to improve workers’ protection in coherence with the BSCI values and principles. o Are workers informed of the threat of and actual accidents as well as the protocols they need to follow to overcome those risks? o Are workers and management regularly trained by a competent person? o Are there grievances lodged concerning potentially unhealthy or insecure working conditions? o Do accident records indicate the cause of accident and have lessons learned been taken into consideration to adjust safety protocols? How and how often is this information from the accident records used?
Is there satisfactory evidence that the auditee regularly carries out risk assessments for safe, healthy and hygienic working conditions? Effectiveness: To verify the effectiveness of the way that the auditee carries out risk assessments, the auditor must at least evaluate that: o The auditee recognises potential deficiencies by conducting OHS risk assessments on a regular basis o The auditee is able to determine to what extent these deficiencies could result in substantial danger for workers (severity versus likelihood), and what kinds of preventive or remedial measures are necessary o The auditee uses the risk assessments to develop and maintain an action plan which contains all the necessary measures to promote and maintain safe, healthy and hygienic working conditions Coherency check: Furthermore, the auditor shall evaluate that the way in which the auditee carries out risk assessments is coherent with the BSCI values and principles. o Is the risk assessment appropriate to ensure the safety and health of all workers? Does it cover all production activities, workplaces, machinery, equipment, chemicals, tools and processes? o Does the risk assessment use relevant standards as a reference (e.g. national law and/or international standards)? o Does it take into consideration the special needs of the most vulnerable workers such as pregnant women and new mothers, young workers, migrant workers? The list is not exhaustive but it is up to the auditee to identify these workers.
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2.7.2. Risk Assessment
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o Does the risk assessment take into consideration the transmittable and nontransmittable diseases in the work environment? Does it include regular monitoring and testing? Does it include consultation with workers and their representatives? o Does the auditee allocate adequate human and financial resources to ensure that the identified risk(s) are mitigated?
Is there satisfactory evidence of active cooperation between management and workers (and/or their representatives) when developing and implementing systems towards ensuring OHS? Active cooperation between management and workers and their representatives presents an opportunity for the auditee to understand:
Effectiveness: To verify the effectiveness of how the auditee management cooperates with workers, the auditor must at least evaluate: o To what extent workers and their representatives are consulted during the risk assessment, the development and implementation of the OHS systems o The auditee has set up an occupational health and safety committee (or alternative structure) of democratically elected workers representatives o The OHS committee is regularly active and meeting minutes record their decisions Coherency check: Furthermore, the auditor shall evaluate how the auditee management cooperates with workers to comply with the BSCI values and principles. o Do workers who are members of the OHS committee or equivalent structure receive the adequate training? o How often does the OHS committee (or alternative structure) meet? How are their recommendations communicated to the decision-maker(s)? o How often do the OHS committee recommendations get taken into consideration and what are the auditee reasons to disregard them? 2.7.3. Training Is there satisfactory evidence that the auditee regularly provides OHS trainings to ensure workers understand the rules of work, personal protection and measures for preventing and reacting to injury to themselves and fellow workers? Effectiveness: To verify the effectiveness of how the auditee provides OHS training to workers, the auditor must at least evaluate:
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o Urgent demands from workers that need to be solved in the short-term o Necessary medium- and long-term improvements to eventually implement
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o Meeting legal expectations: Workers training on OHS needs to meet expectations required by national law. E.g.: Basic training usually focuses on:
Training on how to use personal protective equipment (PPE). The training pays particular attention to vulnerable workers and includes: cleaning, replacing when damaged and appropriate storage of the PPE
Training on how workers need to react in case of injury to themselves and/or fellow workers
o Appropriate training: The content of the training provides appropriate information as well as comprehensible instructions on safety and healthy work environments for workers
o Supervision: Workers have the information on the hazards and risks associated with their work and are supervised when necessary. They know what actions must be taken to provide themselves with the necessary protection o Adequate guidelines: Workers’ guidance and supervision takes into account workers’ levels of education and languages that are applied to the workplace o Evacuation and firefighting drills: These drills are documented with clear indication of: The purpose The number of workers who participated Results Photos Dates Duration: The time for evacuating the building should be recorded and never exceed nine minutes Coherency check: Furthermore, the auditor shall evaluate if the auditee’s OHS training to workers is in coherence with the BSCI values and principles. o Do workers receive proper training on how to use and maintain their personal protective equipment? o Do workers participate in evacuation drills and/or fire-fighting drills? o Have workers received trainings on: Basic hazard awareness? Site specific hazards? Safe work practices? Emergency procedures for fire and evacuation? Natural disasters, as appropriate?
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o Appropriate frequency: The training frequency shall take staff turnover into account
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o Do management, supervisors, workers, and occasional visitors to areas of risk receive training? o Are workers who operate machinery and power generators properly qualified to uphold safety regulations and operating procedures? Qualifications can be achieved by means of training and/or experience o Do people working with electrical installations and equipment understand their tasks and safety procedures? o Do workers who handle and/or administer hazardous substances receive specific training? These are examples of hazardous substances: chemicals, disinfectants, crop protection products, biocides
2.7.4. Personal Protective Equipment
Effectiveness: To verify the effectiveness of the way the auditee enforces the use of PPEs, the auditor must at least evaluate that the personal protective equipment provided by the auditee is: o Effective: Offers effective protection to the worker and occasional visitors. Particular attention shall focus on specific potentially harmful processes (e.g. sand blasting for jeans, fumigation in agriculture) o Comfortable: Does not cause unnecessary inconvenience to the individual o Free of charge: The auditee does not charge workers any cost for using the PPE o Suitable: Suits the activities undertaken Coherency check: Furthermore, the auditor shall evaluate if the ways in which the auditee enforces PPE are coherent with the BSCI values and principles. o Do workers receive proper training on how to use and maintain their personal protective equipment? o Is the use of PPE based on the information gathered through the OHS risk assessment? o Is management, particularly supervisors, being trained on how to use and maintain PPE? Are they aware of the protocol to ensure workers use PPE? o Is there a procedure to control the quantity of PPE so that it always matches the number of workers, including during peak time? o Is there a procedure that aims to ensure PPE is high-quality and effectively protects workers no matter what and regardless of costs? o Are there any grievances lodged with regard to the potential neglect of enforcing the use of effective PPE?
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Is there satisfactory evidence that the auditee enforces the use of PPE to provide protection to workers alongside other controls and safety systems?
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2.7.5. Chemicals Is there satisfactory evidence that the auditee implements engineering and administrative control measures to avoid or minimise the release of hazardous substances into the work environment, keeping the level of exposure below internationally established or recognised limits? Effectiveness: To verify the effectiveness of how the auditee implements and enforces control measures, the auditor must at least evaluate that:
Coherency check: Furthermore, the auditor shall evaluate that the way the auditee implements control measures is coherent with the BSCI values and principles. o Do workers receive proper training on how to use both administrative and engineering measures? o Is the implementation of control measures based on the information gathered through the OHS risk assessment? o Is management, particularly supervisors, trained on how to implement the control measures? Is there a procedure to manage the quantity and effectiveness of the controls? How often are the controls monitored?
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o Risk assessment: The auditee has identified the engineering and administrative control measures that may be needed to avoid or minimise the release of hazardous substances into the work environment o Administrative control measures: The auditee implements administrative control measures such as: Authorisation: Only authorised workers have access to chemical substances Protection: Workers receive adequate protection for handling and administering chemicals Record keeping: Distribution, use and disposal of chemicals is properly recorded Following instructions: The use of chemicals corresponds to the recommendations of the manufacturer Labelled: The labelling of chemicals and marking of hazards are clearly understood by the workers and are done in accordance with nationally and internationally recognised requirements. E.g.: - The International Chemical Safety Cards (ICSC) - The Materials Safety Data Sheets (MSDS) More information on the management of chemicals can be found at the following link: http://www.inchem.org/pages/icsc.html o Engineering control measures: The auditee implements engineering control measures for: Expulsing fumes, steam and dust outside (e.g. spot cleaning places) Properly disposing chemicals, even in the absence of national legal regulations
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o Is there a procedure to report alerts and repair any problem detected in the control measures? 2.7.6. Accident and Emergency Procedures Is there satisfactory evidence that the auditee has developed and implemented accident and emergency procedures? Effectiveness: To verify the effectiveness of the way that the auditee implements accident and emergency procedures, the auditor must at least evaluate that:
Coherency check: Furthermore, the auditor shall evaluate that the way that the auditee implements accident and emergency procedures is coherent with the BSCI values and principles. o Do workers receive proper training on how to act in case of accident or emergency? Are there specific instructions for workers depending on the type of work or department? o Are the accident and emergency procedures based on the information gathered through the OHS risk assessment? Are the workers and their representatives involved in developing the procedures? o Is management, particularly supervisors, trained on how to ensure workers follow the accident and emergency procedures? o Are there any grievances lodged with regard to the possible neglect of accident and/or emergency procedures? o Is there a procedure to control the effectiveness of the procedures? How often are they monitored?
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o The auditee understands the importance of having documented emergency procedures which are also properly implemented o The auditee has visually displayed the accident and emergency procedures in a way that is clear for workers and first-aid personnel o The auditee has the procedures in place to immediately stop any operation where imminent and serious danger threatens workers’ safety and health o The auditee has the procedures in place to enable workers to safely evacuate the premises when needed o The auditee ensures these procedures are properly explained to: Seasonal and temporary workers Night workers Migrant workers Pregnant women Young workers and other vulnerable workers
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Is there satisfactory evidence that the auditee makes visible potential hazards to the workers and visitors through signs and warnings? Effectiveness: To verify the effectiveness of the ways in which the auditee makes visible potential hazards, the auditor must at least evaluate that: o The auditee is sensitive to the workers’ specific cultures and activities o The types of signs and the places chosen for their display are appropriate o The warnings are suited to point to potential hazards. E.g.: Chemicals Electricity Hot surfaces Falling objects Slippery floors Machinery and vehicles
o Do workers understand the meaning of the signs and warnings? o Is the type of hazard identified in the OHS risk assessment? Are the workers and their representatives contributing to this aspect of the risk assessment? o Do the types of hazards, with warnings about them, relate to accident and emergency procedures? o Is the effectiveness of the signs regularly monitored or reported on? How often?
Is there satisfactory evidence that the auditee has and properly uses procedures and systems for reporting and recording occupational accidents and injuries? Effectiveness: To verify the effectiveness of the way the auditee reports and records accident and injuries, the auditor must at least evaluate that: o Reporting: The auditee has systems in place that enable workers to report immediately to their supervisors any situation which may present a serious danger to people’s lives or health. Accidents and near-misses should be reported. o Recording: The auditee keeps records on all accident and injury records by specifying:
When the accident took place (e.g. date, peak season, picking season) Who was involved What were the actions taken What was the final result (death, injury) How the accidents (or work-related diseases) were investigated What prevention and remediation actions were taken For how long the workers were incapacitated
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Coherency check: Furthermore, the auditor shall evaluate that the ways in which the auditee makes visible potential hazards is coherent with the BSCI values and principles.
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Coherency check: Furthermore, the auditor shall evaluate that the way the auditee reports and records accidents and injuries is coherent with the BSCI values and principles.
Is there satisfactory evidence that the auditee confirms that the equipment and buildings used for production are stable and safe? The auditor is not expected to conduct “building integrity inspections” which go beyond his/her mandate as a social auditor. Effectiveness: To verify the effectiveness of the way in which the auditee confirms that the equipment and buildings used for production are stable and safe, the auditor must at least evaluate that: o The auditee knows and follows national legal requirements concerning stability, safety and appropriateness of its building to conduct the business activities o The auditee knows and follows the legal requirements concerning the safety of equipment including, if relevant, ongoing official inspections o The auditee has procedures in place to confirm the stability and safety of the equipment o The auditee maintains accurate documentation on any official and private inspection concerning building and equipment safety and stability o The auditee is in possession of a valid licence to conduct its activities in the related building(s) Coherency check: Furthermore, the auditor shall evaluate that the way in which the auditee confirms that the equipment and buildings used for production are stable and safe is coherent with the BSCI values and principles. o Does the auditee conduct its activities in adequate surroundings and buildings? o Are there any grievances lodged concerning a potentially unstable or unsafe building or piece of equipment provided by the auditee?
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o Do workers understand the protocol to report accidents and injuries to their supervisors? Are they able to evaluate the seriousness of potential dangers in the workplace? o Do workers receive training on how to prevent and respond to the most frequent accidents or injuries that happen in their area of work? o (How) are the accident records used to apply lessons learned to improve safety in daily operations? How are these lessons learned incorporated into the revision of accident and injury protocols? o Are there indications that most accidents or injuries are experienced by vulnerable workers? Are there specific measures meant to prevent this so vulnerable workers receive particular kinds of protection?
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o Are workers able to asses a potential danger associated with the building and/or the equipment? o Are there cases documented in the accident records which show that part of the building or a piece of equipment was unsafe?
CRUCIAL: Is there satisfactory evidence that the auditee respects the workers’ right to remove themselves from imminent danger without seeking permission? Effectiveness: To verify the effectiveness of the way the auditee respects the workers’ right to remove themselves from imminent danger, the auditor must at least evaluate that: The auditee has this right properly documented in the OHS procedure Workers are well-informed of this right as part of the training on OHS Workers are well-informed on what to do in case of imminent risk of danger The right applies to the workplace and residential facilities provided by the auditee
Coherency check: Furthermore, the auditor shall evaluate that the way in which the auditee respects the workers’ right to remove themselves from imminent danger is coherent with the BSCI values and principles. o Are workers aware that they have this right? Does it apply to the workplace and residential facilities? Does the auditee take additional measures to ensure vulnerable workers understand this right (e.g. migrant workers)? o Are there any grievances lodged concerning potential disregard of this right? o Are workers able to evaluate imminent danger so they to know when to leave? Are they trained to have this awareness? o Are there cases documented in the accident records where workers were unable to exit the premises despite evident danger? o Is the management able to describe the protocol that directs workers to immediately leave the workplace or residential facilities in case of imminent danger? 2.7.7. Electricity Is there satisfactory evidence that the auditee makes sure a competent person periodically checks the electrical installations and equipment? Effectiveness: To verify the effectiveness of the way that the auditee ensures a competent person checks electrical installations and equipment, the auditor must at least evaluate that:
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o o o o
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o The person in charge of maintaining safe electrical installations is competent by means of training, qualification and/or experience o The person checks the electrical installations and equipment: Within the pre-defined timeframe Randomly (e.g. in addition to regularly established checks/maintenance) As per request o The checks are properly recorded and, if possible, posted close to the verified installation or equipment with clear messages about current status
o Only properly insulated tools in good working condition are used when dealing with electrical installations and equipment o People working with installations and equipment have adequate working space and lighting to conduct their work safely. This can be: In accordance with the official regulations Based on common good practice, if those regulations do not exist Coherency check: Furthermore, the auditor shall evaluate that the way in which the auditee ensures a competent person checks electrical installation and equipment is coherent with the BSCI values and principles. o Are electrical installations and equipment functioning in a way that ensures a safe work environment? o Are results from the checks taken into consideration to improve safety in the workplace? o Is the workplace free from distribution lines? Electrical cords shall not pose a tripping hazard o Are workers properly instructed to avoid possible risk of strangulation or any other accident that could be related to electrical installations ? 2.7.8. Fire Protection CRUCIAL: Is there satisfactory evidence that the auditee has installed an adequate amount of properly working firefighting equipment? Effectiveness: To verify the effectiveness of the way that the auditee installs firefighting equipment, the auditor must at least evaluate that:
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o The record includes at least: Name of the person in charge Date of the last check Description of the finding (if any) Due date for the next check
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o The installation of firefighting equipment is in line with the OHS action plan developed as a result of the periodic risk assessment o The auditee follows national law specifications with regard to requirements for firefighting equipment. This usually includes: Position and placement Size and effectiveness Maintenance and inspection requirements o There are functioning and sufficient fire extinguishers for workplace dimensions and activities o The firefighting equipment is: Distributed in an equal manner throughout the workplace Placed at a height for it to be effective and easily accessible by workers
o The location of the fire extinguishers and the route to reach them are visually marked o Early warning systems are installed and functioning in an adequate manner as required by the law: smoke sensors, fire alarms, alarm devices o At least a relevant number of workers know how to use a fire extinguisher Coherency check: Furthermore, the auditor shall evaluate that the way in which the auditee installs firefighting equipment is coherent with the BSCI values and principles. o Is firefighting equipment functioning in a way that ensures a safe work environment? o Are workers properly instructed on how to use firefighting equipment? Do they know the protocol to be followed in case of fire? Do they understand the warning signals? o If there are other types of alarms being used in the workplace (e.g. end of shifts), are they clearly distinct from the fire alarm? o Are there cases documented in the accident records that resulted from fire? If yes, was the protocol followed? What lessons were or can be drawn from those cases? o How often are the workers trained on the use of firefighting equipment? Are workers who deal with chemicals and other inflammable substances adequately trained?
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o Properly identified (inventoried) with clear reference to the last serviced date and due date for the next inspection
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2.7.9. Escape Routes and Emergency Exits CRUCIAL: Is there satisfactory evidence that the auditee ensures that escape routes, aisles and emergency exits in the production site are not blocked, easily accessible and clearly marked? Effectiveness: To verify the effectiveness of the way that the auditee ensures accessible and visible escape routes, aisles and emergency exits for all workers, the auditor must at least evaluate that: o Escape routes, aisles and emergency exits fully and simultaneously are : Not blocked Easily accessible Clearly marked
o The auditee approaches safe evacuation in a systemic and preventive manner, which includes: Escape routes, aisles and emergency exits that are: - Not blocked or locked during working time - Marked without ambiguity
Emergency lights and any other evacuation signals are properly installed, well-functioning and verified on a regular basis
Production rooms with more than 10 workers have doors which open outwards unless the national law sets different specifications in which case the rule that provides higher protection to workers applies
The number of emergency exits directly relates to: - The number of workers - The size and occupancy (e.g. with regard to population density) of the building - The arrangement of the workplace
Coherency check: Furthermore, the auditor shall evaluate that the auditee ensures safe, accessible and visible escape routes, aisles and emergency exits in coherence with the BSCI values and principles. o Are escape routes, aisles and emergency exits defined in a way that ensure a safe work environment? o Are workers properly instructed on how to use them? Do they understand the ways in which escape routes, aisles and emergency are visually marked? Do they know the easiest way to follow to exit the workplace?
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o Workers and visitors can easily leave the premises in case of an incident without putting their lives at risk
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o Are there any internal regulations that conflict with the requirement of unblocked exits (e.g. for security reasons)? o Are there cases in the documented accident records that show problems with the exits? Were any lessons learned and put into practice? o How often are the workers trained on the use of firefighting equipment? Are there workers who deal with chemicals and other inflammable substances located close to the escape routes?
Is there satisfactory evidence that the auditee ensures evacuations plans meet legal requirements and that these plans are posted in relevant places so workers can see and understand them? Effectiveness: To verify the effectiveness of how the auditee ensures evacuation plans, the auditor must at least evaluate that:
Placement of the closest escape routes including emergency exits
Placements of fire extinguishers and any other firefighting equipment o The auditee keeps in mind the cultural diversity, languages and education level of the workforce to design an effective way to communicate the evacuation plan o Workers understand the evacuation plan and know how to use it from their own standpoints Coherency check: Furthermore, the auditor shall evaluate that the auditee ensures evacuation plans are coherent with the BSCI values and principles. o Are evacuation plans defined in a way to ensure a safe work environment? o Are workers properly instructed on how to read them? Do they understand them? Do they know the easiest way to follow to exit the workplace? o Are there cases in the documented accident records that show if the evacuation plans have been or are effective? Were there any lessons learned? If so, have these lessons informed current planning? o How often are the workers trained on the evacuation plans? Are workers who deal with chemicals and other inflammable substances well-informed? 2.7.10. Machine and Vehicle Safety Is there satisfactory evidence that the auditee ensures adequate safeguards for any machine part, function, or process which may cause injury to workers?
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o The plans are easy to understand to evacuate both the production area and eventually the building, when necessary o Evacuation plans in the workplace must be displayed and at least identify the: Current position, on the premises, of the person who is reading the plan
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Effectiveness: To verify the effectiveness of the way that the auditee ensures adequate safeguards for any machine, the auditor must at least evaluate that: o All applicable safeguards for equipment are available and properly installed, e.g.: Belt encasements Grills for fans The emergency switch-off o The auditee ensures valid inspection and insurance for machinery and vehicles as required by law. This may be the case for: Elevators, lifts Trucks, tractors and other potentially dangerous machines o The auditee ensures maintenance is carried out by competent personnel.
Coherency check: Furthermore, the auditor shall evaluate that the way the auditee ensures adequate safeguards for any machine is coherent with the BSCI values and principles. o Are workers properly instructed on how to handle potential hazards related to machines and vehicles? o Are there documented cases in the accident records which resulted from machines and vehicles? Were lessons learned? If yes, how were those lessons integrated into the OHS procedure? o Do workers who use machines and vehicles possess the adequate qualifications to use them in a safe manner? 2.7.11. First-Aid CRUCIAL: Is there satisfactory evidence that the auditee ensures qualified first-aid is available at all times? Effectiveness: To verify the effectiveness of the way that the auditee ensures qualified first-aid provision, the auditor must at least evaluate that: o The auditee respects national regulations concerning medical provisions o If there are no such legal regulations, the auditee ensures:
Adequate first-aid stations or rooms Adequate first-aid kits
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o The auditee keeps records of the maintenance, which includes: Purpose and result of the maintenance Name of the competent person in charge Applicable insurance and its validity Next scheduled maintenance work
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Access to potable water, eye-wash stations and/or emergency showers close to workstations when/where immediate flushing with water is the recommended first-aid response A fully-qualified person appointed to provide first-aid. Qualified staff shall be present in relevant numbers to address associated risks throughout the workplace A fully-qualified person to verify the contents of the kit; who can also refill it Training on first-aid and related procedures to ensure emergency treatment is available at all times
o Where immediate flushing with water is the recommended first-aid response, the auditee ensures that workstations are either equipped with or very near to: Potable water Eye-wash stations Emergency showers
Coherency check: Furthermore, the auditor shall evaluate that the way in which the auditee ensures qualified first-aid is coherent with the BSCI values and principles. o Is there a fully-qualified person appointed to provide first-aid? Is the working schedule of that person available? Are workers aware of who would replace that person? o How often are workers trained on first-aid? o Are there cases in the documented accident records that show that workers required first-aid ? Were lessons learned? If yes, how have those lessons been integrated in the OHS procedure? o Have workers who use machines, vehicles or those who handle chemicals or those who conduct any other risky activity been made well-aware of the first-aid protocol? Are vulnerable workers aware of the first-aid protocol?
Is there satisfactory evidence that the auditee has emergency procedures, in writing, to deal with cases of trauma or serious illness? Effectiveness: To verify the effectiveness of how the auditee emergency procedures deal with trauma or serious illness, the auditor must at least evaluate that: o The emergency procedure is in writing: It can be a separate document Part of the action plan developed after the OHS risk assessment o Workers are well-aware of how the procedures work in case of trauma or serious illness o Workers understand when a co-worker has to be transferred to an appropriate medical facility
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o Workers know the necessary steps to ensure timely transfer to the medical facility Coherency check: Furthermore, the auditor shall evaluate if the ways in which the auditee ensures emergencies procedures deal with trauma or serious illness are coherent with the BSCI values and principles. o Are there cases of trauma or serious illness found in the accident records? Were lessons learned? If yes, how were those lessons integrated in the OHS procedure? o Are there any grievances lodged concerning the neglect of victims of trauma or serious illness? o Are workers working in the night shift aware of these procedures? o Is the information on medical facilities visually displayed? Do workers know where to get this information?
CRUCIAL: Is there satisfactory evidence that the auditee provides workers with potable water at all times? The right to potable water applies to the workplace facilities where workers prepare or eat food as well as to the housing provided by the auditee. Special attention shall be given to this right in countries where the risk of dehydration may be higher due to hot/dry weather. Effectiveness: To verify the effectiveness of the way that the auditee ensures potable water, the auditor must at least evaluate that: o Workers have access to clean potable water at all times, not only during breaks o Access to water is not used as means for discrimination or as a disciplinary measure o Workers have access to clean potable water without risk of contagion o The auditee respects the characteristics and tests required for potable water as defined by national regulations o The auditee ensures that there are proper signs to identify water which is not potable in places where it is not mandatory that water be potable Coherency check: Furthermore, the auditor shall evaluate that the way the auditee ensures potable water is coherent with the BSCI values and principles. o Are workers aware of their right to potable water at all times? How often do they access water? o Does the auditee pay particular attention to the risk of dehydration? Does the auditee go to extra efforts to ensure vulnerable workers have access to water?
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2.7.12. Work place, Social Facilities, including housing when provided by the auditee
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o How is water supply guaranteed? Who is responsible to ensure that water is always available? Do workers have access to water storage? Is there satisfactory evidence that the auditee provides workers with access to an appropriate, clean area for storing food, eating and/or cooking? The auditor takes pictures of the state of these areas and includes them in the audit report. The auditor verifies how food is stored; records of cleaning shifts; menus provided and the range of lunch and/or dinner shifts (if applicable). Effectiveness: To verify the effectiveness of the way that the auditee ensures appropriate areas for storing food, eating and/or cooking, the auditor must at least evaluate that:
Coherency check: Furthermore, the auditor shall evaluate that the auditee ensures appropriate areas for storing food, eating and/or cooking in compliance with the BSCI values and principles. o Are workers satisfied with the areas provided by the auditee? o How is the food stored to ensure it keeps its nutrients? o Are records available on the cleaning shifts for these areas? Is catering subcontracted? Is the menu displayed and are records kept? o If there are no legal minimum criteria, does the auditee conduct assessments to define them in consultation with workers and their representatives?
Is there satisfactory evidence that the auditee provides workers with clean washing facilities, changing rooms and toilets that are also respectful of local customs? Effectiveness: To verify the effectiveness of the way that the auditee provides workers with clean washing facilities, changing rooms and toilets, the auditor must at least evaluate that: o The auditee follows national regulations concerning the minimum number of washing facilities and toilets for the size of the company o If there is no national regulations, the auditee determines its criteria based on the OHS risk assessment and related action plan
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o Workers are provided with access to clean areas for food storage, cooking and/or eating, including in remote areas (e.g. during harvest) o The auditee will follow national regulatory criteria, which usually relate to the number of workers o The auditee ensures that clean and appropriate areas are also provided during peak season or any other occasion where the number of workers may increase with the use of seasonal or subcontracted workers
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o The auditee is able to explain, during the audit, the reasons for having the amount of facilities it has and the plans to adapt the number if needed o The toilets are sanitary. This implies: hygienic conditions, soap supply, working locks and separate washroom facilities for women and men o The auditee provides hygienic changing rooms, when necessary, for workers who change their clothes to perform their functions. This is particularly relevant for workers who handle hazardous substances or have to wear a uniform Particular attention shall be devoted to ensure that facilities meet workers’ needs even when the number of workers increases (e.g. peak session). Coherency check: Furthermore, the auditor shall evaluate that the ways in which the auditee provides workers with clean washing facilities, changing rooms and toilets are coherent with the BSCI values and principles.
Is there satisfactory evidence that the auditee provision of transportation to workers is safe and complies with national regulations? If the auditee does not provide transportation to workers, the auditor shall answer this question Not Applicable and justify the answer under “Findings”. Effectiveness: To verify the effectiveness of the way that the auditee provides transportation, the auditor must at least evaluate that: o The transportation provided to workers (either directly or using third parties) is safe and complies with national regulations o The auditee is able to provide information on how workers get to the premises (e.g. using public transportation, a bicycle) o The auditee ensures that vehicles unsuitable for human transportation are not used to commute workers(e.g. the use of agricultural vehicles for human transportation represents an additional risk for accidents) Coherency check: Furthermore, the auditor shall evaluate that the way the auditee provides transportation is coherent with the BSCI values and principles.
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o Does the number of washing facilities, changing rooms and toilets meet the needs of the total number of workers? o Are gender-based needs taken into consideration? o Does the auditee ensure that the facilities meet workers’ needs even when the number of workers increases (e.g. peak session)? o Are there any grievances about a potential lax and/or unsanitary approach in how these facilities are provided?
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o Is the auditee aware of the way workers commute to work? Are workers consulted on the most effective means of transport? Is the cost of transportation provided by the auditee in a transparent manner? o Are there alternatives for workers? Is the person in charge of driving workers to the site qualified to do so? Is that person subcontracted?
Is there satisfactory evidence that the auditee has chosen the location of the social facilities or workers housing to ensure occupants are not exposed to natural hazards or affected by the operational impacts of the worksite (for example noise, emissions or dust)? Effectiveness: To verify the effectiveness of the way that the auditee provides workers housing, the auditor must at least evaluate that:
Coherency check: Furthermore, the auditor shall evaluate that the auditee provides workers with housing in a way that is coherent with the BSCI values and principles. o Are workers satisfied with the housing conditions? o Is sufficient space per individual granted? o Does the social housing provide safe places for workers to keep their personal belongings? o How often are they cleaned? Who is in charge of keeping the housing clean? Is there a big fluctuation of workers/occupants coming and leaving?
Is there satisfactory evidence the auditee verifies that temperature, humidity, space, sanitation, illumination are adequate for the health and safety of workers? National law usually defines the characteristics for workplaces as well as social facilities and housing so they provide a healthy and adequate environment for workers. Particular attention shall be devoted to cases where the auditee provides workers with housing. The rooms or sleeping quarters shall not be overcrowded, workers shall have space to store personal items while laundry and waste disposal need to be properly organised.
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o The decision on where to set up social facilities (e.g. canteens) or housing is part of the OHS risk assessment and related action plan o The auditee is able explain how and why the locations were chosen, so workers (and/or their families, if applicable) are not exposed to natural hazards or health and safety risks o In cases where, due to the nature of the work, workers are required to live temporarily or permanently in the undertaking, the auditee provides adequate welfare facilities and accommodation at no cost to the worker (e.g. agriculture and/or animal production)
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Effectiveness: To verify the effectiveness of the way that the auditee verifies adequate temperature, humidity, space, sanitation, illumination, the auditor must at least evaluate that: o Space and illumination are provided in an adequate way for workers’ specific activities o The auditee includes the assessment on temperature, humidity, space, sanitation and illumination as part of the OHS risk assessment and related action plan o The auditee consults workers and their representatives as well as the person in charge of OHS o The schedule for garbage (and recycling) pickup shall be displayed for workers who live in the housing
Coherency check: Furthermore, the auditor shall evaluate that the way in which the auditee verifies adequate temperature, humidity, space, sanitation, illumination is coherent with the BSCI values and principles. o Are workers satisfied with the temperature, humidity, space, sanitation, illumination conditions? o Are there any grievances concerning the quality of any of these aspects? o How often are workers and their representatives consulted about these conditions? o Is the scheduled garbage pickup displayed? How are laundry services or rooms organised? o Are there cases documented in the accident records which show neglect for any of these conditions? Were lessons learned? If yes, how were those lessons integrated in the OHS procedure?
Documents related to this Performance Area
Certificates and contracts: o Valid inspection and insurance for machinery and vehicles o Purchase invoices of the PPE bought by the auditee
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The auditee shall be able to provide consistent information on the existing conditions; improvement plans (if any); timeline; and related cost allocations to ensure these aspects of the workplace, social facilities and housing fully respect workers’ health and safety.
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o Valid business license and all necessary official approvals to run operations o Official building certificate about safety and appropriateness for the industry o Contract with any service provider including food services, transportation, agents Training: o Documentary evidence of workers training on occupational health and safety o Workers and management training calendar o Documentary evidence of workers qualification for those dealing with dangerous machines, electrical installation and any other activity that requires specific training due to the level of risk Records and reports:
2.8.
No Child Labour
Child labour can be detected and addressed through due diligence, company recruitment and regular dialogue with workers, workers representatives and other key stakeholders. In all cases, a child must be protected, feel safe and able to express her/his work experiences in confidence. Addressing child labour in the supply chain in a responsible way is very complex; especially in locations where child labour may be common. Removing them from work may force them to enter worse forms of exploitation or greater vulnerability.
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Risk assessment for safe, healthy and hygienic working conditions Action plan for safe, healthy and hygienic working conditions Documentary evidence of updated contributions to social insurance funds Occupational health and safety regulations applicable for the industry Documentary evidence of the election process of the health and safety committee Minutes of the health and safety committee meetings Documentary evidence of consumption, withdrawal and disposal of chemicals (including Material Safety Data Sheets – MSDS) o Official inspections conducted to ensure building and equipment safety, including date of validity and corrective actions if any o Inspection reports, maintenance records, operating and safety instructions for: Dangerous machines, including but not limited to lifts, electrical equipment, high-pressure equipment Firefighting equipment (e.g. inspection tags on fire extinguishers) Potable water at production facilities and dormitories Health and safety for the facilities and dormitories including but not limited to temperature, noise level and lighting o o o o o o o
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CRUCIAL: Is there satisfactory evidence that the auditee does not engage in illegal child labour directly or indirectly? Children who are working who are younger than 15 years old (or younger than 14 years old in countries that have set that age as the threshold), is regarded as child labour, unless it is “light work” (defined below). Child labour occurs when work:
o
It is not “light work”
Light work refers to the participation of children or adolescents in work activities such as: o Helping their parents around the home o Assisting in a family business o Earning pocket money outside school hours and/or during school holidays Light work is acceptable as long as: o The child is at least 13 years old (or at least 12 years old in countries that have set a minimum age of 14) o It does not prejudice their attendance to school or time dedicated to homework (e.g. maximum two hours in any working day) o It does not take place on a continuous basis (e.g. school holidays) o It is supervised by either parents or any other guardian who can ensure the tasks provided to children are not harmful for their health or interfere with their schooling A higher minimum age of 18 years is set for hazardous work which, by its nature or the circumstances under which it is carried out, is likely to jeopardise peoples’ health, safety and/or morals. Effectiveness: To verify the effectiveness of how the auditee ensures not to engage in illegal child labour directly or indirectly, the auditor must at least evaluate that: o The auditee has taken the necessary measures to:
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o Is done by a person who is younger than 15 years old (or someone who is younger than 14 years old in countries that set that age as the threshold) o Is mentally, physically, socially and/or morally dangerous o Is harmful to children o Interferes with their schooling because it: Deprives them of the opportunity to attend school Obliges them to leave school prematurely Requires them to attempt to combine school attendance with excessively long and heavy work
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Understand what child labour is, particularly by building the awareness of supervisors and recruitment staff Identify the likelihood of child labour in its industry or region (e.g. some industries such as agriculture, hunting, forestry, fishing, mining and quarrying have a higher risk of child labour than others) Not engage child labour indirectly (e.g. using recruitment agencies, or allowing migrant or seasonal workers to use their own children to support them at work)
o The auditee keeps accurate records of: Migrant and/or seasonal workers children’s names, ages, school schedules and information on their schools Age and identity cards of workers engaged via recruitment agencies Agencies’ recruitment procedures to avoid engagement of children or illegal workers (among others) o The auditee keeps contact details of the stakeholder(s) to be involved in the solution of child labour cases
o Identification of the child and his/her family o Determine if the case refers to accidental child labour (e.g. the company was led to believe the child was older) or if there is a case of the “worst form of child labour and exploitation”, which deserves different remediation o Get in touch with the family/guardian and relevant stakeholders to ensure the child is removed in a responsible way If the auditee has mapped its relevant stakeholders and developed its child labour procedure, the case of child labour allows the auditor to witness the effectiveness of the procedure. If child labour is identified during the audit, the auditor shall prioritise the follow up on the steps mentioned above, which are to be taken by the auditee. The auditor takes the necessary time to interview the child and, through that interview, gathers as much information as possible on: o o o o o o o
How the child entered the job? For how long has he or she been employed? How has he or she been treated? What has been the payment, working time and under what working conditions? Has he or she been provided food and housing? Are there other children onsite? What is the child’s background?
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Flagrant child labour: If child labour is found during the audit, immediate actions shall be taken by the auditor at that very moment:
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In order to reach the best outcome of this interview, the auditor shall be well-equipped with specific interview techniques to make the child feel comfortable and safe. Immediate notification: The issue needs to be notified immediately via the BSCI Platform. (See BSCI System Manual Part V - Annex 5: BSCI Zero Tolerance Protocol) The effectiveness of the child labour procedure shall be reported under the Child Labour Performance Area either as an area for improvement or as a good practice. IMPORTANT: It is not the child who is in breach of the law, but the employer. The child should not get the impression that something bad will happen to him/her. Auditors must be genuinely willing to listen to what the child is saying, but they should also know when to stop the interview if the child’s memories and experiences are too intense or painful. Coherency check: Furthermore, the auditor shall evaluate that the way in which the auditee ensures not to engage in illegal child labour directly or indirectly is coherent with the BSCI values and principles.
Is there satisfactory evidence that the auditee has established robust age-verification mechanisms as part of the recruitment process, which may not be in any way degrading or disrespectful to the worker? Effectiveness: To verify the effectiveness of the way that the auditee establishes robust age-verification mechanisms, the auditor must at least evaluate that: o The recruitment procedures integrate the necessary measures to avoid or minimise the risk to hire minors. The risk is higher for: Certain sectors (e.g. mining, agriculture) For jobs that require low or no qualifications For work conducted in remote areas where: - Labour inspectors are less likely to reach - Individuals have limited access to official identity cards o The age-verification mechanism includes: Training the person or people in charge of hiring workers and dealing with high-risk situations Training the person or people in charge of recruitment to “cross verify” interview techniques to find out the age of job candidates in interviews Regular cross verification of workers’ age with other stakeholders (e.g. recruitment agencies, previous employers)
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o Are the questions in the recruitment procedure respectful to individuals? o Does the auditee take into consideration gender issues? o Is the auditee particularly vigilant if it is based in a region with a high level of migration and seasonal workers?
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o The age verification mechanism is documented, including the type of questions used by the recruiter to cross verify the age claimed by the worker o The age verification mechanism is triggered only in cases where the person in charge of recruitment may have doubts about the age claim Coherency check: Furthermore, the auditor shall evaluate that the way the auditee establishes robust age-verification mechanisms is coherent with the BSCI values and principles. Are the questions in the recruitment procedure respectful to individuals? Does the age-verification mechanism take into consideration gender issues? Do workers usually have identification cards? Are medical check-ups used to support the verification of age? Is the auditee particularly vigilant if it is based in a region with a high level of migration and seasonal workers? o Is the person in charge of human resources adequately trained on age verification? o o o o o
Effectiveness: To verify the effectiveness of the way that the auditee protects children from exploitation, the auditor must at least evaluate that: o The policies and procedures aim at avoiding any exploitation of children, both directly or indirectly o The procedure develops from a systematic analysis of the circumstances under which exploitation of children occur o The procedure sets out: The necessary steps to ensure children are protected from exploitation How to deal with the case of child labour in the most responsible and humane way Coherency check: Furthermore, the auditor shall evaluate that the way the auditee protects children from exploitation is coherent with the BSCI values and principles. o Is there any hazardous working condition in the workplace that could be problematic even for adults? If yes, what kind of measure is absent but needs to be put in place to reduce or eliminate the hazard(s)? o Is the business based in a region/area where drug trafficking, prostitution or any other illegal activity is recurrent? If yes, what additional measures shall be taken?
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Is there satisfactory evidence that the auditee has adequate policies and procedures in writing toward protecting children from any kind of exploitation?
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o Is the business based in a region/area where family poverty could be the driving force behind child labour? o Is there any child labour programme or project run in the area by government, NGOs or others? o Is there any trade union which could provide support in cases of child labour? o Is there any educational or vocational training facility nearby or in the regional vicinity? Are there available contact details and/or schedules? o Can the education or social welfare authorities provide assistance? o Is there financial compensation available for children to stop working so they can go to school? Is there satisfactory evidence that the auditee has adequate and remedial policies and procedures to provide for further protection in case children are found to be working? Having a policy of only engaging adults is not considered a preventive measure.
Stepwise approach: The auditor and auditee need to be aware that in some cases the best approach may be to define a schedule for rectifying irregularities in order to progressively remove children from work. This might be more appropriate than drastically and immediately removing the child without any supervision. He or she may end up drifting back or disappearing into less visible and more exploitative, hazardous, illegal types of work. Effectiveness: To verify the effectiveness of the way that the auditee provides for further protection in case children are found to be working, the auditor must at least evaluate that: o The auditee has developed and maintains policies and procedures for remediation in case child labour occurs o The remediation procedure includes removal and rehabilitation of the children o The remediation procedure has as the ultimate goal that the child is better off as a result of being removed, rehabilitated or prevented from working o The auditee understands the relevance of stakeholders who could support in cases of dismissals of children who are found working Examples of such stakeholders are local chapters of organisations like Save the Children, UNICEF and government agencies with mandates to protect children.
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Possible alternatives: The auditee needs to understand child labour risks (through its own recruitment or indirectly) and the possible alternative for an adequate removal and rehabilitation of the child into society (e.g. non-formal or basic education to bring older children up to grade level so they can successfully intern or re-enter regular schools).
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Coherency check: Furthermore, the auditor shall evaluate that the way in which the auditee provides for further protection in case children are found to be working is coherent with the BSCI values and principles. o Does the auditee understand why child labour needs to be eradicated? o Does the auditee understand that a child who is found working needs to be responsibly rehabilitated into society? o Does the auditee understand that a progressive removal may in some cases be the best solution? o Are there any grievances lodged concerning any potentially irresponsible removal of a child?
o Personnel data files for all workers (including seasonal workers and workers hired using recruitment agencies) o Age-verification procedure o Documentary evidence of training given to workers, management and human resources (e.g. list of attendees with signatures) o Procedure to avoid children exploitation o Child labour remediation procedure o Work contracts or agreements, including with recruitment agencies
2.9.
Special Protection for Young Workers
Young workers have specific rights as they can be vulnerable to precarious employment arrangements, unfair remuneration and OHS hazards. Auditors must include young workers in their interview sample. Is there satisfactory evidence that the auditee ensures that young persons do not work at night and are protected against conditions of work which are prejudicial to their health, safety, morals and development?
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Documents related to this Performance Area
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Effectiveness: To verify the effectiveness of the way that the auditee ensures special protection to young workers, the auditor must at least evaluate that: o The job tasks assigned to young workers always consider their health, safety, morals and long-term development o Even if the auditee does not engage young workers at the time of the audit, it shows a good understanding of what activities would be potentially harmful for young workers o Young workers are adequately protected against any harmful working condition potential or actual - for their health, safety, morals and/or development o Young workers are not engaged in night shifts
Coherency check: Furthermore, the auditor shall evaluate that the way the auditee ensures special protection to young workers is coherent with the BSCI values and principles. o Are young workers satisfied with their task(s) and work schedules? o Is management, particularly those in charge of human resources and supervisors, aware of the special protection granted to young workers? o Is there a higher percentage of accident occurrence for young workers than for other categories of workers? CRUCIAL: Is there satisfactory evidence that young workers’ working hours do not prejudice their attendance at school, their participation in vocational orientation approved by the competent authority or their capacity to benefit from training or instruction programmes? Effectiveness: To verify the effectiveness of the ways in which the auditee ensures working hours do not prejudice young workers, the auditor must at least evaluate that: o The auditee respects young workers’ right to education o The auditee ensures that the combination of working time, school time and transport time do not exceed 10 hours in a day if workers are enrolled in: Local compulsory education Any other vocational orientation or training programmes approved by the competent authority o The auditee ensures that internal trainings are organised so young workers can attend. The timing of the trainings cannot coincide with young worker attendance to school or vocational training
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The period of time that qualifies as “night work” is usually defined by national law. Without a defined national law, BSCI considers “night work” as all work which is performed during a minimum period of seven consecutive hours, including the interval between midnight and 5 am, as defined by the ILO.
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Coherency check: Furthermore, the auditor shall evaluate that the ways in which the auditee ensures working hours do not prejudice young workers are coherent with the BSCI values and principles. o Are young workers satisfied with the work schedule? o Have there been any internal trainings organised at times when young workers could not attend? o Are supervisors aware of the time that young workers work? Do they take additional measures to ensure that young workers, do not exceed the 10 hour daily limit (work, school, transport)? o Are there cases when young workers were promoted after having finished vocational training?
Effectiveness: To verify the effectiveness of how the auditee establishes the necessary mechanisms to not prejudice young workers, the auditor must at least evaluate that: o The OHS risk assessment and related action plan pay specific attention to young workers o Workers and their representatives are consulted and involved in identifying the most appropriate preventive and mitigation measures o The mitigation measures are properly documented and practiced, when applicable
Coherency check: Furthermore, the auditor shall evaluate that the ways in which the auditee establishes the necessary mechanisms to not prejudice young workers is coherent with the BSCI values and principles. o Are there any cases in the accident records that show that the mitigation measures were applied to young workers? Were there any lessons learned? If yes, how have they been integrated in the revision of the OHS action plan? o Are there special preventive and mitigation measures to address young female workers? o Are supervisors aware of the preventive and mitigation measures to avoid harming young workers?
Is there satisfactory evidence that the auditee seeks to ensure young workers have access to effective grievance mechanisms?
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CRUCIAL: Is there satisfactory evidence that the auditee has established the necessary mechanisms to prevent, identify and mitigate harm to young workers?
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Effectiveness: To verify the effectiveness of the ways in which the auditee ensures young workers have access to effective grievance mechanisms, the auditor must at least evaluate that: o Young workers receive special training on how to lodge a grievance o Young workers are properly informed on the available support provided to them to lodge a grievance o Young workers are trained regardless of the circumstance of employment: seasonal, subcontracted or directly engaged o The auditee keeps records of training provided to young workers, concerning the existence and use of the grievance mechanism
o Are young workers satisfied with the quality of trainings? Do they understand the steps to lodge a grievance and who could help them in the process? o Does the auditee pay particular attention to ensure access to young female workers? o Are there any grievances lodged by young workers? Are there any grievances lodged about possible laxity in protecting young workers? o What are the lessons learned? How are they integrated in the revision of the grievance mechanism? o Are supervisors made aware and instructed to provide support to young workers to access and utilise the grievance mechanism? Is there satisfactory evidence that the auditee seeks to ensure that young workers are properly trained on OHS and have access to related training programmes? Effectiveness: To verify the effectiveness of the way that the auditee ensures young workers are properly trained on OHS, the auditor must at least evaluate that: Young workers receive occupational health and safety training on the specific risks they face as young workers as well as those related to their specific tasks. The auditee has documented these trainings, which include: o o o o
Dates, schedule (which should not conflict with schooling or vocational training) Content Trainer name and qualifications Attendance list with attendee signatures
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Coherency check: Furthermore, the auditor shall evaluate that the ways in which the auditee ensures young workers have access to effective grievance mechanisms is coherent with the BSCI values and principles.
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Coherency check: Furthermore, the auditor shall evaluate that the way in which the auditee ensures young workers are properly trained on OHS is coherent with the BSCI values and principles.
Is there satisfactory evidence that the auditee has a good overview of all young workers engaged in its production site? Effectiveness: To verify the effectiveness of the way that the auditee seeks to have the overview of all young workers engaged; the auditor must at least evaluate that: o The auditee properly understands that young workers are more vulnerable than most workers o The auditee devotes extra efforts towards monitoring young workers’ working conditions o The auditee has a good overview of young workers’ work cycles in the organisation o Work cycle refers to: The recruitment process Remuneration Hours of work Disciplinary measures Promotion Trainings and termination of employment o The auditee collects and keeps specific records on young workers BSCI provides Template 7: Young Workers Data, which points to the minimum information needed on young workers. Such records should be only destroyed in accordance with the national regulations for handling confidential information. See also Ethical Behaviour Performance Area.
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o Are young workers satisfied with the quality of trainings? Do they understand the specific risks associated with their tasks and how to manage them? o Are there internal communication channels set up for young workers to report their concerns on OHS? Does the auditee pay particular attention to young female workers? o Are there any grievances lodged about potential laxity in protecting young workers? o What are the lessons learned? How are they integrated in the revision of the OHS action plan? o Are supervisors made aware and instructed to provide support to young workers on OHS?
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Coherency check: Furthermore, the auditor shall evaluate that the overview of all engaged young workers, is both complete and coherent with the BSCI values and principles. o Is the person responsible for human resources aware of the number of young workers engaged in the company? o Does the auditee keep accurate records on young workers? Is the work cycle of young workers understandable from the records? o Are there examples of young workers who have received promotions and/or who have faced disciplinary measures? o Is young workers remuneration in line with the level of responsibility? Are there specific rules for remunerating apprentices? o If the auditee claims to have a policy of not hiring young workers, what are the reasons behind it? Is the auditee aware of side effects for having such a policy? o Are the personal data of young workers handled in a respectful manner?
o Documentation of all trainings given to young workers o Risk assessment and related action plan with specific measures to protect young workers and young female workers o Young workers overview records o Young workers’ work cycle overview
2.10. No Precarious Employment Precarious work deeply damages societies at large. It leaves workers and communities in unstable and insecure situations, disrupting their life planning options. More concretely, precarious workers are found to suffer a higher rate of occupational health and safety issues. Such impacts fortify gender divisions and worsen the situation of migrant workers. The general conditions of fear and insecurity also dissuade workers from exercising their rights, leaving them even more vulnerable to precarious work arrangements. Is there satisfactory evidence that auditee employment relationships are not precarious for the workers? Precariousness can affect both permanent and temporary workers.
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Documents related to this Performance Area
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Temporary workers: The definition of permanent and temporary jobs (e.g. seasonal ) is usually given by law. If this is not the case, jobs that have a pre-determined end date or will end as soon as a project is completed are considered as temporary. Effectiveness: To verify the effectiveness of the way that the auditee ensures no precarious employment, the auditor must at least evaluate that: o The employment relationship does not cause insecurity to the worker. These are examples that cause insecurity: Deprive workers from social security Use of seasonal contracts at the expense of providing permanent positions Recruitment and dismissal practices to avoid consolidation of workers’ rights
o The auditee does not use temporary job arrangements to cover workloads that lack pre-determined end dates o The auditee does not misuse probationary periods: Their duration is according to the law: national legislation often defines the first few months of a new employment relationship as a probationary period. The maximum duration is generally specified in the national legislation Their purpose is to try out the employment relationship for both the employer and the employee. They are normally associated with special periods of notice for termination, while other obligations such as the remuneration and social security provision remain unaffected Good practices: The auditee defines working conditions and working hours by taking into account workers who are parents or caregivers. The auditor shall acknowledge these efforts under “Good practices” in the Findings Report. Any other contractual practice that goes beyond legal requirements to create beneficial and secure working conditions shall be acknowledged as good practice. Coherency check: Furthermore, the auditor shall evaluate that the way the auditee ensures no precarious employment is coherent with the BSCI values and principles.
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o The auditee monitors that work cycles are respectful to the workers at every step. These steps are: Recruitment process Remuneration Hours of work Disciplinary measures Promotion Trainings Termination of employment
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o Is the person responsible for human resources aware of practices that can potentially make employment precarious? o Does the auditee keep accurate records on workers’ work cycles? Is there any indication of an employment practice that could create insecurity? o Are there any grievances concerning potentially precarious employment practices? o Are workers and their representatives involved when the auditee defines working hours, training or disciplinary measures? o Is the role that workers may have as parents or caregivers taken into consideration by the auditee? Is there satisfactory evidence that the auditee engages workers based on recognised and documented employment relationships?
o The work relation is established in compliance with the framework that provides the greatest protection to workers: National legislation Custom or practice International labour standards o The work relation is supported by means of documentary proof that makes the workers aware of their rights and obligations. Contracts are one among other possibilities (e.g. posters indicate the working rules). o The auditee makes additional efforts to ensure workers understand their working conditions, particularly when workers: Have difficulties to read and write Are migrants/foreigners Are hired for a short season or hired orally in line with customs o The auditee pays particular attention when using recruitment agencies. This includes: Having a good overview on when, how and how much these workers are paid Keeping up-to-date records on these workers Coherency check: Furthermore, the auditor shall evaluate that the way the auditee engages workers is coherent with the BSCI values and principles.
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Effectiveness: To verify the effectiveness of the way that the auditee engages workers, the auditor must at least evaluate that:
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o Is the person responsible for human resources aware of the framework that provides the greatest protection to workers? (E.g. local custom stipulates additional social benefits) o Does the auditee keep accurate records on workers’ work cycles? o What kinds of additional efforts does the auditee make to ensure vulnerable workers understand the terms of their working conditions? o Are vulnerable workers well-aware of their working conditions? o Are workers representatives engaged to ensure additional sources of information? o Are there any grievances lodged concerning potentially unrecognised working relations? Is there satisfactory evidence that the auditee provides workers with understandable information before entering into employment?
o Understandable: The auditee takes necessary measures to facilitate the understanding of information on working conditions . This may require:
Translation into the language of workers
Audio and visual guidance for disabled workers as well as workers who have difficulties in reading and writing
o Relevant: The information refers to workers’ rights, obligations, and employment conditions. It includes information on:
Working hours
Trainings
Resting periods and holidays
Remuneration and terms of payment
Grievance mechanism
o Timely: The auditee provides the information before initiating the employment relationship o The auditee provides the same necessary information to workers hired through recruitment agencies Coherency check: Furthermore, the auditor shall evaluate if the way in which the auditee engages workers is coherent with the BSCI values and principles. o Is the person responsible for human resources aware of workers’ rights and obligations? Does that person explain them in an easy manner? Does the person speak other languages or dialects that can be preferred by workers?
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Effectiveness: To verify the effectiveness of the way that the auditee provides workers with understandable information before entering into employment, the auditor must at least evaluate that information is:
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o How are workers who are engaged by recruitment agencies informed about their rights and obligations? o What kinds of additional efforts does the auditee make to ensure vulnerable workers understand their working conditions? o Are vulnerable workers well-aware of their working conditions? o Are workers representatives engaged to ensure additional sources of information? CRUCIAL: Is there satisfactory evidence that the auditee does not use employment arrangements in a way that deliberately conflicts with the genuine purpose of the law? Certain employment arrangements may represent an additional risk of undermining workers’ rights. This is the case for:
Seasonal or contingency work: when they are used to cover permanent workflows that would require hiring workers on a permanent basis Labour-only contracting: when the agent or broker uses its position to undermine the workers’ rights Subcontracting: when it is used to avoid reaching the minimum number of workers that allows the establishment of workers representatives or the right to unionise
Effectiveness: To verify the effectiveness of the way that the auditee uses employment arrangements, the auditor must at least evaluate that: o The auditee understands that these employment arrangements may undermine workers’ rights when used in a wrong way o The auditee uses those employment arrangements in line with the genuine purpose of the law o The auditee is able to explain the business logic behind its subcontracting practices and demonstrates that workers’ rights are guaranteed Coherency check: Furthermore, the auditor shall evaluate if the way that the auditee uses employment arrangements is coherent with the BSCI values and principles. o Is the person responsible for human resources aware of the additional risks of these employment arrangements? o How do workers engaged under these circumstances explain their rights and obligations?
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Apprenticeship schemes: when they are not used with intent to impart skills or provide regular employment
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o Are workers representatives engaged to ensure additional sources of information?
Documents related to this Performance Area
o Employment contracts and/or posters where workers’ rights and obligations are displayed o Recruitment and dismissal procedures and records o Overview of subcontractors o Overview of apprenticeships granted in the company o Overview of seasonal workers
Bonded or forced labour is unacceptable regardless of the circumstances. The utmost must be done so that no form of bonded labour takes place anywhere in the supply chain, on company premises or within the sphere of influence. CRUCIAL: Is there satisfactory evidence that the auditee does not engage in any form of servitude, forced, bonded, indentured, trafficked or non-voluntary labour? Effectiveness: To verify the effectiveness of the ways in which the auditee ensures not to engage in bonded labour, the auditor must at least evaluate that: o The auditee exercises due diligence to avoid engaging in any form of bonded labour o Managers, particularly supervisors and those in human resources, are aware of the procedures o The auditee takes necessary measures to understand what can be considered as bonded labour and which hiring or engagement practices may introduce that risk o Workers shall have valid work permits o Workers’ engagement practices do not include any potential or actual risk of being qualified as forced labour. For example: Lack of workers’ consent to work
Intentional cruelty
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Coercion (e.g. debt bondage, restriction of movement, violence, threats or intimidation)
o The auditee does not request workers to leave personal documents in deposit o The auditee does not apply unlawful retention of wages or benefits o Workers do not work through any form of servitude (e.g. negotiation of visa, housing, work in exchange for training and education) o Workers are granted the right to leave work and freely terminate their employment, provided that reasonable notice is given to the employer o Workers are allowed to leave the premises after working hours o If the auditee uses security guards (armed or unarmed), it ensures that they do not keep the workforce under retention o Workers are permitted to leave the production site and/or housing in their free time, without having to ask for permission o Workers are allowed to choose accommodation outside of the housing offered by the employer, if applicable
Prison labour: The most familiar and accurate notion of prison labour is that which provides a form of occupation for convicts. Such labour is not per se a human rights violation, if it fulfils certain conditions, such as: o Prisoners offer their labour voluntarily, without being subjected to pressure or the threat of any punishment o The work is performed under conditions close to a free labour relationship (wage level, social security, OHS) to the extent that prisoners' conditions allow it This means that if the auditee is using prisoners to work (both directly and indirectly), the auditor shall verify that work is conducted in the framework of national law and the ILO Conventions 29 and 105. In any case, BSCI recommends that BSCI Participants do not engage with business partners that use prison labour in China since prisoners there are often forced to work in conditions that contravene international labour or human rights standards because: o The prison labourer’s rights are not covered under Chinese labour contract law and labour law but under the prison’s law and criminal law. Full labour rights, including overtime rates, are not properly protected o The laws of the local prison and criminal law that govern prison labour include explicit terms which indicate that legal minimum wages do not apply in prison labour but are instead subject to the discretion/decision of the individual prison’s management
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Specific guidance on prison labour:
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o Due to the prison’s rules and regulations, it is impossible for auditors to carry out a full BSCI Audit in any of the prison’s work sites BSCI Participants should not use prison labour in China and, if found during a BSCI Audit, auditors must report it as a finding. This recommendation might change in the future if Chinese laws evolve to offer the same kinds of protection to prison labourers as other workers especially with regard to decent working conditions. Specific guidance on Sumangali:
The provision of a lump-sum payment before marriage and a controlled and supervised living environment for the young workers resonates well with many marginalised rural families from lower castes who often lack economic alternatives. However, the isolation of these young workers in addition to the economic hardship of their families renders them highly vulnerable, which increases the risk that many of their rights in the workplace might be violated. For example, research shows that the lump-sum payment due at the end of the worker’s contract is often illegally deducted from her/his due wage. This deduction deprives the workers of their right to decent remuneration. It commonly results in bonded labour situations. BSCI does not endorse the practice of Sumangali under any guise, and instructs auditors to follow the relevant auditing guidance on Sumangali issued by Social Accountability International in April, 2011. Auditors are also asked to carefully check the sub-suppliers that a factory utilises and to verify that a functioning management system is in place. Coherency check: Furthermore, the auditor shall evaluate that the way the auditee ensures not to engage in bonded labour is coherent with the BSCI values and principles. o Is the person responsible for human resources aware of the additional risk of bonded labour when the auditee uses brokers? o Does the auditee understand the risks of bonded labour? Does the auditee pay additional attention to avoid the risks? o Are workers representatives engaged to ensure additional sources of information?
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The term ‘Sumangali’ refers to certain worker recruitment and retention practices in the spinning sector and in the textile and garment industries in India, in which typically young unmarried women are recruited from rural villages to work in spinning mills for a number of years. The defining characteristic of Sumangali is the employers’ retention of a substantial part of the worker’s wage, which is promised in a lump-sum at the completion of the worker’s contract period. Sumangali commonly entails strictly monitoring and controlling the movement of the young women outside working hours to ensure that they sleep in designated hostels provided by the employer.
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o Are there any grievances lodged concerning potential bonded labour? Is there satisfactory evidence that the auditee acts rigorously and diligently when engaging and recruiting migrant workers both directly and indirectly? Effectiveness: To verify the effectiveness of the ways in which the auditee acts diligently when recruiting migrant workers, the auditor must at least evaluate that: o The auditee understands that migrant workers are more vulnerable than other workers towards ending up in forced labour situations o The auditee pays particular attention to indirect engagement (e.g. via recruitment agencies) o The auditee devotes attention to the following aspects: Absence of state protection (both country of origin and host country) Debt bondage (e.g. the worker had to pay a high recruitment fee to the agency and she/he lacks transparency on the terms of employment such as deductions and remuneration)
Restriction of movement (visa or travel documents are held by the agency or employer. Workers who do not understand the host country language may face more restricted movement)
In agriculture, any cultivation organised on a communal basis, by virtue of law or custom, is not regarded as compulsory cultivation as defined in the ILO Convention 29 (art. 19.2)
Coherency check: Furthermore, the auditor shall evaluate if the way in which the auditee recruits migrant workers is coherent with the BSCI values and principles. o Is the person responsible for human resources aware of the additional risks of bonded labour when engaging migrant workers? o Does the auditee take additional preventive measures? o Are workers representatives engaged to ensure additional sources of information? o Are there any grievances lodged concerning the potential violation of migrant workers’ rights?
CRUCIAL: Is there satisfactory evidence that the auditee does not subject workers to inhumane or degrading treatment, corporal punishment, mental or physical coercion and/or verbal abuse? Effectiveness: To verify the effectiveness of how the auditee ensures workers do not receive degrading treatment, the auditor must at least evaluate that:
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o The auditee understands what can be considered as degrading treatment o Workers are not subject to degrading treatment o The auditee does not tolerate corporal punishment or mental coercion as part of the auditee’s disciplinary measures o Supervisors are instructed to never punish workers corporally or mentally and there are consequences if they do so o The auditee pays particular attention to avoid degrading the most vulnerable workers such as migrants, seasonal workers, young workers or pregnant women o If collective housing is provided, dormitories ensure working conditions that respect workers’ dignity. For example: Separate bed for each worker
Separate locker for each worker to store personal belongings
Separate accommodation for women and men
o Is management, particularly supervisors, aware that punishment or degrading treatment toward workers is not allowed? Do they understand the consequences of contravening this? o Does the auditee take additional preventive measures to avoid punishing or degrading workers? o Are workers representatives engaged to ensure additional sources of information? o Are there any grievances lodged concerning potential punishment of or degrading treatment toward workers?
Is there satisfactory evidence that the auditee has established all applicable disciplinary procedures in writing and has explained them verbally to workers in clear and understandable terms? Effectiveness: To verify the effectiveness of the way in which the auditee establishes disciplinary measures to workers, the auditor must at least evaluate that: o Disciplinary procedures are means through which the employer deals with workers, when there are concerns about work, conduct or absence o Disciplinary procedures are outlined in writing and workers can easily access them. They describe: What performance and behaviour might lead to disciplinary action
What kinds of actions the employer might take
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Coherency check: Furthermore, the auditor shall evaluate that the way in which the auditee ensures workers do not receive degrading treatment is coherent with the BSCI values and principles.
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The steps involved to make decisions on measures to be taken
o Disciplinary procedures shall include the name of a person who shall help the worker express her/his viewpoint or disagreement with any disciplinary measure (usually from HR or the workers representative) o Disciplinary measures shall not facilitate a way for the auditee to unfairly take money from workers. Particular attention shall be given to the imposition of financial fees or deductions, which may be illegal (see also illegal deductions under Fair Remuneration Performance Area) Coherency check: Furthermore, the auditor shall evaluate that the way the auditee establishes disciplinary measures is coherent with the BSCI values and principles.
Documents related to this Performance Area o Documentary evidence of trainings given to workers, management and human resources (e.g. list of attendees with signatures) o Documentary evidence on disciplinary procedures o Employment contracts including those related to security personnel, cleaning and other services o Documentary evidence on disciplinary cases and measures taken
2.12. Protection of the Environment IMPORTANT: If the main auditee holds a valid GlobalGAP Certificate, the auditor shall not monitor this Performance Area. Similar to the necessary measures needed to respect workers’ rights and enhance their capabilities, environmental policies and procedures reflect the responsibility to observe the law and make positive contributions to long-term development. Is there satisfactory evidence that the auditee continuously identifies the significant impacts and environmental implications associated to its activity?
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o Are the disciplinary procedures coherent and in line with the law? o Is there documentary evidence on how they are implemented? o Are workers aware of the disciplinary measures and do they understand the content and consequences? o Are the workers representatives consulted and involved?
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Business enterprises should assess the impacts of their operations to prevent or minimise harming the surrounding communities, resources and workers in the supply chain and sphere of influence. Effectiveness: To verify the effectiveness of the way in which the auditee assesses its adverse environmental impacts, the auditor must at least evaluate that:
Coherency check: Furthermore, the auditor shall evaluate that the way the auditee assesses its environmental impact is coherent with the BSCI values and principles. o Is there a grievance mechanism in place to address the environmental concerns of surrounding communities? o Is the person in charge of conducting the impact assessment qualified? o Is there a procedure to ensure impact assessments are regularly conducted? Is there satisfactory evidence that the auditee has procedures in place to ensure integration of local environmental law into the business model? Effectiveness: To verify the effectiveness of the procedures, the auditor must at least evaluate that the auditee has: o Policies and procedures to incorporate relevant environmental laws o Made these policies and procedures a visible part of the business culture o Mechanisms to ensure: Ongoing identification of environmental legislation
Definition of the specific requirements that are applicable to its daily activities
Identification of sources of information on environmental legislation such as: -
specialised sites online
-
publications issued by industry experts
-
tailor-made services provided by specialised companies
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o All processes taking place in the factory boundaries are taken into consideration when the auditee determines the impacts and environmental implications of its activities o New processes or newly installed equipment are immediately integrated into the impact assessment o There is a clear understanding of how surrounding communities, resources and workers are affected o There is a pre-defined interval for carrying out such assessments with appropriate staff assigned responsibilities
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Coherency check: Furthermore, the auditor shall evaluate that the way in which the auditee has developed procedures to integrate environmental law is coherent with the BSCI values and principles. o Is there a grievance mechanism in place to address the environmental concerns of surrounding communities? o Is the person in charge of drafting the procedure qualified? o Is the procedure revised regularly? Is there satisfactory evidence of the auditee’s required environmental permits and licences? Effectiveness: To verify the effectiveness of available permits and licenses, the auditor must at least evaluate that:
Additional consideration must be given to any delays that result from the bureaucratic processes of those authorities. If this is the case, documentation to confirm the bureaucratic delay should be made available.
Coherency check: Furthermore, the auditor shall evaluate that the auditee’s available permits and licenses and/or its efforts to obtain them is coherent with the BSCI values and principles. o Does the auditee understand the importance of having these permits/licenses? o Are the documents relevant for the business activities? o Do these permits need to be updated on a regular basis? How often? Have they been correctly and recently validated?
Is there satisfactory evidence that waste is managed in a way that does not lead to the pollution of the environment? There are local areas where waste segregation and/or disposal are not managed by public authorities. This may lead to dumping waste into the environment. Even in the absence of national regulations, the auditee shall not dump waste into natural environments or burn it in open fires. Effectiveness: To verify the effectiveness of the way in which the auditee manages its waste, the auditor must at least evaluate:
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o The necessary environmental permits and licences, required by law to carry out the specific business activities, are made available and are also valid o In case the permits and licences are not available: The auditee has undertaken all actions to solicit the relevant licence(s) and/or permit(s) from the competent authorities
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o How the auditee manages the waste, including packaging material o The auditee devotes particular attention to industrially contaminated water and hazardous waste o The auditee has procedures in place to: Identify and separate the type of waste generated (hazardous versus nonhazardous, including packaging ) Define any specific handling requirements (e.g. disposal via an authorised agent or designated to a specialised site)
Create awareness among workers about the waste generated onsite and the proper way to handle it
Avoid dumping waste into natural environments
Avoid burning waste in open fires
Dispose of plastics and empty chemical containers without incurring environmental risks or harming humans
Coherency check: Furthermore, the auditor shall evaluate that the auditee’s waste management is coherent with the BSCI values and principles. o Does the auditee understand the importance of proper waste management? o Are the waste management practices relevant for the business activities? o Are workers aware of the company policy and procedures for waste management? o Are there any grievances lodged about potential irregular waste management?
Is there satisfactory evidence that water is managed in a way that respects the environment, particularly but not limited to preserving local water sources? Effectiveness: To verify the effectiveness of the way in which the auditee manages water, the auditor must at least evaluate that: The auditee has mechanisms in place to promote water conservation and water waste reduction. This refers to water used for industrial purposes and personal consumption. Possible mechanisms include: o Licensed water use (when requested by the applicable law/authorities) o Proper identification of water springs, rivers, lakes and other water ecosystems in the area
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o Documented risk assessments that justify management decisions on water use (e.g. irrigation in farms) o Awareness raising on water waste reduction
Coherency check: Furthermore, the auditor shall evaluate that the auditee’s water management is coherent with the BSCI values and principles. o Does the auditee understand the importance of proper water management? o Are both management and workers aware of the local water sources and how they relate to the facility in terms of use, supervision and preservation o Are the water management practices in the company relevant for the business activities? o Are workers aware of the company policy and procedures for waste management? o Are there any grievances lodged about potential irregular waste management?
o Environmental risk assessment o Map identification of water springs, rivers, lakes in the area of auditee activities o Calculation of the necessary financial and personnel resources to comply with the minimum social and environmental requirements o Valid certificates and environmental licenses 2.13. Ethical Behaviour Taking the appropriate measures, especially setting social policies and being transparent, is fundamental in upholding the BSCI commitments to be a socially responsible business. Appropriate measures ensure and demonstrate no corruption, extortion, embezzlement, bribery, falsified information or misrepresentation in the supply chain. On the positive side, honesty and integrity should be congratulated (e.g. among workers). Is there satisfactory evidence that the auditee actively opposes any act of corruption, extortion or embezzlement, or any form of bribery in its activities as a business enterprise?
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Documents related to this Performance Area
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Effectiveness: To verify the effectiveness of the way in which the auditee opposes any act of corruption, the auditor must at least evaluate: o The auditee identifies the situations and activities where acts of corruption, extortion or bribery are most likely to occur in its context o The auditee develops policies and procedures against any act of corruption and takes active measures to prevent and remediate them Particular attention needs to be given to the relations between auditor and auditee as well as between supervisors, recruitment agencies and subcontractors. Coherency check: Furthermore, the auditor shall evaluate that the auditee’s ethical and active policies and procedures are coherent with the BSCI values and principles.
Is there satisfactory evidence that the auditee keeps accurate information regarding its own activities, structure and performance? Record keeping systems provide a solid foundation for filing, tracking and making available information on financial transactions, required documentation and workforce data. Legal compliance departments should work closely with buyers and colleagues in CSR (if applicable) to ensure all personal information - on workers, business partners, clients and others - is carefully filed. It must comply with privacy laws and standards.
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o Does the auditee have a policy (e.g. BSCI Code) in place that publicly condemns corruption, extortion and bribery as unacceptable unethical behaviours perpetrated in its business and sphere of influence? o Which mechanisms does the auditee use to inform and train workers on the problem of corruption? o Has the auditee identified where and how the major risks of corruption could occur? o Does the auditee have procedures in place to investigate and discourage any misbehaviour among the workers, particularly those with decision-making power? o Does the auditee “reward” ethical behaviour and integrity among its workers and managers? o Does the auditee include ethics and integrity in training given to workers and managers? o Is the auditee aware of the perverse effects of corruption on its business and society in general?
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Effectiveness: To verify the effectiveness of record keeping on auditee activities, structure and performance, the auditor must at least evaluate that the information is: o Accurate: Any information presented by the auditee must be true o Factual: Any claim made by the auditee in terms of its activity must be correct. (E.g.: Production volumes; number of workers; working hours; if hiring is direct or indirect) o Structured: The information on different facilities and the way in which the auditee organises its production sites should be available and clear Coherency check: Furthermore, the auditor shall evaluate that the gathered and filed information is coherent with the BSCI values and principles.
CRUCIAL: Is there satisfactory evidence that the auditee takes the necessary measures to not be involved in falsifying information related to its activities, structure and performance; nor in any act of misrepresentation of its supply chain? The ethical behaviour of companies starts with how they run their businesses and operations. Fraud and misrepresentation in the supply chain adversely impact supply chain integrity. They can also lead to substandard or defective products. Falsification, fraud and misinterpretation are purposeful actions intended to cause harm or loss to another party, for one’s own direct or indirect gain. Effectiveness: To verify the effectiveness of auditee measures, the auditor must at least evaluate that the auditee: o Understands the severity of these unethical behaviours o Has a serious commitment and set of procedures to avoid any such behaviour o Ensures proper investigation and disciplinary measures if any staff behave unethically The auditor may request data related to productivity, in order to establish the production capacity of the site, the need for overtime or the links to other facilities. Examples of misrepresentation in the supply chain include claims to be a trader or only a warehouse, to avoid audits of the production site(s).
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o Is there a follow-up on any previously reported audit or government inspection findings? o Does the auditee disclose the information in accordance with applicable regulations and industry benchmark practices?
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The auditor shall trigger an alert if any flagrant falsification, fraud or misrepresentation is identified. For more information, see BSCI System Manual Part V - Annex 5: BSCI Zero Tolerance Protocol. Coherency check: Furthermore, the auditor shall evaluate if the measures to avoid falsification or fraud are coherent with the BSCI values and principles. o Does the auditee understand the importance of avoiding falsification, fraud or misrepresentation? o How are the unethical behaviours identified? How are they investigated? What do workers think about the disciplinary measures taken by the auditee (if any)? Is there satisfactory evidence that the auditee collects, uses and otherwise processes personal information with reasonable care and in accordance with privacy and information security laws and regulatory requirements?
o Collects and processes personal data of individuals with the outmost respect for the individuals’ fundamental rights (particularly the right to privacy) o Applies reasonable care to the personal information of directly hired workers, business partners, customers and consumers in the auditee’s sphere of influence o Pays special attention to the way in which it collects data in order to protect the vital interest of the worker (e.g. medical records) o Collects and processes personal information in line with the applicable information security laws Coherency check: Furthermore, the auditor shall evaluate if the way the auditee handles personal information is coherent with the BSCI values and principles. o Does the auditee understand the importance of handling personal information respectfully? o Is the information on workers treated adequately, particularly if they are vulnerable workers? o Are the records, particularly those with private information, properly filed with the necessary guarantees? o Are there any consequences for supervisors who fail to treat personal information with respect?
Documents related to this Performance Area
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Effectiveness: To verify the effectiveness of how the auditee handles personal information, the auditor must at least evaluate that the auditee:
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Anti-corruption policy Corruption risk assessment Procedure for investigation and discouragement of unethical behaviour Communications and trainings to promote and reward integrity
3. How to Draft the Findings Report Drafting the Findings Report: The auditor must use the Findings Report to report both good practices and areas of improvement. The findings must be consolidated per Performance Area, which requires the auditor’s professional judgment based on all the evidence gathered during the BSCI Audit. The professional judgment includes suggested deadlines to implement the necessary remediation/changes. Specific for farms: The Findings Report includes a section in each Performance Area to be used in case sampled farms are part of the audit. The auditor shall not simply list the identified findings for each sampled farm. He/she shall synthetise the information to provide an overall qualified opinion concerning the main auditee’s practices vis-à-vis its business partners. Closing meeting and Findings Report: The closing meeting represents the end of the BSCI Audit. The auditor must use this opportunity to: o Describe to the auditee the good practices and areas of improvements that he/she identified during the audit o Clarify to the auditee any potential doubt concerning the BSCI Audit and the next steps The findings and rating presented at the closing meeting are preliminary. In most cases, they will remain the same in the final version of the Findings Report. However, there may be changes if: o The auditor/quality assurance personnel realise(s) an error was made in the rating onsite o The auditor incorporates new evidence (e.g. documents not checked onsite) before submitting and uploading the Audit Report onto the BSCI Platform. If the auditee provides new documentary evidence after the Audit Report has been submitted, the auditor must conduct a desktop review which shall be reported as a follow-up audit (off-site) Signature in the Findings Report: Once the explanations and any clarifications have been made, the Findings Report is printed and signed by: o The auditor
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o The auditee’s legal representative o The workers representative (when applicable) The auditee signature does not imply that it agrees with the content. Instead, it acknowledges that the audit has been conducted in a proper manner. The auditee may request the auditor to integrate its remarks, made in the closing meeting, in the Findings Report. One copy of the Findings Report remains with the auditee and one is taken by the auditor. Online report: The Audit Report is available to the auditee in the BSCI Platform 10 days after the audit has been conducted. Auditee password: To access the information, the auditee needs to login using its password. In case of a forgotten password, the auditee shall contact the BSCI Administrator directly via the login page: http://www.bsciplatform.org/home PDF report: Alternatively, the auditee may require its client (or the auditor) to provide a summary report in PDF format. IMPORTANT: The audit rating indicates to the auditee which improvements it needs to
make per Performance Area. However, it does not guarantee the auditee social performance. The rating cannot suffer any modification once the Audit Report is submitted in the BSCI Platform.
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Part III Understanding the BSCI Audit From the Auditee Perspective
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Part III of the BSCI System Manual provides relevant information for the auditee to understand what is expected from its company in the BSCI Audit. At this point, the BSCI Participant has already identified that the targeted business partner has a production work environment: The auditee is a producer. The preparation for the BSCI Audit is not a goal in itself. It helps the producer to create a constructive dialogue with the auditor about: o Its social performance o Its challenges o Its plans to improve working conditions on a continuous basis Part III has to be read together with Part IV where the producer can find a set of templates to help it in gathering information. Most producers do not have the habit to maintain structured records or enforce internal procedures to harmonise the way workers are treated in the company. The BSCI System Manual helps producers understand the benefits of such an approach to consolidate good management habits. BSCI System Manual Part I and Part II add information about: o How the audit is done o How long the audit lasts o How BSCI Audits are rated
1. How to Compile the Business Partner Information BSCI provides a set of templates to gather information on business partners. See BSCI System Manual Part IV- Templates. These documents can be used by: o BSCI Participants to collect information on their business partners to decide which ones to audit o Producers that want to organise their data in a systematic way or to prepare for a BSCI Audit. In this case, the producer can: Keep using its own internal documents as long as they serve the same purpose Use the BSCI templates for inspiration The collection of information is a process that requires time and the involvement of the relevant staff. Key contact person: The producer should appoint a key contact person that: o Provides information to BSCI Participants o Maintains the data in the BSCI Platform o Participates in BSCI Workshops o Leads the preparation for the BSCI Audit
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IMPORTANT: The producer shall start setting up a social management system even if not all information is available. The goal is to establish a systematic culture of improvements in the company, not just collect documents for the day of the audit. See BSCI System Manual Part V - Annex 3: How to set up a Social Management System. 1.1.
Company Data
At this moment, the company may not have been identified as an auditee. The BSCI Participant that has asked for information does not know if the company has a production work environment. The company may use BSCI Template 1: Business Partner Information to collect its own data. The template provides blank spaces to report the following information: Company Data: The company provides information about its location, sector and products that it produces. The company must report if it has a production work environment (production units) so the BSCI Participant can decide about the possibility of an audit. Company Contact Details: The company provides its contact details and lists the main language(s) so its client and the auditor know how to keep in contact. Production Data: The company provides information on its production volume and cost calculation. Production Calendar: The company provides information on months when high, medium or low production activity takes place. Certification Overview: The company provides information on any valid certificate it holds. These certificates can refer to social performance, environmental performance and quality performance. Valid certificates for social or environmental standards show the maturity of the company. Holding certain certificates impacts the BSCI Audit. For example: o A valid SA 8000 Certificate = No BSCI Audit o A valid GlobalGAP Certificate indicates that: The length of the BSCI Audit is reduced by 30%
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The Performance Areas related to occupational health and safety and the environment comply with BSCI. The auditor only checks the other Performance Areas
Working Environment: The company provides information on its working environment and applicable labour regulations. Remuneration Practices in the Company: The company provides information on the applicable legal minimum wage as well as any specific industry based remuneration (if applicable). Situational Descriptions: The company describes any situation relevant to its social performance. (E.g. Overtime, accidents, strikes).
1.2.
Supply Chain Mapping
The company may use BSCI Template 2: Supply Chain Mapping to collect information on its supply chain. At this moment, the company may not have been identified as an auditee. Collecting these data shows that the auditee is aware of the potential social risks if it fails to have procedures to select and engage business partners. The company may use the template to map as many business partners as it can identify. If the company sources directly from farms, these farms need to be identified in this template. The company must establish a system to internally monitor these farms. See BSCI System Manual Part V - Annex 3: How to Set Up a Social Management System. Significance for the Auditee: The auditee classifies business partners according to “Low, medium or high” significance. These 3 criteria are based on the business relations, volume, dependency and/or risks. Recruitment agencies and homeworkers are always considered as highly significant because they represent additional social risks for the auditee. Signed BSCI Code of Conduct: The auditee reports if the business partner has signed the BSCI Code with related Terms of Implementation or not. The auditee keeps this information on record. 1.3.
Decent Working Hours
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The company may use BSCI Template 4: Working Hours Form to collect information on its working hours practice, per worker. At this moment, the company has already been identified as an auditee. Collecting this information shows the auditee’s awareness on the potential social risks related to excessive working hours. This template offers the auditee a source of inspiration to oversee how the workforce aligns with decent working hours. The auditee is expected to record weekly working hours for every quarter of the year. This allows the auditee to: o Identify periods with high activity o Balance excessive working time over a period of three months IMPORTANT: The auditee may start the working hours calculation per department, but eventually determine the figures per worker to become more aware of how to deal with potential health and safety risks. Such risks must take into consideration the costs related to excessive working time as well as the calculation of proper payments to each individual worker. 1.4.
Fair Remuneration Quick Scan
The company may use BSCI Template 5: Fair Remuneration Quick Scan to collect information on its region and the workforce’s cost of living. At this moment, the company has already been identified as an auditee. Collecting this information shows the auditee’s awareness on the potential social risks related to a remuneration which is less than what a person requires to afford daily needs. This template offers the auditee an instrument to understand: o The local cost of living and its relation to workers’ remuneration o The calculation formula used by most social schemes Regional context information: How people commute to work, the size of an average family and household sources of energy all contribute to living expenses. Such information may not be readily available but the auditee can search for it from different sources: o Having open discussions with workers and their representatives o Government (statistics department) o Local NGOs or community groups may have answers to some of these questions
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Average monthly family expenses: The auditee estimates the ‘’family basket’’ or living expenses for an average family, using the information collected above. Living wages estimate: The auditee can apply the calculation formula by using previous sets of data (e.g. by calculating for 1 or 2 wage earners and by considering workers’ expenses such as transportation costs to go to, and leave, work). Good practices: If the auditee provides the auditor with this information and the calculation of fair remuneration, the auditor shall acknowledge this under “Good practices” in the Findings Report. IMPORTANT: Auditors will have their own sources of information, which may differ from those used by the auditee. The auditor shall not judge data accuracy. Instead, he/she shall evaluate how the information was collected (e.g. from workers, government statistics). The auditee shows its awareness and willingness to make progress when it tries to find and calculate the information mentioned in the template. This effort shall be acknowledged by the auditor.
1.5.
Stakeholder Mapping
The company may use BSCI Template 6: Stakeholder Mapping to collect information on its stakeholders. At this moment, the company has already been identified as an auditee. Collecting this information shows the auditee’s awareness on the relevance of working with its stakeholders. Stakeholders are individuals, communities or organisations that are affected by and may affect an organisation’s products, operations, markets, industries, and outcomes. Stakeholders can be internal (e.g. workers) or external (e.g. clients). The auditee identifies and reaches out to cooperate with stakeholders to deal with relevant topics, such as: o Training o Freedom of association o Special protection for vulnerable workers o Stop and prevent child labour o Grievance mechanism o Anti-corruption These topics apply for both internal and external stakeholders.
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For more information about how to do stakeholder engagement, see BSCI System Manual Part I - Chapter 5: How to Engage Stakeholders.
1.6.
Young Workers Data
The company may use BSCI Template 7: Young Workers Data to collect information on the young workers. At this moment, the company has already been identified as an auditee. Collecting this information shows the auditee’s awareness on the importance of guaranteeing special protection to the young workers. IMPORTANT: The auditee must have a system in place to gather this information regardless if the company engages young workers or not. For example, either a procedure to verify the ages of workers and people in the recruitment process or by engaging with an education programme in the region helps the auditee to collect necessary information to use this template.
1.7.
Grievance Mechanism
The company may use BSCI Template 8: Grievance Mechanism to collect information on lodged grievances. At this moment, the company has already been identified as an auditee. The auditee may use the template each time a grievance is lodged. For information about setting up a grievance mechanism, see BSCI System Manual Part V - Annex 3: How to Set Up a Grievance Mechanism.
2. Understanding the Requirements per Performance Area BSCI Performance Areas are not static situations. They define a continuous improvement path for the auditee to follow. All Performance Areas challenge the auditee to take a cyclical approach: PLAN, DO, CHECK and ADJUST. By going through every Performance Area and related questions, the auditee aims to:
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o Understand the possible gaps between its business practices and the BSCI Code of Conduct version 1/2014 o Self-evaluate its social performance especially to meet a client’s (BSCI Participant) request o Properly prepare for the BSCI Audit The auditee selects the most accurate answer depending on its self-evaluation:
At the bottom of each Performance Area, the auditee finds the relevant documents related to it. The same list of documents is compiled in Annex 6: Most Relevant Documents for the BSCI Audit. IMPORTANT: If the auditee sources directly from farms, the appointed internal auditor will evaluate the farms’ social performance using this tool. If the farm has less than 5 hired workers, the internal auditor shall use the BSCI Template 3: Smallholders SelfAssessment.
2.1.
Social Management Systems and Cascade Effect
The auditee has set up an effective management system to implement the BSCI Code of Conduct
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Main auditee: Sampled farm 1: Sampled farm 2: An effective management system is crucial to ensure daily operations work in line with BSCI. The auditee shall carefully read Annex 3: How to Set Up a Social Management System before going further through the BSCI Performance Areas. To set up an effective management system, the auditee understands:
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o Not started: The auditee has not yet started the implementation o In progress: The auditee already understands the requirement and has taken initial steps to implement it o Already in practice: The auditee already understands the requirement, implements it and continues to manage it (e.g. as part of its Social Management System)
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The importance that its own good social performance has for its clients The content of the BSCI Code and Terms of Implementation The benefits of having a Social Management System in place Communication with customers and stakeholders helps to make continuous improvement possible
The auditee appoints a senior manager to ensure that the BSCI values and principles are followed in a satisfactory manner
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Main auditee: Sampled farm 1:
Working in line with the BSCI Code requires the involvement of several staff members. However, there must be a senior position in charge. This function has decision-making power and allocated budget to succeed in the follow-up of BSCI social performance evaluation. The individual assuming this role understands: o o o o
The BSCI Code of Conduct and System Manual The business and the supply chain The business partners which are significant for the company The expectations of stakeholders
In addition, the auditee determines who is in charge of: o Following up with the grievance mechanism o Human resources o Ensuring that workers receive and have received training relevant to the BSCI values and principles o Occupational health and safety risk assessments The auditee knows who its significant business partners are and assesses how they understand and apply the BSCI Code of Conduct
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Main auditee: Sampled farm 1: Sampled farm 2: For more information, see BSCI System Manual Part I - Chapter 3: How to Develop the BSCI Implementation Strategy.
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Sampled farm 2:
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The auditee determines which business partners are significant based on: o Price, quality and delivery time o Volume o Nature of the relationship o Level of trust and reliability The auditee keeps records on these significant business partners with regard to the way they manage: o Their own social responsibility o Potential grievances from their own workers
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Main auditee: Sampled farm 1: Sampled farm 2: Controlling and anticipating production processes reduces unnecessary subcontracting and overtime, which may impact quality. The auditee has control over the production process when: It understands the volume and frequency it is able to deliver It plans at least the following aspects: o Production, quality checks and delivery time o Workforce capacity (in cooperation with workers representatives and the one in charge of human resources) o A “contingency plan” in case something slows down or interrupts production o Organisation of overtime according to business needs; with a person responsible for its approval o Cost calculation (premium paid overtime is to be added to the cost calculation) o Growth expectation and human resources needed
The auditee monitors how its business partners observe the BSCI Code of Conduct Main auditee: Sampled farm 1: Sampled farm 2:
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The auditee organises its workforce capacity to meet the expectations of the delivery order and/or contracts
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Preliminary steps: The auditee requests its business partners to: o Share the BSCI Code of Conduct and relevant Terms of Implementation o Sign the Code and relevant Terms of Implementation. This is mandatory if the BSCI Audit scope includes a sample of farms o Provide information regarding their social performance (e.g. from internal audits; quarterly reporting; social audits and/or certificates)
For example, the auditee shall define under which circumstances a contract or commercial relations shall be terminated due to business partners’ disregard for workers’ rights. For more information about stopping business, see BSCI System Manual Part I – Chapter 3, subchapter 3.10: Stop Business.
The auditee develops the necessary policies and procedures to prevent and address any harm done to workers in its supply chain (physically, financially or psychologically)
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Main auditee: Sampled farm 1: Sampled farm 2: Workers are often harmed when working rules are insufficient or unclear. The harm may be physical but also financial and/or psychological. For addressing these issues, the auditee has at least descriptions of the: o Conducted risk assessment(s) o Defined steps to prevent and address harm o The decision-maker and the available channel(s) of communication o Available budget and procedures to draw on for addressing the impact(s) o Defined system to follow up on the measures taken
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Clear procedures: The auditee develops and implements clear procedures to: o Select business partners by taking their social performance into consideration o Follow-up on business partners’ continuous improvement o Set consequences in case business partners breach trust
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The auditee manages its business relations in a responsible manner
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Main auditee: Sampled farm 1: Sampled farm 2:
The auditee does not need to stop business or contracts with business partners simply because they have difficulties in following the BSCI Code.
o Communication channels to allow the business partners to explain their difficulties as well as their progress to align to the Code o Clear procedures to determine when a contract with suppliers or subcontractors needs to be terminated o Specific clauses in the contracts about ending a business relationship or rescinding a contract because of social issues
Documents related to this Performance Area
o Job descriptions in which the implementation of BSCI is included o Documentary evidence on production capacity planning o Evidence that the BSCI Code of Conduct and Terms of Implementation have been distributed to significant business partners o Signed BSCI Code of Conduct and relevant Terms of Implementation if farms are part of the scope of the audit o Evidence of business partners’ social performance (quarterly reports, audit reports, valid certificates) o Evidence of qualifications of the person in charge of implementing BSCI o Documentary evidence of the social policy and procedures to implement BSCI
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The auditee has:
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PART III: Understanding the BSCI Audit – From the Auditee Perspective
Workers Involvement and Protection
The auditee involves and exchanges information on workplace issues with workers and their representatives
Not started
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Already in practice
Main auditee: Sampled farm 1: Sampled farm 2: The auditee ensures:
The auditee defines long-term goals to protect workers according to the BSCI Code of Conduct
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Main auditee: Sampled farm 1: Sampled farm 2: The auditee defines long-term goals in cooperation with workers and workers representatives. The auditee has a long-term plan (e.g. 5 years) to work according to the BSCI Code. This long-term plan should: o Include the vision, mission and objectives of the company in line with the BSCI Code o Reflect a step-wise approach toward making sustainable improvements o Genuinely involve workers and workers representatives in defining the goals o Be written and approved by the competent person (or governance body)
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o Management and workers meet on a regular basis to discuss about how to improve working conditions o Minutes of these meetings are taken, kept and remain available for workers to consult o A workers representative is elected by workers (including seasonal workers) o Records on the election process are kept and made available o The concerns of the most vulnerable workers are taken into consideration (e.g. migrant and young workers) o Follow-ups on workers’ requests and/or complaints are recorded
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The auditee takes specific steps to make workers aware of their rights and responsibilities
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Main auditee: Sampled farm 1: Sampled farm 2:
The auditee raises workers’ awareness on their rights and responsibilities. These are some specific steps: o Organise information sessions: Information sessions are a good starting point but they have no impact if they are done in an isolated manner o Develop work contracts, working rules and job descriptions: They must abide by the law and the auditee must clearly communicate them to workers o Create proper communication channels with workers o Ensure that workers:
Receive a copy of their contracts. In some cases (e.g. illiteracy of workers) other means would be used to ensure workers are informed of their rights and obligations (e.g. posters with icons) Are trained by a qualified person at least on: o The use of personal protective equipment o Health and safety issues to focus on the work environment o The use of a grievance mechanism
o Maintain documentation of the workers’ trainings, which should at least include a list of names and job titles of the participants, dates, content of the material and qualification of the trainers Put the BSCI Code of Conduct in a visible place in the workplace IMPORTANT: Trainings are mandatory for any new worker (even if he or she has been engaged via a recruitment agency). Migrant workers need to be trained and must receive a version of the work contract in a language they understand.
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Workers’ rights and obligations are defined by: o The law o The specific work contracts and job descriptions o The auditee’s rules of the workplace (as long as these rules abide by the law)
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The auditee builds sufficient competence to successfully embed responsible practices in the business operation. This refers to managers, workers and workers representatives
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Main auditee: Sampled farm 1: Sampled farm 2: The auditee ensures that management regularly receives:
The auditee has training materials related to BSCI Code content and these are made available for the management. The auditee establishes or participates in an effective grievance mechanism for individuals and communities
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Main auditee: Sampled farm 1: Sampled farm 2: A grievance mechanism allows workers and communities to lodge suggestions or complaints related to the workers’ or communities’ rights. It can also be used as a communication channel to prevent harmful incidents from taking place. Setting up an internal grievance mechanism and/or joining an existing external one are both possible and both can be effective. To learn more about this topic, see BSCI System Manual Part V - Annex 4: How to Set up a Grievance Mechanism. Written Procedure: The auditee ensures that the written procedure for the grievance mechanism defines: o A person responsible for its administration o Potential conflicts of interest and how to overcome them (e.g. if a grievance is against the person who administers the mechanism) o Timelines to address grievances
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o Informative sessions on the BSCI Code of Conduct o Specific training for the human resources, occupational health and safety and grievance mechanism personnel o Feedback on the BSCI Audit results and follow-up
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o Processes for “appeals” and escalation, which provide additional guarantees that the auditee will address the grievance o Communication processes to ensure that workers and community members have access to the grievance mechanism. This includes workers representatives, seasonal, migrant, temporary, young and female workers o Alternative ways for lodging a complaint. For example, through a workers representative or directly to the management o Record system of lodged grievances, including how they were investigated and addressed o Regular surveys on user satisfaction with the grievance procedure
Documents related to this Performance Area
o o o o o o
2.3.
Documentary evidence of the workers representative election Documentary evidence of regularly scheduled workers meetings Records of agreements with workers representatives Employment contracts including those related to security personnel, cleaning and other services Job descriptions in which the implementation of BSCI is included Documented working rules Evidence of a training calendar for workers and management Documentary evidence of training given to workers, management and human resources (e.g. list of attendees with signature) Documentary evidence of trainer competence Documentary evidence of grievances lodged/investigated (e.g. BSCI Template 8: Grievance Mechanism filled in) The rights of Freedom of Association and Collective Bargaining
The auditee respects the right of workers to form unions in a free and democratic way Main auditee: Sampled farm 1: Sampled farm 2:
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Free and open society: The right of workers to form and join organisations of their own choosing is an integral part of a free and open society. Even in countries where trade union activity is unlawful, the auditee allows workers to freely elect their own representatives. The auditee practices a clear policy NOT to: o Prevent worker participation in the activities of unions or other workers’ organisations o Discourage or interfere in the election process of workers representatives o Retaliate against workers who participate (actively or passively) in the workers representative election Not started
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Main auditee: Sampled farm 1: Sampled farm 2: Collective bargaining is the process used by workers representatives (e.g. trade unions) and employers to negotiate the provisions that: o Reflect the terms and conditions of employment for workers o Confer rights, privileges and responsibilities to the parties The auditee encourages collective negotiations on the terms of employment . The auditee ensures that the stipulations contained in the collective bargaining agreement: o Apply to workers in the same category o Are available to workers o Are integrated in the employment contracts The auditee does not discriminate against workers because of their trade union membership Main auditee: Sampled farm 1: Sampled farm 2:
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PERFORMANCE AREA 3: The rights of Freedom of Association and Collective Bargaining
The auditee respects workers’ right to bargain collectively
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The auditee puts into practice a clear policy NOT to: o Discriminate against candidates for a company position because of their affiliation to a trade union o Give more nor less benefits to workers because of their affiliation to trade unions o Dismiss workers for being unionised
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Main auditee: Sampled farm 1: Sampled farm 2:
The auditee understands that: o Workers representatives can arrange meetings with workers during working hours in line with the law o The time involved in a meeting with the workers representative cannot be deducted from workers’ remuneration
Documents related to this Performance Area o Documentary evidence of the workers representative election o Collective Bargaining Agreement (if applicable) o Minutes or documents of meetings that led to the collective bargaining agreement (if applicable) o Recruitment and dismissal procedures and records
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The auditee does not prevent workers representatives from accessing or interacting with workers in the workplace
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No Discrimination
The auditee takes the necessary measures to avoid or eradicate discrimination in the workplace
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Main auditee: Sampled farm 1: Sampled farm 2: Broad interpretation: In some cultures, discrimination may be very subtle, therefore, it is important to broaden the interpretation to include a range of individual characteristics, including race, language, religion and other characteristics as means of discrimination.
o Confiscation of passports o Failure to provide employment contracts o Non-payment or under-payment of wages o Illegal deductions from wages o Long working hours o Substandard living conditions and denial of water and food o Use or threats of violence These kinds of behaviour are unacceptable. Directly and indirectly: Potential discrimination shall be avoided both during employment and recruitment processes. The auditee puts into practice: o Internal assessments to identify: Most likely grounds used for discrimination (e.g. race) Most common activities through which discrimination may occur (e.g. hiring process) o Root cause analysis of discriminatory behaviours o A policy to discourage discrimination particularly when workers are hired, promoted, fired or assigned benefits The auditee needs to be cautious to avoid that: o The use of labour brokers or recruitment agencies does not bring additional social risks o Medical testing results are not used for discrimination against tested workers IMPORTANT: Virginity tests, use of contraception or equivalent are forbidden as workers’ requirements or preconditions.
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Most pervasive forms: The most pervasive forms of discrimination can be found with regard to exploitation of migrant workers:
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The auditee ensures workers are not disciplined, dismissed or discriminated against because of their complaints against infringements of their rights
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Main auditee: Sampled farm 1: Sampled farm 2: The auditee makes sure that workers feel free to use the grievance mechanism without fear of reprisal. The auditee puts in practice:
The auditee takes the necessary measures so workers are not harassed or disciplined on grounds of discrimination
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Main auditee: Sampled farm 1: Sampled farm 2:
The auditee puts into practice: o A written procedure that describes reasons for disciplinary measures in the workplace according to the law o Consultation with workers and their representatives on disciplinary measures and the way in which they are to be enforced o A record-keeping system that maintains overviews on cases of disciplinary measures which may have been imposed o Regular training to management, including supervisors, on the content and procedure for disciplinary measures
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PERFORMANCE AREA 4: No Discrimination
o Grievance mechanism records to keep the background of every lodged grievance and the conclusions of the follow-ups o Grievance satisfaction surveys and keeps the results on record o Regular training to management, including supervisors, to enforce this policy
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Documents related to this Performance Area Documentary evidence on disciplinary procedures Documentary evidence on disciplinary cases and the measures taken Documentary evidence of workers’ performance assessments and procedures Worker contracts or agreements, including with recruitment agencies (if relevant) o Documentary evidence of grievances lodged/ investigated (BSCI Template 8: Grievance Mechanism filled in) o o o o
2.5.
Fair Remuneration
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Main auditee: Sampled farm 1: Sampled farm 2: The auditee: o Knows the minimum wage or industry standard that applies to its sector of activity o Does not hire any worker for a lower remuneration than this threshold o Keeps pay slips for at least the 12 month period before the date of the BSCI Audit At least the minimum wage or relevant standard applies to: o Part-time workers: On a pro-rata basis o Piece-rate workers: The number of pieces produced in 8 hours amounts to no less than the minimum daily wage defined by law o Workers in the probationary period are paid according to the law o Workers hired through agencies: The auditee is aware of and keeps records on how, when and how much the agency pays these workers o In a cooperative: If the auditee is a cooperative, the by-laws or internal regulations clearly specify how workers and the cooperative’s members are remunerated and when. Specifications on loans and possible advance payments
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The auditee complies with the government’s minimum wage legislation or the industry standard approved through collective bargaining (if applicable)
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are respected and documented. All these specifications are approved in a General Assembly by the majority as defined by the cooperative’s by-laws
Wages are paid in a timely manner; regularly and fully in legal tender
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Main auditee: Sampled farm 1: Sampled farm 2: Agreed and communicated: Payment periods and procedures are agreed and communicated to the workers prior to the engagement. The auditee pays workers:
Payment “in kind” can be part of the overall remuneration as long as it is: o On top of the amount due in legal tender o Never done as alcohol or other drugs For workers hired through agencies: The auditee is aware of and keeps records on how, when and how much the agency pays these workers. The auditee calculates the transportation and housing costs provided to workers and has a written policy on how these services are part of the remuneration. Personal protective equipment and other tools provided to workers to perform their tasks are not part of the remuneration.
The level of wages reflects the skills and education of workers Main auditee: Sampled farm 1: Sampled farm 2:
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o Timely: As agreed and as communicated to workers prior to their engagement o Regularly: With a frequency that allows workers to make use of their earnings without incurring debts o Fully in legal tender: The work performed by the workers in regular working hours is to be paid in legal tender only
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The auditee recognises that skills can be achieved by means of both education and experience. Many skills are not proven by means of official diplomas. Workers’ skills are taken into consideration: o In the hiring process o When assigning salaries o When assigning tasks Having a highly-skilled worker conducting a low-skilled job is not acceptable as it may represent a sign of discrimination or evasion of the law. The auditee ensures that:
The auditee provides sufficient remuneration that allows workers to meet a decent living standard
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Main auditee: Sampled farm 1: Sampled farm 2: Fair remuneration concerns all workers regardless if they are: o Permanent or seasonal o Directly or indirectly engaged The auditee may use BSCI Template 5: Fair Remuneration Quick Scan to estimate the living standard in its region and determine a potential gap with its remuneration practice. This will be acknowledged by the auditor as a good practice. If there is a gap, the information should be taken into consideration for future wage negotiations. Total remuneration includes: o Wages paid for up to 48 regular working hours (or whatever the maximum regular hours are according to local law) o Social benefits o In-kind benefits and bonuses o Subsidised or free transportation
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o Job descriptions are available with outlines of the kinds of skills required to perform the jobs o The people in charge of recruitment are trained to evaluate the level of competence required from workers o Regular trainings are provided to strengthen workers’ skills o People in charge of conducting occupational health and safety risk assessments are consulted to determine the types of skills needed
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Subsidised or free living space Subsidised or free canteen services Opportunities for education or training Premium paid overtime
Remuneration does not include the cost of: o Uniforms o Personal protective equipment o Training that is mandatory as part of the job requirement. For example, occupational health and safety training o Any tool essential to conduct the job
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Main auditee: Sampled farm 1: Sampled farm 2: National law: National law defines the mandatory social benefits granted to workers in that region. Mandatory social benefits usually are: o o o o o o o o o
Old age pension Survivor’s benefit Family benefits and parental leave Medical care Unemployment Sick leave Disability Work-related injury compensation Vacations
Collective Bargaining Agreement: A collective bargaining agreement must be respected not least if it covers more than the law by including more social benefits. Commercial insurance: In some countries, the auditee may sign up for commercial insurance to cover at least some of the social benefits (usually work-related injury and health) and use these commercial insurances to replace (fully or partially) the government programme. If the country’s legislation does not allow such a replacement, but workers are insured, the auditee complies “partially” with this item.
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The auditee provides workers with the social benefits that are legally granted
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Exceptions from social benefits: The auditee may have been granted exemptions from social benefits. Such exceptions shall be: o Issued in line with the company procedure o Issued by the legal authority (usually government department) o Valid for the current period of time o Applicable for the auditee The auditee shall have available the original document(s) to prove these exemptions. Good practices: If the auditee provides commercial insurance in addition to the minimum social benefits required by law, the auditor shall acknowledge it under “Good practices” in the Findings Report.
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Deductions cannot result in: o Workers earning less than the legal minimum wage o An economic benefit for the auditee o A form of discrimination Training sessions: Workers cannot have deductions in wages or working hours because of the time they are in required meetings, training sessions or other workplace situations beyond their control. Instead, the employer assumes responsibility for the situation (e.g. a machine used by a worker is under repair and the lost time negatively impacts her/his productivity). Closed down: If the auditee’s production site is going to be closed down for repairs or reconstruction, the auditee has to properly communicate the closing period to the workforce in advance. This communication must be done with the support of the workers representative to ensure all workers’ rights are respected. Objects or services: Deductions cannot be made for the use of objects, buildings or services which are directly necessary for executing the work. That includes entry fees and charges for the use of:
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The auditee ensures that deductions from wages are only taken under the conditions and to the extent prescribed by the law
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Tools and machines Sanitary facilities Drinking water Washing facilities Provisions of protective clothing for workers
Market rate: Deductions for services offered by the auditee (e.g. transportation or food) are charged at local market rates or lower. These services must always be voluntary for workers to use. Disciplinary measures: Deductions for disciplinary measures can only occur under the conditions specified by law or the conditions defined in a freely negotiated and established collective bargaining agreement.
Documents related to this Performance Area
o o o o o o 2.6.
Documentary evidence of legal deductions for goods and services Documentation on legal minimum wages relevant for the sector Documented collective bargaining agreement Pay slips for workers and documentary evidence of payments Fair Remuneration Quick Scan completed (BSCI Template 5: Fair Remuneration Quick Scan) Worker contracts or agreements, including with recruitment agencies Personnel data files for all workers (including seasonal workers) Documentary evidence of additional benefits (commercial insurance if applicable) Documentary evidence of updated contributions to social insurance funds Documentary evidence of legal deductions for goods or services Lists of wage ranges and calculations including for piece rate workers Decent Working Hours
The auditee does not require more than 48 regular working hours per week, without prejudice to the exceptions recognised by the ILO Main auditee: Sampled farm 1: Sampled farm 2:
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The auditee ensures working hours do not exceed: o 48 regular hours in a week o 8 regular hours per day The auditee exceptions apply only to:
These exceptions give flexibility to the limit of daily hours as well as weekly hours. However, average working hours within 3 months or less are limited to 48 hours per week. This fluctuation of hours is not premium paid if it is compensated in time within those three months. IMPORTANT: 48 regular working hours per week as well as the exceptional cases mentioned above are recommended for agricultural undertakings. Additional exceptions related to harvesting time also apply.
The auditee request of overtime is in line with the requirements of the BSCI Code of Conduct
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Main auditee: Sampled farm 1: Sampled farm 2: Overtime: o It is any working hour in addition to the regular hour limit. In countries where legislation sets the limit below 48 hours per week (e.g. 40 hours), any additional working hour is considered overtime o It must be paid in a premium rate
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o Management: For supervisory or management positions o Custom: When by law, custom or agreement, workers work less than 8 hours in one or more days of the week. The remaining days of the week can then be extended to 9 hours (48 regular working hours remains the maximum) o Shifts: For workers employed in shifts, if their average number of working hours takes place over a period of 3 weeks or less o Family: For members of the same family employed in the undertaking o Special regime: For workers subject to a special regime, defined by the local laws (e.g. security guards are often not subjected to regular legal requirements regarding working hours).
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Most countries’ legislations define: o Temporary exceptions allow additional working hours (e.g. force majeure, accident risks or actual and urgent work to be done to machinery) o Overtime limits (e.g. maximum 3 hours per day) o Premium rate that applies to overtime (e.g. 25% more than a regular working hour) o Type of working processes, which due to their nature, must be done in continuous shifts and national law allows a permanent exception (e.g. national law allows 2 shifts of 12 hours per day instead of 3 shifts of 8 hours per day) The auditee must be aware of the regulation that applies to its industry. Written procedure: The auditee puts into practice a procedure to deal with overtime, particularly with regard to temporary exceptions. This procedure: Originates in an agreement between the workers representative and the auditee Sets the daily limits of work over the exceptional period Sets the premium rate paid by the auditee Respects any other criteria defined by law
Legal exceptions: If the auditee belongs to a type of industry covered by a legal permanent exception, the auditee must keep updated documentary proof of the agreement that describes the legal exception. This agreement must have force of law and define: o o o o
Type of exceptions Categories of affected workers The maximum additional working hours in each case The premium rate for overtime: at least 25% more than the regular rate
Additional comments about overtime: o Voluntary: It needs to be voluntarily agreed, unless in cases of temporary exceptions (e.g. force majeure) which must be described in the employment contract o Exceptional: It needs to be exceptional. Overtime cannot be repeatedly added onto regular working hours o No adding risks: It needs to be set without increasing the risk to workers’ health and safety o Premium paid: It is paid in a premium rate as defined by the law. Overtime occurring during official holidays and/or Sundays may have a higher premium rate to pay o It takes into consideration:
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The vulnerability of temporary workers, migrant workers and piece rate workers to do too much overtime
The accumulation of fatigue related to shifts
Special protection for young workers, pregnant women and night workers
Corrective measures: Certain measures can be implemented to reduce excessive overtime: o o o o o
New technologies to improve production efficiency New production techniques More skilled and qualified workers Improvement in logistics (e.g. coordination and planning) A proper discussion with clients on delivery time expectations
The auditee grants workers the right to resting breaks in every working day
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Main auditee: Sampled farm 1: Sampled farm 2: The auditee ensures that workers benefit from: o Short breaks: Workers are allowed to take short breaks during working hours, especially when the work is dangerous or monotonous, to enable workers to stay alert o Meal break: Workers are allowed to take the necessary time for meal breaks according to the law o Night rest: Workers working during the day are allowed at least 8 hours of night rest within a 24 hour period o Adequate areas: Workers have access to effective resting break areas. For example:
Access to ventilated areas Accessible toilets Possibility for changing the physical working position (either sitting down or standing up)
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All these aspects of overtime also apply for agricultural undertakings including if the auditee is a cooperative.
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The auditee grants workers the right to at least one day off in every seven days
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Full calendar day: The auditee respects relevant regulations for days off. The day off shall be a “full calendar day” and should follow national law or custom. The producer grants workers a “full calendar” day off in every 7 days, unless the freely negotiated collective bargaining agreement or national law defines otherwise.
o Documented working rules o Pay slips for workers and documentary evidence of payments o Documentary evidence of the legal permanent exception covering the auditee’s industry o Working time records o Documented overtime procedure including agreements with workers o Documented records of accidents
2.7.
Occupational Health and Safety
IMPORTANT: If the main auditee holds a valid GlobalGAP Certificate, the auditor shall not monitor this Performance Area. 2.7.1. Regulations
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Documents related to this Performance Area
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The auditee observes applicable occupational health and safety (OHS) regulations
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Main auditee: Sampled farm 1: Sampled farm 2: In cases where the country does not prescribe OHS regulations, international standards apply. The auditee involves workers and their representatives in drafting and enforcing its internal procedure on occupational health and safety.
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Main auditee: Sampled farm 1: Sampled farm 2: The auditee implements different measures to protect workers in case of accident (e.g. promote compulsory insurance schemes). o The auditee involves workers and their representatives to identify better ways to protect workers from accidents o The auditee provides regular training for workers and management on how to avoid accidents and minimise impacts from accidents o The auditee regularly analyses the accident records to learn lessons and adjust accident protocols accordingly 2.7.2. Risk assessment
The auditee regularly carries out risk assessments for safe, healthy and hygienic working conditions Main auditee: Sampled farm 1: Sampled farm 2:
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The auditee seeks workers’ protection in case of accident, including through compulsory insurance schemes
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The auditee regularly conducts occupational health and safety risks assessments to: o o o o o
Identify the most common risks for workers Classify the risks based on their severity and likelihood Define the kind of preventive or remedial measures that may be necessary Develop, mantain and implement an action plan Allocate budget
A good risk assessment:
The transmittable and non-transmittable diseases in the work environment
There is active cooperation between management and workers (and/or their representatives) when developing and implementing systems towards ensuring OHS
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Main auditee: Sampled farm 1: Sampled farm 2: Workers and their representatives are consulted: o During the risk assessment o During the development of the action plan o During the implementation of the systems If the auditee has set up an occupational health and safety committee with democratically elected workers representatives, this is a positive step. Alternative means are acceptable but adequate evidence must show how this active cooperation takes place. The auditee keeps records on: o OHS committee meetings
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o Is appropriate for the safety and health of all workers o Includes consultation with workers o Covers all production activities, workplaces, machinery, equipment, chemicals, tools and processes o Uses relevant standards as a reference (e.g. national law or international standards) o Includes regular monitoring and testing o Allocates adequate human and financial resources to ensure that the identified risk(s) can be mitigated o Takes into consideration: The special needs of the most vulnerable workers such as pregnant women, young workers or migrant workers
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o OHS committee recommendations o How the decision-maker accepts or rejects those recommendations 2.7.3. Training
The auditee regularly provides OHS trainings to ensure workers understand the rules of work, personal protection and measures for preventing and reacting to accidents
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This information needs to be displayed in a way that can be easily understood by workers. Workers should be at least trained on the following OHS aspects: o Use and maintain the personal protective equipment (cleaning, replacement when damaged and appropriate storage) o Handling basic and site specific hazards o Safe work practices o Emergency procedures for natural disasters o Evacuation drills and/or fire-fighting drills. The drills are recorded to indicate: The purpose Number of workers who participated Results Photos and dates Time taken for the evaluation: the time for evacuating the building should never last more than 9 minutes The auditee improves its performance by doing additional training on OHS for the following audiences: o Management, supervisors and occasional visitors o Workers who operate machinery and power generators o People working with electrical installations and equipment who also must understand their tasks and safety procedures
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The auditee makes available to workers the information on: o The hazards and risks associated with their work o The actions to be taken for their protection
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o Workers who handle and/or administer hazardous substances receive specific training. Hazardous substances include, but are not limited to, chemicals, disinfectants, crop protection products or biocides 2.7.4. Personal Protective Equipment The auditee enforces the use of personal protective equipment to provide protection to workers in conjunction with other facility controls and safety systems
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2.7.5. Chemicals
The auditee implements engineering and administrative control measures to avoid or minimise the release of hazardous substances into the work environment. It keeps the level of exposure below internationally established or recognised limits
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Main auditee: Sampled farm 1: Sampled farm 2: The auditee puts into practice: Risk assessment: To identify the engineering and administrative control measures that are needed to avoid or minimise the release of hazardous substances into the work environment. Administrative control measures: o Authorisation: Only authorised workers have access to chemical substances o Protection: Workers receive adequate protection for handling and administering chemicals
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The auditee provides personal protective equipment that: o Offers effective protection to the worker and occasional visitors. Particular attention shall be given for special processes (e.g. sand blasting for jeans, fumigation in agriculture) o Does not cause unnecessary inconvenience to the individual o Is free of charge o Is suitable for the necessary activities in the workplace
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o Record-keeping: Distribution, use and disposal of chemicals is properly recorded o Following instructions: The use of chemicals corresponds to the recommendations of the manufacturer o Labelled: The labelling of chemicals and marking of hazards are clearly understood by the workers and are done in accordance with nationally and internationally recognised requirements. For example: - The International Chemical Safety Cards (ICSC) - The Materials Safety Data Sheets (MSDS) More information on the management of chemicals can be found at the following link: http://www.inchem.org/pages/icsc.html Engineering control measures to: o Expulse fumes, steam and dust outside (e.g. spot cleaning places) o Properly dispose of chemicals, even in the absence of national legal regulations
The auditee develops and implements accident and emergency procedures
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Main auditee: Sampled farm 1: Sampled farm 2: Step-wise: The auditee knows the different steps to follow in case of accident or emergency so risks are minimised. Written procedures: These steps are documented in an emergency procedure, which is widely understood by workers; particularly by those who play a more relevant role in case of accidents (e.g. first-aid personnel). Special attention: The auditee ensures that these procedures are properly explained to: o o o o o o
Seasonal and temporary workers Night workers Migrant workers Young workers Pregnant workers Disabled workers
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2.7.6. Accident and Emergency Procedures
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The auditee makes visible potential hazards to the workers through signs and warnings
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Main auditee: Sampled farm 1: Sampled farm 2: There are no universal ways to communicate potential hazards and warnings to workers and visitors.
The auditee has and properly uses procedures for recording and reporting occupational accidents and injuries
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Main auditee: Sampled farm 1: Sampled farm 2: Reporting: The procedures enable workers to report immediately to their supervisor any situation which may present a serious danger to life or health. Both accidents and near-misses are reported. Recording: The auditee keeps records on all accidents and injuries. Records specify: o When the accident took place (e.g. date, peak season, picking season) o Who was involved o What actions were taken o What were the final results (e.g. death, injury) o How the accidents (or occupational diseases) were investigated o What prevention and remediation actions were taken o How long workers were unable to work
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Signals and warnings must be: o Relevant to the specific culture and activities o Displayed in the appropriate place for their purpose o Related to the accident and emergency procedures o Related and suitable to potential hazards. For example: Chemicals Electricity Hot surfaces Falling objects Slippery floors Machinery and vehicles
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The auditee seeks the stability and safety of the equipment and buildings used for production
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The auditee respects the workers’ right to remove themselves from imminent danger without seeking permission
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Main auditee: Sampled farm 1: Sampled farm 2: The right of workers to remove themselves from imminent danger without seeking permission: o Applies to the workplace and residential facilities provided by the auditee o Must be well communicated to workers during trainings o Must be properly documented in the OHS procedures
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o The auditee knows and follows: National legal requirements concerning the building - Stability - Safety - Appropriateness to conduct its business activity Legal requirements concerning the safety of the equipment, including ongoing official inspections (if relevant) o The auditee has procedures in place to confirm the stability and safety of the equipment o The auditee maintains accurate documentation on any official and private inspection concerning building and equipment safety and stability o The auditee is in possession of valid licences to conduct its activities in the related building
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PART III: Understanding the BSCI Audit – From the Auditee Perspective
Electricity
The auditee makes sure a competent person periodically checks the electrical installations and equipment
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The person checks the electrical installations and equipment: o Within the pre-defined timeframe o Randomly o Per request The checks are properly recorded and, if possible, posted close to the verified installation or equipment. The record includes at least: o Name of the person in charge o Date of the last check o Description of the finding (if any) o Due date for the next check When dealing with electrical installations and equipment, workers need to conduct their work safely: o Only tools properly insulated and in good condition are used o Working space and lighting is appropriate Usually national laws define the adequate working space and lighting workers working with electrical installations and equipment need. If national laws exclude such regulations, the auditee draws on common good practices and adapts them to its situation: o Workplaces shall be free of distribution lines o Electrical cords shall not pose a tripping hazard o Risk of strangulation or any other work-related accident are evaluated and included in the OHS procedure to minimise the risks
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The person in charge of maintaining safe electrical installations is competent by means of: o Training o Qualification o Experience
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2.7.8. Fire Protection
The auditee has installed an adequate amount of firefighting equipment, which works properly
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If there are no legal requirements, the firefighting equipment must at least be: o Distributed in an equal manner o Placed at a height that ensures effectiveness o Easily reached by workers o Properly identified (e.g. inventoried) with clear reference to: The last serviced date The due date for the next servicing The location placement and the route to reach the fire extinguishers must be visually marked. Early warning systems must be installed and function as required by the law. Warning systems can be: o Smoke sensors o Fire alarms o Alarm devices 2.7.9. Escape Routes and Emergency Exits The auditee ensures that escape routes, aisles and emergency exits in the production site are easily accessible, clearly marked and not blocked Main auditee: Sampled farm 1: Sampled farm 2:
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The auditee has the necessary firefighting equipment, in line with the OHS action plan. Usually the national law specifies the standard requirements for firefighting equipment such as: o Position and placement o Size and effectiveness o Maintenance and inspection requirements
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The ultimate goal of accessible and marked escape routes is that workers and visitors may easily leave the premises in case of incidence without putting their health or lives at risk. o Escape routes, aisles and emergency exits fully observe the three characteristics at the same time: Not blocked Easily accessible Clearly marked
The auditee ensures evacuation plans: o Meet legal requirements o Are posted in relevant places so workers can see and understand them
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Main auditee: Sampled farm 1: Sampled farm 2: Plans to evacuate the building must show: o Standpoint: Current position from the standpoint at which the plan is posted o Closest escape route: Placement of the closest escape routes including emergency exits o Firefighting equipment: Placements of fire extinguishers and any other firefighting equipment At least a relevant number of workers know how to use a fire extinguisher. Workers understand the evacuation plan and know how to follow it from their own standpoints.
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o Workers and visitors can easily leave the premises in case of incidence without putting their lives at risk o The auditee approaches safe evacuation in a systemic and preventive manner, which includes: Escape routes, aisles and emergency exits that are: - Not blocked or locked during working time - Marked without ambiguity Emergency lights and any other evacuation signals, which are properly installed and function well Production rooms with more than 10 workers have doors open outwards unless the national law sets different rules. The rule that provides the highest protection to workers applies The number of emergency exits relate to: - The number of workers - The size and occupancy of the building - The arrangement of the workplace
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2.7.10. Machine and Vehicle Safety The auditee ensures adequate safeguards for any machine part, function, or process which may cause injury to workers
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Main auditee: Sampled farm 1: Sampled farm 2: All applicable safeguards for equipment are available and properly installed, for example:
Valid inspection and insurance for machinery and vehicles are available as required by law. The maintenance work carried out is recorded and done by competent personnel. This may be the case for elevators, lifts and other hazardous machines. The auditee keeps records of the maintenance, which includes: o Summary of maintenance o Name of the competent person in charge o Applicable insurance and its validity 2.7.11. First-Aid
The auditee ensures qualified first-aid is available at all times
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Main auditee: Sampled farm 1: Sampled farm 2: National legal regulations define what kind of medical provisions shall be available for workers in the workplace. If there are no such legal regulations, the auditee ensures: o Adequate first-aid kits, rooms and/or stations
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o Belt encasements o Grills for fans o Emergency switch-off
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o Regular training on first-aid and related procedures to ensure emergency treatment o One or multiple trained people who can administer first-aid o Responsible people to verify and re-fill the content of the first-aid kit Where immediate flushing with water is the recommended first-aid response, the auditee ensures that close to workstations there are: o Potable water sources o Eye-wash stations o Emergency showers Not started
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Main auditee: Sampled farm 1: Sampled farm 2: This emergency procedure may be a separate document or part of the action plan developed after the OHS risk assessment. Workers are aware of the procedures in case of trauma or serious illness. The procedure also includes the steps to be taken when a worker has to be transferred to an appropriate medical facility.
2.7.12. Work place, Social Facilities, including housing when provided by the auditee
The auditee provides potable water for workers at all times
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Main auditee: Sampled farm 1: Sampled farm 2: Access at all times: The auditee provides access to potable water at all times, not only during breaks. Access to water must never be used as means for discrimination or as a disciplinary measure.
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The auditee has emergency procedures to deal with cases of trauma or serious illness. These procedures must be in writing.
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The right to potable water applies to: o The workplace o The facilities where workers prepare or eat food o Housing provided by the auditee National regulations often define: o Water quality suitable for human use o Which areas may not require potable water (e.g. showers) o The kinds of tests and authorities that verify if water is potable
Certificates: Relevant and valid certificates must be made available.
Risk of dehydration: The auditee pays additional attention to the right to potable water if it is based in a country where risk of dehydration is higher due to hot weather.
The auditee provides workers with access to an appropriate, clean area for storing food, eating and/or cooking
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Main auditee: Sampled farm 1: Sampled farm 2: The auditee makes sure that workers are allowed to enjoy their lunch or dinner breaks in a place that is safe and clean. If the law indicates the obligations of businesses to provide an eating room or canteens, the auditee follows that law. If the law does not indicate the minimum conditions for these facilities, the auditee shall conduct its own assessment in consultation with workers and their representatives to define and agree on the minimum conditions. The auditee pays particular attention during peak season that workers are allowed to enjoy their lunch or dinner breaks in a place that is safe and clean. The facilities need to accommodate the entire workforce (permanent and all other workers). The auditee must have information available for the audit about: o How food is stored
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Signs for no potable water: Places where water is not potable must be properly indicated to avoid any health risk to users.
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o Records of cleaning shifts o Menus provided (e.g. for the last 6 months before the audit) o Lunch and/or dinner shifts The auditee provides workers with clean washing facilities, changing rooms and toilets that are respectful of local customs
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Main auditee: Sampled farm 1: Sampled farm 2: The auditee makes sure that workers are allowed to use changing rooms, and use washing rooms and toilets in a way that is respectful towards them.
If no law exists, the assessment of how many facilities are needed to serve the size of the workforce needs to be part of the OHS risk assessment and related action plan. The auditee is able to explain during the audit the reasons for having the amount of facilities that it has. It can also explain plans to adapt the number if needed. If there is no applicable law, the number of washing facilities, changing rooms and toilets shall meet the needs of the total number of workers; for women and men alike. Particular attention shall be devoted to ensure that facilities meet workers needs even when the number of workers increases (e.g. peak session). The facilities must provide: o A steady supply of soap o Working locks o Gender separation o Changing rooms for workers who change their clothes to perform their functions (e.g. to handle hazardous substances or wear protective clothing)
The auditee provides workers with transportation (either directly or by using third parties) that is safe and that complies with national regulations Main auditee: Sampled farm 1: Sampled farm 2:
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If the law indicates the minimum number of washing facilities and toilets that businesses are obliged to provide, the auditee follows that law.
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The auditee has information on how workers get to the premises (e.g. using public transportation, bicycles). Agricultural vehicles: Special attention should be paid to agricultural vehicles used for human transportation, which represent an additional risk for accidents or harming workers The location of the social facilities or workers housing ensure that users are not exposed to natural hazards or affected by the operational impacts of the worksite (for example noise, emissions or dust) Main auditee: Sampled farm 1: Sampled farm 2:
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o Bases its decision on the OHS risk assessment and related action plan o Ensures that the location of social facilities and housing do not expose workers to: Natural hazards Adverse impacts on health, safety or their lives Industrial buildings are not used for workers’ housing. Cost of the accommodation: When workers are required to temporarily leave the workplace for an undertaking, the auditee shall provide the workers adequate facilities and accommodation at no cost (e.g. agricultural undertakings or animal production). The auditee verifies that temperature, humidity, space, sanitation, illumination are adequate for the health and safety of workers
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Main auditee: Sampled farm 1: Sampled farm 2: Respectful to workers’ health and safety: The auditee needs to make sure that workers have a workplace, social facilities and housing that are fully respectful of their health and safety. If the law indicates the minimum characteristics for the workplace, social facilities and housing, the auditee follows that law.
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National law usually defines the characteristics for where/how to locate these facilities. If not, the auditee:
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If not, the auditee includes the characteristics as part of its OHS risk assessment. The auditee shall define in consultation with workers and their representatives the minimum adequate conditions related to: o Temperature o Humidity o Space o Sanitation Illumination Space and illumination: Space and illumination need to be provided in such a way that is adequate for workers’ specific activities. The auditee shall be able to provide to the auditor consistent information on: o The existing conditions o Improvement plans (if any) o Timeline and related cost(s) for improvements
IMPORTANT: If the auditor identifies any imminent risk to workers’ health and/or lives, he/she shall trigger an Alert in the BSCI system and stop the normal course of the audit. The BSCI Audit automatically receives a status of Zero Tolerance. For more information, see BSCI System Manual Part V – Annex 5: BSCI Zero Tolerance Protocol.
Documents related to this Performance Area
Certificates and contracts: o Valid inspection and insurance for machinery and vehicles o Purchase invoices of the PPE bought by the auditee o Valid business license and all necessary official approvals to run operations o Official building certificate about safety and appropriateness for the industry o Contract with any service provider including food services, transportation, agents Training: o Documentary evidence of workers training on occupational health and safety o Evidence of a training calendar for workers and management
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If the auditee provides workers with housing: o The rooms shall give workers enough space and not be overcrowded o Workers shall have space to store personal items o Laundry and waste disposal need to be properly organised o Waste removal scheduling shall be displayed for workers in the housing
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o Documentary evidence of workers’ qualifications for those who deal with dangerous machines, electrical installation and any other activity that requires specific training due to the high level of risk
2.8.
No Child Labour
The auditee does not engage in illegal child labour directly or indirectly
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Main auditee: Sampled farm 1: Sampled farm 2: Children who are working who are younger than 15 years old (or younger than 14 years old in countries that have set that age as the threshold), is regarded as child labour, unless it is “light work” (defined below). Child labour occurs when work:
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Records and reports: o Risk assessment for safe, healthy and hygienic working conditions o Action plan for safe, healthy and hygienic working conditions o Documentary evidence of updated contributions to social insurance funds o Occupational health and safety regulations applicable for the industry o Documentary evidence of the election process of the health and safety committee o Minutes of the health and safety committee meetings o Documentary evidence of consumption, withdrawal and disposal of chemicals (including Material Safety Data Sheets – MSDS) o Official inspections conducted to ensure building and equipment safety, including date of validity and corrective actions if any o Inspection reports, maintenance records, operating and safety instructions for: Dangerous machines, including but not limited to lifts, electrical equipment, high-pressure equipment Firefighting equipment (e.g. inspection tags on fire extinguishers) Potable water at production facilities and dormitories Health and safety for the facilities and dormitories including but not limited to temperature, noise level and lighting
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o Is done by a person who is younger than 15 years old (or someone who is younger than 14 years old in countries that have set that age as the threshold) o Is mentally, physically, socially and/or morally dangerous o Is harmful to children o Interferes with their schooling because it: Deprives them of the opportunity to attend school Obliges them to leave school prematurely Requires them to attempt to combine school attendance with excessively long and heavy work o It is not “light work” Light work refers to the participation of children or adolescents in work activities such as: o Helping their parents around the home o Assisting in a family business o Earning pocket money outside school hours and/or during school holidays
o The child is at least 13 years old (or at least 12 years old in countries that have set a minimum age of 14) o It does not prejudice their attendance at school or time dedicated to homework (e.g. maximum two hours in any working day) o It does not take place on a continuous basis (e.g. school holidays) o It is supervised by either parents or any other guardian who can ensure the task provided to children is not harmful for their health or interferes with their schooling. A higher minimum age of 18 years is set for hazardous work which, by its nature or the circumstances under which it is carried out, is likely to jeopardise peoples’ health, safety and/or morals. The auditee must take the necessary measures to: o Understand what child labour is and what it is not o Identify if child labour is or is not likely to occur in its industry or region (e.g. some industries such as agriculture, hunting, forestry, fishing, mining and quarrying have higher risks of child labour than in others) o Not engage child labour indirectly (e.g. using recruitment agencies, or allowing migrant or seasonal workers to use their children to support them at work. Some additional precautions may be needed, such as keeping records of:
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Light work is acceptable as long as:
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Migrant or seasonal workers’ children’s names, ages, schooling time schedules and information on their schools Age and identity cards of workers engaged via recruitment agencies Agencies’ recruitment procedures to avoid engagement of children or illegal workers (among others)
If during the data collection, the auditee realises that some of the workers were engaged before they reached the legal age to work, the auditee immediately reports this to the auditor. Such proactive reporting shows that necessary actions were taken to prevent the case from occurring again. Stakeholder mapping: The auditee keeps contact details of the stakeholder(s) who could help solve child labour cases. BSCI offers Template 6: Stakeholder Mapping that may be used for this purpose.
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Main auditee: Sampled farm 1: Sampled farm 2: The risk for hiring minors is higher for: o Certain sectors (e.g. mining) o Jobs that require low or no qualifications o Work conducted in remote areas where: Labour inspectors are less likely to reach
Individuals have limited access to official identity cards
A robust age-verification mechanism includes: o Training of the person or people in charge of hiring workers and dealing with high-risk situations o Training of the person or people in charge of hiring workers to cross-verify interview techniques to find out the actual age of workers being interviewed o Regular cross-verification of workers’ age with other stakeholders (e.g. recruitment agencies, previous employers)
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The auditee establishes robust age-verification mechanisms as part of the recruitment process, which may not be in any way degrading or disrespectful to the worker
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The auditee has adequate policies and procedures in writing, towards protecting children from any kind of exploitation
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Main auditee: Sampled farm 1: Sampled farm 2: These policies and procedures are meant to ensure no direct exploitation of children (by the auditee) and no indirect exploitation (by business partners). The procedure sets in writing: o The necessary steps to ensure that children are protected from exploitation o How to deal in the most responsible way with cases of child labour The procedure needs to include:
Specifically hazardous working conditions in the workplace Illegal activities in the region (drug trafficking, prostitution or others) Family poverty as a driving force behind child labour Child protection projects run in the area by government, NGOs or others Trade union(s) which could offer support in case of child labour Educational or vocational training facilities nearby or in the region (including contact details and schedules) o Education or social welfare authorities that can provide assistance in cases of child labour o o o o o o
An assessment of the measures to: o Control the risk of child labour o Reduce or eliminate child labour
The auditee has adequate and remedial policies and procedures to provide for further protection in case children are found to be working Main auditee: Sampled farm 1: Sampled farm 2:
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An overview of:
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The remediation procedure must include considerations for removal and rehabilitation of the children: o Possible alternatives for a responsible removal and rehabilitation of the child into society (e.g. non-formal or basic education to help bring older children so they can successfully re-enter regular schools). o Relevant stakeholders who could provide support in case of dismissals of children found working (e.g. local offices of international organisations like Save the Children, UNICEF and government agencies dealing with child protection). The auditee must always have its contact lists up to date. o Allocated budget to provide financial compensation to children found working so they can go to school In some cases the best approach for remediation may be to: o Work out a time schedule for solving the case o Progressively remove children from work
Having a policy to only engage adults is not acceptable as a child labour remediation procedure. IMPORTANT: If the auditor identifies child labour, he/she shall trigger an Alert in the BSCI system and stop the normal course of the audit. The BSCI Audit automatically receives a status of Zero Tolerance. For more information, see BSCI System Manual Part V – Annex 5: BSCI Zero Tolerance Protocol.
Documents related to this Performance Area o o o o o o
Personnel data files for all workers (including seasonal workers) Age-verification procedure Training of Human resources responsible Procedure to avoid children exploitation Child labour remediation procedure Worker contracts or agreements, including with recruitment agencies
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These two approaches might be more appropriate than drastically and immediately removing the child without any supervision. Too quick a removal might mean that she/he turns to less visible and more exploitative, hazardous, illegal types of work.
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PART III: Understanding the BSCI Audit – From the Auditee Perspective
Special Protection for Young Workers
The auditee ensures that young people do not work at night and are protected against conditions of work which are prejudicial to their health, safety, morals and development.
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Main auditee: Sampled farm 1: Sampled farm 2:
The risk assessment must describe the processes and areas of work where young workers cannot be involved. Night work: The period of time that qualifies as “night work” is usually defined by national law. If that is the case, the auditee uses the legal definition as a reference to avoid engaging young workers at night. Without a national law definition, the auditee follows the BSCI definition. BSCI defines “night work” as all work which is performed during a minimum period of 7 consecutive hours, including the period from midnight to 5 am, as defined by the ILO. Young workers’ working hours do not prejudice: o Their attendance at school o Their participation in vocational orientation approved by the competent authority o
Their capacity to benefit from training or instruction programmes
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Main auditee: Sampled farm 1: Sampled farm 2: The auditee ensures that daily working time combined with school time and transport time is limited to 10 hours a day when workers attend: o Local compulsory education o Any other education or training programme approved by the relevant/competent authority
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Risk assessment: The auditee has a good understanding of the activities that are potentially harmful for young workers. A risk assessment is necessary even if the auditee does not engage any young worker.
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The auditee ensures that its own company trainings are scheduled so young workers can still attend school or their education/training programme.
The auditee establishes the necessary mechanisms to prevent, identify and mitigate harm to young workers
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Main auditee: Sampled farm 1: Sampled farm 2:
Workers and their representatives are consulted to define preventive and mitigation measures. The mitigation measures are properly recorded.
The auditee seeks to ensure that young workers have access to effective grievance mechanisms
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Main auditee: Sampled farm 1: Sampled farm 2: Young workers receive special training on how to lodge a grievance. Young workers are properly informed on the support they receive to lodge a grievance. Young workers are trained regardless of the type of employment: seasonal, subcontracted or directly engaged. The auditee keeps records of trainings provided to young workers, concerning the existence and use of the grievance mechanism. Training documentation: The auditee makes available the documents related to these trainings, which include: o Dates, schedules (which should not conflict with schooling or vocational training programmes) o Content o Trainer name and qualification o Attendance list with signatures
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The OHS risk assessment and related action plan include specific attention to young workers.
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The auditee seeks to ensure that young workers are properly trained on Occupational Health and Safety and have access to related training programmes
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Main auditee: Sampled farm 1: Sampled farm 2: Young workers receive occupational health and safety training on the specific risks they face as young workers in relation to their specific tasks. Training documentation: The auditee makes available the documents related to these trainings, which include:
The auditee has a good overview of all young workers engaged in its production site
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Main auditee: Sampled farm 1: Sampled farm 2: The auditee understands that young workers are more vulnerable than most workers. The auditee devotes extra efforts towards monitoring young workers’ working conditions. The auditee has a good overview of young workers’ work cycles. Work cycle refers to: o o o o o o o
The recruitment process Remuneration Hours of work Disciplinary measures Promotion Trainings Termination of employment
Record keeping: The auditee collects and keeps specific records on young workers.
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o Dates, schedules (which should not conflict with schooling or vocational training programmes) o Content o Trainer name and qualification o Attendance list with signatures
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BSCI provides Template 7: Young Workers Data. Template 7 includes the minimum information needed to compile these records. It is especially useful if the auditee does not have its own format to draw on. Handling personal data: Personal data records should only be destroyed in accordance with the national regulations for handling confidential information. See also the Ethical Behaviour Performance Area below.
Documents related to this Performance Area
2.10. No Precarious Employment
The auditee’s employment relationships do not cause insecurity for the workers
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Main auditee: Sampled farm 1: Sampled farm 2: Cause of insecurity: Situations that cause insecurity to the worker can affect both permanent and temporary workers. They include: o Lack of social security o Use of seasonal contracts for permanent positions o Hiring and dismissal practices to avoid consolidation of workers’ rights Temporary workers: The definition of permanent and temporary jobs (seasonal being one type of job) is usually given by law. If there is no legal definition, the auditee defines temporary jobs as jobs with pre-determined end dates or as jobs which end as soon as a project is completed. Probationary period: National legislation often permits that the first few months of a new employment relationship can be set as a probationary period. This period allows both the employer and the employee to try out the employment relationship.
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o Documentation of all trainings given to young workers o Risk assessment and related action plan with specific measures to protect young workers and young female workers o Young workers overview records o Young workers’ work cycle overview
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The terms of a probationary period normally define notice periods to terminate the employment relationship. Other contractual obligations such as the payment of wages and social security contributions remain unaffected. Good practices: When the auditee takes into consideration the role that workers may have as parents or caregivers, and also adapts their working conditions accordingly, the auditor shall acknowledges this as good practice. The auditee shall be proactive in reporting any other contractual practice which is not a legal requirement but a practice which the auditee implements on a voluntary basis to improve working conditions. The auditee works against precariousness by ensuring:
The auditee engages workers based on recognised and documented employment relationships
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Main auditee: Sampled farm 1: Sampled farm 2: The work relation between the auditee and its workers is: o Recognised: The work relation has been established in compliance with national legislation, custom or practice and international labour standards, whichever provides greater protection to workers o Documented: The work relation is supported by means of any documentary proof that makes workers aware of their rights and obligations (e.g. work contracts and posters which indicate working rules). Particular attention shall be given when workers may have difficulties to read and write. In these cases, the auditee must make additional efforts to ensure that workers understand their working conditions. Recruitment agencies: The auditee shall carefully look at workers’ terms of employment when it engages workers by using recruitment agencies. Recruitment agencies must meet the characteristics defined by law to be considered as “recognised agencies”. Otherwise, they represent too high of a risk. The auditee takes the necessary measures to:
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o Fair recruitment processes, remuneration, hours of work, disciplinary measures, promotions, trainings and termination o Temporary job arrangements which do not cover workloads and which lack determined end dates o Valid probationary periods and employment conditions
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o Have a good overview on how the recruitment agency engages workers o Ensure to regularly receive employment documents from the agency o Understand how, when and how much the agency remunerates the workers
The auditee provides workers with understandable information before entering into employment
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Main auditee: Sampled farm 1: Sampled farm 2:
o Understandable: This may require translation to the language of workers, or audio and/or visual guidance for disabled workers as well as for workers who have difficulties in reading and writing o Timely: It needs to be provided before initiating the employment relationship o Relevant: It concerns workers’ rights, obligations, responsibilities and employment conditions. It includes information on:
Working hours
Trainings and other benefits
Remuneration and terms of payment
Access to the grievance mechanism
The same understandable information must be given to the workers hired through “recruitment agencies”.
The auditee does not use employment arrangements in a way that deliberately conflicts with the genuine purpose of the law
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Main auditee: Sampled farm 1: Sampled farm 2: If misused, some legal employment arrangements can jeopardise workers. The auditee shall avoid misusing: o Apprenticeship schemes where there is no intention to develop skills or provide regular employment
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Information provided to workers must be:
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o Seasonal or contingency work when used to undermine workers’ protection In some cases, it is more difficult to determine if the employment arrangement is being misused or not: o Labour-only contracting: This practice may cover bonded labour o Subcontracting: This practice may cover the employer’s intention to avoid reaching the minimum number of workers that allows for the presence of workers representatives or the right to unionise Subcontracting should be done for efficiency or quality reasons, not to undermine workers’ rights. The auditee is able to explain the business logic behind its subcontracting practices and demonstrate that workers’ rights are guaranteed.
o Employment contracts and/or posters where workers’ rights and obligations are displayed o Recruitment and dismissal procedures and records o Overview of subcontractors o Overview of apprenticeships granted in the company o Overview of seasonal workers 2.11. No Bonded Labour
The auditee does not engage in any form of servitude, forced, bonded, indentured, trafficked or non-voluntary labour
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Main auditee: Sampled farm 1: Sampled farm 2: Workers must be engaged: o Based on their free will o Without facing any potential or actual risk of being subject to forced labour
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Documents related to this Performance Area
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Workers can: o Terminate their employment freely, provided that reasonable notice is given to the employer o Leave the premises after working hours, without being stopped or held by security guards (armed or unarmed) o Leave the production site and housing in their free time, without having to ask for permission o Choose accommodation outside of the housing offered by the employer, if they have that possibility The auditee shall make sure that:
Prison labour: It refers to a form of occupation for convicts. Prison Labour is not a human right violation if it fulfils certain conditions: o Prisoners offer their labour voluntarily, without being pressured or threatened with punishment o Prisoners perform their work under conditions close to a free labour relationship to the extent that prisoners' conditions allow (e.g. wage level, social security, OHS) IMPORTANT: Prison Labour in China. BSCI recommends that BSCI Participants do not engage with business partners that use prison labour in China because: o Prisoners’ rights are not covered under Chinese labour law. Instead, they are covered under the prison’s rules and criminal law. o Prisoners’ labour rights, including overtime rates, are not properly protected o Prisoners’ remuneration is decided by the prison’s management o Prison rules do not allow BSCI Audits Sumangali: The term refers to a hiring practice in South India. Sumangali happens when companies recruit young unmarried women from rural villages to work for several years. The main characteristics of Sumangali include that the employer:
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o Work permits are valid without any indication that workers have been victims of human trafficking o Workers receive their visa, housing, training and education without providing any form of servitude o Workers are not requested to leave personal documents in deposit o Workers are not illegally held against their will over their wages or benefits
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o Recruits young unmarried women from rural villages, most commonly by using brokers o Promises a lump-sum payment at the end of the contract period, which is retained from the worker’s regular wage o Controls the movement of the young women outside of their working hours to ensure that they sleep in hostels provided by the employer Sumangali represents an additional risk of bonded labour because these young women: o o o o o
Are taken away from their regions with only limited chance to return freely Usually belong to the lowest caste in India, having little access to education See their wages reduced below the minimum wage Lack guarantees to receive the lump-sum (e.g. in pro-rata) Face additional risks of harassment as they usually remain in confined housing
IMPORTANT: The auditee must pay particular attention to potential abuses of these workers’ vulnerability:
The auditee acts rigorously and diligently when engaging and recruiting migrant workers both directly and indirectly
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Main auditee: Sampled farm 1: Sampled farm 2: The auditee takes the necessary measures to engage migrant workers in a way that does not represent a risk of bonded labour. This is particularly important when engagement is done indirectly (e.g. via recruitment agencies). The auditee remains vigilant to avoid this situation when: o Both the country of origin and host country do not provide reliable protection to migrant workers o Workers have to pay a high recruitment fee to an agency to obtain a work visa and the agency hides from them deductions and remuneration for the work o Workers have restricted their movement because the visa or travel documents are controlled by the agency or the auditee o Workers do not understand the host country language, which puts them in a more vulnerable position
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o The workers are covered by the special protection for young workers o The workers must receive the remuneration which was both agreed and communicated without illegal deductions o The workers have working hours set in line with their apprenticeship situation o The terms of apprenticeship arrangements are respected
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IMPORTANT: In agriculture, cultivation organised by a community because of law or custom is not regarded as compulsory cultivation. This is in line with the ILO Convention 29 (art. 19.2).
The auditee does not subject workers to inhumane or degrading treatment, corporal punishment, mental or physical coercion and/or verbal abuse.
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Main auditee: Sampled farm 1: Sampled farm 2: The auditee ensures that workers receive no degrading treatment by:
The auditee ensures that disciplinary measures do not consist of: o Corporal punishment o Coercion such as:
Debt bondage
Restriction of movement
Violence
Threats and intimidation
Housing: When the auditee provides housing to workers, it must ensure living conditions are respectful to workers’ dignity. These facilities provide as a minimum a: o Separate bed for each worker o Separate locker for storing personal belongings o Separate accommodation for women and men
IMPORTANT: Special attention is to be given to the most vulnerable workers such as migrants, seasonal workers, young workers and pregnant women.
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o Creating and maintaining a culture of respect through the entire business o Being proactive to reward respectful treatment, starting with managers and supervisors
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The auditee establishes all applicable disciplinary procedures in writing and explains them verbally to workers in clear and understandable terms
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Main auditee: Sampled farm 1: Sampled farm 2: The auditee ensures that the disciplinary procedures are:
IMPORTANT: If the auditor identifies bonded labour, he/she shall trigger an Alert in the BSCI system and stop the normal course of the audit. The BSCI Audit receives a status of Zero Tolerance. For more information, see BSCI System Manual Part V – Annex 5: BSCI Zero Tolerance Protocol.
Documents related to this Performance Area
o Documentary evidence of training given to workers, management and human resources (e.g. list of attendees with signatures) o Documentary evidence on disciplinary procedures o Employment contracts including those related to security personnel, cleaning and other services o Documentary evidence on disciplinary cases and the measures taken 2.12. Protection of the Environment IMPORTANT: If the main auditee holds a valid GlobalGAP Certificate, the auditor shall not monitor this Performance Area.
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o Coherent and in line with the law o In writing and easily accessible to the workers and workers representatives o Descriptive concerning the censurable behaviour and possible disciplinary actions o Descriptive regarding the person in charge and communication channel (including appeal) o Free from unfair deductions or imposition of financial fees, which may actually be illegal deductions
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The auditee continuously identifies the significant impacts and environmental implications associated to its activity
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Main auditee: Sampled farm 1: Sampled farm 2: The auditee has a good understanding of the environmental impacts of its business activities. The self-assessment for environmental impacts includes:
The auditee has procedures in place to ensure integration of local environmental law into the business performance
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Main auditee: Sampled farm 1: Sampled farm 2: Environmental legal compliance and protection require business enterprises to: o Integrate policies and procedures into core business strategy o Make these policies and procedures a visible part of the business culture The auditee develops effective ways to ensure: o Ongoing identification of environmental legislation o Definition of the environmental requirements that apply to its own daily activities o Identification of sources of information on environmental legislation such as: Specialised sites online
Publications issued by industry experts
Tailor-made services provided by specialised companies
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PERFORMANCE AREA 12: Protection of the Environment
o All processes taking place in the business’ boundaries o New production processes or newly installed equipment, which are immediately integrated into the assessment o Clear understanding on how business activity impacts the environment o Pre-defined time periods for conducting such assessments o Competent staff responsible for collecting the data and doing the assessment
BSCI System Manual v. 11-11-2014
PART III: Understanding the BSCI Audit – From the Auditee Perspective
The auditee has and maintains required environmental permits and licences
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Main auditee: Sampled farm 1: Sampled farm 2: The auditee is aware of the necessary environmental permits and licences required by law for specific business activities.
The auditee manages waste in a way that does not lead to the pollution of the environment.
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Main auditee: Sampled farm 1: Sampled farm 2: There are local areas where waste separation and disposal are not managed by public authorities. This may lead to dumping waste material into the environment. Regardless of national regulations or not, the auditee has procedures in place to: o Identify and separate the type of waste generated (hazardous versus nonhazardous). This includes packaging material o Define any specific handling requirements (e.g. disposal via an authorised agent or to a specialised site) o Create awareness among workers about the waste generated and the proper way to handle it o Avoid dumping waste into natural environments o Avoid burning waste in open fires o Dispose of plastics and empty chemical containers without incurring predictable environmental risks including potential harm to humans
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PERFORMANCE AREA 12: Protection of the Environment
Environmental permits and licences are relevant and up to date. If any is unavailable, the auditee has at least already requested it from the competent authority.
BSCI System Manual v. 11-11-2014
PART III: Understanding the BSCI Audit – From the Auditee Perspective
The auditee manages water in a way that respects the environment, including preserving local water sources
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Main auditee: Sampled farm 1: Sampled farm 2: The auditee has mechanisms in place to promote water conservation and water waste reduction. This refers to water for industrial use and personal consumption. Possible mechanisms include:
Both management and workers shall be aware of the existence of water sources and the relation that the facility has to their use, supervision and preservation.
Documents related to this Performance Area
o Environmental risk assessment o Map identification of water springs, rivers, lakes in the area of auditee activities o Calculation of the necessary financial and personnel resources to comply with the minimum social and environmental requirements o Valid certificates and environmental licenses 2.13. Ethical Behaviour
The auditee actively opposes any act of corruption, extortion or embezzlement, or any form of bribery in its activities as a business enterprise Main auditee: Sampled farm 1: Sampled farm 2:
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PERFORMANCE AREA 12: Protection of the Environment
o Licensed water use (when requested by the applicable law) o Proper identification of water springs, rivers, lakes and other water ecosystems in the area o Documented risk assessments that justify management decisions on water use (e.g. irrigation in farms) o Awareness raising on water waste reduction
BSCI System Manual v. 11-11-2014
PART III: Understanding the BSCI Audit – From the Auditee Perspective
The auditee: o Has a policy (e.g. BSCI Code) in place that publicly condemns corruption, extortion and bribery as unacceptable unethical behaviours o Has procedures against any act of corruption o Identifies where the major risks of corruption could occur o Investigates and discourages any misbehaviour among the workers, particularly those with decision-making power o Rewards ethical behaviour and integrity among its workers and managers o Includes ethics and integrity as part of the training offered to workers and managers o Pays particular attention to the relations between auditor and auditee; supervisors; recruitment agencies and subcontractors
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Main auditee: Sampled farm 1: Sampled farm 2: Disclosed information: The auditee discloses information about its activities, according to applicable regulations and industry benchmark practices. The auditee ensures information about its business is: o Accurate: The information presented by the auditee to the BSCI Participant and/or the auditor is exact o Structured: The information on different facilities and the way that the auditee organises its production sites is clear, organised and available Activity and performance: Auditee claims about its activity are correct (e.g. production volumes, number of workers, working hours, if workers were hired directly or indirectly) Reports from previous audits (BSCI Audits or others) or government inspections are available including follow-ups on any findings, which were previously reported.
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PERFORMANCE AREA 13: Ethical Behaviour
The auditee keeps accurate information regarding its own activities, structure and performance
BSCI System Manual v. 11-11-2014
PART III: Understanding the BSCI Audit – From the Auditee Perspective
The auditee takes the necessary measures to prevent: o Falsification of information related to its activities, structure and performance o Any act of misrepresentation of its supply chain
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Main auditee: Sampled farm 1: Sampled farm 2: Ethical behaviour in business starts with the way in which enterprises run their operations. Falsification, fraud and misrepresentation: Falsification, fraud and misrepresentation are purposeful actions intended to cause harm or loss to another party, for one’s own direct or indirect gain.
The auditee has a serious commitment to avoid any of these actions. It must then ensure that if any staff member behaves unethically, proper investigation and disciplinary action will follow. The auditee collects, uses and processes personal information with reasonable care and in accordance with privacy and information security laws and regulatory requirements
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Main auditee: Sampled farm 1: Sampled farm 2: The auditee collects and processes personal data of individuals with the utmost respect for the individuals’ fundamental rights (particularly the right to privacy). The level of care applies to directly hired workers, business partners, customers and consumers in the auditee’s sphere of influence. Special attention is paid to the way data are collected to ensure that the worker is protected (e.g. medical records). IMPORTANT: If the auditor identifies any flagrant misrepresentation; bribery; or any other proven unethical behaviour, he/she shall trigger an Alert in the BSCI system and stop the normal course of the audit. The BSCI Audit receives a status of Zero Tolerance. For more information, see BSCI System Manual Part V – Annex 5: BSCI Zero Tolerance Protocol.
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PERFORMANCE AREA 13: Ethical Behaviour
Fraud and misrepresentation in the supply chain impacts supply chain integrity and can result in substandard or defective products.
BSCI System Manual v. 11-11-2014
PART III: Understanding the BSCI Audit – From the Auditee Perspective
Documents related to this Performance Area
o o o o
Anti-corruption policy Corruption risk assessment Procedure for investigation and discouragement of unethical behaviour Communications and trainings to promote and reward integrity
3. How Farms are Involved in the Monitoring Process (if applicable) The main auditee is responsible for: o Classifying its farms based on their social performance and potential risks (see BSCI System Manual Part IV - Template 2: Supply Chain Mapping) o Evaluating the social performance of these farms o Supporting the farms in their continuous improvement of working conditions (e.g. remediation plan) Social Management System: To that aim, the main auditee must first set up a Social Management System (see BSCI System Manual Part V - Annex 4: How to set up a Social Management System). As part of this, the main auditee selects a qualified person to conduct internal audits and to maintain close follow-up on the improvements in working conditions that these farms may need. Internal audits: The auditee is requested to internally audit farms from which it sources fresh fruits and vegetables or flowers. Out of these farms, the auditor selects a sample and evaluates their social performance. Farms: Sampled farms are included in the scope of the BSCI Audit when requested by the BSCI Participant. BSCI Participants shall include sampled farms in the scope of the audit if the auditee produces fresh fruits and vegetables or flowers. The internal auditor shall conduct an assessment of the farms providing fresh fruit and vegetables or flowers to the main auditee. He or she will use the BSCI System Manual Part III for that. Smallholders: In addition, BSCI provides the Template 3: Smallholders Self-Assessment, which is used when the main auditee sources from smallholder(s). A smallholder is a farm using a family workforce or less than 5 hired workers.
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PART III: Understanding the BSCI Audit – From the Auditee Perspective
4. Understanding the Interviews Conducted by the BSCI Auditor Open and constructive: The BSCI auditor must conduct interviews with management in open and constructive dialogue. The auditor uses interviews to get information on the company’s social performance. Interview results can be used and compared with other sources of information. During the interviews, management shall be ready to provide clear explanations about: o Company’s organisational chart, division of responsibilities and communication channels o Overview on the latest investments to improve occupational health, safety and productivity o Overview on the different business partners and how the company selects them and monitors their social performance o Operational details with regard to: Drafting and implementing policies and procedures Hiring practices, grievance management and workers’ training
5. Understanding the BSCI Audit Report An opportunity to learn: The Audit Report is the written summary of all information collected during the audit. It contains data evidence as well as the evaluation of all Performance Areas. The auditee shall see the audit as an opportunity to learn. The information gathered in the Audit Report will provide it with crucial information to design its path towards sustainable improvements. Closing meeting and Findings Report: The closing meeting represents the end of the BSCI Audit. The auditor must use this opportunity to: o Describe to the auditee the good practices and areas of improvements identified during the audit o Clarify to the auditee any potential doubt or concern about the BSCI Audit and next steps The auditee must use this opportunity to: o Ask as many questions as needed to have more clarity on the meaning of the audit and next steps o Engage with the workers representative and management. They shall be present in the closing meeting so they can already start the planning for next steps
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PART III: Understanding the BSCI Audit – From the Auditee Perspective
Once clarifications have been made, the printout of the Findings Report is to be signed by: o The auditor o The auditee’s legal representative o The workers representative (when applicable) Signature of the Findings Report: The auditee signature does not imply that it is in agreement with the content. It acknowledges that the audit has been conducted in a proper manner. The auditee may request the auditor to integrate its remarks, made in the closing meeting, into the Findings Report. The auditee and the auditor each keep one copy. Audit Report: All information gathered in the BSCI Audit is reported in the BSCI Audit Report. This includes: o Data Evidence o Interview Evidence o Documentary Evidence o Performance Evaluation of the main auditee o Performance Evaluation of the sampled farms (if relevant) o Findings Report Online report: The Audit Report is fully available to the auditee in the BSCI Platform 10 days after the audit has been conducted. To access this information, the auditee needs to log-in by using its password. In case of a forgotten password, the auditee contacts the BSCI Administrator from the BSCI Platform login webpage: http://www.bsciplatform.org/home PDF report: Alternatively, the auditee may require its client (or the auditor) to provide a summary report in PDF format. IMPORTANT: The rating of the audit indicates the improvements that the auditee needs
to make in each different Performance Area. It does not guarantee the auditee social performance.
6. How to Draft the Remediation Plan The Findings Report allows the auditee to develop the related Remediation Plan. The auditee is expected to be proactive and creative when making corrections and improvements to follow the BSCI system requirements.
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PART III: Understanding the BSCI Audit – From the Auditee Perspective
Steps for drafting the Remediation Plan: o Identify the origin of the problem that is causing the breach of workers’rights o Suggest feasible solutions (distinguish between short-term and long-lasting solutions) o Identify a person responsible for the BSCI implementation process and allocate a realistic budget o Establish a strategy to monitor improvements o Define and respect the implementation steps BSCI provides Template 9: Remediation Plan to support the auditee in drafting the Remediation Plan. The Remediation Plan provides the auditee with greater maturity to afford the necessary changes. The auditee should always envisage the development of its own root cause analysis and remediation plan even if it fails to submit it on time. Submission of the Remediation Plan: The auditee is granted 60 working days to draft and submit the final Remediation Plan into the BSCI Platform. If the auditee has difficulties to submit the document when using the BSCI Platform, it can always share it with the auditor prior to the follow-up audit. Missing the deadline: No submission of the Remediation Plan does not prevent or delay the follow up of the improvement process. The BSCI follow-up audit will be scheduled within the timeframe defined in the Findings Report and the auditor will use the Findings Report as a reference point to verify the improvements.
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PART V: Annexes
Part IV Templates
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PART IV: Templates
Template 1: Business Partner Information This template supports the BSCI Participants to collect information on their business partners. It helps them so they can decide to monitor them or not. The template can be used by any company to collect information about its business partners. It can also be used by the auditee to collect information on itself as well as on its business partners.
COMPANY CONTACT DETAILS
Company name: Legal status: Founding date: Address:
Street number ZIP code City Province Country GPS coordinates
Company website (if applicable): Yes
Does it have production units? Local currency: Exchange rate to Euros: Exchange rate date: dd/mm/yyyy CONTACT PERSON DATA Contact person:
Job title First name Last name Email Phone
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No
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(including country code & area code)
Primary language : Official language for written communication
Secondary language : Other relevant language for communication (if applicable)
PRODUCTION DATA
Production volume Production cost calculation Lost time injury calculation cost
Yes Yes
No No
(part of the accident records)
PRODUCTION CALENDAR
In the table below, indicate the level of production activity for each month (low, medium, high).
January February March April May June July August September October November December
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PART IV: Templates
Social and Environmental Certificates
CERTIFICATION OVERVIEW
Name of the scheme: Certificate or audit validity date :
Month
Year
Month
Year
Day
Month
Year
Day
Month
Year
Day
Month
Year
Day
Link to online version:
Name of the scheme: Certificate or audit validity date :
Day
Link to online version:
Name of the scheme: Certificate or audit validity date : Link to online version:
Name of the scheme: Certificate or audit validity date : Link to online version:
Name of the scheme: Certificate or audit validity date : Link to online version:
Name of the scheme:
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Certificate or audit validity date :
Day
Month
Year
Link to online version: WORKING ENVIRONMENT Workers organisation or Trade union : Workers organisation contact person, or workers representative : Title (Mr./Mrs./Ms.) First Name Last Name Position Year of Election Relevant trade union (if any) :
Valid collective bargaining agreement (if any) : Hours / Week
Legal regular working hours : Legal regulation for overtime (if any) :
Specific overtime premium rate for standard day off (if any) : Legal regulation of shifts (if any) : Standard day off in the country : Select relevant days
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Monday
Friday
Tuesday
Saturday
Wednesday Thursday
Sunday
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PART IV: Templates
REMUNERATION PRACTICE IN THE COMPANY
Legal minimum wage which applies :
per hour
Select the relevant unit
(in local currency)
per day per week per month
per hour
Calculated living wage: Select the relevant unit (See also BSCI Template 5: Fair Remuneration Quick scan)
(in local currency)
per day per week per month
Specific industry-based remuneration (if any) :
Description of legally granted social benefits:
Total minimum remuneration for a full-time worker (wages + social benefits) : Lowest wage for regular working time in the company :
per hour (in local currency)
per day per week per month
How long does it take the auditee to pay its workers after the working period is completed (e.g. daily, monthly, piece-rate)? SITUATIONAL DESCRIPTIONS
Description of any specific situation that led to overtime in the past six months (if no situation, answer NONE):
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PART IV: Templates
Description of any accident that occurred in the past six months (if no accident, answer NONE):
Description of a strike, walkout, and/or protest during the past 12 months (If not, answer NONE):
Description of a highly risky production technique that could harm workers’ health (e.g. sandblasting) or a less harmful replacement technique, if any (If not, answer NONE):
Description of any voluntary procedure meant to decrease the company’s adverse impact on the environment (If not, answer NONE):
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PART IV: Templates
Template 2: Supply Chain Mapping This template supports the auditee to collect information about the auditee’s own business partners. The auditee collects this information on every company that it does business with. The auditor shall review this information.
Business partner name : Identification code assigned by the auditee (if any): Contact person:
Full address:
First name Last name Email Street number ZIP code City Region Province Country
Type of business partner: (e.g. subcontractor, farm)
Business relation since :
Year
Number of workers : Distance to auditee's head office (Km): Significance of this business partner for the auditee?
Kilometres
Low
Medium
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High
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PART IV: Templates
For farms only - size in hectares:
Hectares
Is it part of the internal social management system?
Yes
No
Is it internally audited?
Yes
No
Does it have a social certificate?
Yes
No
Validity of social certificate (if any) :
Day
Month
Year
Has it signed the BSCI Code and relevant Terms of Implementation? Mandatory for farms
Yes
Additional comments about the business partner (if any) :
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No
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PART IV: Templates
Template 3: Smallholders Self-Assessment
This template helps the auditee to collect information about business partners when they are farms which use a family workforce or hire less than 5 workers. For farms with more than 5 hired workers, the auditee should use Part III and BSCI Template 1: Business Partner Information. This template can be used by the main auditee for two purposes: o To evaluate the social performance of smallholders from which it sources fresh produce o To conduct internal assessments of those smallholders who may be selected as part of the BSCI Audit farm sample The main auditee uses one profile per smallholder.
Name of the Farm: Legal status: Name of Internal Assessor: (if applicable) Job title of Internal Assessor: Product(s): Total number of workers:
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PART IV: Templates
Checklist questions per Performance Area Performance area 1: Social Management System and Cascade Effect This performance area does not apply to smallholders. Performance area 2: Workers Involvement and Protection The auditee involves workers and exchanges information with them on workplace issues. The auditee takes specific steps to make workers aware of their rights and responsibilities. Performance area 3: The rights of Freedom of Association and Collective Bargaining The auditee respects the right of workers to form unions in a free and democratic way. Performance area 4: No Discrimination The auditee takes the necessary measures to avoid or eradicate discrimination in the workplace. The auditee takes the necessary preventative and/or remedial measures so workers are not harassed or disciplined on grounds of discrimination as defined in the BSCI Code. Performance area 5: Fair Remuneration The auditee pays its workers at least the legal minimum wage or a higher wage approved through collective bargaining. The auditee pays wages on time, regularly and fully in legal tender. Auditee deductions to workers’ remuneration are only taken according to conditions prescribed by law. Performance area 6: Decent Working Hours The auditee does not require workers to work more than 48 regular working hours per week, unless exceptional cases are prescribed by law. The auditee does not require workers to work overtime but may do so in exceptional cases by always paying a premium rate. The auditee grants workers the right to resting breaks in every working day. The auditee grants workers the right to at least one day off in every seven days, unless a different agreement has been reached through collective bargaining.
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PART IV: Templates
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Checklist questions per Performance Area Performance area 7: Occupational Health and Safety The auditee cooperates with workers when developing and implementing systems to ensure a healthy and safe work environment. The auditee enforces the use of personal protective equipment with other safety systems and procedures. The auditee respects the workers’ right to remove themselves from imminent danger without seeking permission. The auditee provides workers with potable water at all times. Performance area 8: No Child Labour The auditee does not engage in illegal child labour directly or indirectly. Performance area 9: Special protection for young workers The auditee ensures that young workers do not work at night and that they are protected against working conditions which are harmful to their health, safety, morals and development. The auditee ensures that young workers’ working hours do not lower or affect their attendance at school, or any other training or instruction programmes. The auditee seeks to ensure that young workers are properly trained on occupational health and safety. The auditee has a good overview of all young workers engaged in its production site(s). The overview may include the auditee’s family members who support with ‘light work’.
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Checklist questions per Performance Area Performance area 10: No Precarious Employment The auditee does not provide employment relationships that cause insecurity for the workers. The auditee employs workers based on recognised employment relationships and keeps records of the contracts. The auditee provides workers with understandable information on their rights and obligations before they start working. Performance area 11: No Bonded Labour The auditee does not engage workers under any form of servitude or forced, bonded, indentured, trafficked or non-voluntary labour. The auditee acts carefully and remains vigilant when recruiting and engaging migrant workers either directly or indirectly. The auditee does not treat workers in an inhumane or degrading manner. Corporal punishment, mental or physical coercion and/or verbal abuse are forbidden. Performance area 12: Protection of the Environment The auditee manages waste in a way that does not lead to the pollution of the environment. The auditee manages water in a way that respects the environment, particularly with respect to preserving local water sources. Performance area 13: Ethical Business Behaviour The auditee actively opposes corruption, extortion or in any form of bribery in its activities. The auditee keeps accurate information regarding its own activities and organisational structure.
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PART IV: Templates
Template 4: Working Hours Form This template supports the auditee to collect information on the working hours per worker. This allows the auditee to identify the trend in working hour peaks within three month periods. The data collection allows the auditee to identify potential risks to workers’ health and safety due to the amount of working hours.
First and last name : Date of birth :
Day
Month
Year
Working in the facility since :
Day
Month
Year
Department: Working in shifts? :
Yes
No
if Yes, indicate the time schedule: Describe resting breaks
Working Hours Table Quarter 1 (JANUARY - MARCH) Working hours in every week 1
2
3
4
5
6
7
8
9
10
11
12
AVERAGE
12
AVERAGE
12
AVERAGE
12
AVERAGE
Quarter 2 (APRIL-JUNE) Working hours in every week 1
2
3
4
5
6
7
8
9
10
11
Quarter 3 (JULY - SEPTEMBER) Working hours in every week 1
2
3
4
5
6
7
8
9
10
11
Quarter 4 (OCTOBER - DECEMBER) Working hours in every week 1
2
3
4
5
6
7
8
9
10
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PART IV: Templates
Template 5: Fair Remuneration Quick Scan This template supports the auditee to understand the living costs in its region and among its workforce. It creates an opportunity for constructive dialogue between management and the workers about fair remuneration.
Regional context information
Local currency : Average number of adult wage earners in a family: Average number of children in a family: Average number of adult dependents in a family: Average number of adults in a family following an education course after work: Most common source of energy at home : (e.g. gas, electricity, charcoal) Most common mode of transportation: Average distance between work and worker's home (in km): Average distance between worker’s home and closest place for shopping (in km): Average distance between worker’s home and closest school (in km): Average distance between worker’s home and closest medical facility (in km): Most common access to potable water at home : (e.g. public access, bottled water)
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PART IV: Templates
Average family expenses information
Category
Number of individuals
Cost in local currency
Total
Education:
x
=
Transportation:
x
=
Food:
x
=
Clothing: Energy and water consumption: Housing:
x
= = =
Unexpected events:
=
Savings:
= Total family basket:
=
To calculate the percentage of the family’s expenses spent on food, please divide the total costs of the category “food” by the total family basket, and multiply the number obtained by 100: Percentage of costs related to food:
=
Calculation formula Living wage estimation for an adult who is working full time (48 hours per week or the local maximum regular working hours per week). To estimate the living wage, please divide the total family basket (calculated using the table above) by the number of wage earners in a family, and multiply the number obtained by 110% (discretionary income):
Total family basket:
X 110% Number of wage earners per family:
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=
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PART IV: Templates
Template 6: Stakeholder Mapping This template supports the auditee to identify the potential allies for its continuous improvement. The auditee shall pay particular attention to identify the institutions or NGOs that could provide it with support to reintegrate children into society. The auditee may use one sheet per stakeholder.
Stakeholder name : Relation since (e.g. year): Contact person :
Address:
First name Last name Email Street number ZIP code City Region Province Country
Stakeholder type:
Internal (e.g. worker)
External (e.g. trade union, client)
Specify stakeholder type (e.g. local NGO) :
Topic related Anti-corruption Stop Child labour Freedom of association Grievance mechanism
Relevant for child labour
Occupational health and safety Special protection for vulnerable workers Training Other
Yes
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No
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remediation? Additional comments about stakeholder (if any):
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Template 7: Young Workers Data This template supports the auditee to keep accurate information on any worker who is younger than 18 years old. The auditee shall use one sheet per worker. This information shall be verified by the auditor. First and last name : Date of birth:
Day
Month
Year
Working in the facility since :
Day
Month
Year
Department : Type of worker:
Permanent
Temporary
Seasonal Agency /Broker
Recruited via: Attending school or vocational training:
Directly
Yes
No
if Yes, indicate the schooling time or training schedule: Working time schedule: Training on access to grievance mechanisms
Yes
Training on OHS (Occupational Health and Safety) :
Day: Topics: Frequency:
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No
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Housing provided by auditee?
PART IV: Templates
Yes
Additional comments about young worker (if any):
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No
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PART IV: Templates
Template 8: Grievance Mechanism This template supports the auditee to keep accurate information of any grievance lodged and its investigation. This information shall be verified by the auditor.
Identification number given to the grievance : Grievance lodged :
Day
Month
Year
The auditee duplicates the table below as many times as there are grievances lodged.
Grievance steps Hearing of the parties Yes
No
Comments:
Further investigation needed Yes
No
Comments:
Conclusion reached and accepted Yes
No
Comments:
Has a workers representative been involved? Yes
No
Comments:
Has the grievance escalated to a higher level? Yes
No
Comments:
Has the grievance led to a legal case? Yes
No
Comments:
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Template 9: Remediation Plan This template supports the auditee to identify the root causes of its difficulties in any Performance Area. Please upload this Remediation Plan on the BSCI Platform within 60 days after the audit ‘www.bsciplatform.org). See more information in BSCI System Manual Part III: How to draft a Remediation Plan
Company name : DBID: Audit date to which this Remediation Plan refers :
Day
Month
Year
The auditee duplicates the below table as many times as there are Performance Areas with findings identified by the auditor (e.g. if there are findings in 5 Performance Areas, the auditee fills in the table below 5 times accordingly).
Performance Area: (Fill in title) Planned actions deadline date Day
Month Identified needs
Policy/ Procedure Documentation/Data management Communication/ Transparency Training Structural change Stakeholder engagement Others
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Year
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Planned actions
Person(s) in charge
Financial resources allocated
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PART V: Annexes
Part V Annexes
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PART V: Annexes
Annex 1 – How to Start with the BSCI Platform
This document provides details on the steps to access the BSCI Platform and the kinds of rights and obligations that users have. The main functions of the BSCI Platform are described and related to each specific group of users. These are the documents/tools related to this topic: o Login credentials from the BSCI Platform o BSCI Platform: http://www.bsciplatform.org o BSCI Platform Tutorials (beginner and advanced level)
The table below shows BSCI Platform terms and the equivalent BSCI terms used outside the platform: BSCI Platform terms BSCI Terms BSCI participant BSCI Participant Supplier Business partner not to be monitored* Producer Business partner to be monitored Auditor Auditing company *This may include agents, traders and importers as well as producers not to be monitored.
1. BSCI Platform Terms of Use The BSCI Platform is administered by the BSCI Secretariat. It compiles information generated by: o BSCI Participants o Their business partners, particularly producers in the monitoring process o Auditing companies commissioned to conduct BSCI Audits When BSCI Participants and their business partners login to the BSCI Platform for the first time, they all ‘’accept’’ the terms and conditions of use. Confidentiality and data protection All information posted in the BSCI Platform is protected by confidentiality agreements. It is not accessible outside the BSCI system, unless a transfer of information is necessary on behalf of FTA/BSCI-related activities. FTA complies with all obligations applicable to data processors under European data protection legislation.
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The BSCI Secretariat has access to all information contained in the BSCI Platform to check: o The BSCI Participants’ commitment and implementation progress o Implementation progress of business partners being monitored o Auditing companies’ integrity and quality performance Business confidentiality is protected, while allowing collaboration among business enterprises on social issues. BSCI Participants can share information about the social performance of common business partners and plan alternatives together to avoid duplication of efforts. Searching function: BSCI Participants and auditing companies must know the name of a producer to successfully search its profile and access its information. Auditors are only allowed to view documentation related to the facilities that they audited or plan to audit. They can also upload audit results. Access to other functions of the BSCI Platform is restricted. Auditing companies are responsible for uploading most information into the BSCI Platform. The FTA Framework contract ensures that auditors assume special responsibility in the information management, such as: o Use only the BSCI Platform to communicate the results of their audits o Ensure that data submitted through the BSCI Platform are accurate and current as of the date of submission and to the best of their knowledge o Use information accessed in the BSCI Platform only to audit factories and farms in the supply chain of BSCI Participants o Treat all information in the BSCI Platform as business confidential and auditors cannot disclose it outside the BSCI Platform
2. Overview of the Platform Functions The BSCI Platform serves the different actors to coordinate the BSCI implementation in an efficient way. 2.1. For BSCI Participants BSCI participants can use the BSCI Platform to: Map the supply chain. For example: o To verify if significant business partners are already registered by searching for their names in the platform o To create profiles for each significant business partner that was not previously registered o To keep an overview of their significant business partners monitored or not monitored Monitor the supply chain
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The BSCI system relies on the link of responsibility (RSP) between the BSCI Participant(s) and the business partners to be monitored (the producers). Although several companies may source from a certain producer, only one BSCI Participant holds the right to request and authorise audits. This right implies the responsibility to follow up diligently as the reputations of other BSCI Participants and the BSCI system rely on it. These are the RSP rights and obligations: o o o o
Order BSCI Audits (full and follow-up audits) Follow up on remediation plans Follow up on possible alerts generated by auditors or by the Secretariat Restart the BSCI Audit cycle
The status can be: o Unilaterally released (e.g. because of stopping the contractual relation with the business partner) o Lost because of the lack of exercising the related rights and obligations o Released upon request of another BSCI Participant Communicate with: o Other BSCI Participants o Their business partners o The auditing companies o The BSCI Secretariat 2.2. For business partners BSCI Participants´ business partners can use the BSCI Platform: o To keep track of their supply chain, in case of agents, traders and importers o To post their general information if they have a production site o To coordinate monitoring activities for their significant business partners with the respective lead RSP holder For more information on RSP, see BSCI System Manual Part I – Chapter 1, subchapter 1.1. :Relations between BSCI Participants and their Business Partners. 2.3. For business partners to be monitored (producer) BSCI Participants´ producers can use the BSCI Platform: o To post their general information, particularly in preparation for an audit o To visualise their social performance progress o To post their remediation plans after an audit 2.4. For auditors Auditors can use the BSCI Platform: o To receive and schedule audit requests
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o To receive special instructions for the audit performance (e.g. scope, announcement of the visit) o To post audit and follow-up results o To communicate with the BSCI Participants in case of urgent situations such as zero tolerance issues. For more information, see BSCI System Manual Part V Annex 5: BSCI Zero Tolerance Protocol.
3. How to login To be able to login, users need a profile to access the BSCI Platform. Every profile is associated to a unique email address. This email address is the user name. For BSCI Participants Once FTA membership has been confirmed, the BSCI Secretariat provides the BSCI Participant with a username and password for both: o The BSCI Platform o The BSCI website (Participants’ Area) The logins are different. The BSCI Secretariat issues the logins for the BSCI Participant’s main contact person. For business partners to be monitored (producers) These profiles can be created by: o The relevant BSCI Participant: The platform sends an automated email to the main contact person with the login and password o An auditing company: The automated email is subject to the approval of the relevant BSCI Participant For business partners not to be monitored These profiles can be created by the relevant BSCI Participant (only): the platform sends an automated email to the main contact person with the login and password. For auditors Upon signing the FTA framework contract, the main contact person will receive via email the username and password for the platform. This main contact person will be responsible for creating profiles for all other staff members who may need access.
4. Tutorials The BSCI Secretariat explains via online tutorials to all related audiences how to use the BSCI Platform. Tutorials also cover updates being made to the platform. To access the tutorials, one must login to the platform and click on the tab ‘’RESOURCES’’.
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When changes are made to the BSCI Platform, the BSCI Secretariat notifies the users about these changes (e.g. in the help section, which is accessible on the platform’s homepage; in user profiles).
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Annex 2 - BSCI Classification of Sectors, Industries and Product Groups
This document provides details on how BSCI classifies sectors of activity, industry types and product groups.
Sector
Industry Type*
Accessories
Product Group
Product (examples)
Arts, crafts and needlework Bathroom and kitchen utensils Clocks and watches Glassware (eyewear) Jewellery Personal accessories
Umbrellas, sunglasses
NON- FOOD
Other accessories (please specify)
Agriculture
Chemical Industry
Construction
Flowers and ornamental plants Agrochemicals and pesticides Cleaning and hygiene products Lubricants Other chemical products (please specify) Building products Households Office furniture Kitchen merchandise Lawns and garden supplies Storage, haulage and containers Plumbing/heating/ventilation/air conditioning Safety/security/surveillance Bathroom appliances Furniture Other construction items (please specify)
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Detergents
Stones
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Industry type*
Product Group
Product (examples)
Baby care Fragrances
Cosmetic Industry
Extractive Industry Forestry, Wood, Pulp and Paper
NON- FOOD
Health Industry
Live Animals and Related Products
Mechanical and Electrical Engineering
Media and Graphical Industry Plastic Industry Sports Equipment and Sportswear
Textiles, Clothing, Leather
Toys and Games
Personal beauty, hygiene and care (including alternative beauty products)
Face cream, oral care, hair care
Other cosmetic products (please specify) Metal production Oil, fuels and gas production Forestry derivatives Alternative health products First aid and wound care Optics, ear and prostheses Pharmacy products Other health products (please specify) Accessories Pets, animal and pet food Other live animal products (please specify) Electrical supplies Home appliances Safety protection – DIY (do it yourself) Tools equipment - power Transport and automotive Other engineering (please specify) Audio, visual and photography Textual and printed materials Plastic and articles thereof PVC (polyvinyl chloride) Other plastic-like products (please specify) Sports equipment Sportswear Other sport equipment (please specify) Apparel Footwear (including sport shoes) Handbags, belts and shoes Home textiles Other soft goods (please specify) Games Toys Others (please specify)
Other (please specify) …
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Charcoal, rubber, wild nuts Antibiotics
Cables
Cameras Plastic bottles
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Sector
Industry type*
Agriculture
Dairy Industry
FOOD
Fishery, Aquaculture and Inland Waterways
Food, Drink and Tobacco
Meat Industry Other (please specify)
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Product Group
Product (examples)
Fresh fruits and vegetables Cereals (including soy), leguminosae and their products
Bananas Beans
Herbs and spices (including tobacco leaves) Roots and tubers (including potatoes) Other agricultural products (please specify) Dairy products (including butter)
Tea
Fish, crustaceans and molluscs (fresh and frozen)
Pangasius
Other fishery (please specify) Alcoholic beverages and spirits Cocoa and cocoa preparations Coffee and coffee preparations Eggs and egg preparations Honey (both natural and blended) Juices and vinegar Non-alcoholic beverages (including soft drinks and water) Nuts and nut preparations
Processed fruits and vegetables Sugar and sugar confectionery Tobacco and tobacco preparations Vegetable oils and margarines Other food products (please specify) Livestock Meat products (fresh and frozen) …
Yoghurt
Wine Chocolate Chicken eggs Honey Tea Nuts (including Brazilian Nuts)
Olive oil
…
* Sources: - ILO Sector classification: http://www.ilo.org/sector/lang--en/index.htm - GPC (Global Product Classification) Standards (as at 01 January 2012)
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Annex 3 – How to Set Up a Social Management System (SMS)
This document provides the basis for business enterprises to build a Social Management System (SMS) as an integral element of the BSCI implementation strategy. Description of the key steps as well as the relation between Social Management System and cascade effect is provided.
Definition
A Social Management System is a set of processes and procedures that allows a company to analyse, control and reduce the social impacts of its activities. Social Management Systems are appropriate for all kinds of companies, regardless of sizes, sectors or industries. An effective Social Management System demonstrates company maturity as a responsible enterprise. It makes its business more reliable for clients, customers and investors. Social Management System development and implementation require the involvement of at least the following areas of the business: o Human resources o Occupational health and safety o Quality and compliance Companies may deal with these areas in separate management systems if their size and/or nature of business require. Companies with a higher likelihood of facing significant social risks may have additional systems for managing community relations and/or community impacts (e.g. grievance mechanism).
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Basic aspects Social Management Systems follow the approach of PLAN, DO, CHECK, ADJUST.
PLAN
ADJUST
DO
CHECK Figure 17: Elements of the Social Management System
Social Policy Social policy does not need to be long or technical like a legal document. It needs to clearly communicate to both internal and external stakeholders: o The core values and principles of the company o How internal stakeholders (management, board, workers) are expected to behave o How external stakeholders can expect the company to operate (suppliers, contractors) As part of the drafting process, the company’s social policy needs to draw from the results of benchmarking core values and expectations with the applicable law. This ensures the legitimacy of the expectations that are communicated in the social policy.
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The BSCI Code of Conduct serves as the basis for company social policy. For more information on the importance of a social policy, values and observance of the law, see the BSCI System Manual Part I - Chapter 3, subchapters 3.1. to 3.4. Specific for Business partners to be monitored (producer) The social policy allows management and workers to: o Get the BSCI Code of Conduct backed up by the national law in one document o Consolidate the values to follow in business activities o Understand the aim and importance of the BSCI Audit
Procedures Procedures ensure that the social policy is implemented in a systematic way within the business enterprise. They provide clarity on: o Decision-making level: Who decides what o Operational level: Who implements what o Timeframe: How often? How long? A company will have procedures in place to: o Define and review its social goals o Analyse social risks and impacts: Who defines what is risky for the business? Who is responsible for taking risks? o Update business practices to meet relevant legal requirements
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o Establish programmes and direct competent staff to meet objectives and targets o Monitor and measure progress towards achieving objectives o Ensure workers’ awareness and competence about the company’s social policy and objectives o Review and improve the Social Management System These are examples of required procedures: o Anti-corruption o Human resources (hiring, training, remuneration, disciplinary measures, firing) o Grievance mechanisms o Selecting business partners (e.g. hiring subcontractors) o Internal auditing o Monitoring impacts o Remediation Plan and monitoring its progress o Periodical revision of the social policy and management systems (see Social Management System Review below) IMPORTANT: Companies shall prioritise the development of procedures that deal with everyday activities as well as those aspects that may represent a higher risk.
Record keeping An effective Social Management System has to be supported by a good record keeping system. The table below shows the characteristics of a good record keeping system. Companies certified to ISO-type systems are already familiar with these requirements:
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Record Keeping should be… Compliant
Responsible
Implemented
Reliable
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Explanation
How to evaluate?
The record keeping system is in line with the legal and administrative requirements for the jurisdictions in which they operate, including specific documentation, operational, and reporting requirements.
Does the company keep the records as long as required by law? Does the company respect privacy and information security regulations?
The record keeping system is directed by policies with assigned responsibilities, along with formal methodologies and procedures for their management.
Does the company have procedures in place about how records need to be kept? Who is the responsible for each set of records? E.g. accident records; compliance records; payrolls… Does the company adjust the system to the way in which business is conducted? Is decision-making based on the relevant records that are kept for that purpose?
The record keeping systems are employed consistently in the normal course of business and record keeping follows the defined policies and procedures. The records are legitimate and not a face-saving exercise. The record keeping system processes the information in a consistent and accurate way, to ensure that the records they hold are credible.
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Regarding evidence on business partners, does the company have specific measures to ensure that the information is and remains credible? E.g. concerning age verification: does the company have additional measures to check the validity of identity cards?
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The relevant person can find relevant information in the record keeping systems in a timely manner.
Would the company, if that company is a producer involved in BSCI, be able to provide information on demand if requested to do so during an “unannounced audit”? Or during a buyer’s visit?
Figure 18: Characteristics of a Good Record Keeping System
Specific for Business partners to be monitored (producer) Effective record keeping is particularly critical because BSCI Audits rely on the verification of documentary proof as part of the triangulation technique. (See Internal monitoring below). Record keeping must file: o All procedures drafted to follow the social policy o Actual records such as: Employees’ contracts, remuneration, working hours, training (e.g. for migrant workers, seasonal workers) Agreements with recruitment agencies Occupational health and safety risk assessments Accident records Machine maintenance Licenses, certificates Internal monitoring and remediation plans Human rights impact assessments (including of the supply chain) Documents to make available during the BSCI Audit are listed in Annex 6: Most Relevant Documents for the BSCI Audit. The list is not exhaustive but is to be used as a reference.
Internal monitoring Monitoring and periodic reviews allow companies to understand how to check and adjust their social performance. Monitoring the Social Management System is to be done from three angles: o Intent: Are all the elements of the Social Management System in place? o Implementation: Are procedures being followed? o Effectiveness: How is the social performance of the company in general? Does the company observe the law? Is the company making progress towards its improvement objectives? Records help businesses to define quantitative indicators of progress, for example:
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Wage levels Frequency of disciplinary measures Frequency of absenteeism Frequency of complaints
The table below shows the elements of the triangulation technique that are relevant for the internal monitoring as well as for BSCI Audits.
VISUAL OBSERVATION Examples o o o o o o
INTERVIEWS Examples
Site access Visitor check-in area Warning signs Use of PPE Availability of first-aid kits Confined spaces
o Do workers and managers understand the policies and procedures? o Are there ideas for improvement? o Do workers feel comfortable filing complaints? o How are business partners selected?
MEASURING AND TESTING Examples
DOCUMENT REVIEW Examples
o Quality of drinking water for workers o Noise level o Frequency of absenteeism o Lighting for night work
o Permit requirements o Occupational health and safety records o Inspection records o Complaint logs o Wage slips o Policies and procedures o Training records
Figure 19: Elements of Triangulation Technique
Social Management System Review
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Periodic review: Social Management Systems need to be evaluated periodically and adapt to changing business environments and lessons learned. The review shall be done with more frequency at the beginning once the system becomes operational (e.g. every 3 to 6 months). Once the Social Management System is well-established, it may be sufficient to evaluate it once a year. The review should at least assess: o Overall success of every item of the policy o Remediation plans and the effectiveness of their implementation o The suitability of procedures o Effectiveness and practicality of forms and records in use o Complaints and the grievance mechanism(s) o Possible adjustments based on risk assessments o Priorities to define for the next 3, 6 and 12 months o Approved resources needed by senior management Minutes of these meetings, which must include the key topics discussed and the decisions made, shall be kept in writing in the central record keeping system. Senior management must be involved in the review process. Social Management System and the BSCI cascade effect By signing the BSCI Code and related Terms of Implementation, business enterprises commit to cascade the BSCI Code through the supply chain, regardless if they are going to be monitored or not. As part of their Social Management Systems and ongoing due diligence, business enterprises should regularly assess risks to human rights in the supply chain (e.g. land rights, remuneration, discrimination towards minorities). Possible risks can then be mapped to determine how to mitigate them.
Business partners that are not to be monitored
They integrate in their own Social Management Systems the following aspects: Procedures to: o Include the BSCI Code of Conduct as part of the selection of their significant business partners (particularly those that belong to a BSCI Participant’s supply chain) o Define the communication channel(s) with the BSCI Participant o Define relevant social performance topics to proactively communicate to the BSCI Participant
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Record keeping for reference on: o How its own significant business partners embrace the BSCI Code of Conduct o The social monitoring of/in their supply chain Business partners that are going to be monitored (producer)
The auditor evaluates the level of awareness that the auditee has with regard to its own business partners. To that aim, the auditee should follow the following steps: Mapping the business partners To decide which of the business partners need to be involved in the internal monitoring phase, the main auditee applies the methodology described in BSCI System Manual Part I: Chapter 3, subchapter 3.5.3. Classify and select business partners. The table below is an example of how the main auditee may classify its own business partners and the related way to monitor their social performance. High
Medium
Low
Valid certificate 2nd party audit 2nd party audits Internal audits Part of the Social Management System Part of the Social Management System Internal audits
To classify and monitor its business partners, the main auditee uses information such as: o BSCI Template 1: Business Partner Information o Any other self-assessment or social audit tool (e.g. SMETA report or GRASP selfassessment for farms) Awareness raising among the business partners: The main auditee informs its business partners about the BSCI Code of Conduct. Those to be included in the internal monitoring must be aware of: o The content and procedure of the internal monitoring o The role of the internal auditor o The communication and grievance channels E.g. If the main auditee is a cooperative, the president shall call for an extraordinary meeting of members to inform them about the issue and next steps. Minutes of this meeting must be recorded. Business partners’ internal monitoring
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The main auditee takes charge and responsibility in supporting the business partners to continuously improve their social performance. When the main auditee sources fruits and vegetables directly from farms such responsibility is mandatory. Expectations of business partners’ social performance may differ depending on their respective capabilities. E.g. Some social requirements do not apply to farmers who qualify as smallholders. For more information, see BSCI System Manual Part III – Chapter 3: How Farms are Involved in the Monitoring Process (if applicable). IMPORTANT: The internal auditor has the capacities to conduct social audits. He or she shall go through the BSCI System Manual in detail and pay special attention to the chapters and all the content addressing the auditors who conduct BSCI Audits. The internal social audit may lead to a Remediation Plan before the BSCI Audit takes place. This allows the main auditee and sampled business partners to initiate improvements that positively impact the BSCI Audit. Minimum number of internal monitoring The internal monitoring of business partners must be repeated periodically. New business partners should always be included in the process. The main auditee decides on the number of business partners to be internally monitored with one exception: If the main auditee sources fresh produce directly from farms (fruits, vegetables and flowers), the auditee shall internally audit 2/3 of its own farms. If the main auditee is a cooperative, the farm members are considered as their own farms. The main auditee has 3 years to do the internal audits.
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Annex 4– How to Set Up a Grievance Mechanism
This document provides details on the characteristics of a grievance mechanism. It defines the steps to lodge and investigate a grievance.
1. Understand the Principles A grievance mechanism must comply with the following principles. Knowing these principles will help a business enterprise develop and set up an operational grievance mechanism. Legitimate
All the parties should recognise the mechanism as legitimate and workers should feel that they are able to raise their grievances without fear of victimisation or negative consequences. o Consultation: Before a new mechanism is set up, there should be consultations on the draft mechanism between management, workers and their representatives o Awareness: Once it is implemented, all managers, supervisors and workers need to be fully briefed so everybody is made aware of the mechanism o Training: Training should be given to managers, supervisors, workers and their representatives o Procedure: When someone has raised a grievance by using the grievance mechanism, it is important to stick to the agreed procedures so that the legitimacy of the process can be further ensured
Accessible
Everyone should know that the mechanism exists and how to use it. o Displayed: Copies of the mechanism procedures should be displayed on all notice boards that are seen by workers, as well as in workshops, changing rooms and other areas where workers gather o Hard copy: When it is set up, workers should be given a ‘hard copy’ of the mechanism procedures as well as the necessary forms
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o New hiring: When new workers are hired, ensure an information session is conducted to explain how the mechanism works; this should be prioritised for young workers; seasonal workers should also be invited to attend o Informative sessions: The content of these information sessions should at least include: what a grievance is; how to raise it; where to get the necessary forms; where to hand them in; where to go for information on the mechanism Transparent
Everyone should be able to see that the mechanism is working. Confidentiality: Transparency does not simply mean displaying names and practical details about the grievance. Communications should be balanced: reveal general information but keep personal and other important details confidential. Publication: Normally, the following information can be published: the date of the complaint; the description (in general terms); the investigation and conciliation measures taken; the final remedy taken and the date of the solution.
Start with Dialogue The mechanism should aim at getting people to talk to each other so that they agree on the nature of the problem, and agree on solutions that are acceptable to all parties concerned. Cultural differences: Every culture has a different understanding of what dialogue means and what can be achieved through it. Training on conciliation: At least the person in charge of receiving the grievances should be trained on managing conflicts in the workplace, conciliation and mediation. External support: Seek external support from consultants or stakeholders specialised in conflict resolution as well as the topic at stake.
2. Understand the Content A grievance can be defined as any concern, unhappiness or discontent that a worker might have in the workplace. Grievances can be related to: o Infrastructure (e.g. the working room does not have sufficient lighting or ventilation; the space assigned to the worker is not sufficient to safely conduct the work)
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o Personal relations (e.g. a supervisor has used physical or verbal harassment; there is a conflict between co-workers) o Contractual rights (e.g. payment is systematically delayed; there are illegal deductions; overtime is not paid in premium rate or it is paid in a lower amount than initially agreed) o Human and labour rights (e.g. a worker has suffered discrimination based on gender; religion; place of origin; a worker has been punished because of attending a trade union meeting; the water available during working time is not drinkable) o Others: customary rights (e.g. requesting time to pray or to participate in community activities) Workers’ grievances may also be related to issues other than what is described above in the five categories. In such cases, workers may still lodge the grievance internally while seeking outside assistance. Workers representatives can be a good source of information.
3. Understand the Procedure Workers should have access to the grievance procedure, including necessary details such as: o The possibility to hold an open and constructive meeting about a grievance with their immediate supervisor or manager o The right to appeal to a more senior manager against a decision made by their supervisor or manager o The workers’ right to be accompanied by a fellow worker of her/his own choice or by a union representative (applicable for unionised facilities) when attending the meeting to discuss a grievance. The procedure should be able to answer questions like: 3.1. Who can lodge a grievance? A good grievance mechanism should apply to all workers regardless of their roles or seniority. 3.2. How is a grievance lodged? Grievances could be raised verbally or in writing.
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Usually, the first stage is to make a verbal complaint (e.g. to the direct supervisor). The escalation of the complaint to a higher level of management (or the person in charge of the grievance mechanism) occurs most often through a grievance form (see below). Although both verbal and written systems may work, for the sake of transparency, a business enterprise may encourage workers to use its own grievance form. The form will keep track of the nature of the grievance, the nature of the investigation and remediation steps. Workers may seek the support of a fellow worker or the workers representative to raise the problem on their behalf. This is another suitable way of raising a grievance that should be legitimate and that cannot easily be rejected by the manager or person in charge of the grievance mechanism. 3.3. Who collects the grievance forms? In general, it is recommended that the worker should lodge the grievance with her/his immediate supervisor or manager (first instance). If the grievance is raised about her/his own supervisor, the grievance will need to be addressed to the person in charge of the grievance mechanism. It is also recommended that companies appoint somebody to deal with grievances and that workers are aware of who that is. If not, workers’ grievances will be processed through the company hierarchy. Appointing a person to deal with grievances enforces: o Transparency and predictability: everyone in the company knows from the beginning who is supposed to first learn about the grievance o Efficiency: The grievance does not get lost through the different company departments and it can be addressed immediately
4. Use Grievance Forms Grievance forms should not be complicated documents but they should: o Allow the workers to describe the actual grievance o Allow the company to track the investigation, conciliation and remediation steps, when applicable o Be available to all workers at the production site; copies of the forms should also be left in places where workers can access them easily and privately (e.g. changing rooms, the workshops and other places where workers spend a lot of time). IMPORTANT: An identification number may be assigned to the grievance (e.g. number/year). This will facilitate tracking both the investigation and communication process without actually revealing the identity of the worker or the nature of the complaint. The form may contain a list of possible grievances to help workers describe their grievances.
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Grievance number: n/yyyy
From First name
Category
Infrastructure
Personal relations
Contractual rights
Human rights
Labour rights
Customary rights
Last name
Job title
Date
Description (please be as specific as possible):
For Administration use only Received by: First name
Last name
Date Grievance received
Job title
signature
Figure 20: Example of a Grievance Mechanism Form
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5. Follow-Up Once a Grievance is Lodged 5.1. STEP 1 Acknowledgement: The supervisor or person in charge of the grievance mechanism should acknowledge receipt of the grievance form in writing. E.g. Grievance number 3/2014 was received on 13/03/2014. The worker will be contacted within 10 days to proceed to the next steps. Signature. Keep this statement simple: What is relevant at this point is that the date of reception is acknowledged and that there is a commitment to follow up. More details can be communicated when the worker is contacted. Even if the aim is to solve grievances as quickly and effectively as possible, the timeframes will vary depending on the complexity of the grievances. 5.2. STEP 2 Analysis: The supervisor or the person in charge of the grievance mechanism should: o Analyse the issue o Try to identify the root cause(s) of the problem o Identify the potential solutions o Make the necessary arrangements to resolve the problem (or remediate) This analytical approach o Shows if the proposed correction or remediation is affordable o Brings different solutions depending on the type of grievance E.g. A grievance against the conditions of the workplace infrastructure will require a different approach and timeline for finding the solution than a grievance related to personal relations with a supervisor or co-worker.
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The table below helps to analyse a grievance: Answers can be: YES, NO, PARTIALLY Do I know the potential root cause? Do I need more information? Who should I contact?
Is the potential solution feasible? By when?
Do I have the leverage? Who can help me?
Cost of the correction; Cost of the remediation? Is it affordable?
Infrastructure related Personal matter Contract related Human and labour rights Figure 21: Example of How to Analyse a Grievance
5.4. STEP 3: Mediation: Once the analysis of the grievance is complete, the supervisor or person in charge of resolving the grievance should call the worker for a meeting. The invitation for a meeting can be extended orally or in writing. The advantage of a written invitation is the documentary proof. However, depending on the context of the complaint or company procedures, a written form may not be an option. Regardless of whether the invitation to the worker is written or oral, it should communicate: o The day of the meeting o The place o Who else will be present (if applicable) The worker should also be informed of her/his right to come to the meeting with a fellow worker of her/his free choice or the workers representative. The worker may also choose to invite somebody from outside the company such as a trusted community stakeholder. During the meeting, the person in charge will provide the background (step 1, step 2) and present the reasoning behind the analysis.
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The worker should be given the chance to contribute at every step of the explanation and she/he should validate if the analytical process has been consistent and accurate. Eventually, the person in charge will present the potential solution and he/she will seek the worker’s reaction and approval. Minutes of this meeting should be taken. 5.5. STEP 4: Closing and Publication Ideally, after the mediation meeting, an agreement will have been made between both parties and they will have settled on the corrective or remediation measures to be taken as well as the timeframe to implement these measures. With respect to the privacy of the people involved, the solution of the grievance will be published on the notice boards to address workers. Making the solution public as well as respecting the timeframe for the corrective measures are crucial for maintaining the credibility of the grievance mechanism among the workers. 5.6. STEP 5: Appeal Disagreement on the analysis and proposed corrective actions as well as any delay on the implementation of agreed corrective measures are grounds for appeal. In addition, the worker may raise an additional complaint if she/he believes to have been victimised or harassed in the way in which her/his grievance has been dealt with. The management should investigate the worker’s claim immediately. Misuse of the grievance mechanism to victimise or harass workers should be disciplined (including dismissal of the supervisor or manager) as this behaviour compromises the integrity of the mechanism. The workers may seek other channels of appeal outside the company. These depend on the national laws and the different arbitration processes and platforms available in the region to address workers’ complaints. Finally, the relevant labour laws may define legal dispute mechanisms.
6. Complaints from Local Community Business enterprises may have a procedure to receive grievances from local people. The steps described above for grievances from workers remain valid to address grievances from local communities. The company shall ensure that local community members are aware of their rights and the related channels to lodge grievances.
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Annex 5 – BSCI Zero Tolerance Protocol
This document provides details on the Zero Tolerance issues and related protocol for the BSCI Secretariat, BSCI Participants and auditors.
1. Background Auditors must carry out the following procedure if during a BSCI Audit (full or follow-
up) they identify any Zero Tolerance Issue as defined below. Zero tolerance issues can be:
o Flagrant human rights violations o Flagrant unethical behaviour that compromises the integrity of the BSCI Audit o Found at the production facility as well as at the employer-provided housing that is checked as part of a factory or farm visit 2. Definition of Zero Tolerance Issues Child Labour o o
Workers who are younger than 15 years old (or the legal minimum age defined by the country, e.g. 14) Workers younger than 18 who are subjected to the worst forms of child labour (forced labour, prostitution, pornography and illegal activities)
Bonded Labour and inhumane treatment o o o
Not allowing workers to leave the workplace against their will, including when they are forced to work overtime against their will Use of violence or the threat of violence to intimidate workers to force them to work Inhumane or degrading treatment, corporal punishment (including sexual violence), mental or physical coercion and/or verbal abuse
Occupational Health and Safety
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Occupational health and safety violations that pose an imminent and significant threat to workers’ health, safety and/or lives
Unethical behaviour o o
Attempted bribery of auditors Intentional misrepresentation in the supply chain (e.g. hiding production sites)
To be considered zero tolerance, all these issues must be: o Flagrant at the time of the audit o Factual and proven Confidential comments: If the auditor has serious suspicions that zero tolerance issues take place, but they are not flagrant at the time of the audit, then the auditor shall report those suspicions under “Executive Summary of Confidential Comments” in the Audit Report. 3. Protocol for the auditor
3.1.
Due diligence:
The auditor collects as many facts and as much evidence as possible to illustrate the violation. Pictures taken and workers’ testimonies help to prove the allegation. When relevant and if possible, auditors inform the victims of their options to seek assistance and to provide referral information. IMPORTANT: Victims’ identities are only disclosed to the BSCI Secretariat. 3.2.
Action:
The auditor interrupts the regular course of the audit and uses the time left (if any) to: o Collect as much evidence as possible o Ensure the well-being of the victim(s). Any action taken must not in any way place the victim in any further danger or make him or her vulnerable to any retribution. 3.3.
Notification:
Within 24 hours: Auditors confronted with these Zero Tolerance situations must notify them to the BSCI Secretariat and the relevant BSCI Participants within 24 hours following detection of the flagrant violation(s). Notification must be done through the BSCI Platform and inform:
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All BSCI Participants related to that auditee (not only the RSP holder) The BSCI Secretariat: Auditing, Stakeholder Relations, System and Communications departments The BSCI scheme manager at his/her auditing company 4. Protocol for the BSCI secretariat:
4.1.
Due diligence:
Within 48 hours following the allegation: Auditing Department: Immediately cross verifies: o The auditor’s collected facts and evidence to validate the reliability o The auditor’s training and competences o Any previous allegations/complaints with regard to either the auditor’s or the auditee’s behaviour o With the auditing company, any additional information or documentary support Communications Department: Immediately checks media to see if the case could be directly or indirectly related to breaking or ongoing news. Stakeholder Relations Department: Immediately verifies if BSCI has local partners to contact who could support in addressing the specific issue. This department will check with the BSCI Country Representatives (when applicable) if some information can be corroborated. 4.2.
Coordination:
Within 72 hours following the allegation. Unethical behaviour may require a longer reaction period as it is often subject to the auditing company’s internal investigation procedure. System Department: Upon gathering the information from the other departments, this department organises: o A conference call with all relevant BSCI Participants o The integration of relevant local stakeholders (if relevant) o Definition of investigation steps 4.3.
Follow-up and communication:
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System Department: Coordinates according to the specific action plan decided among the related BSCI Participants: o Action plan and the remediation steps o Inspection request to the local labour authority (when relevant/if possible) o Agreement among the BSCI Participants on the remediation process. It will vary depending on the alleged violation and the underlying circumstances Communications Department: Ensures regular communication with/between internal and external stakeholders as appropriate: Communication with other initiatives if the producer or auditor is part of another initiative, when relevant. 5. Protocol for all related BSCI Participants: o Links in the BSCI Platform will remain until the immediate conference call o They react to the BSCI conference call within 72 hours o They agree to disclose the company identity among the other implicated Participants o They will become part of an ad-hoc remediation group composed of all related Participants. The group will be led by the BSCI Secretariat as per the first conference call o They will cooperate within the ad-hoc remediation group to, among other things, communicate collectively to the auditee in question o They will take the decisions on the investigation process and the remediation steps based on absolute majority (50% +1) o They will suspend any monitoring activities either in progress or scheduled during the timeframe of the Remediation Plan and its implementation o They will accept relevant stakeholders as part of this ad-hoc remediation group, if necessary o They will ensure that the effectiveness of the Remediation Plan is verified in due course by means of a full BSCI Audit
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Annex 6 – Most Relevant Documents for the BSCI Audit
This list illustrates documentation relevant for keeping an effective Social Management System. It should not be considered as fixed as every company shall decide which documents reflect its own business. Current and minimum 12 month old records should be available for the audit. As part of the auditing technique to seek satisfactory evidence, the auditor shall verify documents from this list and others that may be relevant for the specific audit. Business partners to be monitored shall benefit from having used this list by collecting the information in advance to be better prepared for the BSCI Audit. The documents listed below are also listed by Performance Area in the BSCI System Manual Part II and Part III.
No.
DOCUMENT
Certificates and contracts 1
Job descriptions in which the implementation of BSCI is included
2
Evidence of the qualifications of the person in charge of implementing BSCI
3
Employment contracts including those related to security personnel, cleaning and other services
4
Contract with any service provider including food services, transportation, agents
5
Worker contracts or agreements, including with recruitment agencies
6
Employment contracts and/or posters where workers’ rights and obligations are displayed
7
Valid inspection and insurance for machinery and vehicles
8
Purchase invoices of the PPE bought by the auditee
9
Valid business license and all necessary official approvals to run operations
10
Official building certificate about safety and appropriateness for the industry
11 Valid certificates and environmental licenses Training 12
Evidence of a training calendar for workers and management
13
Documentary evidence of training given to workers, management and human resources (e.g. list of attendees with signatures)
14
Documentary evidence of trainer competence
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17
Documentary evidence of workers training on occupational health and safety Documentary evidence of workers’ qualifications for those who deal with dangerous machines, electrical installation and any other activity that requires specific training due to the high level of risk Documentation of all trainings given to young workers
18
Communications and trainings to promote and reward integrity
16
Records and reports 19
Documentary evidence on production capacity planning
20
Evidence that the BSCI Code of Conduct and Terms of Implementation have been distributed to significant business partners
21
Signed BSCI Code of Conduct and relevant Terms of Implementation if farms are part of the scope of the audit
22
Evidence of business partners’ social performance (quarterly reports, audit reports, valid certificates)
23
Documentary evidence of the social policy and procedures to implement BSCI
24
Documentary evidence of the workers representative election
25
Documentary evidence of regularly scheduled workers meetings
26
Records of agreements with workers representatives
27
Documented working rules
28
Documentary evidence of grievances lodged/investigated (e.g. BSCI Template 8 filled in)
29
Collective Bargaining Agreement (if applicable)
30
Minutes or documents of meetings that led to the collective bargaining agreement (if applicable)
31
Recruitment and dismissal procedures and records
32
Documentary evidence on disciplinary procedures
33
Documentary evidence on disciplinary cases and the measures taken
34
Documentary evidence of workers’ performance assessments and procedures
35
Documentary evidence of legal deductions for goods and services
36
Documentation on legal minimum wages relevant for the sector
37
Pay slips for workers and documentary evidence of payments
38
Fair remuneration quick-scan completed (BSCI Template 5)
39
Personnel data files for all workers (including seasonal workers)
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Documentary evidence of additional benefits (commercial insurance if applicable) Documentary evidence of updated contributions to social insurance funds
42
Lists of wage ranges and calculations including for piece rate workers
40
44
Documentary evidence of the legal permanent exception covering the auditee’s industry Working time records
45
Documented overtime procedure including agreements with workers
46
Documented records of accidents
47
Risk assessment for safe, healthy and hygienic working conditions
48
Action plan for safe, healthy and hygienic working conditions
49
Occupational health and safety regulations applicable for the industry
43
51
Documentary evidence of the election process of the health and safety committee Minutes of the health and safety committee meetings
52
Age-verification procedure
53
Procedure to avoid child exploitation
54
Child labour remediation procedure
55
Risk assessment and related action plan with specific measures to protect young workers and young female workers
56
Young workers overview records
57
Young workers’ work cycle overview
58
Overview of subcontractors
59
Overview of apprenticeships granted in the company
60
Overview of seasonal workers
61
Environmental risk assessment
62
Map identification of water springs, rivers, lakes in the area of auditee activities
50
63 64
65 66 67
Documentary evidence of consumption, withdrawal and disposal of chemicals (including Material Safety Data Sheets – MSDS) Official inspections conducted to ensure building and equipment safety, including date of validity and corrective actions if any Inspection reports, maintenance records, operating and safety instructions for: Dangerous machines, including but not limited to lifts, electrical equipment, high-pressure equipment Firefighting equipment (e.g. inspection tags on fire extinguishers) Potable water at production facilities and dormitories
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Health and safety for the facilities and dormitories including but not limited to temperature, noise level and lighting Calculation of the necessary financial and personnel resources to comply with the minimum social and environmental requirements Anti-corruption policy Corruption risk assessment Procedure for investigation and discouragement of unethical behaviour
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Annex 7 - BSCI Buyers Checklist
This document intends to support buying departments in the identification of imminent social risks for whenbuyers visit a producer. This checklist does not intend to substitute a social audit but ratherto help a person without specific social compliance expertise to identify risks related to a producer's social performance. This information is to be shared with relevant managers usually at company headquarters (e.g. CSR). This will allow the BSCI Participant to take further steps in line with its CSR strategy (e.g. when scheduling the BSCI Audit, the auditor may be informed about these pre-identified areas of concern). QUESTIONS Requirement 1. Is the BSCI Code of Conduct posted in a visible area? 2. Is the person in charge of implementing BSCI in a senior role? 3. Is there any kind of complaint mechanism / suggestion box visible? 4. Do people address colleagues and subordinates with respect? 5. Is any information visible on how shifts are organised? Or lunch breaks? Or working hours?
YES
NO
Comment The Code should be in a language understandable to workers.
6. Is the workplace clean and organised?
Also eating facilities and food storage should be clean and organised.
7. Are the toilets clean and equipped with soap and the necessary accessories to respect workers' hygiene and morals?
E.g. Separated by gender, locks in good condition.
8. Is drinking water made available and accessible to workers? 9. Are workers using Personal Protective Equipment (PPE)? 10. Are there first-aid kits with enough material available? 11. Are signs and warnings posted in the right place and are they intuitive enough to be understood regardless of the level of literacy? 12. Are escape routes/aisles and exits properly marked, unblocked and easily accessible? 13. Are there fire extinguishers available and are they in good condition? 14. Is a fire alarm system installed? 15. Is the evacuation plan posted in a visible place and intuitive enough to be understood regardless of the level of literacy? 16. Are electrical wiring and/or electrical installations in good condition and can imminent hazards be seen?
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E.g. The same applies in dormitories or housing provided by the producer to the workers E.g. In noisy areas, wet areas. PPEs should be clean and in good condition.
E.g. Are restricted or dangerous areas properly marked? E.g. At least 2 exits on each floor/workshop and the doors open from the inside. An official sticker indicating the validation date should be posted on the fire extinguishers.
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17. Are chemicals stored and disposed of in a way that avoids leakage?
Both the workplace and surroundings should be visibly free of waste.
18. Do workers look old enough to be allowed to work? 19. Is there a place that allows visitors to wait without having to enter the work area? 20. Is the building in a good condition without any visible imminent hazards?
E.g. Very often children may be waiting for their parents in the working area, which is not safe for them. E.g. Roof, walls, humidity signs, window glasses, locks in good condition.
TOTAL Other comments or recommendations
Any other circumstance you would like to report? E.g. Workers show what could be perceived as too much respect towards their supervisors, security guards hold weapons in the workplace.
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Annex 8 - Quick Assessment of Social Audits from Other Systems
This document provides details on how to pre-assess the coverage of other social systems in the supply chain. This pre-assessment is part of due diligence and allows companies to: o Assess the level of risk associated with producers that claim to have a social certificate or follow a similar code of conduct o Decide whether or not these producers are to be monitored within BSCI
1. Understanding the context BSCI Participants ultimately envisage that all business partners in their supply chains share their values and principles and, when relevant, are monitored against the BSCI Code. Exceptionally and temporarily, BSCI Participants may recognise the efforts made by producers following other social schemes provided that: o The social scheme fully or partially covers the BSCI non-negotiable requirements (see table below) o The follow-up and implementation plan towards continuous and sustainable improvements is both serious and credible Business partners that meet the two preconditions mentioned above shall be asked to sign the BSCI Code and Terms of Implementation for Business Partners. The signature provides BSCI Participants with the necessary legal framework to request follow-up and continuous improvements with regard to the equivalent system. BSCI Participants make this recognition unilaterally. It cannot be mistaken with mutual recognition between the BSCI system and other systems.
2. Non-negotiable requirements quick-scan
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NON-NEGOTIABLE REQUIREMENTS QUICK-SCAN
NAME OF OTHER SYSTEM: Date of the comparison: Conducted by: I.
Minimum Content
Yes No Comments
Reference to the ILO Core Conventions Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87) Right to Organise and Collective Bargaining Convention, 1949 (No. 98) Forced Labour Convention, 1930 (No. 29) Abolition of Forced Labour Convention, 1957 (No. 105) Minimum Age Convention, 1973 (No. 138) Worst Forms of Child Labour Convention, 1999 (No. 182) Equal Remuneration Convention, 1951 (No. 100) Discrimination (Employment and Occupation) Convention, 1958 (No. 111) Limit of working hours as per BSCI Code of Conduct Regular working hours: maximum 48 hours per week and 8 hours per day, with the exceptions as specified by the ILO Limit on overtime: the national law and the characteristics of exceptional, voluntary and premium paid Resting time: resting breaks in every day and right to at least one day off in every seven days unless a valid Collective Bargaining Agreement specifies otherwise Remuneration At least minimum wage according to the national law or industry minimum standard is enforced
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Occupational Health and Safety Conducting Risk Assessment Workers Training Personal Protective Equipment (PPE) Chemicals Accident and Emergency Procedures Electricity Fire Protection Escape Routes and Emergency Exits Machine and Vehicle Safety First-aid Workplace, Social Facilities, Housing II. Audit Process and Auditing Bodies
Yes No Comments
Duration of the audit The social audit takes minimum one man-day (8 hours x one auditor) The duration of the audit must be visible in the audit report Audit validity The certificate or social report shall not be older than 12 months Triangulation technique The social audit shall include verification of documents, worker interviews and the site visit Clear follow up The social audit report shall describe the findings and define deadlines for required corrective actions. Certificates; Audit Reports must have further explanations of findings (e.g. it is insufficient to only have YES/ NO; graphics; or traffic light answers without further details) The social audit used a standardised report with information that is in the latest version in use Competence As a minimum it is a second party audit. Self-assessments cannot be considered as sufficient The system must define the minimum competence requirements of the
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auditor The system must have in place mechanisms to ensure to regularly update auditors and/or auditing companies III.
Governance [Independent Standards]
The system must have a structured revision process with at least defined steps and a responsible person appointed The system must be transparent on its governance (e.g. organisational chart available on the website) The system must make available annual updates on its activities and/or impacts Figure 22: Non-Negotiable Requirements Quick-Scan
Step 1: Verify that the social scheme meets the non-negotiable requirements BSCI Participants and their business partners gather information about the social system. Usually this information comes from the producer (potential auditee) that claims to follow an equivalent system. This producer shall provide as much information as possible, particularly: o Full audit report or equivalent document o Full Remediation Plan or equivalent document IMPORTANT: In order to safeguard the credibility of BSCI Participants' due diligence process, BSCI Participants are requested NOT to: o Accept as equivalent to the BSCI system any other system that does not cover the minimum requirements listed in the Quick-Scan above o Accept all audit reports or certificates issued by a particular social system, without having previously checked the individual audit report or certificate on a case-by-case basis If an individual brand’s standard meets all the requirements listed above, it can also be accepted as equivalent to the BSCI system.
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Step 2: Analyse the level of coverage Assessment Full coverage
Consequence All questions in the Quick-Scan are answered YES The producer is not monitored against the BSCI Code of Conduct. The producer signs the BSCI Code and Terms of Implementation for Business Partners Close follow-up must be done on continuous and sustainable improvement The decision not to monitor may be revised at any time
Partial coverage
All questions are answered YES, except the questions with a grey background The BSCI Participant recognises the system up to the end of the audit validity but no longer than 12 months. The producer signs the BSCI Code and Terms of Implementation for Business Partners. Close follow up must be done on continuous and sustainable improvement. The decision not to monitor will not go beyond 12 months.
No coverage
Not all questions are answered YES The BSCI Participant does not recognise the producers’ claim. The producer signs the BSCI Code and Terms of Implementation for Business Partners to be monitored as this business partner will eventually receive a BSCI Audit.
Step 3: Follow up o BSCI Participants have the responsibility to closely follow up on the continuous and sustainable improvement of these producers that are covered by other social systems o When requesting the producer to sign the Code of Conduct, the BSCI Participant should communicate its decision to the related producer and state that such a decision can be reviewed at any time o If another BSCI Participant sourcing from the same producer decides to include that producer in the BSCI monitoring process, this decision prevails
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Annex 9 – BSCI Code of Conduct version 2014 – Poster version Original version in A3 format
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Annex 10 – How Business Enterprises are Involved in BSCI Original version in A3 format
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Annex 11 – The BSCI Commitment Formula version 2010
The new BSCI Code of Conduct clearly sets BSCI Participants’ commitment towards abiding by the principles of the BSCI Code of Conduct and their expectations towards their business partners. The commitment formula allows BSCI Participants to set targets and show the tangible results of their efforts to improve working conditions in their supply chains. For the purpose of the Commitment Formula, the list of risk countries 2011 is substituted by the new risk-country classification 2014. IMPORTANT: A new commitment formula will be issued to embed the aspirations of the new Code of Conduct. The below commitment formula remains valid until 1st May 2015. After that the new formula will come into force.
1. Using the BSCI’s industrial methodology BSCI participating companies select 2/3 of their producers or producers supplying 2/3 of their order volume (piece or value) from risk countries to be involved in the BSCI process. o
3 ½ years after joining the initiative, 1/3 of the producers in risk countries have to show audit or re-audit results rated “Good” or “Improvements needed”. Alternatively 1/3 of the buying volume (piece or value) has to be supplied by producers with audits rated “Good” or “Improvements needed”.
o
5 ½ years after joining the initiative, 2/3 of the producers in risk countries have to show audit or re-audit results rated “Good” or “Improvements needed”. Alternatively 2/3 of the buying volume (piece or value) has to be supplied by producers with audits rated “Good” or “Improvements needed”.
The above mentioned applies to producers of soft goods as well as to producers of hard goods, including processed food. 2. Using the BSCI’s primary production methodology BSCI Participants who source primary products (see definition below) have to involve 10% of buying volume or 15 suppliers in primary production in risk countries in the improvement 2 process and have them audited (first audit), within 3 ½ years after joining, using the primary production methodology of BSCI.
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Definition of primary products: All these items are to be audited using the primary production methodology of BSCI: “Fresh fruits and vegetables including premium preparations; fresh herbs; wine (sourced directly from the winery); flowers and ornamentals; nuts (sourced directly from the farm); aquaculture and fisheries (sourced directly from the farm). All these items are to be audited using the industrial methodology of BSCI, unless the primary production methodology is preferred by the BSCI Participant: “Any products involving added and/or processed ingredients; dried herbs or spices; wine produced by industrial blending; cacao, coffee, tea; grains; sugar; canned or frozen fruits or vegetables; juices; meat; fish and seafood; and dairy.” 3. Results oriented commitment: stocktaking After having joined the BSCI 3 ½ and 5 ½ years, respectively, a stocktaking is made through the BSCI Platform in order to assess to which extent BSCI Participants have implemented the Commitment Formula in terms of the amount of producers and audit results. This is important element for measuring the worldwide impact of the BSCI. Not reaching the target: If BSCI Participants do not reach the target, they should provide clear and timely explanations to the BSCI Secretariat so that the information can be analysed in order to identify areas for improvement and additional support. 4. Other systems recognized in the commitment formula Producers involved in social compliance schemes recognised by the BSCI are deemed to have met the criteria for the Participants’ Commitment Formula and, therefore, are not audited in the BSCI scheme. Currently, a producer with valid SA8000 certification is acknowledged as producer with a “Good” audit result for the commitment formula, whereas a producer with a valid Rainforest Alliance Certificate (SAN), is acknowledged as producer with a “Improvements needed” audit result for the commitment formula. In addition, the BSCI partially recognises other schemes, which serve to shorten the BSCI audit (e.g. GLOBALGAP certificate).
END OF THE BSCI SYSTEM MANUAL
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