SA8000 vs.

BSCI
Socially responsible procurement
(ethical sourcing)
Ethical Sourcing

”Socially responsible procurement (ethical sourcing)

aims to set contract conditions that encourage
suppliers to ensure that during the contract period
goods and services have been produced in
conditions where human rights and core labour
standards are respected.

In effect, suppliers must comply with international

human rights conventions, such as the ILO
conventions, the UN Convention on the Rights of
the Child, legislation on minimum wages and
working hours in the production country, and
general environmental, health and safety
requirements.”
What is BSCI?

 The Foreign Trade Association (FTA) is Europe´s

premier association for trade policy and global
supply chains. Members are national trade
associations and companies.

 The Foreign Trade Association, or FTA, formed the

Business Social Compliance Initiative, or BSCI, in
2003.

 The BSCI is a non-profit organisation under the

legal roof of the Foreign Trade Association, based in
Brussels.
What is BSCI?

 The BSCI is the European social monitoring system

for ethical sourcing.

 When started about ten years ago some brands and

retailers saw this as a German ‘operation’

 BSCI’s link with Social Accountability International

SAI and its SA8000 Social Standard give credibility
to the BSCI code and work.
Business Social Compliance
Initiative (BSCI)

 Member companies have to implement the BSCI

Code of conduct focusing on the core of ILO
conventions, human and labour rights and
requesting the conduct of social audits in the supply
chain of the members.

 The BSCI currently recognises SA8000 as its best

practice and promotes a progressive adhesion of
the supply chain to the ILO conventions , and
supports the continuous improvement of the social
performance of suppliers.
Business Social Compliance
Initiative (BSCI)
 The BSCI is not a certification system.

 Purpose of the instrument

- implementation
Business Social Compliance
Initiative (BSCI)
 BSCI procedure includes a self-assessment tool for
suppliers, which aims at correcting critical issues in
advance and saving time during auditing.
Business Social Compliance
Initiative (BSCI)
 BSCI is an auditing and qualification system striving
for continuous improvement.

The most important part of the BSCI is the

qualification of the suppliers.

 Many suppliers need assistance after the audits to

implement the corrective actions to sustainably
improve their social performance.

 They receive this qualification by the BSCI Members

or service providers being experts in this field.
Business Social Compliance
Initiative (BSCI)
Implementation
 Independent auditing companies accredited by
Social Accountability International, or SAI, help
enforce the BSCI.
 The auditors monitor and record each BSCI
member's business practice and workplace
standards, and then the audited BSCI member
plugs these results into a database shared among
all members.
 This strict monitoring process helps each business
strive and qualify for the SA8000 workplace
standard formed by SAI.
 BSCI

 The database is for members only, and suppliers do

not receive a public certificate for having passed a
BSCI audit.

 In cases where an initial audit identifies serious

issues, corrective action may be required to address
and resolve these issues before the re-audit.

 During the implementation of corrective action, as a

principle, BSCI members would like to maintain all
existing business relationships while suppliers
achieve full compliance.
 BSCI

 As well as a common code of conduct, the BSCI has

also developed a common monitoring system for all
its members.

 The core idea is to move from being a buyer- to a

supplier-driven monitoring system.
 BSCI

 Rather than all buyers having to monitor all their

suppliers, in practice leading to several buyers
monitoring the same supplier, the BSCI system aims
to synchronise the monitoring, making only one
audit per supplier necessary.

 The results of the audits will then be entered into a

common database, in which the BSCI members can
search for information regarding their current
and/or future suppliers.
 BSCI

 Previously, retailers have seldom or never shared

such important information regarding suppliers with
their competitors.

 Hence, a consequence of the BSCI attempt to

define corporate responsibility is that stronger
alliances between European retailers are being
created.
 BSCI

 After completing the audit, the auditor will prepare

a Social Audit Report.

 This report is then submitted to the audited

company and to the supplier’s trading partner.

 If the supplier has initiated the audit itself, a copy

of the Social Audit Report shall be sent to its
customer(s) participating in the BSCI.
 BSCI

 As per the BSCI, the supplier is to be monitored

(audited) every three years, provided no adverse
remarks were made in the previous audit.

 However, the maximum timeframe of the corrective

action phase is 12 months after the initial or re-
audit respectively.

 BSCI audits are carried out by SA 8000 auditors,

and are designed to guarantee the same basic
rights for employees as the SA 8000 standard.
 SA8000

SAI: Social Accountability

International :

Is a NGO with headquarters in USA,

composed of investors from different
sectors: workers and trade unions,
enterprises, governments and NGOs
 SA8000

 The SAI formed the SA8000 standard in 1997.

 While not a standard mandated by the International

Organization for Standardization, or ISO, it follows
a similar accreditation and certification model.

 Certification is granted by international certification

bodies accredited and monitored by SAI. The
procedure corresponds to those used in connection
with the ISO 9000 and 14000 standards.
 SA8000

 The Standard SA 8000 is a management system

tool on working conditions and regulations
compliance.

 It aims at improving working conditions worldwide,

by imposing strict rules to organisations and
involving the entire supply chain.

 It is based on core ILO conventions, Universal

Declaration on Human Rights and the United
Nations Convention on Children's Rights, as well as
management systems (ISO 9000 and 14000).
 SA8000

 SA8000 standard has become a worldwide

reference in working regulations and labour rights
management system, mainly because it proposes a
certifiable management system.

 Many other standards and initiatives cover the

same core ILO conventions, often under the form of
sectoral codes of conduct, guidelines and
recommendations.

 This standard is the benchmark against which

companies and factories measure their
performance.
SA8000

 Purpose - Certification

 The SA 8000 certificate is valid for three years.

 Companies are given surveillance audits once every

six months during this period to ensure stability and
progress of the standard.

 Renewal audits take place once every three years.

The differences

 The BSCI system currently recognizes the social management

systems standard SA8000 as its best practice.

 The BSCI Code of Conduct was developed in partnership with

the Social Accountability International (SAI) initiative as a
stepping stone towards SA8000 certification.

 If a company has already been certified against the SA8000

standard, implementation of the BSCI Code of Conduct is not
requested as long as the SA8000 certificate is valid.
The differences

 The BSCI is not a certification system and therefore

does not issue a certificate.

 The cover page of the audit report outlining the

results and the validity of the audit can be
displayed in the factory premises and be used as
proof of the audit.
The differences

 BSCI Code emphasis on “legal minimum and/or

industry standards” wage.

 SA8000 emphasis on the right of supply chain

workers to a living wage instead of – “legal
minimum and/or industry standards”.
The differences

 SA 8000 requires more systematic procedures and

controls and sustainable improvements, while BSCI
focuses on specific points or items; BNW (basic
needs wage/ living wage ) is a mandatory clause
for SA 8000 but only a reference for BSCI.
The differences

BSCI
 In case of conflict between international / national
rules:
- more stringent rule(s) apply
The differences

 BSCI Audit is, although much is similar to SA8000

certification audits, there are differences in the
audit protocols due to specific BSCI requirements
and the very nature of a gap analysis as compared
with a certification audit
The differences

 SA8000 audits are performed in line with

ISO17021:2011 and require surveillance audits
every six months during a certification cycle of 3
years.

 If a company meets BSCI requirements then they

are not re-audited usually for 3 years.
The differences

 SA8000 can be done without buyers requirement

and can use as a marketing tool whereas BSCI
should be done with Buyers approval only.
The differences

 SA8000 is not addressing Environment but BSCI.

 SA8000 standard have some extraction from ISO

and BSCI from SA8000
( This is an internal training material)