Training on amfori BSCI code of conduct &

it’s Implementation Techniques

Venue: KM Apparels Knit Pvt Ltd

Date: 26.10.2020
Organized by : T & OD Department

Palmal Group T & OD dept.

 Objectives-

• Make participants familiar about amfori BSCI.

• Refresh the participants about the requirements of amfori BSCI Certification.

• Inform the participants on the principles of amfori BSCI.

• Aware the participants about the role for implementing amfori BSCI.

Palmal Group T & OD dept.

 Contents-

1. Concept and aims of amfori BSCI

2. Principles & Approach of amfori BSCI

3. amfori BSCI audit interpretation guide lines

4. Responsibilities of Auditee

5. amfori BSCI audit rating systems

Palmal Group T & OD dept.

 Session-01:
Concept and aims of amfori BSCI

Palmal Group T & OD dept.

 What is BSCI?
• BSCI stands for Business Social Compliance Initiatives. This code of conduct is a
set of principles and values that reflects the beliefs of BSCI participants and the
expectations they have towards their business partners.

• BSCI, a program of the FTA of Europe, is designed to improve working condition

for the suppliers of BSCI participation member companies.

• The update version of BSCI is called amfori BSCI with effect from 1st July 2018.

Palmal Group T & OD dept.

Emergence of amfori:
• BRUSSELS, Jun. 16 /CSR wire -
• The Foreign Trade Association (FTA) announced, 15 June, during its annual
conference that the association will change its corporate name to ‘Amfori’ as of
January 2018.

• The new name will align the identity of the organization with its new strategic
vision for the future, Vision 2030.
• Drawing on the UN Agenda for Sustainable Development, Vision 2030 enables the
association to provide practical support to all businesses committed to achieve
the Sustainable Development Goals (SDGs).

Palmal Group T & OD dept.

Aims of the amfori:
“amfori’s mission is to enable organizations to enhance human prosperity,
use of natural resources responsibly and drive open trade globally. This is
what we call ‘Trade with Purpose’”, said Christian Ewert, FTA Director
General.

Palmal Group T & OD dept.

 Aims of BSCI:

It aims at setting up the values and principles that the BSCI

Participants strive to implement with their business partners
along their supply chains.

Palmal Group T & OD dept.

 Why BSCI is important?

 Acknowledging that international trade is an essential for human prosperity and

social economic growth.
 To ensure sustainable businesses BSCI and its partners try to build up a mature
industrial relations between workers and management.
 BSCI participants have an exclusive access to the BSCI database, assessment to
audit results, an enhanced relationship with suppliers and an improved
reputation.
 Suppliers of BSCI participants can avoid the need for multiple audits through
recognition by different BSCI participants.
 Improve the awareness of working condition and ethical audit protocols.

Palmal Group T & OD dept.

 Session-02:
Principles & Approach of amfori BSCI

Palmal Group T & OD dept.

Core Principles of BSCI ……
BSCI standard try to protect the rights of workers rights at workplace. This standard entails
the following 11 Principles-
1. Rights to Freedom of Association and Collective Bargaining.
2. No-Discrimination.
3. Fair Remuneration
4. Decent Working Hour.
5. Occupational Health and Safety.
6. No Child Labor
7. Special Protection for Young Workers
8. No Precarious employment
9. No bonded Labor
10. Protection of the environment
11. Ethical Business Behavior
Palmal Group T & OD dept.
1. The Rights of Freedom of Association & Collective
Bargaining.

Business partners shall-

(a)respect the right of workers to form unions in a free and democratic way;

(b) not discriminate against workers because of trade union membership

(c) respect workers’ right to bargain collectively.

Business partners shall not prevent workers’ representatives from having access
to workers in the workplace or from interacting with them.

Palmal Group T & OD dept.

2. No Discrimination

Business partners shall not discriminate, exclude or have a certain preference for
persons on the basis of-
gender, age, religion, race, caste, birth, social background, disability, ethnic and
national origin, nationality, membership in unions or any other legitimated
organizations, political affiliation or opinions, sexual orientation, family
responsibilities, marital status, diseases or any other condition that could give rise
to discrimination.
In particular, workers shall not be harassed on any of the grounds listed above.

Palmal Group T & OD dept.

 3. Fair Remuneration
 Business partners shall comply with wages mandated by governments’ minimum
wage legislation, or industry standards approved on the basis of collective
bargaining, whichever is higher.
 Wages are to be paid in a timely manner, regularly, and fully in legal tender .
 The level of wages is to reflect the skills and education of workers and shall refer
to regular working hours.
 Deductions will be permitted only under the conditions and to the extent
prescribed by law or fixed by collective agreement

Palmal Group T & OD dept.

 4. Decent Working Hours
 Business partners ensure that workers are not required to work more than 48
hours per week.
 Applicable national laws, collective agreements are to be interpreted within the
international framework set out by the ILO.
 In exceptional cases defined by the ILO, the limit of hours of work prescribed
above may be exceeded, in which case overtime is permitted.

Palmal Group T & OD dept.

5. Occupational Health & Safety:
Business partners respect the right to healthy working conditions of workers. Vulnerable individuals such as -
young workers, new and expecting mothers and persons with disabilities, shall receive special protection.
Business partners shall comply with occupational health and safety regulations, or with international
standards where domestic legislation is weak or poorly enforced.
Active Occupational Health and Safety Committee is essential in order to develop and implement systems
towards ensuring a safe and healthy work environment.
There are systems in place to detect, assess, avoid and respond to potential threats to the health and safety
of workers with effective measures to prevent workers from such hazards during work.
Business partners will seek improving workers protection in case of accident including through compulsory
insurance schemes.
Business partners shall ensure adequate occupational medical assistance and related facilities.
Business partners shall ensure access to drinking water, safe and clean eating and resting areas as well as
clean and safe cooking and food storage areas.
Business partners shall always provide effective Personal Protective Equipment (PPE) to all workers free of
charge.

Palmal Group T & OD dept.

 6. No Child Labor
 Business partners do not employ directly or indirectly, children below the
minimum age of completion of compulsory schooling as defined by law, which
shall not be less than 15 years, unless the exceptions recognized by the ILO
apply.
 Business partners must establish age-verification mechanisms as part of the
recruitment process.
 This principle aims to protect children from any form of exploitation.

Palmal Group T & OD dept.

7. Special Protection for Young Workers

 Young workers will not work at night.

 Where young workers are employed, business partners should ensure that
The kind of work is not likely to be harmful to their health or development;
 Their working hours do not prejudice their attendance at school.
 Business partners shall set the necessary mechanisms to prevent, identify
and mitigate harm to young workers;
 special attention to the access young workers shall have to effective
grievance mechanisms and to Occupational Health and Safety trainings
schemes and programs.

Palmal Group T & OD dept.

8. No precarious employment
Business partners ensure that -
Their employment relationships do not cause insecurity and social or economic
vulnerability for their workers;
Work is performed on the basis of a recognized and documented employment relationship,
established in compliance with national legislation, custom or practice and international
labor standards, whichever provides greater protection.
Before entering into employment, business partners are to provide workers with
understandable information about their rights, responsibilities and employment conditions,
including working hours, remuneration and terms of payment.
Business partners should aim at providing decent working conditions that also support
workers, both women and men, in their roles as parents or caregivers, especially with
regard to migrant and seasonal workers whose children may be left in the migrants’ home
towns.

Palmal Group T & OD dept.

 9. No Bonded Labor
Business partners shall not engage in any form of servitude, forced,
bonded, trafficked or non-voluntary labor.
Business partners shall allow their workers the right to leave work
with tendering reasonable notice to the employer.
Business partners shall ensure that workers are not subject to
inhumane or degrading treatment, corporal punishment, mental
coercion or verbal abuse.
All disciplinary procedures must be established in writing, and are to
be explained verbally to workers in clear and understandable terms.

Palmal Group T & OD dept.

10. Protection of the Environment
 Business partners take the necessary measures to avoid
environmental degradation, without prejudice to the specific
expectations set out in this chapter.
 Business partners should assess significant environmental impact of
operations and establish effective policies and procedures that
reflect their environmental responsibility.
 They will see to implement adequate measures to prevent or
minimize adverse effects on the community, natural resources and
the overall environment.

Palmal Group T & OD dept.

 11. Ethical Business Behavior
 Business partners are not involved in any- corruption, extortion,
embezzlement and any type of bribery (like- promising, offering, giving or
accepting money or incentive)
 Business partners are expected to keep accurate information regarding their
activities and disclose these in accordance with applicable regulations.
 Business partners should neither participate in falsifying such information,
nor in any act of misrepresentation in the supply chain.
 They should collect, use, process personal information with reasonable care.
The collection, use and other processing of personal information is to
comply with privacy and information security law.

Palmal Group T & OD dept.

Methods to Implement of BSCI code of conduct

• Methods to Implement of BSCI code of conduct

 Abide by the BSCI principles:

All the codes must be implemented

 Workers participation and Safety :

All workers must be acknowledged about their responsibilities and rights

& the rights would be protected.
Palmal Group T & OD dept.
Methods to Implement of BSCI code of conduct Cont…

 Supply-Chain management and cascade effect:

All the partners or suppliers will ensure of implementing the principles of

the BSCI done by the concern company.

 Grievance Mechanism:

For collecting the grievances and suggestions from the workers of the
company there should have a appropriate Grievance Mechanism ensured
by the company.

Palmal Group T & OD dept.

Palmal Group T & OD dept.
 Session-03:
amfori BSCI Audit interpretation guide lines

Palmal Group T & OD dept.

Performance Area: 01: Social Management system and cascade Effect
 Organization Chart
 List of Current and future significant business partners ( supplier / subcontractor/ Service Provider / Buyer)
 Internal Audit for significant business partner.
 Social policy and procedure based on BSCI.
 Appointed a Sr. Management Representative, MR to monitor social and Environment issue.
 Business partners selection procedure, monitoring record on social performance.
 Production capacity planning and contingency plan.
 Job description of key personal (HR, Compliance, H& S representative, Grievance mechanism handling personal.
 Relevant external grievance mechanism process
 Contract with sub- contract process
 Meeting minute with significant business partners.
 Compliant record from business partner
 BSCI management committee and with his/her responsibility.

Palmal Group T & OD dept.

Performance area 2: Workers Involvement and protection
• Meeting record of worker representative
• Election record
• Workers Representative request and complaints register
• Vision, mission Policy and vision mission and objective of the company.
• Worker repetitive Knows about Strategic plan based on goal, mission and objective?
• Awareness training for their right and
• Trainer qualification
• Training record of new worker
• Training record for occupational health and safety

Palmal Group T & OD dept.

Performance area 2: Workers Involvement and protection (Cont…..
• Who is responsible of grievance mechanism
• Timelines to address grievances
• Grievance mechanism Policy and Procedure
• History of grievance solution and remediation record
• Training record of BSCI communication.
• Grievance mechanism Survey Record.
• Grievance Communities with worker representative.
• Training record on local laws, grievance to workers, new workers training, H& S
• training, training on grievance mechanism.
• Training on BSCI code of conduct (Workers, Management, new workers, Marketing
• and Merchandising and commercial dep.

Palmal Group T & OD dept.

Performance area 3:
The right of Freedom of Association and collective bargaining

• Policy and procedure about Participation Committee , election document /

trade union record( if any)
• Meeting minutes of participation Committee
• Recruitment policy and procedure
• Termination record

Palmal Group T & OD dept.

Performance area 4: No Discrimination
• Recruitment policy
• Communication record for business partners for discrimination
• Meeting minutes of participation Communities
• Recruitment policy and Procedure
• Termination record
• Policy of discrimination
• Discrimination policy. Procedure , disciplinary action log book
• Supervision and Manager Training record based on discrimination

Palmal Group T & OD dept.

Performance area 5: Fair Remuneration

• Minimum wages
• Payment date
• Performance appraisal
• Wages and benefit policy , OT policy and working hour policy ,
• Living wages and policy.
• Worker personal files
• Social Benefit record
• Deduction Procedure

Palmal Group T & OD dept.

Performance area 6: Decent working hours

• Working hour policy and OT policy

• Attendance record and job card record
• Shift record for all workers
• Security duty record & leave record.
• Rest record
• Weekly holiday record

Palmal Group T & OD dept.

Performance area 7: Occupational Health and Safety
• Working hour policy , OT policy
• Attendance card or job card
• Occupational and safety Policy and procedure, training record with
competent person.
• Accident and injury record and analysis / investigation record.
• Risk assessment of section and process based
• Risk analysis and awareness record
• OHS committee formation and meeting minutes
• PPE training record
• Training document on fire safety, first aid, risk assessment on
• transmittable and no- transmittable diseases.

Palmal Group T & OD dept.

Performance area 7: Occupational Health and Safety (Cont……
• Light, air, noise, temperature assessment record.
• MSDS training and policy record
• Toilet list (with manpower ration) and cleaning frequency record.
• Drinking water test report
• Electrical equipment, boiler, generator sewing machine, emergency exits
• maintenance record.
• Evacuation plan, aisles marks , Emergency light and escape maintenance
• record
• Firefighting equipment checklist and maintenance record
• Electrician and boiler operator personal file
• Policy on emergency action and training / awareness records
• Building approval and layout plan, Incorporation certificate , trade license, fire license , Group
and fire insurance, IRC, and ERC, TIN , and VAT , Membership Certificate , Generator and boiler
license, Factory license , Bond License, Medical Agreement, Wastage Disposal Agreement.

Palmal Group T & OD dept.

Performance area 7: Occupational Health and Safety (Cont….
• Training record OHS committee
• Fire drill record
• Emergency procedure for fire , Evacuation
• Training record of machine safety of PPE.
• List of administrative and engineering measures Equipment.
• Warning sign
• Eye wash station
• Spot removing Room
• Stair & Hand rill
• Berried Window
• Electrical Safety training

Palmal Group T & OD dept.

Performance area 7: Occupational Health and Safety (Cont….
• Fire fighting training
• Firefighting equipment list
• Fire fighting training record
• Aisles block
• Inward door
• Health and safety procedure
• First aider training
• Chemical Handling training
• Safe chemical room
• Alternative Exit
• Machine Safety Instruction
• Working procedure for night
Palmal Group T & OD dept.
Performance area 7: Occupational Health and Safety (Cont….
• Drinking water test report
• Drinking water facility
• Responsible person of supplying drinking water
• Hose keeping policy
• Temperature record
• Sanitation
• Illumination Condition
• Emergency and trauma policy and Procedure.
• Risk Assessment investigation Record
• Risk Assessment Policy.

Palmal Group T & OD dept.

Performance area 8: No- Child Labor
• Child labor Policy and Child labor remediation policy
• Age verification system and document provided by workers.
• HR personal training document on age verification
• Training record for a person in charge of human resource adequately
• trained on age verification

Performance area 9:
No- Special Protection of Young workers
• Young worker protection policy

Palmal Group T & OD dept.

Performance Area 10:
No Precarious Employment:
• Hiring Policy, Personal Files of seasonal workers, foreigners ( If any)
• Worker orientation record
• Appointed record a person responsible for human resource aware of
• frame that provides greater protection to workers.

Performance area 11:

No Bonded Labor
• Policy on forced labor
• Migrant Worker recruitment record and
• Disciplinary training record

Palmal Group T & OD dept.

Performance area 12: Protection of the Environment
• Policy on environment , environment clearance certificate
• Environment parameters are assessed by the agency
• Wastage disposal and agreement abided by local law
• Environmental Impact and aspect assessment
• A grievance mechanism in place to address community environment
concerns
• Responsible person in-charge for environment
• Environmental license
• Training record for wastage generated tracking system
• Awareness raising on water waste reduction
• Risk assessment that justify management decisions on water use

Palmal Group T & OD dept.

Performance area 13: Ethical Business Behavior
• Anti- corruption Policy, Procedure and training record
• Risk assessment on corruption
• Communication record on announcing reward to discourage corrupted
activities
• Procedure in Place to investigate to Ethical Behavior
• Management Training record for Ethical Business Behavior
• Anti- corruption flow chart

Palmal Group T & OD dept.

 Session-04:
Responsibilities of Auditees (Management)

Palmal Group T & OD dept.

Auditees Responsibility

Auditee :
Assist auditor by providing evidence/document
Co-operate with audit process
Be open and honest

Guides :
Assist in making arrangements
Guide auditors to records, documents, people, process etc
Health and Safety Health and Safety
Witness for the Auditees

Palmal Group T & OD dept.

Auditees Responsibility

Management:

Liaison with auditors to arrange audit

Co-operate with auditor to facilitate audit
Direct employees to participate
Act on audit findings
Provide resources for corrective action plans

Palmal Group T & OD dept.

Auditees Responsibility

To set up an effective management system, the auditee understands:

• The importance that its own good social performance has for its clients
• The content of the amfori 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 individual assuming this role understands:
•The amfori BSCI Code of Conduct and System Manual
•The business and the supply chain

Palmal Group T & OD dept.

Auditees Responsibility

 The business partners which are significant for the company

 The expectations of stakeholders
 In addition, the auditee determines who is in charge of:
 Following up with the grievance mechanism
 Human resources
 Ensuring that workers receive and have received training relevant to the amfori
 BSCI values and principles
 Occupational health and safety risk assessments

Palmal Group T & OD dept.

Role of management to implement amfori BSCI?

1. Provide necessary information & skills to maintain the standard.

2. Prepare and establish different policies & procedures

3. Provide necessary orientation & training to the employees.

4. Conduct internal audit, analyze report.

5. Ensure fair labor practice in the factory.

6. Maintain Ethics and business integrity.

7. Ensure safety and security.

8. Ensure more attention to safe environment.

Palmal Group T & OD dept.

 Session-05:
Amfori BSCI Audit Rating Systems

Palmal Group T & OD dept.

Palmal Group T & OD dept.
Rating per Performance Area:

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Rating A combination of ratings per Consequence
Performance Area where:

Palmal Group T & OD dept.

Palmal Group T & OD dept.
Palmal Group T & OD dept.
Palmal Group T & OD dept.
Palmal Group T & OD dept.
Zero Tolerance:
Zero tolerance issues can be:
• Flagrant human rights violations
• Child Labour
• Bonded Labour and inhumane treatment
• Occupational Health and Safety
• Unethical behavior

Palmal Group T & OD dept.

Wrap up
1. What is BSCI ?
2. Importance of BSCI
3. Amfori BSCI code of conduct
4. Amfori BSCI approach
5. Amfori BSCI audit interpretation guide lines
6. Auditee responsibility
7. Role of management to amfori BSCI
8. Amfori BSCI Audit rating systems
9. Zero tolerance issues
Palmal Group T & OD dept.
Palmal, T&OD Dept. 59