1.1. The BSCI

ManagementManual

Janaury 2009

BSCI 3-01/09

All rights reserved. No part of this publication may be reproduced, translated, stored in a retrieval system, or transmitted, in any form or by any means,electronic, mechanical, photocopying, recording or otherwise, be lent, re-sold, hired out or otherwise circulated without the FTA’s authority.

Copyright © 2004 byFTA – Foreign Trade Association, Brussels – gsm Global Sustainable Management GmbH, Cologne – Migros-Genossenschafts-Bund, Zürich –Systain Consulting GmbH, Hamburg

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Contents

1. The Business Social Compliance Initiative ........................................................................................................................ 3

1.1. The BSCI ................................................................................................................................................................................................... 3

1.2. Benefits for Suppliers...................................................................................................................................................................... 3

1.3. Objectives and scope of this manual .................................................................................................................................. 3

1.3.1. Participants and responsibilities ............................................................................................................................. 4

1.3.1.1. Suppliers................................................................................................................................................................. 4

1.3.1.2. Auditing Companies....................................................................................................................................... 4

1.3.1.3. Qualifiers – Coaching Training ............................................................................................................... 4

1.3.1.4. BSCI Secretariat................................................................................................................................................ 5

1.3.1.5. Trading Companies......................................................................................................................................... 5

1.3.2. Overview of resonsibilities............................................................................................................................................ 5

1.4. Basic Regulations .................................................................................................................................................................................. 6

1.4.1. National Legal Requirements..................................................................................................................................... 7

1.4.2. International Regulations.............................................................................................................................................. 7

1.4.3. Other Standards................................................................................................................................................................... 7

1.4.4. Securing Compliance with relevant legal requirements......................................................................... 8

1.5. Process Overview and first steps in the Business Social Compliance Initiative........................................ 8

1.5.1. Overview of the BSCI process.................................................................................................................................... 8

1.5.2. Awareness raising phase............................................................................................................................................... 8

1.5.3. Self-Assessment................................................................................................................................................................... 9

1.6. The initial Audit in the BSCI............................................................................................................................................................. 9

1.6.1. Initial Audit............................................................................................................................................................................... 9

1.6.2. Auditing Companies........................................................................................................................................................... 9

1.6.3. Audit Order............................................................................................................................................................................... 9

1.6.4. Audit Preparation............................................................................................................................................................... 10

1.6.5. Audit Duration....................................................................................................................................................................... 10

1.6.6. Audit Operation................................................................................................................................................................... 10

1.6.6.1. Introductory Meeting................................................................................................................................... 10

1.6.6.2. Interview with the management......................................................................................................... 11

1.6.6.3. Inspection of documents........................................................................................................................... 11

1.6.6.4. Site inspection.................................................................................................................................................. 11

1.6.6.5. Interview with Employees........................................................................................................................ 11

1.6.6.6. Final Meeting..................................................................................................................................................... 11

1.6.7. Social Audit Report.......................................................................................................................................................... 12

1.6.8. Assessment of the Audit Report............................................................................................................................ 12

1.6.8.1. Assessment BSCI Social Requirements......................................................................................... 12

1.6.8.2. Corrective Action Plan (CAP) BSCI Social Requirements.................................................. 13

1.6.8.3. Assessment Best practice for Industry.......................................................................................... 13

1.6.8.4. Corrective Action Plan (CAP) Best practice for Industry................................................... 14

© Copyright 2004 The English version is the legally binding one. BSCI 3.1-03/04

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1.7. Qualification and Implementation Phase............................................................................................................................ 14

1.8. Re-Audit...................................................................................................................................................................................................... 15

1.9. Costs ....................................................................................................................................................................................................... 15

1.10 Best practice for Industry............................................................................................................................................................. 15

2. Implementation Guideline for BSCI Social Requirements .............................................................................. 16

2.1. A. Master Data .................................................................................................................................................................................. 16

2.1.1. Company Data ................................................................................................................................................................... 16

2.2. B. BSCI Social Requirements ................................................................................................................................................. 18

2.2.1. B.1 Management Practice ......................................................................................................................................... 18

2.2.2. B.2 Documentation ........................................................................................................................................................ 22

2.2.3. B.3 Working Time............................................................................................................................................................ 23

2.2.4. B.4 Compensation............................................................................................................................................................ 28

2.2.5. B.5 Child Labour/Young Employees.................................................................................................................... 35

2.2.6. B.6 Forced Labour/Disciplinary Measures/Prisoner Labour .............................................................. 38

2.2.7. B.7 Freedom of Association /Collective Bargaining ............................................................................... 40

2.2.8 B.8 Discrimination............................................................................................................................................................ 43

2.2.9. B.9 Working Conditions .............................................................................................................................................. 45

2.2.10. B.10 Health & Social Facilities ............................................................................................................................ 52

2.2.11. B.11 Occupational Health & Safety.................................................................................................................. 57

2.2.12. B.12 Dormitories............................................................................................................................................................ 69

2.2.13. B.13 Environment.......................................................................................................................................................... 71

3. Annex: (C) «Best Practice for Industry» ........................................................................................................................... 75

3.1. C.1 Policy + C.2 Planning and Implementation ....................................................................................................... 75

3.2. C.3 Management Review .......................................................................................................................................................... 76

3.3. C.4 Control of Subcontractors/Suppliers/Sub-Suppliers ..................................................................................... 76

3.4. C.5 Control of Homeworkers .................................................................................................................................................. 76

3.5. C.6 Compensation ......................................................................................................................................................................... 77

3.6. C.7 Child Labour .............................................................................................................................................................................. 78

3.7. C.8 Evasion ......................................................................................................................................................................................... 78

3.8. C.9 Outside Communication .................................................................................................................................................. 78

Appendix B.11 – Warning Signs......................................................................................................................................................... 79

Appendix B.12 – Documentation....................................................................................................................................................... 83


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1. The Business Social Compliance Initiative – BSCI

1.1. The BSCI

The Business Social Compliance Initiative (BSCI) is a company driven initiative to implement and create sustainable improvements in social standards in production facilities world wide with the BSCI monitoring system. BSCI members come largely from the retail sector, but it is also open to manufacturers and importers. The BSCI focuses on monitoring as an ongoing process to improve social standards. Audits are one mechanism in this monitoring system, but the key to real and sustainable improvement is acting in partnership with suppliers to achieve it. The BSCI and its members follow a positive, non-confrontational approach to compliance and want to heighten suppliers' and manufacturers' awareness of their social responsibilities and occupational health and safety issues. The BSCI aims to reward the suppliers’ good will and willingness to cooperate.

1.2. Benefits for Suppliers

Various social audits have probably been conducted at most suppliers’ facilities in recent times. Suppliers may be wondering, "Why another social audit? Why do we need another new procedure? And how do social audits benefit us?"

The relevant question is probably not whether or not suppliers will introduce social standards, but rather: How can suppliers ensure sustainable compliance with social standards and profit from them at the same time?

The BSCI monitoring system was developed to reduce the audit burden on suppliers. It is a unified process, which means that there is no need for multiple audits to be conducted to diverse standards for different trading companies participating in the BSCI. This provides the audited companies with savings both in cost and time that would otherwise be consumed by lengthy and repetitive audits. The audit requirements are the same regardless of the country in which the companies are located and audit results are recognised and accepted by all BSCI member trading companies.

Furthermore, there is a correlation between the social performance of a company and its employees' productivity. Poor social performance reduces the output capability of employees, thus hurting the company's bottom line.

The assistance from retail companies and expert service providers associated with the BSCI aim to achieve sustainable implementation and improvement of social performance for suppliers.

1.3. Objective and Scope of this Manual

This manual is intended to support suppliers but also retailers, auditing companies and other participants in ensuring compliance with minimum social and environmental standards in their areas of responsibility. The manual provides precise information and practical solutions regarding what is expected of a supplier company, what requirements they must fulfil and what tasks must be undertaken in the process. It also contains suggestions on how to get additional economic benefits from the necessary changes and also how to request help and support when problems occur.


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1.3.1. Participants and responsibilities

1.3.1.1. Suppliers

BSCI member trading companies decide which suppliers are to be included in the BSCI monitoring system. For optimal implementation of the initiative in the import markets, all suppliers should be integrated in the initiative. It is up to the trading companies to decide whether their suppliers' subcontractors will be included directly in the initiative or indirectly via supplier supervision and monitoring systems. Supplier information, including names, addresses and other information are kept in a database which is administrated by the BSCI Secretariat.

1.3.1.2. Auditing Companies

The quality and expertise of the auditors carrying out BSCI audits have a direct influence on the value of their services, and therefore on the integrity of the BSCI system itself. In order to ensure the expertise of the auditors, audits are to be conducted only by auditing companies and auditors accredited by SAAS, Social Accountability Accreditation Services, and which have a general agreement with the BSCI.

The auditors employed by SAAS-accredited auditing companies in the BSCI must be of the highest quality and should be prepared to undergo constant training, further education and accreditation by SAI. They must also:

be absolutely independent, impartial and incorruptible be ready to carry out verifications at regular intervals have professional experience in relevant fields such as social auditing, workplace safety, quality

control, etc. be fluent in the local business and national language(s) and familiar with the local culture and

mentality. In an audit team, at least one of the team members must be fluent in the local language(s) and familiar with the local culture.

have excellent psychological, communication and interpersonal skills be willing to undergo regular inspection be fluent in the English language, both spoken and written. In an audit team, at least one of the

team members must be fluent in English. posses a permit for SA8000 auditing. In an audit team, at least one of the team members must

be certified to this standard.

Other auditor requirements not listed above are governed by SAAS guidelines.

The auditing companies working on behalf of the BSCI must not only meet SAAS requirements. They must also fulfil the following criteria:

Experience in the markets/countries to be audited. Experience and a good reputation in the area of social management systems. Expert knowledge of the BSCI system, acquired by participation in a BSCI workshop

1.3.1.3. Coaching & Training

The BSCI is a development initiative. Suppliers will receive support from BSCI member trading companies in implementing necessary corrective measures. This partnership approach highlights the positive intentions of the BSCI system. The BSCI does not intend to engage in finger pointing, nor does it intend to carry out social auditing with no follow up or follow through. An audit only gives an impression of the social performance in a production facility on a certain date. The BSCI’s aim is to provide a system to assist suppliers in achieving sustainable high-level social performance. This goal can only be attained if suppliers prepare and assist in the audit process by preparing self-assessments and other pre-qualifying measures. These measures can include quick-scans, coaching and training. Later, a thorough follow-up on corrective actions found to be necessary in an audit is very helpful. In cases where suppliers require help, the BSCI will make sure they are assisted by professionals qualified in the relevant fields of expertise. Experience has shown that professional preparation and qualification of suppliers after an audit improves supplier performance to a great degree. This is the initiative's goal: to actively contribute to improvements in social standards by providing active assistance from retailers and expert service providers.


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The follow-up support provided to suppliers may range from controlling regarding the Corrective Action Plan (CAP), further coaching, up to and including comprehensive training and assistance. The participating BSCI trading companies determine the intensity of the support required. This varies from situation to situation and depends on the extent of deviations from requirements, and on the complexity of the individual correction measures needed in each case. Assistance can be provided by employees of the BSCI trading companies, service providers, or any other organisation with the relevant expertise.

1.3.1.4. BSCI Secretariat

The secretariat is responsible for

Overall control and project management Development of unified processes and instruments Implementation of procedures and instruments Lobbying work: in political, business and interest group contexts Public relations and communication Convening and organising meetings of the BSCI Members' Board

1.3.1.5. Trading companies

The BSCI is open to European and international trading companies and associations.

Participating trading companies must follow the BSCI procedures and instruments regarding its structure and implementation BSCI.

Every participating trading company is represented by a coordinator at the meetings of the Members' Board of the BSCI. The coordinator functions as a mediator between their own company's interests and those of other BSCI members and participants. The coordinator is responsible for the tasks to be accomplished by the BSCI member trading company within the framework of the BSCI. This brings with it certain responsibilities for the coordinator, at a minimum:

Management and responsibility for the BSCI in their own company and to be the company's interface to the BSCI-Secretariat and to other interested parties

Internal (and external) communication regarding BSCI issues.

1.3.2. Overview of responsibilities:

No. Procedure Tasks of Supplier Tasks of Auditors Tasks of Participating Trading Companies

1. Awareness Raising Phase

Participation in BSCI basic awareness workshop

None Letter to suppliers, invitation to BSCI basic awareness workshop

2. Preparation Self-Assessment and participation in pre-qualification measures

None Implementation or appointment of service provider

3. Initial Social Audit

Placement of order with an SAI-accredited auditing company to conduct the audit, unless the order is placed by the retail customer(s) participating in the BSCI

Conduct audit Order placement with an SAI-accredited auditing company for conduct of the audit, or requesting the supplier to place audit order


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No. Procedure Tasks of Supplier Tasks of Auditors Tasks of Participating Trading Companies

4. Social Audit Report

If supplier placed order, forward Social Audit Report to all retail customers among BSCI trading companies asking for audit

Prepare the Social Audit Report and send to client (copy to supplier-respective trading company)

Evaluation of Social Audit Report

5. Qualification Participation in qualification measures

None Implementation, or placement of order with service provider

6. Corrective Action Plan(s)(CAP)

Implementation of the Corrective Action Plan(s)

Consult and agree on CAP with supplier and prepare CAP

None

7. Social Re-Audit

Order placement with an SAI-accredited auditing company for conduct of re-audit, unless re-audit order is placed by the retail customer(s) participating in the initiative

Conduct re-audit

Placement of order with SAAS -accredited auditing company to conduct the re-audit, or requesting supplier to place audit order. Evaluation of Social Re-Audit Report and if applicable stipulations as item 4 above.

Send copy of the Social Re-Audit Report (or SA8000/ equivalent certificate) to participating retail customer(s)

8. Social Re-Audit Report

If the company placed an audit order itself, send the Social Re-Audit Report to all retail customers among the BSCI trading companies requesting it

Prepare the Social Re-Audit Report and send it to the client(s) (copy to supplier-respective trading company)

Evaluation of Social Re-Audit Report

9. Corrective Action Plan(s)

Implementation of Corrective Action Plan(s)

Consult and agree on CAP with supplier and prepare CAP

None

10. Repetition of the audit not later than three years after the date of the initial audit

Order placement with an SAI-accredited auditing company for conduct of audit, unless audit order was placed by the retail customer(s) participating in the BSCI initiative

As indicated above As indicated above

Tab. 1: Responsibilities in the BSCI procedure

1.4. Basic Regulations

The BSCI begins with the basic assumption that all suppliers will comply, to the best of their ability, with all national and regional labour and social laws and regulations and comply with the international conventions and declarations set out below. Details regarding this are to be found in the BSCI Audit Questionnaire. This questionnaire shall be updated from time to time; it is therefore important to use the most current version.


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1.4.1. National Legal Requirements

The national legal requirements in the country of operation are to be followed, particularly with respect to:

Commercial operations Working times Salary and other compensation Social security contributions Minimum age of employees Forced labour prohibition Disciplinary measures Freedom of association and collective bargaining Prohibition of discrimination Working conditions Occupational health and safety Legal requirements for employee accommodation (dormitories, housing, etc.), if relevant Basic environmental requirements

1.4.2. International Regulations

The social standards to be met within the BSCI are based on the core labour standards of the International Labour Organisation (ILO; see www.ilo.org). The following working standards are applicable:

ILO Convention 1 (Working Hours) ILO Conventions 29 and 105 (Forced and Bonded Labour) ILO Convention 79 (Young Persons' Night Work) ILO Convention 87 (Freedom of Association) ILO Convention 98 (Right to Collective Bargaining) ILO Conventions 100 and 111 (Equal Remuneration for male and female workers for work of

equal value; Discrimination) ILO Convention 135 (Workers’ Representatives) ILO Convention 138 and 142 (Minimum Working Age) ILO Convention 155 and Recommendation 164 (Occupational Safety and Health) ILO Convention 159 (Vocational Rehabilitation and Employment/Disabled Persons) ILO Convention 177 (Home Work) ILO Convention 181 (Private Employment Agencies) ILO Convention 182 (Worst Forms of Child Labour) United Nations Universal Declaration of Human Rights United Nations Convention on the Rights of the Child United Nations Convention to eliminate all Forms of Discrimination against Women

1.4.3. Other Standards

ISO/IEC Guide 62 IAF Guidelines for Application of ISO/IEC Guide 62 SAI documents (in the most current updated version): SA8000 (Social Accountability 8000)

Guidance Document for Social Accountability 8000 SAI Guideline I (150.1 – 150.8) Internal quality guidelines for auditing companies in the framework of SA8000 accreditation


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1.4.4. Securing Compliance with Relevant Legal Regulations

BSCI members encourage compliance with all relevant regulations and guidelines in their suppliers' facilities. These include the ILO's international core labour national labour and social standards and legislation.

The auditing companies verify compliance with national labour and social regulations and with the ILO core labour standards at suppliers’ facilities. The BSCI reserves the right to sample and monitor auditors' performance at any time. This may include questioning of the auditing companies and their auditors, and examination of guidance and other documents concerning the legal regulations applicable to the audit process.

1.5. Process overview and first steps in the Business Social Compliance Initiative

1.5.1. Overview of the BSCI process


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1.5.2. Awareness raising phase

The first phase of BSCI implementation is the awareness raising phase. This involves informing market participants about the BSCI. These include suppliers, external stakeholders such as government and local non-government organisations (GO's, and NGO's), trade unions and, where relevant, the market organisations of the participating trading companies.

1.5.3. Self-Assessment

The second step in the BSCI implementation process is preparing the supplier. This is separated into two parts, the company profile and the self-assessment itself. The web-based company profile must be completed and becomes part of the BSCI database. The self-assessment is voluntary for the BSCI member. The self-assessment can also form part of BSCI pre-qualification measures.

1.6. The BSCI initial social audit

The initial audit is an important part of the BSCI monitoring system for the supplier. However, it must be stressed that an audit only gives an impression of the situation in the moment the audit takes place. The audit establishes to what extent a supplier already meets minimum social standards and other requirements. It is only the beginning of the complete BSCI procedure. The BSCI considers more important the periods before and after the audit in which corrections are made that improve overall social performance sustainably.

The Social Audit Report is drawn up on the basis of the audit. It contains the audit results and suggestions for corrective action. It is important for the supplier in several respects. It provides an analysis of the current social performance of the company, showing where the company stands regarding implementation of the BSCI requirements. It also shows where improvements are necessary and what measures still have to be taken to improve social performance. The analysis of the current status and the schedule of action are the basis for any qualification measures by the company's BSCI trading partners. Finally, the Social Audit Report also gives a supplier a way of demonstrating the company's social performance to any interested retail company or other potential customer.

1.6.1. Initial Audit

The initial audits in the BSCl are conducted in a uniform manner. Standardised questionnaires and evaluation schemes are used for every audit. This ensures fair treatment of all suppliers, and at the same time ensures that the quality of the audit remains at a consistent high level.

An audit is comprised of the following parts:

Part A: Recording Master Data: business and master data of supplier companyPart B: BSCI Audit: Recording and evaluation of compliance with minimum social and environmental

requirements. Part B audit and implementation of corrective actions arising from Part B are compulsory.

Part C: Recording and assessment of best practice for industry part C audit is compulsory, but theimplementation of corrective actions arising from Part C is voluntary. It is not a requirement for starting or maintaining business relations with the retail companies participating in the BSCI. It is, however, recommended for those companies that have the potential to reach SA8000 or equivalent certification standards.


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1.6.2. Auditing companies

Only SAAS accredited auditing companies and their auditors shall conduct BSCI audits (please refer to list of accredited auditing companies).

1.6.3. Audit order

Depending on a suppliers' the BSCI-member trading partner, either the supplier or the BSCI member trading partner places an audit order with a SAAS accredited auditing company. When placing an audit order, suppliers are requested to indicate clearly that they require a BSCI CoC-Audit.

1.6.4. Audit preparation

To save time and money for all involved, suppliers should prepare themselves thoroughly for the initial BSCI audit.

It is advisable to follow this procedure when preparing for the audit:

1. Read and understand this manual.2. Perform a Self-Assessment based on the BSCI-Self-Assessment Questionnaire.3. Determine whether there are deviations from the requirements of the BSCI Self-Assessment,

the Audit Questionnaire and chapter 2 of this manual, and the nature of any deviations.4. Correct these deficiencies wherever possible before the date of the audit and participate in

pre-qualification measures of the BSCI member, if offered.5. Furnish the auditing company immediately with any information that they request.6. Prepare the people responsible for the relevant areas for the audit in advance (human

resources, accounting, health and safety, environment, etc.). Explain to them what preparations they must make and what information is expected from them.

7. Make sure that these responsible persons are available to the auditors during the audit.8. Keep the required documents listed on hand during the audit.9. Provide the auditors with a separate room if possible.

1.6.5. Audit duration

Facility sizeInitial Audit duration

(including 0.5 audit planning and reporting time)

Re-audit duration (on site time)

1-100 workers 1.5 days 1 day


251-500 workers 3 days 1 day


751-1000 workers 4 days 2 days

1001 workers + 4.5 days 2 days

A deviation number of person-days may be justified by the organizational form of the Company, the size of the Company, the number of employees, the number of Company’s subcontractors etc. Such deviation is subject to individual contractual agreement between the client and the provider of the audit.


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1.6.6. Audit Operation

The BSCI audit is conducted systematically and uniformly at all companies. The auditors act in full neutrality. An incomplete audit, cannot be recognised by the BSCI and its members, whatever the reason for its failure to conlude. An audit normally comprises several components as listed below.

1.6.6.1. Introductory Meeting

The introductory meeting enables the participants to introduce themselves, and to clarify the following operational framework of the audit:

Audit procedure and estimated duration Who should be available for the audit and why Which documents will be examined Clarification of any outstanding questions

If there are any matters which are not clear, the company to be audited should not hesitate to ask. The audited company should point out at this stage if there are any areas where optimal preparations were not possible.

In the course of the introductory meeting, the auditor will ask the supplier to sign the Declaration of Consent with the following contents:

The auditor is permitted to take photos on the company site. The auditor is permitted to interview all employees. Data may be registered and stored in a database. These data may be disclosed to third parties within the framework of the BSCI.

The Declaration of Consent is necessary to clarify the legal situation of the company and that of the auditors.

1.6.6.2. Interview with management

Intensive exchange of information between the auditor(s) and company management is a central part of an audit. The auditor will begin to ask members of company management a series of questions during the introductory meeting. In the course of the audit, it may be necessary to clarify various matters between the auditor and management more than once.

1.6.6.3. Inspection of documents

Numerous company documents have to be examined and checked during the course of an audit in order to assess whether the supplier complies with the requirements of the BSCI code of conduct.

1.6.6.4. Site inspection

The following areas are checked and assessed during the site inspection:

Fire protection equipment, fire extinguishers and their installation Emergency exits, escape routes and their marking/signposting Health and safety relevant issues: equipment, personnel, training, etc. Machines, electrical equipment and power generators Steam generators and steam pipes Room temperature, ventilation and lighting conditions General cleanliness and hygiene Sanitary facilities (toilets, washrooms, drinking water facilities) Required social amenities e.g. sick room, first-aid kits, eating area, coffee/tea making area,

crèche for children, etc. Dormitories/housing, if provided to employees


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1.6.6.5. Interviews with employees

One component of the audit process are interviews with employees inside and/or outside company premises. These interviews are for the purpose of assessing matters which cannot be properly ascertained by means of documents, site inspection, or management interviews alone.

Anonymity must be guaranteed. That means that the employees to be interviewed must be selected without the knowledge or influence of management or other third parties.

The employees interviewed enjoy special protection. Any exertion of influence on employees before the interview, or any disadvantages for employees who have been interviewed will lead to marking down of the audit result, potential invalidity of the audit, and in the worst case, termination of the business relationship between the company and the BSCI member.

1.6.6.6. Final Meeting

At the end of the initial audit, a final meeting is held between management and the auditor(s). The audit result and any necessary corrective actions are discussed in detail. If there are still any matters that are not clear, the parties are encouraged to discuss them.

A cut-off date must be set for implementation of each corrective action required. The company must propose a time frame for implementation of the individual corrective actions. This plan of action will be considered by the auditor.

The company should pursue the following principles regarding the implementation:

Corrective actions which prevent or reduce immediate danger to employees and/or the company must be carried out without delay.

Next, corrective actions should be implemented that require little effort and can be realised with the available resources.

All other corrective actions then follow. Set realistic time frames (implementation measures should neither be unnecessarily delayed,

nor expected in an unreasonably short period).

The auditor's acceptance of the company’s proposed plan of action depends mainly on how serious the deviation from requirements is, and on the feasibility of implementation of the corrective action. Where deficiencies preset acute danger to employees' health and safety, the auditor will always insist on immediate implementation of corrective action.

Corrective action for any deficiencies will also be specified for Part C of the Social Audit Questionnaire («Best Practice for Industry»).

The audited company has the right to give complete or partial consent to Part C of the audit. The company may chose to implement or decline corrective actions stemming from Part C of the audit. This will be noted in the corresponding «yes/no» column of Part C of the Corrective Action Plan, the CAP. This decision has no effect on the final audit result and does not carry any negative consequences for the audited company. Implementation of the corrective actions arising from Part C is voluntary, but recommended for suppliers with a high optimisation potential and who could have the potential to reach the SA 8000 or equivalent recognised certification standards.

The CAP's resulting from parts B and C of the initial audit will be duplicated, and each copy is to be signed by a company representative and the auditor. The company retains one copy, and the other is kept by the auditor.

1.6.7. Social Audit Report

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 BSCI 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. This copy is needed for planning of potential qualification measures.


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1.6.8. Assessment of the Social Audit Reports

The Social Audit Report is an important document for the supplier company. It includes the assessment of the initial audit, and indicates the compulsory corrective action(s) to be implemented (Part B of the Questionnaire «BSCI Social Requirements») and the voluntary ptimisation measures (Part C of the questionnaire «Best practice for Industry»). The following parts are particularly important for assessment of the Social Audit Report.

1.6.8.1. Assessment BSCI Social Requirements (Part B of BSCI Audit Questionnaire)

Each set of questions will be given an overall assessment. The assessments and their meanings are listed below:

Assessment Interpretation

2 «Good»

«No deviation from BSCI Social Requirements» or «Minor deviations from BSCI Social Requirements, but full protection of employees is observed»:

There is no significant deviation from the requirements.

The auditor can assess an audit result with good, if there are not more than two deviations in non-crucial points (crucial points marked in the BSCI Audit Questionnaire with a double frame), no immediate danger to employees and no systematic faults.

1 «Improvements Needed»

«Deviations in less than half of the and in no crucial points (crucial points are marked in the BSCI Audit Questionnaire with a double frame) »:

Fulfilment of at least half the audit points. There are no deviations in crucial points.

0 «Non-compliant»

«Deviations in 50% or in the majority of requirements and/or in crucial points (marked in the BSCI Audit Questionnaire with a double frame) »:

The requirements are not fulfilled in more than half the points, and/or not fulfilled in crucial points.

NA «Not Applicable»

«Requirements do not match to the company structure»:

The requirements are not relevant with respect to the structure of the company.

Tab. 2: Scoring of Question Complexes in Part B of BSCI Audit Questionnaire

The overall assessment of the company’s social performance is established as follows: the worst result for any one set of questions determines the audit result for Part B. This means that if the assessment «Non-compliant» was given in one set of questions, the overall result for Part B is «Non-compliant».

Similarly, if the assessment «Improvements Needed» is given in only one set of questions, despite «Good» assessments for all other sets of questions, the overall result will be «Improvements Needed».

The «Remarks» section of the Social Audit Report allows the auditor room to make positive and/or negative comments and remarks about matters considered important and worthy of mention. Photos of the company’s facilities are also attached to the Report.

1.6.8.2. Corrective Action Plan (CAP) BSCI Social Requirements (Part B of the BSCI Audit Questionnaire)

The Social Audit Report also includes the corrective actions agreed upon with the company at the final audit meeting. They serve as the basis for the qualification and implementation phase. They record which measures must be implemented the time frame allowed for each.


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1.6.8.3. Assessment «Best practice for Industry» (Part C of BSCI Audit Questionnaire)

Assessment of the individual sets of questions is different than in Part B. There are only two alternatives:

Assessment Interpretation

2 «Good»«No deviation from requirements»:Requirements are met for all points.

1 «Improvements Needed»«Deviations from requirements»:There is at least one deviation from requirements.

NA «Not Applicable»«Requirements do not match to the company structure»:Requirements are not applicable for the structure of the company.

Tab. 3: Scoring of Question Complexes in Part C of BSCI Audit Questionnaire

All requirements of parts B and C of the audit must be fulfilled if a company wants to proceed with a further certification process such as SA8000 or other recognised standards.

A valid SA8000 or equivalent recognised certificate can relieve the company from further social audits within the BSCI system or even from other non-BSCI clients' requirements. Certificates are only accepted if the certified site is clearly and exactly defined and correspond with the respective production site to be audited for the BSCI.

If the company decides against participating in further certification processes, this will have no negative effects within the framework of the BSCI. The Social Audit Report concludes with comments on the assessment.

1.6.8.4 Corrective Action Plan (CAP) «Best practice for Industry»

The partial or complete implementation of the necessary corrective actions listed in Part C of the Corrective Action Plan is voluntary. It is intended for companies which are able and willing to join a qualification and certification process such as SA 8000 or other recognised standards.

1.7. Qualification and Implementation Phase

The qualification phase serves two purposes: The identification of the causes of a company's deviations from the BSCI requirements and for the development of a plan of action for correcting them within the agreed upon time frame. The BSCI member trading partner will support and assist in the qualification process. This support may range from controlling and coaching up to and including training measures.

Implementation of corrective measures can be a difficult process. Therefore, any plan of action for implementing improvements and corrections should be well thought out, practicable and well structured to avoid causing unnecessary difficulties for the audited company and its employees.

Company management should analyse each individual deviation listed in the CAP of the Social Audit Report together with the responsible employees from the specific operational level. The root and specific causes of the problems encountered during the audit should be evaluated and possible solutions considered.

The plan of corrective action shall focus on the feasibility and the defined time limit agreed upon in the audit.

Any plan of action should always include the following components:

Definition of problems Potential solutions Definition of responsible employees and other employees involved Time limits for corrective actions Monitoring activities


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It should also be ascertained whether the necessary know-how is available within the company to implement necessary changes. The best plan of action for elimination of a problem is of no use if the company does not have the necessary competent, qualified and authorised personnel resources available to carry it out. If the company cannot solve the problem in co-operation with the BSCI member trading partner, external service providers or consultants can be contacted for advice (please refer to the list of consulting companies).

1.8. Re-Audit

If the social performance of a company is assessed with a mark of «Improvements Needed» or «Non-compliant» in an audit (initial audit or re-audit), it is necessary to conduct a re-audit. After the required corrective actions have been implemented or the time limit specified in the CAP elapsed, a re-audit is required. Re-audits, in any case, must take place within twelve months after the initial audit (calculated from date of the failed audit). The re-audit will be initiated by the BSCI member.

The re-audit procedure is same as the initial audit procedure described above. The re-audit covers all areas where deviations have been determined in the initial or previous audit. The implementation of necessary corrective actions recorded in the CAP and the Social Audit Report is checked. If the auditor notices new and/or additional deficiencies, they will be analysed and included in the re-audit assessment and in the CAP. All corrective actions should be implemented by the time the re-audit order is placed. A final internal check should be done before the re-audit application.

Only SAAS accredited auditing bodies and their auditors shall conduct the re-audits (please refer to the list of accredited auditing bodies).

1.9. Costs

Payment of costs incurred for audits and qualification will be negotiated directly between BSCI members and their suppliers. In principle, the cost for audits and re-audits should be borne by the companies audited. But it is up to the BSCI member to decide who must cover the expenses for audits and qualification.

1.10. Best practice for Industry

With this systematic approach, BSCI members' suppliers should be able to ensure sustainable compliance with today’s «Best Practice for Industry» and be able to react to future market developments and changes in regulations. Through the implementation of optimisation actions, they will be able to integrate good management practices into their organisational structures, thereby improving their business.

Suppliers who enter the BSCI system with a good level of social performance and pass the BSCI auditing successfully, should feel encouraged to implement a full social management system and to achieve SA8000 or equivalent recognised certification.


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2. Implementation Guideline for BSCI Social Requirements

2.1. A. Master Data

2.1.1. COMPANY DATA

Requirements Expectations Implementation Documentation

Transparency The management of the company has the responsibility of providing its customer who is BSCI member or accredited auditors appointed to conduct the audit with the necessary information and data regarding the company’s activities and production sites including subcontractors.

Prepare the actual valid information on the following business data for the audit:name and address of the enterprise to be audited– contact person– e-mail address, phone- and fax number,

if available– basic data like year or foundation, legal

status languages spoken– total capacity per month

Prepare the actual valid information on your business structure for the audit:– number of own production units– number of subcontractors– number of own suppliers, sub-suppliers

Keep a copy of official documents on legal status, company name(s), year of foundation ready for the audit.

Fill in the Production Unit Record Sheet

Prepare the actual valid company figures for the audit such as:– export shares of the last three years– sales figures of the last three years for

the domestic market and export markets– major export markets– monthly production capacity

Prepare a list with these figures. Additional documents such as organisation chart or company brochures can be presented to the auditor.


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2.1.1. COMPANY DATA


Prepare the actual valid data on the company structure for the audit such as:– company organisation and structure– number of employees per department– total number of employees– number of female employees– if relevant, number of employees

considered as children– number of employees considered as

young workers– number of pregnant employees– number of employees in maternity leave– number of apprentices– number of disabled persons– number of migrant workers– number of employees on probation– number of unskilled workers– number of homeworkers– structure of wages:

number of employees:on a monthly rateon a daily rateon a hourly ratepiece rates

– office hours per day, average production hours per day, number of shifts and number of employees per shift

Prepare a list with these figures


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2.2. B. BSCI Social Requirements

2.2.1. B.1 MANAGEMENT PRACTICE


Certificates & Audit Reports

The company has the option of providing the BSCI member or accredited auditors with a valid certificate on the implementation of management systems (f.i. ISO 900x, ISO 14001, SA8000) or social reports issued by retail customers and/or their service providers in former times to the company and/or its subcon-tractor(s).

The company shall provide the necessary resources for measures enabling compliance with the BSCI Code of Conduct.

Check which certificates and/or audit reports on social performance are available in your company.

Prepare a list of social/code of conduct audits, which have been conducted in your company on behalf of other organisations.

Calculate based on the required corrective actions and optimisation actions the financial and personnel resources.

Make a clear statement, that the company and persons working for the company including subcontractors must comply with the legal requirements in the country of operation.

Document these certificates and audit reports and make copies.

Provide copies of the certificates/ reports at the beginning of the audit. In the case, that your retail customer who is BSCI member carries out a self assessment in your company before the Initial Audit, attach these copies of the certificates/reports to the self assessment

Legal Compliance Companies must comply with national and regional laws and regulations

Screen statutory regulations and evaluate if they are applicable for your company and industry.

Prepare a list of all applicable laws and regulations.


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Definition of Responsibilities

The company must define a function/person within senior management responsible for Code of Conduct implementation and compliance with the BSCI Social Requirements.The management shall allow auditing of production sites and activities related to the code of conduct by accredited auditors.

The company shall define a function/person on the operational level who is responsible for Code of Conduct implementation and compliance with the BSCI Social Requirements

Define within senior management a function/person responsible for compliance with the Code of Conduct, updating legal regulations, gap analysis, implementation of corrective actions, and follow up of the optimisation process.

Define a function/person who is responsible for compliance with the Code of Conduct implementation of corrective actions on an operational level.

Document the person with name and function

Risk Analysis The company shall implement a system to identify specific risks for health and safety of the employees and to prevent recurrence of work accidents.

Implement the risk identification and prevention system

Documents regular inspections of buildings, rooms, workplaces and machines for possible hazard sources, record results of inspections for possible hazard sources and corrective actions taken.

Anti-corruption/bribery

The company shall implement a policy forbidding staff to involve in corruption and bribery.

The policy should be presented to all staff and they should sign in acknowledgement.

Document any cases identified and record the corrective actions taken against the person(s) involved. Encourage staff and employees in general to report issues related to corruption and bribery.


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Accounting & Capacity Planning

The company shall use a cost accounting and capacity planning method

Implement methods of costs accounting and capacity planning

Document cost calculation and capacity planning



Information & Communication

The company must inform all employees about the content of the BSCI Code of Conduct, their rights and obligations.

Inform all employees through information meetings, notice boards or in their contracts about the BSCI Code of Conduct.

Have the contracts or minutes of information meetings documented.

The company must have the BSCI Code of Conduct translated into local language(s) and post this in a location visible to all employees.

If necessary, translate the BSCI Code of Conduct into local language(s) and post this in the location visible to all employees.

Document the BSCI Code of Conduct in local language(s).

All responsible persons such as management, department heads, production managers and other employees with leading functions must be informed about the laws and regulations, industrial or company own standards and must implement those in their fields of responsibility.

Inform responsible persons such as management, department heads, production managers and other employees with leading functions about the laws and regulations, industrial and company own standards. (e.g.: The Superior must have knowledge of the regulations on working hours, accident prevention etc. for his department.)

Subcontractors Companies must know all subcontractors involved in the final production process of goods provided to BSCI members.

Companies must ensure that appointed subcontractors comply at least with the BSCI Social

Screen subcontractors.

Evaluate who is producing goods for which particular BSCI member.

Ask your subcontractors to sign the BSCI Code of Conduct.

Prepare a list of these subcontractors including names and addresses of production units.

Document the signed BSCI Codes of Conduct.

Where available, keep evidence


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Requirements. Inform subcontractors about the BSCI Social Requirements. Translate these requirements into local language(s) and provide it to them as part of business agreements/contracts.

(certificates, audit reports) of their social performance in your records.



Subcontractors Selection of subcontractors must be based on their ability to meet at least the BSCI Social Requirements.

Find out whether your subcontractors already have any audit reports or certificates regarding their social performance. If yes, ask them to send you a copy of these documents.

Inform your subcontractors about necessity to comply with the BSCI Social Requirements including relevant laws and regulations in the country of operation.

Ask your subcontractors to sign an agreement covering the following topics before start to work with them:– compliance with national

laws and regulations– compliance with the BSCI Social

Requirements– cooperation on implementation of

necessary corrective actions– information of all relevant business

partners such as production units subcontracted

Collect audit reports or subcontractors' certificates if available.

Document the signed codes of conduct.

Companies must establish appropriate internal procedures and a structured organisation in order to ensure compliance of the

Establish the necessity of subcontractors’ compliance at your sourcing, purchasing and production departments.

Document the responsible function or person.


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subcontractors with the BSCI Social Requirements.

Define clear responsibilities for tasks and duties in order to ensure subcontractors’ compliance with the requirements.



Subcontractors Determine the performance and compliance of your subcontractors regularly by internal and/or external monitoring. The BSCI tools Self-Assessment, Audit Questionnaire, Audit and Re-Audit Reports can be used. In case that companies don’t like to implement internal monitoring procedures at their subcontractors, subcontractors can be urged to run BSCI audits with accredited auditing bodies.

Define a function/person responsible for checking subcontractors’ compliance (internaly and/or externaly).

Document your subcontractors’ performance through audit reports.

Document the function/person responsible for checking subcontractors’ compliance.

2.2.2. B.2 DOCUMENTATION

The organisation shall keep all records of required documentation in a proper and systematic way, traceable for an auditor verifying these documents.

All documents provided to the auditor must be valid and representing the real status.


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Please refer to the BSCI Audit Questionnaire, esp. to section B.2 and this implementation guideline for BSCI Social Requirements.

2.2.3. B.3 WORKING TIME


Regular Working Time

Companies must observe national and/or regional laws and regulations related to their industry.As per BSCI Code of Conduct the maximum working time per week based on ILO-Conventions 1,14 is 48-hours-regular-work and 12 hours of overtime in those cases, where statutory regulations are less stringent. In those cases, where statutory regulations are more stringent, statutory regulations apply.

Regular working time plus overtime must not exceed the maximum legally allowed working time defined per day and week.

Companies must keep systematic records documenting employees’ working hours.

Screen local laws and regulations.

Collect these regulations and industrial standards from official authorities.

Evaluate which laws and regulations are valid for your industry.

Determine whether you fulfil the applicable laws and regulations. Operate based on prevailing local working hours and holidays.

Define a function/person responsible for documenting and managing these laws, regulations and industry standards and keeping them up-to-date.

Define regular working hours, shifts, multi-shift working, breaks and holidays for your operation.

Define a function/person who is responsible for controlling of working hours in the respective departments.

Document the applicable laws and regulations by name, article and source.

Document the working hours prevailing in your industry and the source of this information.

Document a function/person respon-sible for keeping documents up-to-date.

Document the defined regular working hours, shifts, multi-shift working, breaks and holidays for your operation.

Document the function/person responsible for controlling of the working hours.

Record the working hours of your employees e.g. by:– attendance list

Keep these records on hours worked for each employee.


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– punch/time card– it-based data recording system – pay slips mentioning the hours worked

and confirmed by the employee




Time records should contain the following data:– start and end of working time per day– start and end of breaks per day– overtime worked divided into regular

working days, Sunday, public holidays– rest days– sickness and maternity leave or other

absences with reason– periods of absence without indicated

reason

Define a function/person responsible for keeping records of hours worked by each employee.

Document a function/person responsible for keeping related documents up-to-date

If exemptions are allowed by law or any other authorisations (f.i. from collective bargaining agreements with trade unions), the company must have official documentation approving exemptions.

Determine if all necessary approvals from official authorities or agreements with trade unions are available. If not, get these approvals.

Define a function/person responsible for regularly reviewing hours worked.

In case that regular working hours exceed the legally defined limit this function/ person is obliged and allowed to propose appropriate measures such as changing shifts, changes of working time,

In case of exemptions, file the official approvals. (e.g. work on holidays/ Sundays, overtime work etc).

Document a function/person responsible for regularly reviewing hours worked.

Document the proposed and implemented measures.


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enlargement of numbers of employees to the senior management for decision.




Determine if all necessary approvals from official authorities are available. If not, get these approvals prepared.

In case of need, consider to contact officially accepted unions, local non governmental organisations (NGOs), labour or industry organisations for assistance and guidance.

Overtime Companies must observe national and/or regional laws and regulations related to their industry.

As per BSCI Code of Conduct, overtime should only be worked in exceptional cases, and should in any case not exceed 12 hours per week (legal regulations to be observed).




Determine whether you fulfil the applicable laws and regulations. Compensate overtime at the individual hourly rate and at least with the legal/industrial premium.

Consider in the preparation phase of production and project planning the objective to reduce overtime work to a minimum.


Document the regulations on overtime work prevailing in your industry and the source of this information.


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Overtime Overtime must be voluntary and employees have to be aware of it, meaning employees must agree to hours they work, within legal limits

Record the overtime worked by your employees.

Inform your employees that overtime work is voluntary.

If overtime work is exceptionally necessary, explain to employees why and do not force them to work overtime.

Include the number of hours worked overtime and their payment in the payroll.

Define a function/person responsible for monitoring that overtime is not worked regularly and that employees are not forced to work overtime.

Keep records on overtime hours worked for each employee.

Document production schedules and planning.

Document overtime worked per employee.

Include information on hours worked overtime and their compensation in payroll documentation.

Document the function/person responsible for monitoring that overtime is not worked regularly and that employees are not forced to work overtime.

If exemptions are allowed by law or any other authorisation (f.i. from collective bargaining agreements with trade unions), the company must have official documentation approving exemptions.

Determine if all necessary approvals from official authorities or agreements with trade unions are available. If not, get these approvals.

In case of exemptions, file the official approval.


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Work-Free Time Companies must observe national and/or regional laws and regulations related to their industry. These regulations refer to regular holidays, breaks, weekly rest days, sickness leave, maternity leave, extraordinary holidays etc.




Determine whether you fulfil the applicable laws and regulations. Operate at least as per legal regulations.

Give employees the opportunity to have a reasonable amount of time off from their duties to rest and to take an appropriate number of meals.


Document the regulations on overtime work prevailing in your industry and the source of this information

If exemptions are allowed by law or any other authorization (f.i. from collective bargaining agreements with trade unions), the company must have official documentation approving exemptions.

Determine if all necessary approvals from official authorities are available. If not, get these approvals.

In case of exemptions, file the official approval.

Weekly Rest Days The BSCI Code of Conduct requires that employees must be given at least one work-free day after latest six consecutive days of working.

Prepare production schedules, projects, personnel resources and/or shifts in a way that employees have one day rest after latest six consecutive days of working.

If not required legally, the rhythm of working days can vary.

Document these schedules and data.


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Weekly Rest Days Any work on regular rest days or holidays must be voluntary and within legal maximum hours allowed.

Determine regular working days.

Record work-free time for each employee.

Do not force employees to work more than six consecutive days.

Define a responsible function/ person responsible for monitoring that employees are not forced to work more than six consecutive days.

Document the responsible function/person for monitoring that employees are not forced to work more than six consecutive days.

2.2.4. B.4 COMPENSATION

Statutory Minimum Wage

Companies must comply with national and/or regional laws and regulations for their respective industry.

Payment of at least legal or industrial minimum wages (whichever is higher) to all employees (including piece workers) for all hours worked.

Payment of overtime hours must be paid at the individual hourly rate and at least with legal overtime premium.

Screen national laws and regulations regarding the hourly minimum wage.


Determine whether you fulfil the applicable laws and regulations.

Screen industrial minimum standards for wages and benefits.

Should it be necessary, consider contacting officially accepted unions, local Non Governmental Organisations (NGOs), labour or industry organisations for assistance and guidance.


Document the industrial minimum wages and the source of this information.


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Determine whether you pay at least the required legal minimum wages (gross & net) overtime rate and premium. If not, adjust payments accordingly.

Keep records on the hours/days worked by each employee and their compensation

In the case that there are additional stipulations effective in your region or country, check whether the negotiated wages are higher than the legal minimum wages and applicable for your company. In case the company is affected, take these wages as basis.

Pay all employees at least the stipulated minimum wages. Have a wage list (pay roll) for all employees and issue a payslip for each employee, which includes at least the following data:– pay day– amount of payment– contributions to social insurance funds

period worked, regular hours and overtime

pieces manufactured modality of payment (cash, bank

transfer, cheque etc.) currency deductions overtime supplements

– other supplements

Have these agreements documented with name, source and date.

Keep a wage list (pay roll) and document the payslips for each employee.

Keep the documents for a period required by law, but at least for 36 months.


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Define a function/person responsible for documenting and managing relevant laws, regulations and industry standards and keeping them up-to-date.

Define a function/person responsible for keeping records of payrolls and pay slips updated.

Define a contact function/person for employees in case of queries regarding payment.

Give clear instructions to the human resource department to pay employees at least following legal and/or industrial requirements whichever are more stringent.

Define a function/person responsible to review regularly whether payment-practice complies with these standards.

Document who is responsible for documenting and managing laws, regulations and industry standards and keeping them up-to-date.

Document who is responsible for documenting payrolls and pay slips.

Define who is responsible as contact person.

Document who is responsible for reviewing the payment regularly.

Compensation on Piecework Basis

Employees who are paid on piecework basis must get at least the statutory minimum wage in ratio to the hours worked.Payment of hours worked overtime, which means going beyond the regular daily/weekly working hours, must be paid at the individual hourly rate and at least with legal overtime premium.

In case of piece rates, issue each employee a pay slip including information on number of pieces made, working period and the actual payment per piece and the total.

Determine whether you fulfil this requirement.

In case of piece rates, document per employee the hours worked, number of pieces made, working period and the actual payment per piece and the total.


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Payment Modalities Payment must be made by an officially recognised method, or a modality acceptable to the employees.

Pay wages and benefits in the official currency.

If another legally accepted modality is required by the employee, prepare a written agreement and have it signed by the employee.

Document the wage list (payroll) and the pay slips for each employee.

Document that agreement.

Payment during statutory work-free periods

Companies must comply with national and/or regional laws and regulations regarding the continued payment of wages during particular defined work-free periods.

Screen national laws and regulations on the obligation to continue the payment of wages during a defined period on:– national and religious holidays– sickness leave– maternity leave – parental leave– statutory vacation days for the

respective industry– short-time working – low capacity production periods – Other cases of operational stagnation




Define a function/person responsible for documenting and managing relevant laws, regulations and industry standards and keeping them up-to-date.

Document who is responsible for documenting and managing laws, regulations and industry standards and keeping them up-to-date.


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Contributions to Social Insurance Funds

Companies must comply with legal regulations concerning contributions to social insurance funds.

Screen national laws and regulations regarding contributions to social insurance funds.



Record the necessary documents: – provident funds – pension scheme– health insurance– social security – education funds for employees and their

children etc.


Document these records.

In the case payment to social insurance funds is not possible based on reasons which are out of the company’s control, the amount corresponding to the legally required one has to be put on an accruals account.

Payments of contributions to social insurance funds have to be documented by vouchers or bank statement.

Should it be necessary, consider to contact official authorities, officially accepted unions, local Non Governmental Organisations (NGOs), labour or industry organisations for assistance and guidance.



Additional benefits Companies can offer all kind of Screen the benefits you are offering your Keep records on all additional benefits


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to employees voluntary monetary or non-monetary benefits on top of the regular wages and the mandatory benefits as far as they are in compliance with the respective laws and accepted by the employee.

employees and classify them into voluntary and mandatory e.g.:– Transport cost supplements – Own transportation systems– Accommodation supplements– Allowances on food, medical treatment,

education etc.– Benefits to mothers and pregnant

women

granted to employees with a remark whether they are mandatory or voluntary.

All benefits required by law must be granted.

Check if you are complying with laws on mandatory benefits.

Deductions from Wages

Deductions from wages must be legal and shall be calculated on regional customary rates.

Do not make deductions from wages without employees’ prior approval or legal justification.

Keep records on deductions made from wages for each employee.

Deductions for dormitories, food, transportation or others have to be appropriate, shall not be overcharged and shall not lead to a compensation level below the statutory net wage and shall only be done with employees’ prior approval if deductions are not required by law.

Calculate the deductions on regional customary rates.In order to calculate whether employees are being overcharged, take the lowest wage you are paying and calculate the remaining amount after deduction.

In case of deductions document employees’ approval such as signed agreements or contracts and in freely negotiated collective bargaining agreements.

No proportion of the wage shall be withheld as a security for the contract of employment, except where this is allowed or required by national and/or regional laws.



Contractual Security Employees have to be informed in Define wages, benefits, deductions and Document wages, benefits and


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writing and in a clear and understandable form about conditions such as wages and period of payment before they start working.Employees who can neither read nor write must be given such clarification verbally. The minimum information on payment must contain:– Amount incl. benefits and

deductions– frequency– terms– pay day

Employees must have the opportunity to refuse or negotiate conditions before become employed.

conditions before hiring employees.

Inform the applicants before they start working at least about the:– amount of payment incl. benefits and

deductions– frequency and terms of payment – pay day

Ask your employees for a written confirmation, that they agree on the conditions.

Prepare contracts for all employments.

conditions for each employee.

Document these agreements.

Define in these contracts at least the conditions such as:– compensation (wages, benefits,

deductions, piece rate)– work hours– type of job and function– terms of payment– period of payment– name of employee

Document contractual agreements signed by your employees in personnel files.



Contractual Security – name of employer– validity of contract


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– notice to terminate employment

Have these contracts signed by employees before they start working.

Define a function/person responsible for regularly reviewing whether contracts comply with national legal/industrial standards.

Define a function/person responsible for documenting and managing contracts and related documents and keeping them up-to-date.

Document a function/person responsible for regularly reviewing whether contracts comply with national legal/industrial standards.

Document a function/person responsible for keeping contracts and related documents up-to-date.

2.2.5. B.5 CHILD LABOUR / YOUNG EMPLOYEES

Minimum age Companies must meet the statutory regulations of the country of operation regarding minimum age and the protection of young employees.

Screen Laws and regulations regarding minimum age for employment.

Determine employees’ ages in your company.




Minimum age BSCI defines child labour as follows:a) under the age of 15

Employ only persons who are at least at or above the applicable minimum age for working.

Document the birth or age through – employees’ information in CVs or

applications


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b) if local law stipulates a higher age for work than 15, below this age

c) if local law stipulates a higher age for general mandatory schooling than 15, below this age

For country exceptions (minimum age of 14), please refer to ILO convention 138.

Train the respective persons responsible for recruitment.

Keep the birth date or age of all employees in personnel records.

Verify the age of an applicant prior to employment through official documents issued by governmental or medical institutions. e.g.: – birth certificates

– school certificates– passport/ID card– health certificates– election card– driving license etc.

– birth certificates– school certificates– passport/ID card– health certificates– election card– driving licenceetc.

Define a function/person responsible for documenting these laws and regulations and keeping them up-to-date and for controlling, that there are no underaged people at the working places and that the rights of young employees are observed.

Document the function/person responsible for documenting, managing and keeping these laws and regulations and personnel data up-to-date and for controlling that there are no underaged people at the working places and that the rights of young employees are observed.



Young Employees Young employees shall not be exposed to situations that are hazardous, unsafe or unhealthy.

Determine if young workers are working in your company, the working field they are working in and the education and training they got for their job.

Documents this data.


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The supplier must ensure that work done by young workers is not exploitative and/or socially harmful.

BSCI defines the term of young workers as follows:a) as defined legally, in most cases

employees with the age of 15-17

b) above the general mandatory school age up to 17 in the country of operation

Determine if it is assured, that young workers are not exposed to risky and hazardous working situations and enable the appropriate protection against unsafe und unhealthy conditions.

Define a function/person in the appropriate departments (human resources) responsible for compliance with laws and regulations on minimum age and young employees.

Document who is responsible for legal compliance.

Remediation In the event of non-permissible child labour, the supplier has to take over responsibility for these children. Child employees who have to be dismissed on grounds of age shall receive themselves and/or their families an adequate support to enable child employees to attend and remain in school until they are no longer a child.

If child workers have to be dismissed based on their age, prepare a remediation plan including school attendance of the child workers in the case of general mandatory schooling or professional training in the case, that the child worker is not subject to general mandatory schooling and financial support of children’s families.

Operate according to that remediation plan.

Document the remediation plan.

2.2.6. B.6 FORCED LABOUR / DISCIPLINARY MEASURES / PRISONER LABOUR


Legal Compliance Companies must comply with national and/or regional laws and regulations on forced labour, disciplinary measures and prisoner labour.

Screen laws and regulations regarding forced labour.

Operate in compliance with these laws and regulations.



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Forced labour including bonded labour or involuntary prisoner labour is prohibited. As found in ILO-Convention 29 «Forced labour Convention» and 105 «Abolition of Forced Labour Convention».

Determine employees’ status in your company and if the laws are observed.

Define a function/person responsible for documenting, managing these laws and regulations and keeping them up-to-date.

Define a function/person responsible for keeping relevant data in personnel records.

Define a function/person in the appropriate departments (human resources) responsible for compliance with these laws and regulations.

Document the function/person respon-sible for documenting, managing and keeping these laws and regulations and personnel data up-to-date.

Document the function/person responsible for keeping the personnel data.

Document the function/person responsible for compliance with laws and regulations.

Forced Labour Companies must ensure that work is not conducted under the threat of any penalty or sanctions.

It has to be ensured that employees are offering and/or conducting work or services voluntarily.

Do not require deposits or retain any employee's original personal documents with the intention of compulsion or coercion.

Ensure that your employees are not forced to work under threat of penalties, violence or sanctions.

2.2.6. B.6 FORCED LABOUR / DISCIPLINARY MEASURES / PRISONER LABOUR


Forced Labour The permanent withholding of original ID papers, deposits or comparable practices is not allowed.

Enable employees to leave the company areas and dormitories, if they are officially allowed to.

Ensure that employees are free to quit their jobs and to leave the company within


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the legal framework.

Disciplinary Measures

Companies shall not use physical or mental compulsion as diciplinary measures against employees

Make this philosophy aware to all employees, especially those who are in superior functions or security jobs.

State, that abuse of superior positions is not tolerated.

Prisoner Labour It must be guaranteed that prisoners are not exploited or their human dignity violated.

The BSCI Social Requirements are applicable for prisoners working in the company or at outsourced sites.

If individual stages of manufacture or the assembly/confection of a product take place in prison, this must be reported to the respective BSCI member.

Determine whether production processes are outsourced to be conducted in prison.

Determine whether you are purchasing semi-finished products made in prison.

Determine if prisoners are working in your company.

Make the compliance with the BSCI Code of Conduct mandatory for purchase of products from prisons.

If you or organisations appointed by you are allowed to enter prisons, monitor the working conditions at these places.

Prepare a list of production processes outsourced to prisons.

Keep records on the sources of semi-finished products coming from prisons.

2.2.7. B.7 FREEDOM OF ASSOCIATION / COLLECTIVE BARGAINING


Legal Compliance Companies must comply with national and/or regional laws and regulations.

Employees must be allowed to

Screen laws and regulations

Evaluate which laws and regulations you must comply with.


If any approvals are required by law


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exercise their legal rights of free association and collective bargaining.


Define a function/person responsible for documenting and managing these laws and regulations and keeping them up-to-date.

from official authorities document these approvals.

Document who is responsible for documenting and managing laws and regulations and keeping them up-to-date.

Recognise and respect employees ability to exercise their legal rights of free association, including joining or not joining any legal association.

Should it be necessary, consider contacting officially accepted unions, local Non Governmental Organisations (NGOs) or labour organisations for assistance and guidance.

Define a function/person responsible for employee’s complaints and suggestions.

Follow up on employees' complaints and take appropriate measures to solve problems.

Document all agreements made with the employee’s representatives or trade unions.

Document all complaints and the measures taken.



Freedom of Association and Right to Collective Bargaining

As far as it is not restricted by law, companies must recognise that employees are allowed to found, join and take actions in free and independent workers’ organizations including free and

Recognise and respect employee’s rights of freedom of association and collective bargaining.

In countries, where some or all aspects of workers’ rights to freedom of association


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independent unions and to bargain collectively without previous authorisation. Where Freedom of Association is restriced by law companies shall facilitate parallel means of free and independent organizing for all per-sonnel in the company to enable employees to bargain collectively.

For details please refer to ILO conventions C87 «Freedom of Association and Protection of the Right to Organise Convention» and C98«Right to Organise and Collective Bargaining Convention.»

and collective bargaining are restricted or prohibited by law companies shall allow workers to exercise alternative means to express their concerns and grievances.

Employees’ representatives must not be discriminated against and must have access to all work places. Employees‘ representatives affiliated to workers’ organizations including free and independent unions must not be discriminated against and must have access to their members at the workplaces.

Enable employees’ representatives to conduct their operations as long as their activities are in conformity with laws and collective agreements.

If meetings are conducted, ask the responsible person to write and record minutes containing: – agenda & content– name of participants – date



Freedom of Association and Right to Collective Bargaining

The employees’ representatives shall enjoy effective protection against any act prejudicial to them, including dismissal, based on their status or activities as an employees’ representative or a

Enable employees’ representatives free access to all work places, those affiliated to free and independent workers’ organizations including free and independent unions to their members at the workplaces to carry out their function.

Employees may keep these records confidential and show them only to an independent person having a monitoring function such as government, unions, auditors or others.


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workers’ organization/union member as long as they act in conformity with existing laws and/or collective agreements.

For details please refer to ILO convention C 135 «Workers’ Representatives Convention».

Accept employee’s representatives and their activities and give them the necessary protection within your company.

Inform your employees about their legal rights.

Define who is responsible.

Offer employees the opportunity to make complaints and suggestions on improvements anonymously e.g. through boxes posted in the working areas.

Document the function/person responsible for implementation, documentation, and follow up.

Keep records of complaints and suggestions made by employees or third parties and the planned or implemented solutions and/or improvements.

2.2.8. B.8 DISCRIMINATION


Legal Compliance Companies must comply with national and/or regional laws and regulations regarding prohibition of discrimination.

Screen national laws and regulations.

Evaluate which laws and regulations you must comply with.


For details please refer to ILO convention C 100 «Equal Remuneration Convention» and C 111 «Discrimination (Employment and Occupation) Convention».



Ensure that employees who provide any information concerning compliance with the BSCI Code of Conduct are not penalized.

Document who is responsible for documenting and managing laws and regulations and keeping them up-to-date.


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Don’t ask female applicants, whether they are pregnant or virgin, in the recruitment procedure, don’t require pregnancy tests as part of the recruitment procedure and don’t make the use of contraception a condition of hiring or of continuing employment

Women shall not be mistreated or fired as a result of being pregnant.

Prohibition of discrimination

All employees have equal access to jobs and training based on their qualifications.

Employ and promote employees based solely upon their ability and qualification to perform a needed function.

2.2.8. B.8 DISCRIMINATION


Prohibition of discrimination

Employment, promotion and training are independent of age, caste, disability, ethic and national origin, gender, membership in workers’ organizations including unions, political affiliation, race, religion, sexual orientation, social background or other personal characteristics.

Define the necessary skills for each function.

Keep records on job profiles and required working skills.

All employees must be given the same opportunity to work overtime within the legally defined limits, provided they have similar skills.

Make an appraisal of an applicant’s performance so that you have clear and logical arguments regarding why you have chosen somebody for a job or promotion.

Review regularly internal employment and promotion practices.

Document the appraisal of a job or training applicant.

Keep personnel records for each employee including information on


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Work of equal value has to be remunerated without discrimination based on personal characteristics of the employees.

Define function-related wages and benefits based on an employee's qualification, experience and performance.

qualification and performance. Keep records on wage and benefit structures.

2.2.9. B.9 WORKING CONDITIONS


Legal Compliance Companies must comply with national and/or regional laws and regulations regarding the working conditions.These regulations cover in general the following issues:– Room temperature– Ventilation– Noise levels– Lighting conditions– Hygienic aspects in production,

kitchen, dormitories etc.

Screen local laws and regulations

Evaluate which laws and regulations are valid for your industry. Determine whether you fulfil the applicable laws and regulations. Operate based on required legal and industrial standards.

Screen industry standards for regulations on working environment.




Document industrial standards and the source of information.

Document the function/person responsible for documenting, managing and keeping these laws and regulations up-to-date.

Risk Minimisation Companies must ensure that the working environment is safe and hygienic, and that all employees

Screen the potential hazards and risks at work places.A hazard is anything that can cause harm

Record your findings on potential hazards and risk sources and the safety measures you have defined.


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have the best possible level of health protection and safety.

e.g.: – machinery– chemicals

Document the defined and initiated safety measures.

– electricity– open fire– working from ladder– slippery floors– noise– leaking substances– dustetc.

A risk is the chance, high or low, that somebody will be harmed by a hazard.

Determine who might be harmed e.g.:– young employees, trainees– pregnant women – cleaners– visitors– contractors– maintenance employees, etc. who may

not be at the workplace regularly– members of the public, people living in

the vicinity of your facilities

Evaluate whether the existing precautions are adequate or whether more should be done to protect employees.

Improve employee awareness of these potential risks.

Define a function/person responsible for

Document the number of accidents including the source of the accident, the type and dates of accident, the damages, and indication of persons who have been harmed.

Document the results of these safety assessments.


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regular safety assessments.



Temperature at workplaces

Room temperature in production and offices shall not be excessively high or low and shall not be a health risk. Production facilities and offices must have adequate cooling and/or heating systems.

Determine the areas in your production having excessively high or low temperatures based on the requirements for facilities, such as hot machinery, heat releasing processes, cooling systems, warehouses with refrigerating systems etc.

Evaluate which protective equipment is necessary to protect employees working in these particular areas and areas nearby.

Check if all employees working in these areas are provided with this equipment and if employees in other areas are protected as well.

Provide employees with the necessary protective equipment and the respective areas with appropriate technical equipment.

Define a function/person responsible for checking the room temperature regularly (at various regular intervals during the day and/or year).

Checks should be made regularly (at least once per month). Temperature should always be measured at the same place and same conditions (same time,

Document the function/person responsible for checking the room temperature. Document the results and dates of these checks.


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equipment etc.) to get comparable results.



Ventilation Production facilities and offices must have adequate ventilation systems.The ventilation must be appropriate for the respective area considering the health of employees, fire and explosion hazards and air pollution.

Determine the effectiveness and efficiency of the ventilation and/or heating systems in all facilities.

Provide ventilation/heating sufficient for operations to proceed safely in every work area.

In order to achieve the best result of ventilation, the following possibilities can be used single or in combination:– windows (placed in high positions)– ventilators– air conditioning– extraction systems

Ventilation systems shall be installed in a way that no emissions from outside or other areas are directed into buildings.

For easily flammable particles special air extraction and filter systems must be installed. They have to be separated from the regular air extraction and filter systems.

Install extraction systems at workplaces where health – hazardous chemical vapours such as solvents or smoke occur.

Define a function/person responsible for Document the function/person


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checks and maintenance of the ventilation systems regularly (at various regular intervals during the day and/month/year).

responsible for checking and maintenance the ventilation system.



Noise Protection The noise level must not exceed the limit where it becomes harmful for employees health.

Determine the sources for noise and the concerned working areas (for reference the rule can be used, that conversation shall be possible at regular volume).

Check which measures can be implemented to lower the noise emission. E.g.:– fixation of loose plates on machinery– provision of trolleys with rubber wheels– insulation of machinery, motors and

engines– seperate placement of compressed air

generators or other

Wherever possible try to avoid unnecessary noise exposure. Provide the necessary protective equipments and require from employees to use it.

In areas with noise sources, warning notices must be placed to remind employees to wear the necessary protective equipment.

Define a function/person responsible for checks of noise sources and their

Document the function/person responsible for these checks.


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protection systems regularly (at various regular intervals during the day and/month/year).



Lighting at workplaces

Production facilities and offices must have sufficient lighting in order to avoid accidents or health risks for employees.

Determine the effectiveness and efficiency of the lighting systems in all facilities. Provide lighting which is sufficient for operations to proceed safely in every work area. Take the type of work and materials used into consideration (e.g. employees working with dark or small components need a more lighting.)

Ensure that repairs, maintenance and replacing of defective fixtures or bulbs are made immediately, if needed.

Clean the windows regularly to use the daylight as light source.

Areas such as working areas, staircases, storage areas, corridors and outside areas used by employees and/or visitors, must be equipped with efficient lighting.

Lights must be placed in a way, that they are not dazzling.

Define a function/person responsible for checking the lightening and the tidiness of windows regularly (at various regular

Document the function/person responsible for checking the lightening.


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intervals during the day/month and year). Document the results and dates of these checks.



Workplace Condition All facilities including workplaces, rest rooms, first aid rooms and canteen must be maintained in a proper and clean state, in accordance with local hygiene standards.

Clean the production facilities offices, rest rooms and canteen regularly.

Determine where waste occurs and classify the waste in hazardous and non hazardous waste.

Keep records with information on who has cleaned what and when.

All facilities have to be maintained in a way that employees, suppliers and visitors health cannot be harmed.

Places where waste occurs have to be provided with appropriate containers for disposal of the waste.

Waste have to be disposed regularly in order to avoid overflow and odour.

Install containers in an appropriate number. Containers must be suitable for the respective kind of waste.

Define a time frame for cleaning and waste disposal (e.g. every day at 10 a.m., every two hours during work time, etc.).

Define a function/person responsible for cleaning and waste disposal.

Document the defined time frame for cleaning and waste disposal.

Document who is responsible for cleaning and waste disposal.

2.2.10. B.10 HEALTH & SOCIAL FACILITIES


Legal Compliance Companies must comply with national and/or regional laws and regulations regarding: Health & Social facilities.






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Determine whether you fulfil the applicable laws and regulations. Operate based on required legal and industrial standards.

Screen industry standards for health & social facilities.


Define a function/person in the respective departments responsible for compliance with these laws and regulations.


Document the function/person responsible for checking compliance with these laws and regulations.

First Aid Supplies Companies must comply with laws and regulations regarding the provision of a sick/first aid room, first aid and medical equipment and personnel such as nurses, doctors or employees trained in first aid.

Companies must provide adequate first aid supplies.





The content of the first-aid kits must meet legally defined and/or industrial standards regarding– bandaging material– care of open wounds– care of burns– care of eye injuries

Prepare a list with the content of first aid boxes and expiry dates of medicines and other contents.


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– adhesive plaster– emergency blankets– ointments and medicine

First-aid kits should be marked appropriately by signs as such.

The content of first-aid kits must be appropriate to the production processes and danger of potential accidents.

Medicine should not be stored and used after its expiry date.

First-aid kits must be freely accessible during working hours.

First-aid kits must be available in an appropriate number based on the industry and the company size, number of employees, hazard potential etc. There must be at least one first-aid kits per production floor.

Post doctor or hospital emergency numbers beside a telephone which is accessible and unlocked during working hours.

Define a function/person responsible for maintenance of the first-aid kits.

Record the maintenance with date, name of person and result of the check (e.g. material exchanged).

Document who is responsible for the maintenance of the first aid boxes.

Document this list.


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Record any withdraw from first-aid kits with indication of reason, date and name of person.

Place a notebook in or at the first-aid kit.

First Aid Training An appropriate number of employees must be trained in first aid.

Train an appropriate number of employees in first aid. The training must be conducted by qualified trainers. Participants shall get a certificate after the course.

Document a copy of these certificants, a list of participants with names, positions and dates of training.

Water Supply Companies must give employees unrestricted access to potable water.

Potable water must be provided free of charge.

Provide potable water freely accessible in all production and office areas.

Employees must have unrestricted access to potable water.

Mark potable water as such.

File necessary documents to prove that the water is drinkable such as the water source or purification procedure.



Cooking & Eating Areas

Companies must provide clean facilities for food storage and eating.

Canteens or dining rooms have to be provided as per regulations and laws.

Storage and eating areas must be separated from production and hazardous chemical storage areas and have proper trash containers.

Provide a sufficient number of seats in these rooms based on the number of employees, shifts etc.

Observe the same regulations for eating rooms, canteens and kitchens as for working areas.


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Eating and drinking at workplaces shall be prohibited in areas where employees are working with hazardous, dangerous or sensitive materials and substances.

Keep the eating rooms and canteenes in proper conditions and clean them regularly.

Provide these areas with places to enable employees to wash and store their dishes if this is not organised centrally by the company.



Sanitary facilities Companies must provide an adequate number of toilets and ensure that these are in a clean state, in accordance with local standards.

Provide an adequate number of toilets.

Clean toilets and washrooms regularly.

Keep records with information on who has cleaned what and when.

Toilets must be lockable and/or separate for men and women.

Define the frequency of cleaning.

Define a function/person responsible for cleaning.

Provide toilets that are separated by gender or lockable.

Document the defined frequency for cleaning.

Document who is responsible for cleaning.

Employees must have access to appropriate washing facilities

Provide washing facilities or showers depending on the production processes.

If there are male and female employees


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using the washing facilities, they have to be separated by gender or lockable.

Provide employees using these facilities with soap or other care products and towels.

Provide changing rooms in areas where employees have to wear special protective clothes during working hours. In case male and female employees are using these changing rooms, they have to be separated by gender or lockable.

2.2.11. B.11 OCCUPATIONAL HEALTH & SAFETY


Legal Compliance Companies must comply with national and/or regional laws and regulations regarding:Occupational Health & Safety– Accident prevention– Protective measures– Chemicals– Risk minimisation– others

For details, please refer to the ILO-convention 155.



Screen industry standards for health and safety.


Define a function/person responsible for documenting and managing these laws



Document official approvals to run operations, machinery, etc.

Document the function/person responsible for documenting,


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and regulations and keeping them up-to-date.


managing and keeping these laws and regulations up-to-date.


Protective Measures Companies have to provide all employees with protective equipment appropriate to the risks they face at their place of work or in areas they must visit.

Evaluate which protective equipment is required by law and appropriate according to defined hazards and risks present in your operation.

Appropriate protective equipment must be functional and provided free of charge.

e.g.:– ear plugs– gloves– safety shoes– dust masks– hair cover– goggles and others

Keep all protective equipment in good condition (e.g. gloves must not have cracks, masks must not have holes).

Train employees in the proper handling and use of this equipment.

Prepare signs and warnings and post them in the appropriate areas and on machinery reminding employees to wear the necessary equipment. These signs should ease the handling of the protective equipment. Please refer to Appendix B.11-

Document the responsible function/person for provision of safety equipment.


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Warning Signs Fig.II.2 as examples.

Define a function/person responsible for provision and maintenance of safety equipment and for checking its effectiveness regularly.

Improve employee awareness about the advantages and importance of using safety equipment.



Protective Measures Safety of Machines, Storage and other facilities

Machinery, warehouse and other storage facilities must be sufficiently secure and storage rooms must be safe and equipped with appropriate protective measures.

Evaluate if machinery or parts of machinery can cause injuries.

Determine whether machinery needs safeguards and protective equipment to avoid injuries such as, finger guards, drive belt safety covers, ventilator guards and others.

Determine if there are rotating or oscillating machine parts and avoid any contacts with employees by covering or blocking them.

Install fully operational cut-off switches at all machines for security reasons in case of danger or accidents.

Train employees on proper use of machinery and on how to stay alert during the work process.


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Place operating and safety instructions at machinery.

Allow only qualified employees to operate, maintain or repair machines.

Define a function/person responsible for installation, maintenance, repairs of machinery and safety measures and checking their effectiveness regularly.

Document the responsible function/person for installation and maintenance of safety measures on machinery.

Document all maintenance activities and repair works.



Prepare signs and warnings and post them in the appropriate areas and on machinery reminding employees to pay attention and avoid accidents. (e.g. indicating heat, pressure, high voltage etc.) Please refer to Appendix B.11-Warning Signs as examples.

Handling & Storage of Chemicals

Chemicals such as oils, greases, solvents, gas, dyestuffs, printing inks etc. have to be handeled properly with care.

Allow quick and easy identification of the content of chemical substance containers by labelling them in the language(s) of the employees handling them.

Label containers with warning signs indicating the health effect or the reaction of the stored substance (e.g. flammable, corrosive etc.). Please refer to Appendix B.11-Warning Signs Fig.II.3 & Fig.II.4 as examples.

Hazardous substances must be stored separately and labelled with

Inform employees about the meaning of these warning signs and the correct


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the appropriate warning signs.Please refer to Appendix B.11-Warning Signs as examples.

handling of the various substances.

Ask your suppliers to provide you with sufficient information and appropriate safety measures for the substances you are buying e.g. Material Safety Data Sheets (MSDS).

Have Material Safety Data Sheets (MSDS) available in the operating areas.




Prepare a list of all substances available and evaluate if these are harmful. Update this list regularly.

Record the receipt, consumption and distribution of chemicals.

Documents these lists.

Chemical substances should be kept only in small quantities at workplaces, ideally only the quantity required for a particular process, shift or working day.

Store chemicals only in appropriate containers and never in foodstuff containers.

Inform employees about the meaning of these warning signs and the correct handling of the various substances.

Store harmful substances separately in a closed area.

Store harmful substances in a way that containers cannot be damaged and


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substances cannot leak and contaminate soil or water.

Do not store substances classified as corrosive above eye level.




Define a function/person responsible for distributing harmful substances.

Define who is authorized to access chemicals.

Document the responsible function/person for distribution of harmful substances.

Document the responsible function/person having access to chemicals.

Handling of Electric Power

Companies must ensure that employees’ health is not endangered by electrical installations.

All places with electrical power, such as fuse boxes, cables, lamp sockets, power sockets and others must be installed in a safe way.

Electrical contacts must be covered with appropriate non- conductive materials.

Electrical installations must be fixed and installed in a way that they are secure against falling down or employees getting tangled.

Display high voltage warning signs wherever relevant. Please refer to Appendix B.11-Warning Signs Fig.II.5 as examples.

Ensure that power sockets, switches and lamp mounts are in good condition and functioning properly.

Cover switches and sockets.

Block the access to electrical installations of machinery.

Allow only qualified employees or external people to maintain and conduct repair work at electric facilities.

Lock electrical junction boxes, electric Document the responsible


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switchgear/electric control rooms and fuse boxes. Install these areas in a way that cabinets are made of flameproof material.

Define authorised persons who have access to these places and ensure that only these persons have access.

function/person having access to these places.

Document the responsible function/person.



Handling of Electric Power

Conduct regularly inspections on safety of electric facilities.

Define a function/person who is responsible for these inspections, maintenance and arrangement of repairs.

Document the inspections.

Document the function/person.

Fire Protection & Fighting

Companies must take protective measures to avoid fires, to warn employees early.

Avoid obvious fire hazards (exposed wiring, improper storage of combustible and flammable materials).

Install a functioning fire alarm system including smoke sensors and alarm devices.

Escape routes & emergency exits

Facilities must have an adequate number of emergency exits.

Escape routes and emergency exits must be fast and freely accessible and appropriately marked.

Mark exits and escape routes clearly. Please refer to Appendix B.11-Warning Signs Fig.II.7 as examples.

Ensure that emergency exits are easy accessible.

Ensure that emergency exits are not locked during working hours.

Ensure that emergency exits and escape


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routes are never blocked by stored material, furniture or other objects.

Ensure that emergency exits and escape routes are arranged in a way that they enable the fastest way to leave dangerous areas and lead to safe areas or open air.



Escape routes & emergency exits

Ensure that the number of emergency exits is appropriate to number of employees working in that area.

Install emergency exit doors in a way that they swing outwards to open if there are more than ten people working at that place or keep them open in a fixed position during working hours.

Follow eventual legal regulations on lighting of escape routes and emergency exits.

Construct main exit doors in a way that they allow clearance of the building.

Fire Fighting Equipment

Companies must ensure that all facilities are provided with appropriate fire fighting equipment.

Evaluate based on requirements for your industry what kind of fire fighting equipment is necessary e.g.:– fire extinguishers– fire-fighting hoses– sand– hydrants– sprinkler systems


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– others

Ensure that the fire fighting equipment is functional, placed accessible and is regularly maintained.



Fire Fighting Equipment

Install accessible and functional fire extinguishers or fire hoses on each floor. Functionality must be proved with valid inspection dates.

Arrange fire extinguishers in a way that they do not block escape routes.

Protect fire extinguishers from all parameters having an influence on their function such as:– weather (if placed outside) temperature

(direct sun shine, freeze etc.) – caustic gases– liquids etc

Define a function/person who is responsible to check all protective measures and fire fighting equipment regularly on their functionality.

Define a function/person who is responsible for maintenance and arrangement repairs and replacements.

Document who is responsible.

Document who is responsible.


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Fire & Evacuation Drills

Facilities must have an evacuation plan.

Regular fire drills have to be conducted.

Prepare and post an illustrated evacuation plan in local language(s) in all production and office areas.



Fire & Evacuation Drills

Perform regular fire drills at least once per year including at least explanations on following issues:– fire fighting strategies– handling of fire fighting equipment– fire characteristics of substances in use

and the required fire fighting method

Examine regular evacuation drills with all employees, at least once per year.

Instruct new employees before they start working.

Train an appropriate number of employees based on the company size and employees working in areas with fire risks.

Define a function/person responsible for conducting fire drills and training employees.

Document details of the fire drills.

Document the persons trained and the departments they are working in.

Document who is responsible for fire drills and trainings and the qualification.

Operation of Steam Boilers

Companies have to operate steam boilers in a way that risk or harm for employees cannot occur.

Install steam boilers operated with gas, oil, coal or other combustible materials in areas not close to dormitories, emergency exits, escape routes or staircases.


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Install stationary steam boilers in separate rooms or buildings which are lockable. Allow only authorised persons access to these places.



Post safety rules and operation instructions for steam boilers visible at the respective boiler.

Allow only qualified employees to operate, maintain or repair steam boilers.

Ensure that all steam boilers are equipped with high-pressure safety relief valves.

Check these high-pressure safety relief valves on their functionality and maintain them regularly.

Ensure that high pressure steam generators are properly working without having leaks or improvised repairs.

Ensure that the high-pressure steam pipes are working properly without having leaks or improvised repairs. Check the pipes on their functionality and maintain them in regular intervals.

Allow only qualified employees to operate, maintain or repair steam boilers.

Define a function/person responsible for

Document the responsible function/person for installation and maintenance of safety measures on machinery.


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checking, maintenance, repairs of steam boilers. Document all maintenance activities

and repair works.



Employees’ safety Employees’ safety must be guaranteed and monitored regularly.

Define a function/person responsible for regularly monitoring employees’ safety.

Monitor employees’ safety regularly.

Protect employees from falling from heights or falling into dangerous substances. Install guard rails or fences in the respective areas.

Protect employees from falling objects with sufficient fixation of these.

Protect employees from danger occurred by handling of extremely cold or hot materials, machinery and other objects such as heating systems, pipes, steam boilers, cooling systems etc. with protective devices and marks.

Avoid slippery floors and other sources of danger or mark them respectively.

Separate machinery areas visibly from other areas for employees e.g. with coloured tapes.

Document the responsible function/person for monitoring employees’ safety.

Document the results of checks on health and safety measures and their effectiveness.




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Information & Training

Companies must instruct their employees on how to perform their duties. Potential dangers in their working areas must be explained to employees, and they must be trained to handle all materials and equipment they come into contact with that are harmful to health or are hazardous.

Companies must train employees about the meaning of warning signs and the necessary behaviour including warning signs for chemicals, electric power, fire protection, escape routes, machinery etc.Please refer to Appendix B.11-Warning Signs as examples.

Give new employees clear descriptions and instructions regarding their job and tasks before they start working.

Train employees in the proper use and handling of machinery and chemicals.

Conduct regular training sessions on accident and fire prevention.

Organise first aid courses.

Document training and instruction sessions conducted, including topics, participants, position of participants, dates of training, name of trainer, etc.

2.2.12. B.12 DORMITORIES

Dormitories If employees live in dormitories inside or outside the premises, they must be provided with an adequate number of housing units of a reasonable size, in accordance with national regulations.

Screen national laws and regulations in your country/region regarding the minimum standards and specifications of the accommodation to be provided.

Evaluate which legal minimum standards you must comply with.




Dormitories For details, please refer to the ILO- Determine if all necessary approvals from If any approvals are required by law


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convention 110 «Plantations Convention» Part XII. Housing article 85-88.

The same level of safety and health standards for dormitories as in the work place is expected.

official authorities are available. If not, get these approvals.

Determine whether you fulfil the legal or industrial minimum standards.

Observe at least the required minimum standards on:– construction materials to be used– minimum size– layout– ventilation– floor and air space– cooking area/equipment– washing area/equipment– water supply – sanitary facilities and others

Separate dormitories from production and storage areas.

Ensure that dormitories are suitable for accomodation of people.

At least the same standards on safety, tidiness, hygiene, ventilation, room temperature, protection measures as listed under B.9-B.11 are applicable for dormitory areas as it is for the other company areas.

from official authorities document these approvals.



Dormitories Define a function/person responsible for documenting and managing these laws

Document the function/person responsible for documenting,


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and regulations and keeping them up-to-date.

Define a function/person responsible for compliance with these laws and regulations.

managing and keeping these laws and regulations up-to-date.


2.2.13. B.13 ENVIRONMENT

Legal Compliance Companies must comply with national and/or regional laws and regulations regarding environment(such as effluent water, emissions, soil, waste, etc.).



Screen industry standards for environmental issues.




Document official approvals on e.g. effluent water, emissions, waste and required authorisations to run operations, machinery, etc.



Legal Compliance Define a function/person responsible for documenting and managing these laws and regulations and keeping them up-to-date.



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Waste Companies must ensure that waste is stored and disposed properly as per legal regulations without any harm to employees and the environment.

Dispose waste in compliance with legal regulations referring to the kind of waste.

Store waste in a way that the environment cannot be damaged.

Keep dangerous and hazardous waste in suitable closed tanks and containers.

Use collection basins to avoid any leaking and contamination.

Store waste in a way that employees cannot be harmed.

Chemicals Companies must ensure that chemicals are stored and disposed properly as per legal regulations without any harm to employees and the environment.

Dispose chemicals in compliance with legal regulations referring to their classification.

Store chemicals in a way that the environment cannot be damaged.



Chemicals Keep dangerous and hazardous chemicals in suitable closed tanks and containers.

Use collection basins to avoid leaking and contamination.


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Store chemicals in a way that employees cannot be harmed.

Inform employees about the storage places of hazardous chemicals.

Mark the respective areas accordingly.

Ensure that employees handling, storing or disposing chemicals have a sufficient qualification.

Ensure that chemicals are not mixed with other waste material.

Collect oils by an oil separator, and greases by a grease separator.

Effluent Water Companies must ensure that effluent water is disposed properly as per legal regulations without any harm to employees and the environment.

Treat the effluent water as per legal requirements before discharging it to the environment.


Document official approvals on effluent water treatment plants and the water quality after treatment.



Emissions Companies must ensure that emissions are in legal conformity.

Observe legal requirements. Determine if all necessary approvals from official authorities are available. If not, get these approvals.

Document official approvals on emissions.


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3. Annex: (C.) «Best Practice for Industry»

If a companies wishes to comply with the «Best practice for Industry», additional requirements have to be observed. In particular, there are stricter requirements for social management with the aim to achieve continuous improvement of the company’s social performance.

3.1. C.1 Policy + C.2 Planning and Implementation

In addition to the minimum requirements for social policy described in Section B, the company has to undertake to meet all the normative requirements of the recognised Social Standard. The company’s social policy must be set out in writing and signed by top management, and must meet the following criteria:

Commitment to fulfil all the requirements of the recognised Social Standard such as SA 8000 Commitment to comply with all national and other relevant legal regulations Commitment to comply with other requirements to which company has undertaken an obligation,

e.g. agreements with the staff, with trade unions or with NGOs Observation of the international agreements on labour and social law Commitment to a continuous improvement process company Internal und external communication

For the establishment of a social policy, it is enough to draw up a declaration setting out the above mentioned points.

The company also has to demonstrate that the social policy is actively communicated within the company. All employees must be informed of the social policy and the respective standard. The comprehensive knowledge of an employee depends on the position in the company’s hierarchy. Employees must always be informed specifically of the areas which affect them and their working fields directly.

Further points to observe:

Define clear roles, responsibilities and rights with respect to all areas of the standard. New employees and temporary workers must receive training before they start their work. That is

necessary in order to ensure that the requirements are fulfilled. All employees must receive training at least once a year, in the languages common in the company.

Check the activities and results of the system regularly (i.e. at least once every six months) with respect to effectiveness and degree of fulfilment. This can, for example, be done by a senior manager in the course of internal checks. The results of the internal inspections are to be documented.

It is not enough for fulfilment of the requirements of internal communication of the recognised standard simply to display the relevant documents in the Company. The company must ensure that all employees who are directly employed, associated by contract, or otherwise represent its company, understand and can stand up for the core points of the social policy and the Social Standard. This can be done by staff meetings, by department meetings, by training, and (but not only by this method) by display of information.

The company’s social policy must be openly accessible. It should always have printed copies of the current version available, in order to make these available immediately if there are questions. If the company has a website, it can also use that for external communication of the corporate policy.


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3.2. C.3 Management Review

Once a year, the company should conduct a Management Review and draw up a report on it. The main question to be answered in a Management Review is whether the procedures and instruments that are established work properly or not. The basis of this review is the results of internal inspections conducted, particularly with a view to determining continuous improvement of social performance in the company. If there is no continuous improvement, the company may conclude that the procedures and instruments are not properly implemented, and need to be adapted accordingly.The company’s subcontractors are already addressed in Chapter B.. The group of those concerned is expanded here to include company’s own suppliers and sub-suppliers. These are all from which the company obtains goods or services for its own production (e.g. sub-suppliers, part suppliers, dyeing shops). The goal of the «Best Practices» is that all of company’s social standards are gradually implemented in the whole of the value chain downstream of the company.

3.3. C.4 Control of Subcontractors/Suppliers/Sub-Suppliers

Examples of Circumstances:

The company selects its subcontractors, suppliers and sub-suppliers not only on the basis of price and quality, but also with a view to their potential for complying with the recognised Social Standard (i.e. SA 8000). The company has to show the auditor evidence of its selection process.

The company concludes written agreements with its subcontractors, suppliers and sub-suppliers, where they undertake:

– to implement the social requirements defined in the recognised Social Standard (i.e. SA 8000) in their facilities

– to play an active part in the monitoring processes practised by the company

– to take measures in the event of deviations, in order to remedy them

– to inform the company of all relevant business relations with their own subcontractors, suppliers and sub-suppliers

The company has introduced a monitoring procedure in its company to supervise social performance by its subcontractors, suppliers and sub-suppliers. The company prepares written monitoring reports.

The monitoring reports give evidence that either the social requirements of the recognised Social Standard (i.e. SA8000) are complied with in the facilities of subcontractors, suppliers and sub-suppliers, or at least a continuous process of improvement has been initiated there.

The acceptance of responsibility for the company’s subcontractors, suppliers and sub-suppliers involves a lot of effort, particularly with respect to establishing its own monitoring systems, but it is necessary for SA8000 or equivalent certification schemes. However, the company can reduce its own effort by mandating expert third parties to carry out auditing of the companies of the downstream value chain, or it can require these companies themselves to have audits done in accordance with the BSCI Model.


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3.4. C.5 Control of Homeworkers

Homeworkers often take on very labour-intensive activities, such as embroidery on garments. They do this work independently, outside of the factory building, often including their relatives in this work. They are paid by performance, mostly per production unit. If the company aims at a certification to SA8000 or other standards, the requirements of the respective stabdards regarding homeworkers is applicable.This means that homeworkers are basically to be treated the same way as the other employees.

The following matters will be examined in the audit:

The company has to conclude written contracts with homeworkers, and to oblige them to comply with the requirements of the respective Social Standard.

The requirements of the Social Standard must have been understood by the homeworkers. This requires for example that the contracts must be written in the languages spoken by the homeworkers.

The company has to ensure that the requirements of the Social Standard are also complied with by the homeworkers. For this purpose it must conduct announced and unannounced inspection visits to the homeworkers.

The company must record the identity, goods produced or services provided and compensation in accordance with the calculated working time of the homeworkers.

3.5. C.6 Compensation

As described in Chapter B. Compensation, there are minimum wages stipulated by government departments in all countries. These are often not sufficient to cover the cost of living of the employees and their dependent family members, and to leave them with a part to dispose of freely. The SA8000 standard i.e. regulates the payment of the «Basic Needs Wage».

The amount of the Basic Needs Wage is often difficult to determine. It depends on the cost of living, which varies from country to country, from region to region, and from city to city. It is advisable to work with local authorities, NGOs and/or trade unions in order to get appropriate data for calculation of the Basic Needs Wage. A formula for calculation of the Basic Needs Wage can also be obtained from Social Accountability International (SAI), the creator of the SA8000 standard (www.sa-intl.org) or direct from your auditor. The company shall find out how high the cost of living is for a family of average size at the location of the company, in order to safeguard its livelihood. To get a rough idea of how great the difference is between the legal minimum wage and the Basic Needs Wage, the company can proceed as follows: Add together the monthly average family costs for:

Food Clothing Housing (incl. electricity, water and heating) Transport and travel Medical provisions Children’s education Other necessary costs 10% of the amount calculated so far as savings reserves

If it is assumed that on average there are 2 family members who have an income, the total determined above can be divided by 2. That would correspond approximately to the Basic Needs Wage.

If the legal minimum wage is higher than the calculated Basic Needs Wage, the legal minimum wage must naturally be paid as a minimum.

For certification to SA8000, it would initially be sufficient if together with the auditor the company sets up a plan of action and time schedule for successive increase of the legal minimum wage level to the level of the Basic Needs Wage within 18 month, if immediate change to this level is not possible.


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3.6. C.7 Child Labour

The company must have a written policy and procedures, and must communicate it to all interested parties and to its employees, declaring what action he takes with those affected if illegal child labour is foundcompany. The necessary measures are indicated already in Section B.

3.7. C.8 Evasion

Under no circumstances may the requirements of the SA8000 standard be evaded, for example by clever interpretation of the legal regulations, or by fictitious apprenticeships, or other «tricks». Certification would then be excluded.

3.8. C.9 Outside Communication

Transparency is a central requirement in the framework of the SA8000 certification system. Transparency is to be established by external communication. Transparency creates credibility.The following matters will be checked in the audit:

The company has to establish a procedure which ensures that interested persons and organisations can obtain information on its social performance. It must at least report on its social policy, via reviews and monitoring activities.

It must be specified who in his company is responsible for outside communication, and how inquiries are to be treated.

It is up to the company in what form it provides external communication, provided that the information is comprehensible and truthful. A cost-effective way of doing this is to use the Internet.


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APPENDIX B.11 – WARNING SIGNS

Source of danger Danger of slipping Danger of falling Danger of tripping(black on yellow) (black on yellow) (black on yellow) (black on yellow)

Danger of crushing Danger from Danger from Danger of(black on yellow) suspended loads industrial trucks hand injury

(black on yellow) (black on yellow) (black on yellow)

Danger from Danger from Danger from cold Danger frommilling automatic start cold hot surfaces

(black on yellow) (black on yellow) (black on yellow) (black on yellow)

Danger from Danger of electromagnetic Danger from Danger frombatteries radiation laser radiation radioactivity

(black on yellow) (black on yellow) (black on yellow) (black on yellow)

Fig. II.1: Danger warning signs


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Wear hard hat (helmet) Wear hearing protection Wear respiratory protection(white on blue) (white on blue) (white on blue)

Wear protective glasses Wear face protection Wear protective gloves(white on blue) (white on blue) (white on blue)

Use safety harness Wear protective shoes Wear protective clothing(white on blue) (white on blue) (white on blue)

Fig. II.2: Signs giving instructions for wearing protective clothing

Toxic substances Substances hazardous Caustic substances!(black on yellow) to health (black on yellow)

(black on yellow)

Fig. II.3: Warning signs to mark chemical hazards


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Toxic Hazardous to health Caustic Environmentally hazardous(black on orange) (black on orange) (black on orange) (black on orange)

Explosive Highly flammable Promotes fires(black on orange) (black on orange) (black on orange)

Fig. II.4: Markings for labelling tanks/containers with chemical substances

Warning of Pull out connector Disconnect beforeelectrical voltage before opening the equipment doing electrical work(black on yellow) (white on blue) (white on blue)

Do not touch Do not extinguish Do not switch on.Electrically live surface with water Work in progress

(red on white) (red on white) on electrical equipment(red on white)

Fig.II.5: Marking of electrical hazard sources


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Fire hazard Fire promoting materials Explosion hazard(black on yellow) (black on yellow) (black on yellow)

Fig.II.6: Marking for fire protection

Escape routes Emergency exits Emergency assembly points(white on green) (white on green) (white on green)

Fig.II.7: Signs marking escape routes, emergency exits and emergency assembly points


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APPENDIX B.12 – DOCUMENTATION

Documents Questionnaire

1.Copies of official documents on legal status, company name(s), year of foundation

A

2.Customer Record Sheet and production units record sheet

A

3. Valid business licences and all necessary official approvals to run operations, machines etc.

A

4.Company’s fiscal figures

A

5.List of company’s figures on employment structure

A

6.List of valid certificates on Management Systems and of social/code of conduct audits, which have been conducted in the company on behalf of other organisations, copies of the audit reports

B1

7.Documentation of responsibilities in the company on senior management and operational level for implementation of and checking compliance with the BSCI Code of Conduct

B1

8.Calculation of the necessary financial and personnel resources to comply with the Minimum Social Requirements

B1

9. Cost calculation in written form B.1

10. Capacity planning in written form B.1

11.Documentation of trainings conducted for employees on BSCI Code of Conduct.

B.1

12.Documentation related to Anti-corruption Policies.

B.1

13. Record of inspection results for possible hazard sources and corrective actions taken (Safety Assessment)

B.11

14. Personnel Data Files for all employees B.2

15. List of subcontractors including names and addresses of production units B.2

16. Written declaration of commitment of subcontractors’ compliance with the BSCI Code of Conduct

B.2

17. Proofs of continuous improvement of social performance in the facilities of subcontractors

B.2

18. Corporate social policy in written form B.2

19. Working time recording system B.2

20. Working Rules in written form B.2

21. Documents to prove that the water is drinkable. B.2

22. Documentation on all benefits to employees with remarks if they are mandatory or voluntary

B.2

23. Documentation of working hours prevailing in the industry and the source of this information

B.3

24. Documentation of the defined regular working hours, shifts, multi-shift working, breaks and holidays for the company

B.3

25. Documentation of the legal/industrial minimum wages and the source of this information

B.4

26. Payslips for employees and evidence of payment of wages B.4

27. Payment documents proving the transfer of contributions to social insurance funds B.4

28. Wage lists and wage calculation incl. record of output of piece rate workers incl. all elements of wages and deductions

B.4


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Documents Questionnaire

29. Records on the granting of benefits for pregnant women and mothers B.4

30. Calculation documents for fixing piece rate B.4

31. For piece rate workers: records of the quantity produced by each individual employee

B.4

32. Documentation of any infringements of the working rules and any disciplinary measures taken

B.6

33. Contract of employment/contracts for service with security personnel (if security personnel is used)

B.6

34. List of production processes outsourced to prisons, and name and place of premises (if relevant)

B.6

35. Minutes of meetings and records of written agreements with employees' representatives

B.7

36. Records of complaints by employees and of any measures taken or manner of dealing with complaints

B.7

37. Inspection documents for room temperature, noise level and lighting B.9

38. Certificates on Qualification of Medical Personnel B.10

39. List of participants in first aid training with names, positions and dates of training conducted by qualified trainers

B.10

40. Record of the number of accidents including the source of the accidents, the type of accidents, the dates, the damages and indication of harmed persons

B.11

41. Documentation of conducted health and safety trainings (evacuation drills and fire fighting drills) including names of participants and dates of training

B.11

42. Records of receipt, consumption, withdrawal and disposal of chemicals (including presentation of Material Safety Data Sheets – MSDS)

B.11

43. Proof that employees working with electrical installation are qualified B.11

44. Inspection reports and maintenance records for lifts, dangerous machines, electrical equipment

B.11

45. Inspection reports and maintenance records for fire fighting equipment (e.g. inspection tags on fire extinguishers)

B.11

46. Operating and Safety Instructions for machines, workplaces and high-pressure equipment (if used)

B.11

47. Safety documents for employee dormitories (fire protection, hygiene, etc.) B.12
