Do you know whether everyone in your supply chain follows sound labor and environmental practices?
You can ensure your manufacturers, producers or suppliers uphold ethical work practices by implementing the BSCI Code of Conduct.
This article highlights the benefits of conducting an on-site BSCI audit and outlines the 7 steps taken during the audit procedure.
Four Benefits of the BSCI Audit Procedure
The BSCI audit procedure is recognized worldwide as the most comprehensive corporate social responsibility protocols for manufacturers and retailers. Here are 4 benefits you’ll gain from implementing the procedure:
1. Prestige while operating in countries with poor human rights records
Being a socially conscious company is an essential factor in today’s acceptable business practices. Your organization will be considered a progressive leader, making a difference in places renowned for less-than-desirable working conditions.
2. Strengthen your brand
Know that your suppliers are ensuring a safe working environment, are in compliance with labor laws, and not abusing human rights.
3. Improve investor and shareholder relations
You’ll more easily attract investors and foster shareholder relations when you can prove your suppliers are compliant with BSCI standards.
4. Boost business from conscious consumers
Today’s consumers actively seek out products and services from socially responsible companies. Cosmetics brand The Body Shop is an example of a business built on ethical practices that won over customers and experienced rapid growth – expanding at a rate of 50% annually, with share prices that increased by more than 500%.
7 Necessary Steps of a BSCI Audit Procedure
Here are the main steps you can expect to take if you decide to conduct a BSCI audit.
Step 1 – Open Meeting
Auditors use Social Accountability Accreditation Services (SAAS) and ISO 17021 conformity assessment procedures to introduce the purpose and goals of the BSCI audit to facility managers and personnel.
Step 2 – Collecting Data
Auditors observe working conditions at the facility and gather employment-related documents (working hours, payroll, etc.).
Step 3 – Production Site Audit
Auditors tour the facility to assess the working environment, looking for signs of social compliance issues.
Step 4 – Document Review
Auditors review employment-related documents covering the previous 12 months, or 3 months if the company is new.
Step 5 – Interviews
Auditors interview facility managers and workers to determine whether there may be incidents of discrimination, violence, sexual harassment or illegal disciplinary measures.
Step 6 – Evaluation
Auditors draw up an impartial conclusion on the social performance of the auditee against the BSCI Code of Conduct. Ratings are given for each performance area, ranging from ‘Very Good’ (A / green) to ‘Unacceptable’ (E / red). Remediation plans are developed for performance areas in need of improvement. A follow-up date may be set to review the implementation of the recommended improvements.
Step 7 – Closing Meeting
Auditors present the conclusion of the evaluation to the facility’s managers, along with a Corrective Action Plan (CAP). The CAP includes reasons for the ratings and recommendations for any areas in need of improvement.