BSCI

Introduction to BSCI (Business Social Compliance Initiative)

The Business Social Compliance Initiative (BSCI) is a leading European-driven initiative aimed at improving working conditions and social compliance in global supply chains. 

Established in 2003 by the Foreign Trade Association (FTA), BSCI provides a standardized framework for companies to monitor and promote ethical labor practices, human 

rights, and environmental sustainability across their production networks.

Key Objectives of BSCI

Ethical Labor Practices: Ensure compliance with international labor standards, including prohibition of child labor, forced labor, and discrimination.

Safe Working Conditions: Guarantee occupational health and safety (OHS) standards in factories and production facilities.

Fair Wages & Working Hours: Advocate for legal wages, reasonable working hours, and transparent payroll systems.

Environmental Responsibility: Encourage sustainable resource management and reduction of ecological footprints.

Supply Chain Transparency: Build traceable and accountable supply chains through audits and corrective action plans.

BSCI Audit Process

Scope: Covers 13 core areas aligned with ILO conventions, UN Guiding Principles on Business and Human Rights, and OECD guidelines.

Audit Types: Includes announced/unannounced audits, follow-up audits, and remote assessments.

Rating System: Audited suppliers receive ratings from A (excellent) to E (non-compliant), driving continuous improvement.

Why Join BSCI?

✅ Global Recognition: Accepted by 3,000+ retailers and brands worldwide (e.g., H&M, IKEA, Aldi).

✅ Risk Mitigation: Reduce legal and reputational risks linked to labor violations.

✅ Market Access: Meet CSR requirements of European buyers and multinational corporations.

✅ Efficiency: Avoid duplicate audits through the BSCI shared database.

Key Principles

Zero Tolerance: Prohibition of child labor, forced labor, and workplace harassment.

Freedom of Association: Workers’ right to join unions and collective bargaining.

Living Wage: Compensation sufficient to meet basic needs and discretionary income.

Membership & Implementation

Members: Over 2,500 companies and organizations participate globally.

Implementation Steps:

Self-Assessment: Suppliers complete the BSCI self-evaluation.

Audit: Conducted by approved third-party auditors (e.g., SGS, TÜV).

Corrective Actions: Address non-compliance within 12 months.

Continuous Monitoring: Annual reviews to maintain compliance.