If a company wishes to reach the "Best Practices in the Industry" while also complying with other requirements, especially regarding stricter social management aimed at continuously improving the company's social responsibility performance:
**3.1 C.1 Policy + C.2 Planning and Implementation**
In addition to the basic requirements of the social policy described in Section B, the company must meet all standardized requirements of recognized social standards. The company’s social responsibility policy must be signed by top management in writing and posted publicly, while also adhering to the following criteria:
- Commitment to meeting all requirements of recognized social standards, such as SA8000.
- Commitment to complying with all national laws and regulations, as well as other relevant laws and regulations.
- Commitment to meeting other obligations undertaken by the company, such as agreements with employees, unions, or non-governmental organizations.
- Compliance with international agreements on labor and social law.
- Commitment to becoming a company that continuously improves.
- Internal and external communication.
As part of a social responsibility policy, an externally distributed statement including the above points is sufficient. Additionally, the company must demonstrate that its social responsibility policy has been actively communicated internally. All employees must know the company’s relevant social responsibility policies and standards. The extent of employee knowledge depends on their position within the company. Therefore, companies should always inform employees of these policies directly in their work areas or other relevant locations.
To achieve further progress:
- Establish clear positions, responsibilities, and rights in all aspects based on this standard.
- New employees and temporary workers must receive training before starting work to ensure all requirements are met. Training should occur at least once a year for all employees in the company's common language.
- Regularly (e.g., at least every six months) check the degree and effectiveness of system implementation. This can be done through internal inspections conducted by senior managers. The results of internal inspections must be documented.
Simply posting relevant documents within the company is insufficient for achieving internal communication of recognized standards. The company must ensure that all employees, whether directly hired, contract workers, or others representing the company, understand and can support the main content of the social responsibility policy and social standards. This can be achieved through employee meetings, department meetings, training, and (but not limited to) posting information.
The company's social responsibility policy must be public and accessible. A current written version must always be kept available to address issues promptly. If the company has a website, it can also be used for external communication of the company's policy.
**3.2 C.3 Management Review**
The company must conduct an annual management review and prepare a report. The main questions asked during the management review process are whether the procedures and measures established are functioning properly. The basis for the review is the results of internal inspections conducted, particularly regarding continuous improvement in the company's social responsibility performance. If there is no continuous improvement, the company may conclude that the procedures and measures have not been correctly implemented and need to be modified accordingly.
Subcontractors of the company were mentioned in Section B. The scope of related organizations extends to include suppliers and sub-suppliers owned by the company. These come from companies that obtain goods or services for their own production (e.g., sub-suppliers, partial suppliers, laundry mills). The goal of "Best Practice" is for all social standards of the company to be gradually implemented throughout the entire downstream value chain.
**3.3 C.4 Management of Subcontractors/Suppliers/Sub-Suppliers**
Examples:
- When selecting subcontractors, suppliers, and sub-suppliers, the company does not base its selection solely on price and quality but also considers their potential to comply with recognized social standards (i.e., SA8000). The company must show its selection process to auditors.
- The company enters into written agreements with its subcontractors, suppliers, and sub-suppliers, where they commit to the following:
- Implementing the social requirements stipulated in recognized social standards (i.e., SA8000) in their factories.
- Taking proactive actions in supervision procedures initiated by the company.
- Taking immediate corrective measures if any requirements are violated.
- Informing the company of all business contacts, including subcontractors, suppliers, and sub-suppliers.
- The company has introduced monitoring procedures internally to supervise the social responsibility performance of its subcontractors, suppliers, and sub-suppliers. The company must prepare written monitoring reports.
- The provided monitoring report can prove that the social responsibility requirements of recognized social standards (e.g., SA8000) are being followed in all factories of subcontractors, suppliers, and sub-suppliers, or at least prove that a continuous improvement process has begun in their factories.
Even with significant efforts made by the company's subcontractors, suppliers, and sub-suppliers in terms of social responsibility, SA8000 or equivalent certification is still necessary. Therefore, the company can reduce its burden by commissioning professional third parties to audit companies in the downstream value chain or by requiring these companies to complete audits according to the BSCI model.
**3.4 C.5 Monitoring of Home Workers**
Home workers typically undertake labor-intensive activities, such as embroidery on clothing. They can independently complete this work outside the factory, usually involving their relatives. They are paid based on their output, often calculated per production unit. If the company aims to obtain SA8000 or equivalent certification, the requirements of various standards regarding home workers will apply.
This means that home workers should generally be treated like other employees.
During audits, the following issues will be examined:
- The company must enter into written contracts with home workers to ensure compliance with the requirements of various social standards.
- Home workers must understand the social requirements in social standards. Therefore, the contract must be drafted in writing in the language spoken by the home workers.
- The company must ensure that home workers comply with the requirements of social standards. For this purpose, both pre-notified and unannounced inspections of home workers must be carried out.
- The company must record the identity of home workers, the goods produced or services provided, and remuneration based on calculated working hours of home workers.
**3.5 C.6 Remuneration**
As explained in Section B on "Remuneration," all national governments set a minimum wage for work. Typically, these wages are insufficient to meet the living needs of employees and family members dependent on them, so some free allowances are provided. The SA8000 standard specifies the payment of a "living wage."
Generally, it is difficult to determine the exact amount of a living wage. It mainly depends on living costs, which vary by country, region, or even city. It is recommended to contact local government agencies, non-governmental organizations, and/or unions to obtain approximate data for calculating the living wage. The formula for calculating the living wage can also be obtained from Social Accountability International (SAI), the organization that initiated the SA8000 standard (www.sa-intl.org), or directly from the auditor. The company should determine the living needs of an average-sized family in the area where the company is located to meet their daily livelihood. To roughly understand the gap between the statutory minimum wage and the living wage, the company can add up the following monthly average household expenses:
- Food
- Clothing
- Housing (including utilities and heating)
- Transportation and travel
- Medical supplies
- Children's education
- Other necessary expenses
- If savings exist, calculate 10% of the total amount
If each household has an average of two income earners, the total amount determined above should be divided by 2. That would roughly correspond to the living wage.
If the statutory minimum wage is higher than the calculated living wage, then the statutory minimum wage will naturally be paid as the minimum wage.
For SA8000 certification, in the initial stage, when wage levels cannot be changed immediately, it is feasible for the company to successfully raise wages from the local statutory minimum wage to the level of a living wage within 18 months according to an action plan and timetable developed together with the auditor.
**3.6 C.7 Child Labor**
The company must develop a written policy and procedure and communicate it to all relevant parties and employees. If illegal child labor is found in the company, the measures it intends to take must be announced. Necessary measures have already been outlined in Section B.
**3.7 C.8 Avoidance of Responsibility**
Under no circumstances can the requirements of the SA8000 standard be avoided, such as by manipulating regulations or pretending to be apprentices or using other tricks, as certification will not be granted.
**3.8 C.9 External Communication**
In the structure of the SA8000 certification system, transparency is a key requirement. Transparency is achieved through external communication, which helps build trust for the company. During the audit process, the following issues will be checked:
- The company must establish a procedure to ensure that individuals and organizations interested in the company's social responsibility performance can obtain information at least based on the company's social responsibility policy, as well as reports from reviews and monitoring activities.
- Personnel responsible for external communication and handling inquiries must be designated within the company.
- The company decides the form of external communication, provided that the information provided is comprehensive and true. The best way to do this is by using the Internet.
Source: http://www.scsally.org.cn/bsci.html