1. The Business Social Compliance Initiative (BSCI) is composed of retail companies and associations, importers, and production companies. It represents a comprehensive monitoring system in Europe aimed at continuously improving the social responsibility performance of its members' production and supply facilities worldwide. The BSCI monitoring system does not aim to replace other established multi-stakeholder verification systems.
2. BSCI members believe they are responsible for all activities conducted under their name globally. They particularly feel a responsibility to provide good working conditions for the employees producing their products. This responsibility extends to all employees producing for BSCI members, whether directly employed by the members or hired by third-party subcontractors and suppliers.
3. To establish socially acceptable production conditions with significant impact, BSCI members have formulated this Code of Conduct. All global suppliers of BSCI members are obligated to comply with this Code. BSCI members should implement this Code with a proactive and cooperative attitude. They are willing to fully comply with the code while maintaining all existing business relationships. BSCI plans to raise awareness of this issue in the near future and achieve continuous and sustainable improvements over the next few years. Improvements in compliance with social responsibility will enable suppliers to meet current and future market demands as well as legal requirements. Suppliers’ performance in social responsibility can be systematically improved over time, avoiding the risk of boycotts. BSCI's position is that only when basic living standards are maintained and improved can the economy develop sustainably and society progress.
4. The Code of Conduct only specifies minimum standards and should not be interpreted as maximum limits, nor should it be used in any way to disadvantage employees, such as limiting their freedom of association or collective bargaining rights.
5. BSCI members consider themselves to be in partnership with their suppliers. Establishing socially acceptable production conditions is based on principles of dialogue, consensus, cooperation, and fairness. The interests of stakeholders most affected by changes should be given significant consideration. Implementation and enforcement of the Code depend on the development status of each supplier and the country where they operate. BSCI’s ultimate goal is full implementation of the Code.
6. Suppliers must ensure that all subcontractors involved in the production process, from start to finish, including mixing and assembly activities, comply with the Code of Conduct on behalf of BSCI members.
7. According to the conventions of the International Labour Organization, the United Nations Universal Declaration of Human Rights, and the UN Convention on the Rights of the Child and the Elimination of All Forms of Discrimination Against Women, BSCI's Code of Conduct aims to reach certain social responsibility and environmental standards. The following requirements are of particular importance:
7.1 Compliance with laws: Adherence to all applicable national laws and regulations, industry minimum standards, ILO and UN conventions, and any stricter relevant regulations.
7.2 Freedom of association and collective bargaining rights
7.3 In cases or countries where freedom of association and collective bargaining rights are restricted by law, similar means should be used to facilitate independent and free organization and negotiation. This is according to ILO Conventions 87, 98, and 135.
7.4 Prohibition of discrimination: No discrimination based on gender, age, religion, ancestry, social status, social background, disability, race and ethnic origin, nationality, membership in workers' organizations including unions, political affiliation, sexual orientation, or any other personal characteristics. This is according to ILO Conventions 100 and 111.
7.5 Compensation: Payment for normal working hours, overtime hours, and overtime wage differentials should meet or exceed statutory minimum standards and/or industry standards. Wages should not be illegally or unauthorizedly reduced. If the statutory minimum wage cannot cover daily living expenses and provide additional disposable income, companies should strive to offer sufficient compensation to employees to meet these needs. This is according to ILO Conventions 26 and 131.
7.6 Working hours: Overtime work should be voluntary. Weekly working hours should not exceed 48 hours, and overtime should not exceed 12 hours. Employees are entitled to one day of rest after working continuously for six days. This is according to ILO Conventions 1 and 14.
7.7 Workplace safety: A clear set of rules and procedures regarding occupational health and safety must be established and strictly enforced. Workplace practices and conditions should not violate fundamental human rights. This is according to ILO Convention 155 and Recommendation 164.
7.8 Prohibition of child labor: Employment of child labor is prohibited according to ILO and UN conventions and/or national law. The strictest standard among these should be referenced. Exploitation of children in any form is prohibited. No conditions of work akin to slavery or harmful to children's health are allowed. The rights of young workers must be protected. This is according to ILO Conventions 79, 138, 142, and 182.
7.9 Prohibition of forced labor: Any form of forced labor, such as penal labor violating fundamental human rights, is prohibited. This is according to ILO Conventions 29 and 105.
7.10 Environmental and safety issues: Procedures and standards for waste management, handling and disposal of chemicals and other hazardous substances, and treatment of emissions and discharges must meet or exceed minimum legal requirements.
8. BSCI members will encourage compliance with the above requirements, define and implement appropriate procedures, and monitor their suppliers' compliance.
9. Upon identifying violations of the Code of Conduct, BSCI members will immediately consult with the relevant supplier. Together, they will discuss solutions, and BSCI members will assist in resolving the issues. Solutions must prioritize the best interests of employees. If a mutually agreed-upon solution cannot be found and implemented within an appropriate timeframe, this may serve as a reasonable basis for terminating further business relations.
10. Any actions taken by BSCI and its members will not reduce the responsibilities of national and local governments, international non-governmental organizations, and employee representatives in establishing open market trade policies and ensuring improved social conditions.
11. BSCI is prepared to submit the main content of this statement for public discussion and political resolution.
Source: SCSA Supply Chain Security Alliance http://www.scsally.org.cn/