Importers are facing more pressure from customers to ensure that their products are, at least to a certain extent, ethically produced.
However, actively monitoring working conditions in a country far away, costs millions of dollars. In other words, ensuring social compliance in China is out of reach for any company that’s not on the Fortune 500.
That’s where BSCI and Sedex comes in.
What is BSCI?
Business Social Compliance Initiative (BSCI) is a system meant to make supply chains more transparent and fair.
Importers and manufacturers anywhere in the world can become BSCI members, which requires them to comply with the 11 core BSCI principles:
- The Rights of Freedom of Association and Collective Bargaining
- Fair Remuneration
- Occupational Health and Safety
- Special Protection for Young Workers
- No Bonded Labour
- Ethical Business Behaviour
- Decent Working Hours
- No Child Labour
- No Precarious Employment
- Protection of the Environment
Audits are carried out, by accredited companies such as Intertek, to verify that the supplier complies with these principles.
Each audit rates the supplier in one of the following categories:
- A (Outstanding)
- B (Good)
- C (Acceptable)
- D (Insufficient)
- E (Unacceptable)
However, BSCI is not a certification scheme. It’s based on gradual improvements over time. Continue reading BSCI and Sedex Audits in China: What Importers Must Know