Amfori 2018-01-05 BSCI Easy Guide January 2018 Def 02 WEB
Amfori 2018-01-05 BSCI Easy Guide January 2018 Def 02 WEB
Amfori 2018-01-05 BSCI Easy Guide January 2018 Def 02 WEB
to amfori
BSCI 2.0
Table of Content
Conclusion: Now you can turn to all the amfori BSCI resources 25
at your disposal
1 Consumers and client-companies expect the development of controls and processes towards good working
conditions when opting for products made in higher-risk countries.
2 amfori BSCI 2.0 is in line with the most recent and significant international norms on human rights, and amfori BSCI
participants can thus effectively manage stakeholders’ expectations.
3 While European governments are increasingly adopting positions on companies’ duty of care on supply chain social
compliance, implementing amfori BSCI 2.0 helps to establish a credible system to operate and prepare for future
regulation.
4 By improving working conditions in the supply chain amfori BSCI participants enable their business partners to
increase their efficiency and make a positive impact on their long-term performance.
5 When operating in high-risk industries, implementing amfori BSCI 2.0 is a strong commitment that contributes to
building team loyalty and to retain talent.
This Easy Guide to amfori BSCI 2.0 is designed for you to be able to rapidly introduce yourself to all the key elements you
will need for the successful implementation of amfori BSCI 2.0. If you are new to the amfori BSCI system, the Easy Guide
will rapidly bring you up to speed on the processes you can use towards developing a socially responsible supply chain.
Throughout the document, the following tags will help you to quickly go to the resources you need for any given situation.
Specific references will help you navigate easily in the amfori BSCI System Manual, the reference document for amfori
BSCI 2.0 implementation:
The tool box will help you identify tools and other resources offered by amfori BSCI
V TOOL BOX to ease implementation.
At the end of each section, this icon will summarise actions that should be taken
with a progressive approach from getting started with the amfori BSCI system to an
advanced level, aimed at more experienced participants.
We recommend you to use this Guide extensively and encourage your colleagues to familiarise themselves with it!
The amfori BSCI Code of Conduct is a set of values, principles and an approach to V TOOL BOX
implementation that all amfori BSCI participating companies commit to adhere
to, with their business partners along the supply chain ( see amfori BSCI • Consult the amfori
BSCI Information Kit for
System Manual, Part I, section 2 “How to use the amfori BSCI Code of Conduct”).
Participants to get a snapshot
of amfori BSCI 2.0
The amfori BSCI Code of Conduct is composed of five documents:
• Watch amfori BSCI short
videos on the Code of Conduct
amfori BSCI Code of Conduct to familiarise yourself with
amfori BSCI Code of Conduct
Terms of Terms of
Terms of
Implementation for Implementation for • Access amfori BSCI Code
Implementation for of Conduct in your language
amfori BSCI Business Partners
Business Partners and several other languages
Participants to be monitored
if you wish to share it with
colleagues and business
amfori BSCI Reference partners.
Cascade Effect:
Due Diligence Full coverage and
= Internal Processes
& Activities to transparency of the
> > >
entire supply chain is
Identify a challenging, long-
Engage Business Partners and Workers
Worker Involvement :
amfori BSCI participants must adopt and implement processes that encourage
worker input. By involving workers you begin to empower them. They are in the
best position to recognise if policies and process are working effectively and they
are also the best source of information about how improvements can be made.
• Reinforcing social responsibility in their supply chain by using the amfori BSCI
framework, tools and resources to improve working conditions in their supply
chain
amfori BSCI 2.0 takes the vision and values of socially iImportant –
responsible supply chains beyond monitoring and strict Supply chain responsibility
compliance. Social auditing is a useful tool to assess progress, starts internally. Before
monitoring business partners,
but improving working conditions in the supply chain must start
you should first build your
with integrating social requirements into your company’s own amfori BSCI implementation
policies, processes and organisation, beginning with sourcing, strategy.
procurement and supply chain management.
4. Adjust
2. Do
Integrate amfori BSCI into Existing Policies and Process • Consult amfori BSCI “ How to
It is recommended to plan the progressive integration of amfori BSCI Communicate on Corporate
into existing procurement policies and processes, from the selection Responsibility in the Supply
of business partners on social credentials, to the rules on awarding Chain” to better define how
contracts and measuring supplier performance according to social criteria. to communicate your amfori
BSCI engagement externally.
Start by integrating the amfori BSCI Code into your purchasing terms
( see The amfori BSCI System Manual, Part I section 2.3 “Endorsement”).
It is also highly important to develop training plans for key staff involved in amfori
BSCI implementation ( see amfori BSCI System Manual, Part I, section 4.1
“Building Capacity for amfori BSCI Participants”): start by briefing staff members
responsible for the organisation’s procurement and social responsibility policies iImportant –
on the role of amfori BSCI and the contributions it can make to the company’s When assessing their
performance. procurement practices,
amfori BSCI participants
should manage their
Assess Performance and Implement a Continuous Improvement Approach
relationships with all business
Performance assessment should cover not only business partners’ social partners in a responsible way,
performance after an audit has been done, but also the level of achievements in order to positively influence
of goals set internally regarding the amfori BSCI implementation. The company social changes in their supply
should identify and analyse the root-causes of any gaps with goals set in order to chain.
develop a solid continuous improvement approach.
1 Mapping the supply chain – Procurement practitioners should participate in the classification of the company’s
business partners according to social risk criteria. A first step could be to share an overview of the supply chain
by distinguishing main sourcing channels (direct or through importers and brokers), sourcing countries and the
average number of suppliers.
3
Implementing amfori BSCI 2.0 – Buyers are in the best position to include • The amfori BSCI Buyers’
Checklist available on amfori
social performance criteria at each step of the supplier relationship
BSCI platform will help you
management (e.g. include the amfori BSCI Code of Conduct in contracts).
to raise awareness and
Many buyers are also “field practitioners” who can assess and engage better collect feedback from
production sites and other suppliers in the implementation of amfori BSCI procurement practitioners.
principles.
• The amfori BSCI audit rating
system described in the
4 Reviewing and adjusting processes – The procurement team should
System Manual can provide
recommend how to further incorporate amfori BSCI values into existing
buyers with an additional
processes and continuously improve the amfori BSCI implementation criteria to assess suppliers
strategy. along with quality, cost and
delay .
Sometimes, procurement practitioners can see the implementation of the amfori
BSCI approach as a constraint or a challenge (e.g. buyers have no time to deal
with social compliance issues; costs might increase; there is no issue with current
suppliers etc.). Here are some tips to overcome these difficulties:
Learning how to best use the amfori BSCI platform is also essential for the
implementation of the amfori BSCI system. amfori BSCI offers various webinars
and tutorials to get a basic understanding of the platform ( See The amfori
BSCI System Manual, Annex 1 “How to Start with the amfori BSCI Platform”).
V TOOL BOX
At this stage for key staff to be aware of the issues is not sufficient. They must
master amfori BSCI 2.0. This is a precondition for the organisation to integrate
its principles into existing operations. Key staff including buying practitioners as
well as people on the ground, such as merchandisers and quality controllers, will
benefit from both general training courses on amfori BSCI overall as well as more
targeted courses where appropriate.
Mapping your supply chain will help you build a picture of your iImportant –
supply chain. You will be able to use this picture to assess Supply chain mapping is
different suppliers in relation to one an other, and to evaluate a crucial step as it allows
amfori BSCI participants to
their relative importance to your business as well as their
identify their most significant
vulnerabilities in terms of social risks. business partners, to spot
risks, assess what level of
With this knowledge you will be able to take informed decisions on the practical leverage is possible and
implementation of amfori BSCI 2.0. Specifically, you will be able to detect, mitigate which actions must be taken.
Mapping the supply chain
and manage risks as well as put in place the processes that lead to improving
is the first step in acting
working conditions and promoting decent work.
diligently.
There are three steps to mapping your supply chain: first you need to gather the
information; next you should use it to assess relative risks in your supply chain
and on that basis you will be able to prioritise the risks ( see amfori BSCI
V TOOL BOX
System Manual Part I, section 3.5 “Map the Supply Chain”). • Go to the amfori BSCI System
Manual to learn about supply
Know your Supply Chain chain mapping techniques and
to get template documents.
Start by thoroughly reviewing your existing business relations and identifying the
• Use Annex 2 of the amfori
business enterprises in your supply chain. With this you can perform a quick scan BSCI System Manual “amfori
to arrange your suppliers according to three criteria: BSCI Classification of Sectors,
Industries and Products
1 Sector of operation / main products sold Groups” to classify your
business partners according
2 Business activity: do your business partners own the production site, or to their sector of operation.
are they intermediaries such as importers, traders or agents?
• For an introduction to the
In the amfori BSCI system it is important to distinguish business partners amfori BSCI Platform, turn
from those that should be monitored, to those that are not to be monitored to Annex 1 of the amfori
because they do not have a “production environment”. BSCI System Manual “How
to start with the amfori BSCI
3 Countries of operation (i.e. countries of origin of the products sourced Platform”.
from the supplier).
This first level of classification will help you identify your most significant business iImportant –
partners and, ultimately, who should be involved in the amfori BSCI process. Once Once you have identified
this is completed, it is time to list your company’s significant business partners. In your significant business
general, significant business partners: partners, you can go to the
amfori BSCI platform in order
• Represent a large share of purchasing volume to identify whether they have
• Can have an impact on the company’s reputation or performance and been involved by other amfori
BSCI participants, and have
are potentially related to significant risk levels of adverse human rights.
therefore been registered
The relationship may be direct or indirect
in the platform. Note that
you can continue to use the
Who are significant business partners ? platform afterwards to keep
an overview of business
Purchasing Supplier Exposure to partners, whether or not they
volume relationship social risks are monitored.
Suppliers representing Suppliers with a Suppliers that are
a large share of potential impact on the potentially related to
purchasing volume company's reputation significant risk levels of
or performance adverse human rights
V TOOL BOX
Supply chain visibility
Sourcing countries • Use amfori BSCI Template 1 in
Lack of visibility over suppliers the System Manual to collect
Some least developed countries
and production sites (ex. sourcing information about business.
represent a heightened likelihood of
from traders, importers) is often
adverse impacts on human rights • amfori BSCI “Buyers’
considered to be a risk factor
Checklist” can be used to
support the identification of
Products family Business partner's profile imminent social risks when
Some products are sourced Depending on their social visiting a producer (amfori
from high risk sectors: labour performance or how they manage BSCI System Manual, Annex 7).
intensive industries, sectors subcontractors and suppliers,
• Use amfori BSCI “Countries
using homeworkers or agents to business partners can pose a risk to Risk Classification” to better
subcontract workers their client company assess risks attached to your
sourcing countries.
The first step is to seek advice from the purchasing team in your company. They
have an accumulated store of experience which can be used to assess partners
and attribute factors of risk. This experience can be cross-referenced with
established public sources.
After gathering the information it can be sorted on the basis of its reliability.
For example, rumours should carry less weight in your assessment than factual
evidence. You may also consider using diagramming techniques to help sharpen
your view of relative priorities. Again, the more complex the situation, the more
sources are required in order to support the prioritisation process.
Take Action
Having completed the review process and with a good understanding of which
are the more significant business partners, you have the information you need to
take decisions.
The company could consider Need for a regular & Medium impacts should still be prioritised
to assume these low risks close review. Consider when associated with key suppliers
cooperating with others
Should be considered as
High high priority whatever is
the importance of the
supplier
Impact on
Human Rights
Severity/Number
of Workers Affected
The main reasons not to monitor a significant business partner could be:
YES NO
YES NO
NO YES
NO YES
• cooperate with other participants who share the same business partners
It is through the amfori BSCI platform that the RSP principle is managed. amfori iImportant –
BSCI participants hold responsibility for all the business partners registered on
amfori BSCI participants
the platform. Additionally, amfori BSCI participants can take on the status of should establish a process
“lead RSP” if they wish to have a leader role in the monitoring process, which internally to determine under
involves authorising and timing audits as well as selecting auditing companies which circumstances they
( See amfori BSCI Sytem Manual Part 1, Chapter 6 “How to do monitoring”). should take the “Lead RSP
Holder” status, if available,
The Monitoring Process or withdraw from that
responsibility.
Audits constitute just one tool, but an important one, in the implementation
of amfori BSCI participants’ due diligence. amfori BSCI has built an elaborate
framework to support and guide participants through it.
V TOOL BOX
The amfori BSCI Audit • Read the amfori BSCI System
In the amfori BSCI system, audits can be internal or external. Manual. Part 1, chapter 6 to
Internal audits are for business partners to systematically assess their own social get more information on
performance or that of their own business partners including farms ( See each step of the monitoring
amfori BSCI System Manual Part 1, Chapter 6). process.
Social Management System and Cascade Effect Occupational Health and Safety
Workers Involvement and Protection No Child Labour
The Rights of Freedom of Association and Collective Special Protection for Young Workers
Bargaining No Precarious Employment
No Discrimination No Bonded Labour
Fair Remuneration Protection of the Environment
Easy Guide to amfori BSCI 2.0 - January 2018 - P 17
Decent Working Hours Ethical Business Behaviour
Audits evaluate the company’s progress across all of the Performance Areas and
all areas are important: auditees need to reach for performance improvements
across the whole range.
Some of the Performance Areas, however, are critical. Notably, flagrant and
proven infringements of certain fundamental principles will trigger immediate
action and an overall rating is not delivered. Instead the company receives “Zero
Tolerance” status ( See the amfori BSCI System Manual Annex 5 “amfori BSCI
Zero Tolerance Protocol”). The “Zero Tolerance” Performance Areas concerned
are: child labour; bonded labour; ethical behaviour; and any case of immediate
threat to workers’ life, health and safety.
Note also that the aim of the Performance Area on “Social Management System
and Cascade Effect” is to underpin the durability of social performance by
embedding it in business partners’ operations so that change is integrated and
not a one-off effort.
• Or unannounced
Audits cover the entity which has signed the Code of Conduct as a business
partner to be monitored, and should correspond to one production facility.
• Partially, for situations in which some satisfactory evidence is found, but not
sufficiently to indicate a ‘Yes’ rating
The overall audit rating is the combination of ratings for each of the Performance
Areas, and reflects the extent to which the company has integrated the amfori
BSCI Code of Conduct into its culture and operations.
There are five possible ratings. An E rating refers to an unacceptable level of social
performance and will require regular monitoring of the company by amfori BSCI
participants. With a ‘C’ or ‘D’ rating, the auditee may not represent a high risk
for amfori BSCI participants but a follow-up audit is needed. An ‘A’ or ‘B’ rating
indicates the business partner can continue to manage its own process of capacity
building and continuous improvement autonomously: no follow-up audit is needed.
The follow-up and any remediation plans which are the consequence of an audit
constitute the fundamental objective of amfori BSCI and the positive impact
which participants aim for. Continuous improvement is a core value of the amfori
BSCI system. The processes to be followed after audits are geared to embedding
the Code of Conduct into business partners’ business culture and to make long-
lasting changes as well as remediate short- and medium-term findings.
OTHER FORMS
OF MONITORING
AUDITING CASCADING
CAPACITY COMMUNICATION
BUILDING & DIALOGUE
INCENTIVISATION
Nonetheless, amfori BSCI participants must have the strategy, procedures and
sufficient resources in place to ensure that any discrepancy in their conduct with
the amfori BSCI Code of Conduct will be:
Internal External
Employees, including: • Business Partners, including:
• Top Management suppliers, intermediaries, producers
and workers
• Sourcing / Buying departments
• Local trade unions
• Local buying offices
• amfori Secretariat, amfori
• Compliance / Legal departments
Representatives
• CSR and communication
• Other amfori BSCI participants
practitioners
• Clients and consumers
• Governments and other agencies
• International and local NGOs
Prioritise Stakeholders
There are three major groups of external stakeholders amfori BSCI participants
should cooperate with: ( See amfori BSCI System Manual Part I, section 5 V TOOL BOX
“How to engage stakeholders)
• Use Template 6 “Stakeholder
• Business partners: they are directly impacted and can impact your company.
Mapping” in the the amfori
Dialogue and constructive engagement all along the amfori BSCI implementation
BSCI System Manual to
process is key identify relevant stakeholders
• Other amfori BSCI participants: amfori BSCI participants shall as much as for your company.
possible act in a coordinated fashion with their peers in order to increase • Go the amfori BSCI website
leverage and positive impacts. They should send the same coherent messages to get more information and
to their shared business partners for example join amfori BSCI events incl.
Network Connects, Round
• Other external stakeholders: engaging with the relevant stakeholders can lead Tables in sourcing countries.
to better detection and management of adverse impacts in the supply chain
• When auditee has a Zero Tolerance issue or does not submit the remediation
plan within 60 days
• When the auditee has been invited to join specific capacity building activities
Beyond these basic guidelines, amfori BSCI participants should strive to develop
their own strategy to encourage and support social performance in the supply
chain. Depending on your goals, you could, for example, decide to challenge
strategic business partners in order they achieve an A rating within an agreed
timeframe, or develop a specific follow-up in a sourcing country that is of strategic
importance to your business.
amfori BSCI participants should use their leverage to prevent or mitigate impacts
as a priority when:
The key resources of the amfori BSCI system are its Code of Conduct supported
by the System Manual. The System Manual, in particular, can be used extensively
as a reference document, to be dipped into for guidance on any specific question
or aspect of implementation.
But there are many other resources available through amfori BSCI! These can
support you in the process of continuous improvement that amfori BSCI 2.0
relies on, regardless of your company’s level of experience and maturity in supply
chain labour issues.
Do encourage your colleagues to make full use of all these resources for your
company.