You’ve reached the next critical stage in your product journey: ensuring that your supply chain not only meets your ethical standards but also aligns with your customers’ requirements. You might already be familiar with different social compliance audits, like SMETA. However, your retailer has now specifically requested an Amfori BSCI audit, and you’re left wondering, “Why BSCI, and how is it different from SMETA?”
The answer lies in the unique focus of each framework. While SMETA audits are often tailored to a retailer’s specific needs, offering both 2-pillar and 4-pillar options for labour, health & safety, environment, and business ethics, Amfori BSCI takes a more holistic approach to drive continuous improvement. BSCI’s 13 performance areas provide a detailed assessment of workers’ rights, fair remuneration, occupational health and safety, and more. BSCI’s structured grading system offers factories a clear pathway to elevate their social standards, making it a preferred choice for brands seeking long-term improvement in their supply chains.
So, how do you get your factory on board for a BSCI audit? What does the process involve, and who typically pays for it? In this article, we’ll dive deep into the BSCI framework, explore how it compares to SMETA, and provide you with the insights needed to navigate this part of your compliance journey confidently.
What is Amfori BSCI?
Amfori BSCI is a leading supply chain management system designed to continuously improve the social performance of suppliers and enhance working standards. Rooted in the principles of the International Labour Organization (ILO) and the Universal Declaration of Human Rights, BSCI provides a framework that helps businesses assess and monitor social standards in factories and farms worldwide.
An Amfori BSCI audit covers 13 key performance areas, ranging from workers’ rights and no child labour to occupational health and safety. Each section is assessed, providing an overall grading for the facility. The audit aims to identify areas of non-compliance and outline a corrective action plan to bring the factory up to standard.
When Might You Need an Amfori BSCI Audit?
If your brand supplies goods to an Amfori BSCI member (usually a retailer), they may request that you have a BSCI audit conducted at your manufacturing facility. An audit helps verify that your factory meets the ethical standards required for your products to enter the market.
Even if your retailer hasn’t specifically requested an Amfori BSCI audit, some brands proactively conduct these audits to ensure that their supply chain meets international labour standards, fostering transparency and ethical practices from the start.
The Amfori BSCI Audit Process: What Does It Involve?
An Amfori BSCI audit is thorough, examining a factory’s operations against the BSCI Code of Conduct. Here’s a step-by-step overview of the process, with details on what each stage covers and where factories commonly encounter issues:
1. Opening Meeting
The auditor meets with the factory’s management team to explain the audit’s purpose and the BSCI Code of Conduct, which includes local laws and regulations. This meeting sets the stage for a collaborative assessment.
2. Site Tour
Auditors conduct a tour of the facility to observe physical conditions, including workspace safety, fire exits, chemical storage, and sanitation. During this walk-through, they engage in conversations with workers and management to get a sense of daily operations. Common Issues: Factories often face non-compliance due to blocked fire exits, poor storage of hazardous chemicals, and inadequate ventilation in production areas.
3. Interviews
Workers and management are interviewed to gauge working conditions and employment practices. Worker interviews, conducted confidentially, reveal firsthand insights into hours, wages, treatment, and safety practices. Common Issues: Workers often report excessive overtime, delayed wage payments, or inadequate personal protective equipment (PPE).
4. Review of Records
The auditor reviews documents such as employee contracts, payroll records, permits, safety certifications, and training records. This confirms whether the factory complies with wage regulations, working hours, health and safety standards, and more. Common Issues: Factories frequently struggle with inaccurate time records, wage documentation, and evidence of mandatory overtime beyond legal limits.
5. Closing Meeting
The auditor presents the findings and discusses a Corrective Action Plan (CAP) with the factory’s management. The CAP outlines the steps needed to address any identified non-compliance issues, along with timelines for implementation. Common Issues: Factories may find it challenging to commit to immediate changes, especially if they require investment, such as improving safety equipment or adjusting working hours.
Key Areas Assessed in a BSCI Audit
Amfori BSCI audits cover 13 performance areas, including:
- Workers’ Rights: Ensuring freedom of association, collective bargaining, and non-discrimination.
- Fair Remuneration: Workers must be paid wages in accordance with the law and receive timely payments.
- Decent Working Hours: Limiting regular work to 48 hours per week with appropriate compensation for overtime.
- Occupational Health and Safety: Providing a safe and healthy work environment, including hazard identification, emergency response, and PPE.
- No Child Labour: Strictly prohibiting the employment of individuals below the legal working age.
Understanding the Difference Between BSCI and SMETA
When navigating social compliance, brands often wonder: What’s the difference between Amfori BSCI and SMETA?
- Scope: While both audits assess social compliance, SMETA audits can be conducted as a 2-pillar (labour and health & safety) or 4-pillar (adding environment and business ethics) audit. In contrast, BSCI focuses on 13 performance areas but does not involve report scoring.
- Grading: BSCI provides an overall grading for each section of the audit, offering a comprehensive view of a factory’s compliance level. In comparison, SMETA does not involve report scoring but rather highlights areas of improvement and compliance status.
- Proactive Use: SMETA audits can be requested directly by the site, allowing factories to proactively improve their standards, whereas BSCI is typically initiated through a brand or retailer’s supply chain requirements.
For a more in-depth look at SMETA, you can explore our SMETA Audits guide.
Who Typically Pays for the BSCI Audit?
Just like SMETA audits, the payment for a BSCI audit can vary:
- Factory-Paid: Most often, the factory covers the cost of the BSCI audit, especially if they have multiple clients requiring the same standards. This makes it a routine part of their business operations.
- Brand-Paid: In some cases, brands may choose to pay for the first audit to establish a working relationship and ensure compliance before long-term agreements.
- Shared Costs: Brands and factories sometimes share the costs, particularly if it benefits both parties in the long run.
When discussing payment, it’s essential to be transparent with your factory and outline the mutual benefits of the audit.
Common Findings in BSCI Audits
Based on audit reports, the most frequent non-compliance issues identified during BSCI audits include:
- Excessive Working Hours: Factories often exceed legal limits on overtime.
- Inadequate Wage Payments: Failure to pay workers the legal minimum wage or timely payments.
- Health and Safety Gaps: Lack of PPE, blocked fire exits, and incomplete fire safety inspections.
- Poor Record-Keeping: Inaccurate time records and incomplete payroll documentation.
Tips for Brands: How to Ensure a Smooth BSCI Audit
- Set Clear Expectations: Discuss the audit’s scope with your factory, explaining what will be evaluated and why it matters.
- Provide Resources: Share guidelines or checklists to help the factory prepare for the audit, such as ensuring all necessary documentation is available.
- Support Corrective Actions: After the audit, work with the factory to address any non-compliance issues outlined in the Corrective Action Plan.
Why BSCI Audits Matter
BSCI audits play a critical role in ensuring ethical practices in your supply chain. They help protect workers from unfair treatment, promote safe working conditions, and align your brand with internationally recognised social compliance standards.
Recent cases, like those involving child labour in certain global supply chains, highlight how vital it is for brands to be vigilant in their social responsibility.
Conducting regular BSCI audits not only satisfies customer requirements but also builds trust, safeguards your brand reputation, and supports responsible business practices.
Conclusion: Taking the Next Step in Ethical Compliance
Getting your factory to participate in an Amfori BSCI audit is a crucial step in establishing an ethical, compliant supply chain.
By setting clear expectations, providing support, and understanding the differences between various audit frameworks like BSCI and SMETA, you position your brand as a responsible, trustworthy market player.
