Free Trade. Sustainable Trade.
The Business Social Compliance Initiative
Supporting Companies to Improve
Working Conditions in Bangladesh
The Foreign Trade Association
The Foreign Trade Association (FTA) is the leading
business association of European and international
commerce that promotes the values of free trade and
sustainable supply chains. Uniting over 1,500 retailers,
importers, brands and national associations, FTA
improves the political and legal framework for trade in a
sustainable way.
FTA IN NUMBERS
• 1,509 member companies
• 758Bn Euro combined annual turnover
• 3 million employees
• 12 national associations
• 34 countries
• A local network of 7 National Contact Groups (NCGs)
and 3 Country Representatives (Bangladesh, China,
India)
International Trade Policy
The association supports its members to navigate
complex international trade issues and leverage their
collective influence in the European and international
political arenas, including the World Trade Organization
(WTO), European Commission, European Council and
European Parliament.
Sustainable Supply Chains
FTA believes that free trade and sustainable supply
chains work in tandem to enhance development,
economic growth and prosperity. Through the Business
Social Compliance Initiative (BSCI), FTA provides a
system enabling participating companies to improve
working conditions on factories and farms in their
global supply chains. FTA also provides the Business
Environmental Performance Initiative (BEPI) which
supports retailers and importers to drive environmental
performance at producer level.
Cecilia Malmström, EU Trade Commissioner is greeted by Christian Ewert, FTA Director General, prior to her
keynote speech at FTA’s conference on “Unleashing the Potential of EU Trade Policy”, March 2015.
The Business Social Compliance Initiative
FTA developed BSCI in 2003 as a holistic platform for companies committed
to improving working conditions in the global supply chain. It unites its 1,500
participants around one common Code of Conduct and offers a step-by-step
development-oriented system applicable to all sectors in all countries.
BSCI’s Three Pillars
Through BSCI’s system, participants detect and support producers to gradually correct
labour non-compliance in their factories and farms. BSCI achieves this through a
systematic approach combining three pillars:
• Monitoring to Measure the Level of Social Compliance: BSCI provides its
participants with practical auditing tools and guidelines to measure producers’
compliance with BSCI’s Code of Conduct and to evaluate improvements.
• Capacity Building to Provide Knowledge to Support Improvements: BSCI capacity
building offers training opportunities to its participants and their producers in
sourcing countries. These include initial awareness-raising sessions, e-learning and
advanced issue-specific workshops.
• Engaging with Stakeholders to Tackle Root Causes of Labour Challenges:
BSCI manages active dialogue and cooperation with a wide range of stakeholders
such as governments, business associations, trade unions and NGOs through Round
Table dialogues and issue-related partnerships.
The BSCI Code of Conduct
The BSCI Code of Conduct is a set of values and
principles that all BSCI participating companies commit
to implementing with their business partners along the
supply chain. This Code reflects BSCI participants' beliefs
and expectations towards their business partners.
Business enterprises that endorse the Code commit to
reinforcing the principles of socially responsible business
and pursuing constructive and open dialogue among
business partners and stakeholders. The Code is built on
leading international labour standards protecting workers’
rights such as ILO Conventions, the OECD guidelines for
multinational enterprises, the UN Global Compact, and the
UN Guiding Principles on Business and Human Rights.
Principles of the
Code of Conduct
The Rights of Freedom of
Association and Collective
Bargaining
no discrimination
Fair remuneration
decent working hours
OCCUPATIONAL health
and safety
no child labour
SPECIAL protection for
young workers
no precarious
employment
protection of
the environment
no bonded labour
ethical business
behaviour
Free Trade. Sustainable Trade.
FTA Focus
Is Bangladesh a Success Case?
FTA report
highlighting
the successes
and challenges
for social and
economic
development in
Bangladesh.
BSCI in Bangladesh
Daniel Seidl,
FTA Local Representative
Bangladesh is the second most important sourcing country for
BSCI participants. In 2014, 9.4% of all monitoring activities of BSCI
participants were carried out there. BSCI therefore takes an active
role to promote good working conditions in this sourcing country
through several key activities. In addition, FTA's local representative
Daniel Seidl supports BSCI to engage with and influence national
policy to support greater awareness of the need for multistakeholder efforts to tackle the root causes of labour challenges.
Key activities include:
• Social Compliance Audits: In Bangladesh in 2014, 1,175 full and re-audits
were conducted. These audits help participants identify the most common
non compliances, in this case in the areas of compensation, working time and
occupational health and safety. This gives retailers and importers a good starting
point to work together with factory managers through dialogue and capacity building
to help them integrate better working practices to deal with these issues.
Management Practice
Documentation
Working Time
Compensation
Child Labour
Forced, Prison Labour/ Disciplinary Measures
Freedom of Association/ Collective Bargaining
Discrimination
Working Conditions
Health and Social Facilities
Occupational Health and Safety
Dormitories
Environment
0%
Results of BSCI Audits in Bangladesh Per
Chapter: Producers having gone through a
full and re-audit in 2014.
20%
G
40%
IN
60%
80%
100%
NC
Key: G = ‘Good’; IN = ‘Improvement Needed’;
NC = ‘Non-Compliant’; White spaces indicate areas which
are not applicable (n/a) or not rated (n/r)
• Targeted Capacity Building: Following tragic factory fires, BSCI works with Worldwide
Responsible Accredited Production (WRAP) to hold joint fire safety training
workshops for factory managers. BSCI provided 6 targeted trainings in partnership
with WRAP during 2014 which continue into 2015. These practical workshops teach
factory managers how to diminish risk of fire and how to respond in case of an
outbreak. Over 180 factory managers took part in 2014. Moreover, until September
2015, over 400 people were trained on various social compliance matters.
• Stakeholder Engagement: BSCI encourages all participants to take part in initiatives
such as the National Action Plan, Accord and Alliance to support stronger safety in
factories. Over 40% of the Accord signatories are also BSCI participants. BSCI also
facilitates Round Table meetings in Bangladesh to bring together all stakeholders to
engage in constructive dialogue on the root causes of labour issues.
• Policy Dialogue: Through FTA, BSCI took part in intense discussions at political
level engaging in dialogue with European Parliament and European Commission
representatives to support the continuing benefit by Bangladesh of the GSP.
Through these activities BSCI supports the ability of Bangladesh to develop as a stable
and trustworthy sourcing market for FTA retailers, importers and brand companies.
Contact
The Business Social Compliance Initiative (BSCI)
c/o The Foreign Trade Association (FTA)
Avenue de Cortenbergh 172
1000 Brussels - Belgium
Tel: + 32 (0)2 762 05 51
info@bsci-intl.org
www.bsci-intl.org
Local Representative in Bangladesh
Mr. Daniel Seidl
Road # 90, House # 10/C
1st Floor, Gulshan 2
1212 Dhaka - Bangladesh
Tel.: + 880 167 078 00 00
daniel.seidl@fta-intl.org