What is amfori BSCI – the audit requirement, benefits and audit process
amfori BSCI is one of the most commonly used social audit programmes in the world. Formerly known only as Business Social Compliance Initiatives (BSCI), the programme has revamped itself as amfori BSCI, with a focus on social compliance improvement in supply chains across its 2,400 member companies globally.
As one of the approved BSCI audit companies, from time to time we receive questions around fundamental details of the audit programme – what the audit requirement is, how the onsite audit is conducted, and what the benefits are.
What is a BSCI audit?
The BSCI audit programme adopts a well-structured holistic approach to assess sites and examine the working conditions in complex supply chains.
amfori BSCI uses a strong code of conduct, based on 11 principles that support the amfori members. These range from fair remuneration to no child labour, along with a step-by-step approach that enables companies to monitor, engage with, and receive support on putting sustainable trade at the heart of their business.
Is Eurofins an approved BSCI audit company?
Third-party audit companies go through a very strict and detailed quality programme run by amfori before being approved to deliver BSCI audits. The quality programme examines the audit companies’ policies and procedures in all elements of their operations, such as management and quality systems, finance, HR, IT, and even in health & safety and environmental performance, in both head offices and local offices. Eurofins Consumer Products Assurance is an amfori-approved audit company, having successfully passed these quality reviews, we are able to provide field BSCI audit services in more than 45 countries in the world by leveraging our robust network.
What are the benefits of conducting an amfori BSCI audit?
With the mounting pressure on businesses of all sizes and across various industries to prove that they operate ethically and responsibly, duly managing and monitoring social compliance and risks has almost become a non-negotiable for companies. Adopting an industry programme such as amfori BSCI is a highly cost-effective way to assess and demonstrate compliance.
At amfori, different tools have been developed to support their members with improvement and capacity building, including amfori Academy and various resources, delivering multiple benefits:
- Improve the social performance of supply chains
- Reduce cost and increase efficiency with digital amfori BSCI Platform
- Employ a clear and consistent approach that highlights best practices
- Improve the resilience of their business to industry, market and regulatory changes
- Protect their businesses' reputation by meeting the expectations of customers and stakeholders
- Strengthen risks and due diligence management to reach ESG goals
What is the amfori BSCI audit process?
BSCI audits can only be requested by amfori members. Companies being audited are named as producers in amfori BSCI terminology, as a reference to their roles in the supply chain as producers or suppliers. Prior to onsite audit, producers must ensure that they complete the supply chain mapping and producer profiles in the amfori BSCI platform. amfori provides multiple tools to support communication with members in order to prepare for an efficient audit process.
After requesting the audits, producers complete the pre-audit information pack, which contains a Self-Assessment Questionnaire (SAQ) and all the relevant details for conducting an efficient audit.
There are in principle five steps in an onsite amfori BSCI audit: Opening meeting, site tour, interviews, review of records, and closing meeting.
Step 1: Opening meeting
Once the auditor arrives onsite, they will arrange an opening meeting with the management team to detail the audit format and procedure. The audit is a collaborative process and the involvement of management during the opening interview is a key part of the success.
The auditor will clarify the purpose of the audit and present amfori’s code of conduct, against which the audit will be conducted. As well as explaining the code requirement and any relevant local laws or regulations, the auditor will also:
- Explain and re-confirm the auditing company’s own Business Ethics policy
- Emphasise the importance of transparency and confidentiality
- Explain the audit process and answer producers’ questions
- Re-confirm the necessary documents for review
- Obtain a floor plan for the site tour
- Confirm that permission has been given to take photographs
- Check that all staff are aware of the audit and establish that the relevant code has been communicated to them
- Arrange for employee interviews and explain the process
Step 2: Site tour
After the Opening Meeting, the auditor will arrange a tour of the site to observe the physical conditions and how they compare to the applicable standards, as well as to gain an insight into any health and safety issues.
As a general rule, the auditor should be permitted to view all areas of the site and to set the pace of the tour. The tour also provides the opportunity for more personable conversations with management and employees.
Production and operations should continue as normal during the visit to give the auditor a real view of daily working conditions. The auditor will therefore strive to run the site tour with minimal disturbance to production.
Step 3: Interviews
Site tours are an important aspect of a BSCI audit as they allow site practices to be observed, but just as important is information gained from interviews with managers and workers.
Interviewing managers can shed light on the procedures and policies the site has in place and allows management to reflect on whether they are being implemented effectively.
Once managers have been interviewed, it’s important for workers to be interviewed, both individually and in groups, to hear their experiences and personal views on working conditions at the site. The number of workers to be interviewed will be proportional to the total employed at the site. It’s also crucial that no manager or other representative of the employment site is present during these worker interviews to allow freedom of expression.
Results of both interviews are kept confidential and anonymous as a basic rule in audit.
Step 4: Review of records
The auditor will also review all documentation previously requested to ensure compliance. The review of records will confirm both information on performance relative to the standards and information obtained from the other steps of the audit. In a nutshell, the audit documents you’ll need include:
- Documentation of relevant social management systems and processes
- Labour contracts/written employment agreements
- Employee handbook and any relevant documents detailing company policies
- A list of all the chemicals and solvents used onsite
- Training records
- Permits, operating licenses, certificates of operations, insurance etc.
- Emergency action procedures, evacuation plan and health and safety procedures
- Time and payroll records for the past 12 months
Step 5: Closing meeting
Once the auditor has completed all field work, including comparison and corroboration of information gathered through the audit, a draft corrective actions plan (CAP) will be prepared to facilitate a discussion with management during the closing meeting.
The main aim of the closing meeting is to inform about and agree on the findings of the audit with management, and to verify that they confirm the findings by signing off of the CAP and timescales.
The auditor will go through:
- Non-compliance and root causes
- Potential corrective actions for non-compliance
- A proposed timeframe for correcting issues
What's next?
Once the BSCI audit is complete, you should receive your audit report through the BSCI platform per the agreed reporting days. The BSCI audit report should give a full and accurate picture of the findings and the corrective actions to be taken, where applicable. Both producers and their buyers can review and benchmark performance systematically, facilitating communication, exchange and collaboration.
Within the Eurofins Consumer Products Assurance network of companies, BSCI reporting can be completed in as little as five working days. Ready to book your next BSCI audit? Find out more about our amfori BSCI support or make a booking instantly.
