What is BSCI factory audit?

What is BSCI factory audit?

BSCI (Business Social Compliance Initiative) factory audits refer to companies following the social responsibility code of conduct established by the Global Trade Association amfori and passing an assessment by an auditing agency to ensure that the production conditions in their supply chains meet international social responsibility standards. This system focuses on labor conditions, employee rights, environmental protection and business ethics, and aims to improve the transparency and responsibility of the working environment in the supply chain.

BSCI factory audits are particularly suitable for export-oriented companies, especially suppliers to the EU market, and are an important way to gain the trust and orders of international customers.

BSCI factory audit consultation main service content

BSCI factory audit consulting service provides a complete set of targeted guidance to help enterprises pass the audit smoothly. The main contents include:

1. BSCI standard training

Interpret the BSCI Code of Conduct to help companies understand the requirements.

Provide advice on the design and implementation of compliance management systems.

2. Gap analysis and risk assessment

Assess the gap between the company's existing management practices and BSCI requirements.

Provide improvement measures to reduce audit risks.

3. Document and record preparation

Guide enterprises to establish a file system that meets BSCI requirements, such as employee payroll, attendance records, working time records, etc.

Assist in the preparation of environmental management and occupational health and safety records.

4. On-site rectification guidance

Guide enterprises to improve facilities and conditions at production sites, such as fire-fighting equipment, emergency exits, employee dormitories, etc.

Address outstanding health and safety issues.

5. Simulated factory inspection

Simulate the audit process to identify potential issues and make suggestions for improvement.

6. Audit coordination support

Assist in arranging formal audits, communicate with the auditing agency, and resolve issues that may be encountered during the audit.

7. Subsequent improvement suggestions

Provide specific plans for continuous improvement based on the audit results.

BSCI factory audit process

1. Registration and preparation

Enterprises need to register on the BSCI official platform and obtain invitations from BSCI member customers.

At the same time, make an appointment with the audit agency for the audit time.

2. Preliminary diagnosis and improvement

Through internal review and diagnosis by external consulting agencies, the gap between the enterprise and the BSCI standards is identified.

3. Audit site preparation

Check whether production sites, employee dormitories, canteens, warehouses and other facilities meet safety and hygiene standards.

Ensure employee training records, time records and payroll are in compliance.

4. Formal review

The review is divided into three stages:

Document review: Auditors check all compliance documents.

Site Assessment: Includes facility security, employee interviews, and environmental inspections.

Employee interviews: Privately interview employees to confirm the authenticity of working conditions.

5. Audit results and reports

The audit results are divided into A (excellent), B (good), C (average), D (poor), and E (unsatisfactory).

Provide detailed report and corrective action plan.

6. Follow-up and review

If the score is lower than C, re-examination may be required.

Make targeted improvements based on CAP (Corrective Action Plan).

BSCI factory audit fees

The BSCI factory audit fee varies depending on many factors, including the auditing organization, factory size, number of employees, etc. The main cost components are as follows:

1. Audit Fees

Typically between $1,500 and $3,000, depending on the auditing agency and the complexity of the project.

2. Rectification costs

Depending on the current situation of the enterprise, it may be necessary to invest funds to improve on-site conditions, such as adding fire-fighting equipment or improving the standards of employee dormitories.

3. Consulting service fees

If you hire a consulting agency, the fee is usually around RMB 5,000-20,000, depending on the service content and business needs.

How often does BSCI conduct factory audits?

BSCI factory audits are usually conducted every two years (periodic audits), but the actual frequency may be adjusted due to the following circumstances:

1. Customer requirements

If the customer has special needs, the company may be required to review it in advance.

2. Initial review and rating

If the initial rating is low (such as D or E), more frequent follow-up reviews may be required.

3. Serious violations

If serious issues are found during the supply chain review, the auditing body or the customer may request an additional audit at any time.

BSCI factory audit is a key step for enterprises to enter the international market. Its core is to meet the high standards of social responsibility of global customers through continuous improvement. Reasonable planning of factory audit process and seeking professional consulting support will help enterprises pass the audit efficiently and improve the competitiveness of the supply chain.