Chapter-7:

International Social Compliance Standards

Different standards are followed in RMG industry:
1. Business Social Compliance Initiative (BSCI)
2. Worldwide Responsible Accredited Production (WRAP)
3. Social Accountability 8000 (SA 8000)
4. Fair Labor Association (FLA)
5. Fair Wear Foundation (FWF)

Business Social Compliance Initiative (BSCI)

The Business Social Compliance Initiative (BSCI) is a business-driven initiative that aims to
improve working conditions in the global supply chain. It was established in 2003 by the
Foreign Trade Association (FTA), a trade association based in Belgium. The BSCI provides
a common platform for companies to collaborate on social compliance in their supply chains
and promote the adoption of ethical business practices.

The primary focus of BSCI is on labor standards and social compliance. BSCI member
companies commit to implementing a common Code of Conduct, which is based on
international labor standards such as those set by the International Labor Organization
(ILO). The Code of Conduct covers key areas, including:

Freedom of Association and Right to Collective Bargaining: Ensuring that workers have
the right to join trade unions and bargain collectively.

Fair Remuneration: Ensuring that workers receive fair wages and benefits.

Occupational Health and Safety: Providing a safe and healthy working environment for
employees.

Special Protection for Young Workers: Protecting the rights and well-being of young
workers.

No Child Labor: Prohibiting the use of child labor.

No Forced Labor: Prohibiting any form of forced or compulsory labor.

Ethical Business Behavior: Promoting ethical conduct in business operations.

6 STEPS TO AMFORI BSCI 2.0 AUDIT SUCCESS:

1. Read and adopt the amfori BSCI Code of Conduct both internally and across your
supply chain

2. Request an audit with participant authorization via the online amfori BSCI platform
 3. Fill in a self-assessment tool, as well as an audit application to obtain a customized
quote

4. Undergo a semi-announced or unannounced audit visit

5. Receive a corrective action plan, followed by corrective phase to improve compliance

6. If required, undergo a follow-up audit within 12 months of the initial audit to

demonstrate commitment to amfori BSCI 2.0

BSCI Certificate-

The certificate serves as evidence that the company is committed to maintaining

responsible and ethical business practices in its supply chain. The specific information
included in a BSCI certificate may vary, but it generally covers the following key elements:

BSCI Audit Checklist

A. HR documents Checklist
01. New workers personal file.
02. Salary Sheet.
03. Pay Slip.
04. Resign File.
05. Maternity File.
06. Earn Leave Register.
07. Leave Entry & Register.
08. ID Card Issue & Return Register
09. Service Book Open & Issue Register.
10. Short Leave Issue Register.
11. Appointment Letter Issue Register
12. Software, grade, deduction, OT rate, calculation of wages ( Basic, House Rent, Medical
Allowance ) , in time, attendance bonus.
14. Leave Graph
15. Absent Graph
16. Increment Posting
17. Performance Appraisal of workers
18. Disciplinary Procedure.
19. Workers List for group Insurance.

B. License & Certificate

[Link] License.
02. Fire License.
03. Export License.
04. Import License.
05. BGMEA Member Certificate
06. BKMEA Member Certificate
07. BTMA Membership Certificate
08. Chamber of commerce and Industry certificate.
09. Export Promotion Bureau certificate ( EPB)
10. Factory License
11. Boiler License.
12. Drinking Water Test Report.
13. Boiler Operators Operating Certificate / Competency Certificate.
14. Incorporation Certificate.
15. VAT Clearance Certificate.
16. Income Tax Clearance Certificate.
17. Environment certificate
18. Waste water test Report ( ETP)
19. Building Approval plan.
20. Generator Operators Operating Certificate / Generator Installing permission / Permission
for the generator from Bangladesh Energy Regulatory Commission ( Original Copy)
21. Certificate from the ministry of power, Electricity & mineral Resources for the
Electric Sub-Station.
22. Factory Insurance

C. Health & Safety

01. PPE ( Musk, Scissor, Cutter, knife, Eye Safety Glass, Hand Gloves, Metal Hand Gloves,
Goggles, Ear Muff.
02. Apron.
03. Broken Needle & Broken Needle Register.
04. Exhaust Fan ( Ventilation)
05. Needle Guard
06. Toilet & Toilet Check List ( Soap, Towel)
07. Neat & Cleanliness
08. Paddle Rubber Mat.
09. Rubber Mat ( for Iron operator)
10. DB Board-(Ebonite Sheet, Rubber Mat)
11. Pure Drinking Water
12. Spot Removing Room ( Exhaust Fan, PPE, MSDS)
13. Machine Hazard.
14. Workers Work Station blocks.
15. Garments, fabric, carton, accessories in the floor.
16. General Safety Instruction.
17. First Aid Box.
18. Loose cable.
19. Steam Line.
20. Electrical wiring covers of iron.
21. Work Station Marking/sign Attach.
22. Safety Height Limit.
23. Production Floor Temperature.
24. Emergency Exit.
25. User Identification in tag Gun.
26. Spittoon.
27. Floor & Wall Painting.
28. Pest control Register.
29. Pulley Guard Needle Guard
30. Smoke Detector.
31. Housekeeping.
32. Idle Machine Area Segregate.
33. DB board-Danger sign, Rubber mat.

D. Fire Safety Related documents

01. Fire Drill register
02. Fire Fighting Equipment Register.
03. Fire Fighting Training Register.
04. Fire Fighter Certificate holder.
05. Fire Extinguisher Check.
06. Water Hose Pipe Check.
07. Fire Fighting Equipment Check (Fire bucket. Water jar, fire Biter, Fire Hook,
Stretcher, Respiratory Musk, roof, Lock Cutter , Hammer Heat Proof Gloves)
08. Aisles & Arrow Marking
09. Fire Extinguisher Marking
10. Fire Evacuation Plan.
11. Exit List Box ( with all room where work minimum 10 persons)
12. All fire Safety Related sign ( poly & Neon Sign)

E. Doctors rooms
01. Maternity Follow up file.
02. Sickness Analysis.
03. Medical Consultation Graph.
04. Treatment Register
05. Medical Issue Register.
06. Medicine Stock Register
07. Accident / injury Register
08. First Aid Training register
09. Maintain first aid kits.

F. Child Care Room

01. Day care register
02. Food Providing Register.
03. Toys.
04. Neat & Cleanliness.
05. Caretaker.
06. Day care Mainta8in register.
07. Fire Equipment ( Decathlon)

G. Canteen
01. Price List of food.
02. Not Keep Open food/ non BSTI Approved food.
03. Canteen policy Attach.
04. Canteen committee.

H. Welfare & Counselor Register

01. New worker awareness Register.
02. Workers participation committee notice Register.
03. Workers participation Committee Register.
04. Grievance Disposal committee Register.
05. Grievance Daily Disposal Register.
06. Environment Health & safety Committee Register.
07. HIV aids Awareness Register.
08. Environment emergency Awareness Register.
09. Compliance box record register.
10. PPE Training Register.
11. Maternity benefit Awareness Register.
12. Compliance Awareness Register.
13. COC Training Register for Stuff, employee, new workers.
14. Training for Waste handling Register
15. Machine Hazards Register.
16. Injury Record and Analysis Register.
17. Water Tank Cleaning.
18. Chemical Handling / use Training Register.
19. Occupational Health & Safety
20. Brand Protection Training Register.

I. Wastage room
01. Segregation of Wastage Room.
02. Wastage Disposal policy & Documents.
03. Wastage disposal Agreement with Local Authority.

J. Child Labor.
K. Environment.
L. Floor House Keeping.
M. Notice Board.
N. Buyer code of conduct hangs in Notice board.
O. Company Policy.
P. All Buyer code of Conduct ( Bengali & English) hang in factory premises.
R. Corporate Compliance affairs ( Meeting. Internal audit, buyer pre-date meeting,
monthly meeting etc.)

Other Issues
01. Buyers audit Report & Cap Follow up.
02. Generator log book.
03. Boiler Log Book.
04. ETP Register.
05. PH Test Value Report Register.
06. Machine Maintenance Log Book.
07. Machine Maintenance Check Report.
08. Company Organ gram.
09. Toilet Check list.
10. Agreement with Local Hospital/Medical.
11. Secondary Containment for Fuel & Chemical.

 Social are we measure



Worldwide Responsible Accredited Production (WRAP)

 WRAP was established in 1997 at the request of several members of the American
Apparel and Footwear Association (AAFA).
 The AAFA claims to be the largest sewn product trade association in USA with over 700
member companies producing more than 85% of the sewn product sold at wholesale in
USA.
 WRAP manages a voluntary compliance program to certify whether apparel production
facilities adhere to endorsed manufacturing principles.
WRAP Principles:
1. Compliance with Manufacturers of sewn products will comply with laws, codes, rules
Laws and Regulations and regulations in all locations where they conduct business.
2. Prohibition of all Manufacturers of sewn products will not use involuntary or forced
forms of Forced, labor.
Prison or
Involuntary Labor
3. Prohibition of Child Manufacturers of sewn products will not hire any employee under
Labor the age of 14, or under the age interfering with compulsory
schooling, or under the minimum age established by law,
whichever is greater.
4. Discipline, Manufacturers of sewn products will provide a work environment
Harassment or Abuse free of harassment, abuse or corporal punishment in any form.
5. Compensation and Manufacturers of sewn products must pay at least the minimum
Benefits wage
required by law for all hours worked, including all mandated wages,
overtime, allowances and benefits
6. Hours of Work Manufacturers of sewn products will comply with hours worked
each day, and days worked each week, shall not exceed the legal
limitations of the countries in which facility is located.
Manufacturers of sewn products will provide at least one day off in
every seven-day period, except as required to meet urgent
business needs.
7. Discrimination Workers must be employed based on their abilities and paid,
promoted and terminated based on their ability to do the job rather
than on the basis of personal characteristics or beliefs.
8. Health and Safety Manufacturers of sewn products will provide a safe and healthy
work environment. Where residential housing is provided, facilities
will provide safe and healthy housing.
9. Freedom of Manufacturers of sewn products will recognize and respect the
Association and right of employees to exercise their lawful rights of free association
Collective and collective bargaining.
Bargaining
10. Environment Manufacturers of sewn products will comply with environmental
rules, regulations and standards applicable to their operations, and
will observe environmentally conscious practices in all locations
where they operate.
11. Customs Manufacturers of sewn products will comply with applicable
Compliance customs laws, and in particular, will establish and maintain
programs to comply with customs laws regarding illegal
transshipment.
12. Security Facilities will maintain facility security procedures to guard against
the introduction of non-manifested cargo into outbound shipments
(i.e. drugs, explosives biohazards and /or other contraband).

Advantages of WRAP:
The WRAP Certification program is grounded in the belief that factory based
certification is the most effective way to ensure that work place comply with the WRAP
Production Principles. The WRAP program places primary responsibility for improving work
place conditions on those who own and operate sewn product manufacturing facilities.
WRAP Certification Offers Market Advantage. Acceptance of WRAP Certificate by multiple
brands and Retailers eliminates duplication of monitoring efforts

International Labor Organization (ILO)

 ILO is the UN specialized agency which seeks the promotion of social justice and
internationally recognized human and labor rights.
 It was founded in 1919.
  ILO seeks to establish multiple fair play based on the legitimate concerns of workers
regarding job security, pay and working condition.
 Fundamental core conventions:
 Forced Labor
 Freedom of Association and Collective Bargaining
 Equal Remuneration
 Discrimination
 Child Labor
 Minimum Age of Workers etc.

Social Accountability 8000 (SA 8000)

What is SA 8000?
 Released in October 1997, the Social Accountability 8000 (SA 8000) Standard is the first
global ethical standard.
 SA 8000 has been developed based on the conventions of the International Labor
Organization, the Universal Declaration of Human Rights, as well as the United Nations
Convention. It is applicable to all companies regardless of scale, industry and location.
 Its objective is to ensure ethical sourcing and production of goods and services.

Why was SA 8000 developed?

 Consumers and other stakeholders have become increasingly concerned about
whether products have been manufactured under conditions of violation of human
rights, child labor and discrimination as often reported by the media.
 The existing management of many companies cannot adequately cope with the myriad
demands imposed by labor laws, codes of conduct of individual companies, as well as
their stakeholders.
 A greater challenge is to effectively monitor whether the manufacturers and suppliers
have implemented

Requirements of SA 8000
SA 8000 is developed by the (formerly known as CEPAA - Council on Economic Priorities
Accreditation Agency), an affiliate of the Council on Economic Priorities (CEP)
 Child Labor
 Forced Labor
 Health and Safety
 Freedom of Association and Right to Collective Bargaining
 Discrimination
 Disciplinary Practices
 Working Hours
 Compensation

Fair Labor Association (FLA)

  FLA was born out of the apparel industry partnership with a group of manufacturers,
consumer groups, labor & human organizations and US universities brought together
by the White House in August 1996 to address labor rights standards in the apparel
and footwear industry.
 FLA has established an industry-wide code of conduct and associated monitoring
system to hold companies publicly accountable for their labor practices and for the
labor practices of their contractors and suppliers around the world.

FLA workplace code of conduct

1. Employment Relationship
Employers shall adopt and adhere to rules and conditions of employment that respect
workers and, at a minimum safeguard their rights under national and international labor and
social security laws and regulations.
2. Nondiscrimination
No person shall be subject to any discrimination in employment, including hiring,
compensation, advancement, discipline, termination or retirement; on the basis of gender,
race, religion, age, sexual orientation, nationality, political opinion, social group or ethnic
origin.
3. Harassment or Abuse
Every employee shall be treated with respect and dignity. No employee shall be subject to
any physical, sexual, psychological or verbal harassment or abuse.
4. Forced Labor
There shall be no use of forced labor, including prison labor, indentured labor, bonded labor
or other forms of forced labor.
5. Child Labor
No person shall be employed under the age of 15 or under the age for completion of
compulsory education.
6. Freedom of Association and Collective Bargaining
Employers shall recognize and respect the right of employees to freedom of association and
collective bargaining.
7. Health, Safety and Environment
Employers shall provide a safe and healthy workplace setting to prevent accidents and
injury to health arising out of, linked with, or occurring in the course of work. Employers shall
adopt responsible measures to mitigate negative impacts that the workplace has on the
environment.
8. Hours of Work
Employers shall not require workers to work more than the regular and overtime hours
allowed by the law of the country where the workers are employed. The regular work week
shall not exceed 48 hours. Employers shall allow workers at least 24 consecutive hours of
rest in every seven-day period. All overtime work shall be consensual. Employers shall not
request overtime on a regular basis. Other than in exceptional circumstances, the sum of
regular and overtime hours in a week shall not exceed 60 hours.
9. Compensation
Every worker has a right to compensation for a regular work week that is sufficient to meet
the worker’s basic needs and provide some discretionary income. Employers shall pay at
least the minimum wage or the appropriate prevailing wage, whichever is higher, comply
with all legal requirements on wages, and provide any fringe benefits required by law or
contract. Where compensation does not meet workers’ basic needs and provide some
discretionary income, each employer shall work with the FLA to take appropriate actions
that seek to progressively realize a level of compensation that does.

Fair Wear Foundation(FWF)

Fair Wear Foundation works with brands, factories, trade unions, NGOs and sometimes
governments to verify and improve workplace conditions in different countries in Asia,
Europe and Africa. FWF keeps track of the improvements made by the companies it works
with. And through sharing expertise, social dialogue and strengthening industrial relations,
FWF increases the effectiveness of the efforts made by companies. FWF’s more than 80
member companies represent over 120 brands, and are based in Europe; member products
are sold in over 20,000 retail outlets in more than 80 countries around the world.
FWF labor standards
The basis of the collaboration between FWF and a member is the Code of Labor Practices.
The core of this code is made up from eight labor standards derived from ILO Conventions
and the UN’s Declaration on Human Rights. This means the FWF Code of Labor Practices
is based on internationally recognized standards.
1. EMPLOYMENT IS FREELY CHOSEN
There shall be no use of forced, including bonded or prison, labor. (ILO Conventions 29 and
105)
2. THERE IS NO DISCRIMINATION IN EMPLOYMENT
Recruitment, wage policy, admittance to training programs, employee promotion policy,
policies of employment termination, retirement, and any other aspect of the employment
relationship shall be based on the principle of equal opportunities, regardless of race, color,
sex, religion, political affiliation, union membership, nationality, social origin, deficiencies or
handicaps (ILO Conventions 100 and 111).
3. NO EXPLOITATION OF CHILD LABOUR
There shall be no use of child labor. The age for admission to employment shall not
be less than the age of completion of compulsory schooling and, in any case, not less than
15 years." (ILO Convention 138)
"There shall be no forms of slavery or practices similar to slavery. Children (in the age of 15-
18) shall not perform work which, by its nature or the circumstances in which it is carried
out, is likely to harm their health, safety or morals." (ILO Convention 182)
4. FREEDOM OF ASSOCIATION AND THE RIGHT TO COLLECTIVE BARGAINING
The right of all workers to form and join trade unions and bargain collectively shall be
recognized. (ILO Conventions 87 and 98).
Workers' representatives shall not be the subject of discrimination and shall have access to
all workplaces necessary to carry out their representation functions. (ILO Convention 135
and Recommendation 143)
5. PAYMENT OF A LIVING WAGE
Wages and benefits paid for a standard working week shall meet at least legal or industry
minimum standards and always be sufficient to meet basic needs of workers and their
families. (ILO Conventions 26 and 131).
Employees shall be adequately and clearly informed about the specifications of their wages
including wage rates and pay period.
6. LEGALLY BINDING EMPLOYMENT RELATIONSHIP
Younger workers shall be given the opportunity to participate in education and training
programs.
7. REASONABLE HOURS OF WORK
Hours of work shall comply with applicable laws and industry standards. In any event,
workers shall not on a regular basis be required to work in excess of 48 hours per week and
shall be provided with at least one day off for every seven-day period. Overtime shall be
voluntary, shall not exceed 12 hours per week, shall not be demanded on a regular basis
and shall always be compensated at a premium rate. (ILO Convention 1)
8. SAFE AND HEALTHY WORKING CONDITIONS
A safe and hygienic working environment shall be provided, and best occupational health
and safety practice shall be promoted. Appropriate attention shall be paid to occupational
hazards specific to this branch of the industry and assure that a safe and hygienic work
environment is provided for. Effective regulations shall be implemented to prevent accidents
and minimize health risks as much as possible (following ILO Convention 155). Physical
abuse, threats of physical abuse, sexual and other harassment, and intimidation by the
employer is strictly prohibited.

International Organization for Standardization (ISO)

Founded on 23 February 1947, the organization promotes worldwide proprietary, industrial
and commercial standards. It is headquartered in Geneva, Switzerland.

Classification of ISO (9000):

• ISO 9001: This standard is applicable for companies, which are involved from
designing to manufacturing of goods. This is the most comprehensive standard.
• ISO 9002: This standard is applicable for companies, which manufacturing goods
with buyers or others specifications. This is applicable for export oriented apparel
industries.
• ISO 9003: This standard is applicable for Final inspection.

Principle of ISO
Principle 1: Customer focus
Organizations depend on their customers and therefore should understand current
and future customer needs, should meet customer requirements and strive to exceed
customer expectations.
Principle 2: Leadership:
Leaders establish unity of purpose and direction of the organization. They should
create and maintain the internal environment in which people can become fully involved in
achieving the organization’s objectives.
Principle 3: Involvement of people
People at all levels are the essence of an organization and their full involvement
enables their abilities to be used for the organization’s benefit.
Principle 4: Process approach
A desired result is achieved more efficiently when activities and related resources are
managed as a process.
Principle 5: System approach to management
Identifying, understanding and managing interrelated processes as a system
contributes to the organization’s effectiveness and efficiency in achieving its objectives
Principle 6: Continual improvement
Continual improvement of the organization’s overall performance should be a
permanent objective of the organization
Principle 7: Factual approach to decision making
Effective decisions are based on the analysis of data and information
Principle 8: Mutually beneficial supplier relationships
An organization and its suppliers are interdependent and a mutually beneficial
relationship enhances the ability of both to create value

Advantages of ISO:
ISO standards have been steadily gaining popularity since their introduction in 1947
by the International Organization for Standardization. Companies around the world utilize
ISO certification to achieve a competitive advantage in efficiency, marketing, profitability and
international business relations. Keeping your company up to date on international
standards can give your business the edge it needs to succeed in global markets.
 Well defined and documented procedures improve the consistency of output.
 Quality is constantly measured
 Procedures ensure corrective action is taken whenever defects occur.
 Defect rates decrease
 Defects are caught earlier and are corrected at a lower cost.
 Defining procedures identifies current practices that are obsolete or inefficient.
 Documented procedures are easier for new employees to follow.
 Organizations retain or increase market share, increasing sales or revenues