SA8000, Sedex Smeta, BSCI, Wrap - Corporate Social Responsibility System

1. WHAT IS BSCI?

BSCI (Business Social Compliance Initiative) is a code of conduct for social responsibility in business. The BSCI Code of Conduct sets out 11 requirements that companies participating in BSCI commit to gradually implementing throughout their supply chains. The BSCI Code of Conduct reflects the most important international labor standards aimed at protecting workers' rights, such as those from the International Labour Organization (ILO) and other key United Nations declarations, OECD guidelines for multinational enterprises, occupational health and safety & environmental standards, and the United Nations Global Compact.

2. BSCI CODE OF CONDUCT

BSCI operates based on the following 11 principles:

• Freedom of association and the right to collective bargaining;
• Prohibition of discrimination;
• Fair remuneration;
• Working hours that meet requirements;
• Occupational health and safety;
• No use of child labor;
• Special protection for young workers;
• No precarious employment;
• No bonded labor;
• Environmental protection;
• Ethical business behavior.

3. PRINCIPLES OF BSCI

1. Commitment: Participants commit to implementing BSCI as part of their business relationships with manufacturers, demonstrating their willingness to improve working conditions within their supply chains.
2. Consistency: BSCI provides a single, unified system for manufacturers worldwide that includes a code of conduct and an implementation process, ensuring consistency and comparability in audits.
3. Inclusiveness: BSCI applies to both large and small companies and covers all industrially manufactured products originating from any country.
4. Development-oriented: BSCI is not a certification program; it offers a step-by-step developmental approach to help manufacturers gradually implement the code of conduct. Manufacturers who meet all BSCI requirements are encouraged to go further and achieve SA8000 certification.
5. Reliability: BSCI only uses auditing services from experienced and independent external organizations.
6. Focus on High-Risk Countries: BSCI concentrates on countries with high risks and frequent violations of workers’ rights, such as China, Bangladesh, India, Turkey, and others.
7. Efficiency: There is an existing database system of manufacturers to avoid duplicate audits at factories already included in the system.
8. Knowledge-Based: Integrates production-level research to develop knowledge and skills on how to improve working conditions within factories.
9. Collaboration: BSCI fosters the engagement of stakeholders in Europe and producing countries.

4. HOW SHOULD BSCI BE APPLIED TO ORGANIZATIONS?

The BSCI Code of Conduct applies to all organizations regardless of business type, location, or size.

It is voluntarily applied, focusing on developing management systems for social responsibility, occupational health and safety, and environmental protection.

Businesses participating in the global export market and supply chains are required to comply with the BSCI Code of Conduct.

5. WHY APPLY BSCI?

By implementing the Business Social Compliance Initiative (BSCI), companies demonstrate a strong commitment to ensuring fair working conditions in countries within their supply chains. Companies can show customers and partners that they not only talk about social responsibility principles but also apply them practically in their production and business activities. Additionally, companies save costs on multiple audits while establishing a solid foundation for future SA8000 certification audits.

1. WHAT IS SEDEX?

Sedex is one of the world's leading ethical business service providers, striving to improve working conditions in global supply chains. Sedex offers tools, services, and a community network to help businesses enhance sustainable and responsible business practices as well as responsible sourcing. Sedex has developed the Sedex Members Ethical Trade Audit program (also known as SMETA) as a method to assess business ethics issues within companies.

SA 8000 offers a real advantage for Vietnamese goods entering demanding markets where working conditions for laborers are of high concern.

This is the assessment of Ms. Alice Tepper Marlin, President and CEO of Social Accountability International (SAI). SAI is a reputable organization founded with the mission to improve labor and living conditions in communities, and is responsible for developing the SA 8000 standard. Ms. Marlin recently visited Vietnam on the occasion of SAI establishing a permanent representative office in the country. Tuổi Trẻ recorded her discussion with the press regarding SAI and SA 8000.

SA 8000 was introduced in 1997 by a coalition of organizations, including labor unions, human rights and child protection groups, as well as retailers and manufacturers. It was designed as the first international certification for companies that uphold the fundamental rights of workers. The standard is based on 12 conventions of the International Labour Organization (ILO), the Universal Declaration of Human Rights, and the UN Convention on the Rights of the Child. To be certified, companies must comply with standards in 9 key areas: child labor, forced labor, health and safety, freedom of association, discrimination, working hours, disciplinary practices, compensation, and management systems.

Currently in Vietnam, 25 enterprises have achieved SA 8000 certification, including Viet Thang Textile, Viet Tien Garment Export Import Corporation, Castrol Vietnam, Legamex, among others.

What is the greatest benefit for Vietnamese enterprises and factories in obtaining SA 8000 certification?

As you know, consumers in the U.S., Canada, and Europe are not only concerned with product-related factors such as price, quality, design, and packaging, but increasingly focus on the working conditions of the laborers who produce these goods. Consumers in North America and Europe are particularly sensitive to labor rights and child labor issues. They tend to avoid products from businesses or countries reported in the media for labor abuses, forced labor, or child labor.

In practice, many companies conduct site visits to inspect factories and verify working conditions before placing orders with Vietnamese businesses. If your goods are certified to SA 8000 standards, it essentially serves as a passport to enter these demanding markets, which require strong commitments to social responsibility. Additionally, it saves time and costs for your company by reducing the need for repeated factory inspections from foreign buyers.

In the second phase of the SAI project, we are particularly focused on textile and garment companies. As everyone knows, by January 2005, textile quotas will be completely abolished. Can Vietnam's textile products compete in price with those from India and China? What are your competitive advantages? Vietnam is less complex and vast than China, and your Labor Code is already quite strong. Moreover, your primary markets are Europe and the U.S., so Vietnamese companies should aim to achieve SA 8000 certification. It truly is a key factor in enhancing the reputation of Vietnamese brands.

Many businesses are hesitant to adopt SA 8000 due to concerns about periodic audits affecting factory operations. What is your opinion on this?

Some managers do have such concerns. They see periodic audits as interference in internal affairs, wasting leadership’s time and reducing worker productivity, thereby affecting profits. However, in reality, these audits help protect workers' rights and bring long-term benefits to factories and enterprises.

Sometimes, due to busy operations, management may overlook working conditions. Audits serve as timely reminders to correct such issues. From an economic standpoint, investing in human resources is just as important as investing in machinery. Improving working conditions strengthens employee loyalty and increases productivity. When a factory runs smoothly, profits naturally follow. Business leaders should focus on long-term gains, not just short-term profits.

I recently visited a factory in Ho Chi Minh City where the tin-roofed facility was extremely hot, and workers had no awareness or access to proper protective clothing—they still wore jeans. Every few days, someone would fall ill or faint from the heat. In the end, the factory itself suffers the most from this, as it must spend more on recruitment and training. Poor working conditions and high turnover lead to decreased productivity. I want to emphasize: when workers’ conditions improve, both parties benefit.

What are SAI’s goals in Vietnam? Can you share SAI’s plans for 2004?

Our goal is to develop a knowledge base to support training on SA 8000 and other related programs in a local context. We aim to scale this program nationally to promote and ensure effective implementation of the SA 8000 standard. SAI has received a one-year operational license in Vietnam (which will be renewable). We are no longer funded by the U.S. government but have secured additional funding to operate in Vietnam at least through the end of 2005.

In Vietnam, there are many small and medium enterprises (SMEs), for whom the cost of SA 8000 certification can be burdensome. Therefore, SAI has decided to collaborate with industry associations to support them—by forming factory groups where businesses can help each other maintain SA 8000 standards. SAI also plans to expand cooperation with various Vietnamese government agencies such as the Ministry of Labor, Invalids and Social Affairs, Vietnam Chamber of Commerce and Industry, and industry associations like the Vietnam Textile and Apparel Association and Vietnam Leather and Footwear Association.

Finally, I want to note that obtaining SA 8000 certification costs money (about $10,000 and must be renewed every 3 years). However, this cost serves the company’s own interests and reflects its social responsibility.

"According to Việt Báo"