Understanding AMFORI BSCI: Insights from SGS Social Audit Experts in the Middle East

In an increasingly globalized market, ensuring ethical practices across supply chains is not just beneficial but essential for businesses aiming to maintain competitiveness and corporate responsibility.

AMFORI BSCI offers a robust framework for monitoring and enhancing social compliance within supply chains, particularly valuable in the diverse and dynamic markets of the Middle East. This guide, written by our experts, provides everything you need to know about the AMFORI BSCI supplier audit in an easy-to-follow FAQ format. 

1. What is AMFORI? 

AMFORI is a prominent global trade association focused on open and sustainable trade. It comprises over 2400 members including retailers, importers, brands, and associations from more than 52 countries.

They collectively strive to improve working conditions worldwide under the unified brand that includes AMFORI BSCI and AMFORI BEPI.

2. What does AMFORI BSCI stand for?

Established in 2003 by the then Foreign Trade Association (now AMFORI since 2018), the Business Social Compliance Initiative (BSCI) is a standard bearer in ethical supply chains.

It encompasses a code of conduct based on International Labour Organization standards, the UN Charter of Human Rights, and local legal frameworks, ensuring comprehensive compliance through rigorous audits.

3. Who should consider AMFORI BSCI audits?

AMFORI BSCI is specifically designed for companies engaged in international commerce that collaborate with suppliers beyond their national borders.

These audits are particularly beneficial for organizations keen on bolstering their commitment to responsible business practices across both internal operations and external supply chains.

This initiative is crucial for businesses aiming to ensure ethical practices are maintained throughout their global networks, enhancing overall corporate responsibility and sustainability.

4. What is AMFORI BSCI audit process?

The AMFORI BSCI Auditing process begins with a brand representative initiating the audit for a supplier in the Amfori portal. They will also assign an auditing body, and notifications will be sent to both the supplier and the auditing body. The auditing body will then communicate offline with the supplier to collect the necessary information for the audit. 

The audit process can be summarized as follow: 

1. Preparation: Suppliers agree to uphold the AMFORI BSCI Code by signing the "Terms of Implementation".
2. On-site Audit: Conducted possibly without prior exact date disclosure, focusing on real-time compliance with the AMFORI BSCI Code.
3. Reporting: Outcomes are documented in the AMFORI BSCI platform, ranging from 'Outstanding' to 'Unacceptable'.
4. Follow-Up: Non-compliant areas must be rectified, with effectiveness verified in subsequent audits.

5. Requirements and performance measures in AMFORI BSCI audits

AMFORI BSCI audits meticulously evaluate suppliers against the AMFORI BSCI Code of Conduct (COC), which embodies the core values and principles of the organization.

These are distilled into 13 interconnected Performance Areas (PAs) that ensure a comprehensive assessment of compliance and ethical conduct. Each area is crucial for maintaining the integrity and responsibility of the supply chain.

The evaluation scheme structure includes:

• Social Management Systems and Cascade Effect: Ensuring that social compliance is embedded at all levels of production and management.
• Worker Involvement and Protection: Facilitating active participation and protection of workers’ rights within the workplace.
• Freedom of Association and Collective Bargaining: Upholding workers' rights to organize and negotiate collectively.
• Non-discrimination: Ensuring equal opportunity and treatment for all employees, irrespective of their background.
• Fair Remuneration: Guaranteeing that wages meet at least the legal or industry minimum standards.
• Decent Working Hours: Adhering to working hours that comply with national laws and do not impose excessive overtime.
• Occupational Health and Safety (OHS): Prioritizing the safety and well-being of all employees in the workplace.
• No Child Labor: Prohibiting the employment of underage workers in all operations.
• Special Protection for Young Workers: Offering additional safeguards for the health, safety, and morals of young employees.
• No Precarious Employment: Providing stable employment conditions and avoiding insecure and uncertain working conditions.
• No Bonded Labor: Eliminating all forms of forced or compulsory labor.
• Protection of the Environment: Implementing practices that minimize environmental impact and promote sustainability.
• Ethical Business Behavior: Encouraging transparency and integrity in all business dealings. 

These Performance Areas are integral to ensuring that companies adhere to high ethical standards and foster a responsible and socially compliant supply chain.

6. What are the benefits of conducting the BSCI audit?

Conducting a BSCI audit offers numerous advantages:

• Opens new market opportunities and builds trust among stakeholders.
• Lays groundwork for robust business relationships and competitive advantages in tenders.
• Demonstrates a commitment to fair and safe working conditions.
• Facilitates cost savings and efficiency improvements by reducing the frequency of audits.
• Strengthens supply chain management and sets a foundation for further certifications like SA8000.

7. Understanding the AMFORI BSCI grading system 

The BSCI audit employs a detailed grading system that assesses organizations across 13 key Performance Areas focusing on various aspects of workplace ethics and supply chain management, ensuring that businesses meet the highest standards of social responsibility.

AMFORI BSCI audit rating

• Grade A - very good
  Organizations must achieve a minimum of 7 Performance Areas rated 'A'.
  No Performance Areas can be rated 'C', 'D', or 'E'.
• Grade B - good
  A good rating allows for a maximum of 3 Performance Areas to be rated 'C'.
  No Performance Areas should be rated 'D' or 'E'.
• Grade C - acceptable
  Acceptable ratings can have a maximum of 2 Performance Areas rated 'D'.
  No Performance Areas should be rated 'E'.
• Grade D - insufficient
  An insufficient rating may include up to 6 Performance Areas rated 'E'.
• Grade E - unacceptable
  Organizations with a minimum of 7 Performance Areas rated 'E' receive an 'Unacceptable' rating.

Each grade reflects the organization's compliance with the Code of Conduct, indicating their commitment to maintaining a responsible and ethical business environment. By striving for higher ratings, companies not only enhance their corporate reputation but also contribute positively to global efforts towards ethical business practices.

SGS: Your guide to AMFORI BSCI audits in the Middle East

Businesses in the Middle East aiming to meet international standards of ethical conduct and corporate responsibility find a robust framework in AMFORI BSCI for enhancing social compliance within their supply chains.

Why choose AMFORI BSCI audit services from SGS? 

• Local Expertise with Global Standards: SGS leverages a vast pool of knowledge, including local experts in major Middle Eastern countries like UAE, Saudi Arabia, Bahrain, Qatar, Jordan, Oman, etc. Our auditors are well-versed in both local business practices and international compliance standards, ensuring audits are relevant and effective.
• Leading Industry Membership: As a founding and full member of the Association of Professional Social Compliance Auditors (APSCA), SGS actively contributes to the development of industry standards.
• Customized and Efficient Support: Our global presence enables quick, cost-effective auditing services in major manufacturing and business hubs. Dedicated key account managers are available for large-scale programs, providing tailored support to meet specific client needs.

Conclusion

For companies in the UAE, KSA, Pakistan, Bahrain, Oman, Qatar, and other Middle Eastern region’s countries, adopting AMFORI BSCI can significantly enhance their global trade practices.

Partnering with SGS for your AMFORI BSCI audits not only ensures access to extensive expertise and a comprehensive network of professionals but also benefits from our strong local presence and understanding of regional market dynamics. This strategic partnership is key to empowering businesses to meet stakeholder expectations and improve their reputation in a competitive global environment.

About SGS

We are SGS – the world’s leading testing, inspection and certification company. We are recognized as the global benchmark for sustainability, quality and integrity. Our 99,600 employees operate a network of 2,600 offices and laboratories around the world.