2-bsci_terms of implementation for business partners to be m

Terms of Implementation for Business Partners to be

involved in the BSCI

monitoring process (Producers)

I. Introduction

For the purpose of this document, "Producers" refers to the business partner in the supply chain of a BSCI Participant that manufactures goods (food or non-food) or produces raw materials and that, as a result of the BSCI Participant or Business Partner's due diligence, has been included in the BSCI monitoring process.

This decision may come directly from the BSCI Participant or indirectly through a BSCI Participant's business partner.

BSCI Participants reserve the right to include or exclude the producer in the monitoring process at any time, as a result of their own definitions of risks.

By signing these Terms of Implementation, producers endorse the values and principles of the BSCI Code of Conduct and commit to take, the appropriate measures to observe the principles of the BSCI Code of Conduct at their own facilities.

In addition, they will involve their significant business partner to act in a responsible way.

© Copyright 2014 by FTA – Foreign Trade Association, Brussels

II. Commitment to socially responsible business

2.1. In undertaking the responsibilities set out in the BSCI Code of Conduct, producers work together with BSCI Participants and pursue a constructive and open dialogue with their stakeholders towards the application of the BSCI Code of Conduct.

2.2. Producers actively communicate their endorsement of the BSCI Code of Conduct through their company organization and to their business partners. Producers shall display the BSCI Code of Conduct in the local language in an openly accessible location.

2.3. Producers confirm having read and understood the BSCI Code of Conduct and relevant Terms of Implementation and they commit to work towards full observance thereof, within their sphere of influence.

2.4. Producers have the procedures and sufficient resources in place to meet their responsibilities related to the BSCI Code of Conduct and ensure that there is continuous improvement in its implementation.

2.5. Producers require their significant business partners to work towards full observance of the BSCI Code of Conduct and take, within their sphere of influence, the reasonable measures necessary to make the BSCI Code of Conduct applicable to their own business partners.

2.6. Producers acknowledge that neglecting the values and principles of the BSCI Code of Conduct and/or violating any of these Terms of implementation are sufficient grounds for BSCI Participants or relevant business partners to terminate their business relations with a signatory producer. The burden of proof in this respect shall lie with BSCI Participants or business partners as applicable.

III. Embedding social responsibility into the business enterprise culture

3.1. Producers should establish good management practices that involve workers and their representatives in sound information exchanges on the workplace issues.

3.2. Producers should set policies and procedures in place to ensure the observance of the principles of the BSCI Code of Conduct and appropriate protection of workers.

3.3. Producers should take specific steps to make workers aware of their rights and responsibilities, in particular to the most disadvantaged groups (e.g. migrant workers).

3.4. Producers should build sufficient competence among the managers and workers in order to embed the BSCI Code of Conduct in their business enterprise culture.

3.5. Production, Human Resources and other relevant departments (or individuals) should be trained and incentivised in a manner that allows them to contribute to the integration of the principles of responsible business in the business enterprise culture.

IV. Cooperation and empowerment of their own facilities and supply chain

4.1. Producers engage in training and support their own staff in order to build the necessary capacities to achieve and uphold the principles of the BSCI Code of Conduct.

4.2. Producers seek a constructive and open dialogue with their workers and workers representatives over their responsibility to observe the principles of the BSCI Code of Conduct

4.3. Producers seek a constructive and open dialogue with significant business partners over their ability to observe the BSCI Code of Conduct and assist them in order to help them meet these expectations.

V. Due diligence in their own facilities and in their supply chain

5.1. Producers commit to act diligently in (a) assessing actual and potential adverse impacts of their business against the values and principles of the BSCI Code of Conduct; (b) identifying in their own facilities and their supply chain where the most significant risks for these adverse impacts may occur and (c) acting upon them with the aim of preventing and/or addressing them in line with the BSCI Code of Conduct.

5.2. Producers gather and assess reliable information about their own business and business partners’ responsible behaviour and keep the necessary documentary evidence that they have acted diligently. They seek further detail on the root causes of any discrepancy with the principles of the BSCI Code of Conduct and take the necessary corrective actions.

5.3. Producers require that their business partners regularly report to them on their progress in implementing and/or upholding the BSCI Code of Conduct as well as the effectiveness of their responses to adverse impact to the values and principles of the BSCI Code of Conduct in which they may have been involved.

5.4. Producers should set up or engage in -to the extent possible- an effective operational level grievance mechanism to respond to individuals (particularly their workers) and communities adversely impacted by their activities.

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