BSCI Audit Guide: Requirements, Process & Preparation

BSCI Audit Guide: Requirements, Process & Preparation

The Business Social Compliance Initiative (BSCI) — now officially part of amfori — is one of the most widely used social compliance frameworks in international trade. If you source products from factories in developing countries and sell to European retailers or brands, there is a good chance your buyers require BSCI compliance from their supply chain.

This guide explains how BSCI works, what the audit covers, how the scoring system operates, and how to prepare your suppliers for a successful audit.

What Is BSCI?

BSCI is a social compliance programme managed by amfori, a global trade association representing over 2,700 retailers, importers, and brands. The programme provides a framework for companies to monitor and improve working conditions in their supply chains through a standardised audit process.

Key characteristics of BSCI:

• Not a certification: Like SMETA, BSCI is an audit programme, not a certification. Factories receive a grade (A through E) rather than a certificate.
• Buyer-driven: Only amfori members can commission BSCI audits. If you are not an amfori member, your buyer (the retailer or brand) initiates the audit requirement.
• Based on international conventions: The BSCI Code of Conduct is built on ILO conventions, the UN Guiding Principles on Business and Human Rights, and OECD guidelines.
• Progressive improvement model: BSCI recognises that factories may not meet all requirements immediately and focuses on continuous improvement.

The BSCI Code of Conduct

The BSCI Code of Conduct defines 11 core principles that factories must adhere to. These form the basis of every BSCI audit:

1. The Rights of Freedom of Association and Collective Bargaining

Workers must be free to form or join trade unions and bargain collectively. In countries where this right is restricted by law, the factory must allow parallel means of independent association and bargaining.

2. Fair Remuneration

Workers must be paid at least the legal minimum wage (or industry benchmark where higher). Wages must be paid on time, in full, and in a transparent manner. Overtime must be compensated at the legally required premium rate.

3. Decent Working Hours

Regular working hours must not exceed 48 hours per week (or less if national law prescribes a lower limit). Overtime must be voluntary and not exceed 12 hours per week. Workers must receive at least one rest day per 7-day period.

4. Occupational Health and Safety

The factory must provide a safe and healthy working environment. This includes: risk assessments, safety training, PPE, emergency procedures, fire safety equipment, clean drinking water, sanitary facilities, and appropriate building maintenance.

5. No Child Labour

The minimum working age is 15 years (or 14 in certain developing countries as permitted by ILO Convention 138). Young workers (15–18) must not perform hazardous work and must have their educational needs protected.

6. Special Protection for Young Workers

Young workers (under 18) must not work night shifts, must have limited working hours, and must not perform hazardous work. The factory must maintain records of all young workers.

7. No Precarious Employment

Employment relationships must be established according to national law. This covers: written contracts, probationary periods, use of temporary or agency workers, apprenticeships, and avoidance of schemes designed to deny workers their legal entitlements.

8. No Bonded Labour

No forced or bonded labour of any kind. Workers must not be required to surrender identity documents, pay deposits, or have wages withheld as a condition of employment. Workers are free to leave employment after reasonable notice.

9. No Discrimination

No discrimination in hiring, compensation, training, promotion, termination, or retirement based on race, gender, religion, age, disability, sexual orientation, nationality, social origin, or political opinion.

10. No Harsh or Inhumane Treatment

No physical abuse, threats of violence, sexual harassment, verbal abuse, or other forms of intimidation. The factory must have clear disciplinary procedures that do not include fines or penalties.

11. Protection of the Environment

The factory must comply with environmental laws and regulations. This includes: waste management, emissions control, effluent treatment, chemical management, and environmental permits.

The BSCI Audit Process

A BSCI audit follows a defined process from initiation to follow-up:

Step 1: Initiation

• An amfori member (typically the retailer or brand) nominates the factory for a BSCI audit through the amfori platform
• The factory registers on the amfori platform and completes an online self-assessment
• An accredited BSCI audit firm is selected to conduct the audit

Step 2: On-Site Audit (1–2 Days)

The on-site audit includes:

• Opening meeting: The auditor explains the audit scope and process
• Facility tour: Complete walk-through of all production areas, warehouses, dormitories, canteens, and common areas
• Document review: Payroll records, time records, employment contracts, permits, licences, training records, safety inspection records
• Management interview: Discussions about policies, procedures, and management systems
• Worker interviews: Confidential interviews with a representative sample of workers, selected randomly by the auditor
• Closing meeting: Preliminary findings are shared with management

Step 3: Audit Report and Rating

The auditor assigns a rating and uploads the audit report to the amfori platform. The report details findings against each of the 11 principles.

Step 4: Corrective Action and Follow-Up

If the factory receives a C, D, or E rating, it must develop a corrective action plan. Follow-up audits verify whether the issues have been resolved.

BSCI Scoring System

BSCI uses a letter-grade scoring system from A (best) to E (worst). Each of the 11 performance areas receives a score, and the overall rating is determined by the lowest individual area score.

Rating	Meaning	Implication
A — Outstanding	Best practice. The factory exceeds requirements and demonstrates proactive social management.	Full compliance. Next audit in 2 years.
B — Good	The factory meets all requirements with only minor areas for improvement.	Acceptable. Next audit in 2 years.
C — Acceptable	The factory meets core requirements but has areas needing improvement.	Acceptable with corrective actions required. Next audit in 1 year.
D — Insufficient	The factory has significant gaps in one or more areas.	Requires remediation. Follow-up audit within 1 year. Some buyers may restrict orders.
E — Unacceptable	Zero-tolerance issues found (child labour, forced labour, life-threatening conditions).	Immediate action required. Buyers typically suspend orders. Follow-up audit within 6 months.

Important: The overall rating is determined by the weakest performance area. A factory that scores A in 10 areas but D in working hours receives an overall D rating. This prevents factories from masking serious issues with strong performance elsewhere.

Audit Frequency

How often a factory is audited depends on its rating:

• A or B rating: Re-audit every 2 years
• C rating: Re-audit every 1 year
• D rating: Follow-up audit within 1 year, with corrective actions monitored
• E rating: Follow-up audit within 6 months. If zero-tolerance issues are not resolved, the factory may be excluded from the BSCI programme

Buyers may impose their own, stricter schedules. Some require annual audits regardless of rating.

How to Prepare Suppliers for a BSCI Audit

Preparation is the difference between a smooth audit and a disruptive one. Here is how to help your suppliers get ready:

Documentation Preparation

• Employment contracts: Every worker must have a written contract in a language they understand, covering wages, working hours, benefits, and termination conditions
• Payroll records: Must accurately reflect actual hours worked and wages paid. Discrepancies between time records and payroll are the most common audit finding
• Time and attendance records: Must be complete and match payroll. Electronic time-keeping systems are preferred over manual sign-in sheets
• Training records: Documentation of health and safety training, fire drill participation, and any skills training
• Permits and licences: Business licence, fire safety certificate, building safety certificate, environmental permits — all must be current

Facility Preparation

• All emergency exits clearly marked, unobstructed, and functioning (push-bar doors, not locked doors)
• Fire extinguishers inspected, charged, and within expiry dates
• First aid kits stocked and accessible on every floor
• Chemical storage properly labelled with safety data sheets available
• PPE available and in use — hard hats, safety glasses, gloves, ear protection as applicable
• Clean and accessible toilets, handwashing facilities, and drinking water

Management Systems

• Appoint a social compliance manager or team responsible for the programme
• Establish a worker grievance mechanism (anonymous suggestion box, hotline, or committee)
• Create and display written policies covering: anti-discrimination, anti-harassment, health and safety, working hours, and wages
• Implement a corrective action tracking system to monitor and close audit findings

BSCI vs SMETA: Key Differences

Both BSCI and SMETA are widely used social audit frameworks, but they differ in important ways:

Factor	BSCI	SMETA
Organisation	amfori (2,700+ members)	Sedex (85,000+ members)
Who can commission audits?	Only amfori members	Any Sedex member
Scoring	Letter grades (A–E)	No grades — findings listed as Critical/Major/Minor
Geographic strength	Strong in Continental Europe	Strong in UK, increasingly global
Environmental coverage	Included as one of 11 principles	Optional (4-pillar only)
Sharing mechanism	Shared via amfori platform	Shared via Sedex platform
Audit frequency	Based on rating (1–2 years)	Typically annual
Cost to factory	Audit cost + amfori registration	Audit cost + Sedex B membership

Which should your factory get? It depends on your buyers. If your primary customers are European brands and retailers that are amfori members, BSCI is the requirement. If your customers are UK retailers or a mix of global brands, SMETA is more broadly accepted. Some factories maintain both to cover all buyer requirements.

How Tetra Inspection Can Help

Tetra Inspection provides social audit services that help you assess and monitor your suppliers' social compliance. Whether your factories need to prepare for a BSCI audit, a SMETA audit, or a custom social compliance assessment, our experienced auditors deliver detailed, actionable reports that identify gaps and provide clear corrective action recommendations.

We also offer factory audits for quality system assessment, supplier verification for new supplier due diligence, and a full range of product inspection services. Visit our pricing page for transparent, all-inclusive rates.

Frequently Asked Questions

Who can request a BSCI audit?

Only amfori members can initiate a BSCI audit. If you are not an amfori member, the audit is typically initiated by your buyer (the retailer or brand). The factory itself cannot independently request a BSCI audit — it must be nominated by an amfori member.

How much does a BSCI audit cost?

BSCI audit costs vary by region and factory size but typically range from $800–$2,000 for the audit itself. The factory also pays for amfori platform registration. The cost is usually borne by the factory, though some buyers contribute to or cover audit costs.

What happens if a factory gets a D or E rating?

A D rating means significant non-conformances that require corrective action. The factory must implement improvements and undergo a follow-up audit within 1 year. Some buyers may restrict or suspend orders until the rating improves. An E rating indicates zero-tolerance violations — most buyers will immediately suspend orders until the issues are resolved and verified through a follow-up audit.

Can a BSCI audit replace a SMETA audit?

Not directly. While both cover similar ground (labour standards, health and safety), they use different platforms and different reporting formats. A buyer who requires SMETA will typically not accept a BSCI audit in its place, and vice versa. However, a factory that has been through one will find the other much easier to prepare for.

Is BSCI mandatory for selling to European retailers?

Not legally mandatory, but practically required by most major European retailers that are amfori members. If your buyer requires it, it becomes a condition of doing business. As supply chain due diligence legislation (such as the EU Corporate Sustainability Due Diligence Directive) comes into force, social audits like BSCI are likely to become even more important.