Understanding the BSCI Governance

THIS TRAINING HAS BEEN EXTRACTED FROM THE MANUAL ON BSCI GOVERNANCE, WHICH IS ITSELF AN EXTRACT OF THE FOREIGN TRADE ASSOCIATION (FTA) BY-LAWS. IN CASE OF CONTRADICTION, THE LATTER APPLIES. IT COMES INTO FORCE 1 JANUARY 2014 AND OVERRULES THE PREVIOUS VERSIONS OF BSCI RULES AND FUNCTIONING FROM BOTH 2012 AND 2009.

Who are BSCI Participants?:

These are commercial entities such as retailers or importers, which are members of FTA and endorse the Business Social Compliance Initiative (BSCI) . They are committed to the values and principles set out in the BSCI Code of Conduct and to meeting, within their sphere of influence, their responsibilities to respect human rights. They pursue a constructive and open dialogue among business partners and stakeholders in order to reinforce the principles of socially responsible business They see the building of mature industrial relations between workers and management as being key for sustainable business BSCI Participants are subjected to the BSCI Commitment Formula as well as to the Terms of Implementation for Participants annexed to the BSCI Code of Conduct.

The BSCI Structure

1. The BSCI Secretariat

The secretariat is run by the Foreign Trade Association. Its tasks revolve around the administration of the initiative and include:
Provide support and advice to the BSCI Participants in all areas related to the implementation of the BSCI Code of Conduct. Coordination and preparation of the different Governance Bodies meetings. Developing and updating all relevant policies, procedures and implementation tools.

2. The BSCI Steering Committee

The role of the BSCI Steering Committee is set out according to Title XII of the FTA by-laws: The BSCI Steering Committee shall always be composed of nine (9) members, who shall be Representatives of Ordinary Members being companies using services related to the BSCI. Each member of the BSCI Steering Committee must be:
A senior executive (i.e. coming from senior/top-level management) of his/her Ordinary Member; and An expert regarding services related to the BSCI;

Diversity Balance in the BSCI

The members of the BSCI Steering Committee must represent the diversity of the Ordinary Members being companies using services related to the BSCI regarding their size (i.e. Ordinary Members Annual Turn-over):
5 members must represent each an ordinary member with an annual turnover of over one (1) Billion EUR. 3 members must represent each an ordinary member with an annual turnover of between 100 million EUR and 1 billion EUR. 1 member must represent an ordinary member with an annual turnover of between 500,000 EUR and 100 million EUR. Companies with a turnover of less than 50,000 EUR are not eligible to proscribe for BSCI Services.

About the Committee Members

BSCI Steering Committee members are selected by BSCI Participants and appointed by the FTA Board of Directors. Two members of the BSCI Steering Committee are represented in the FTA Board of Directors. The BSCI Steering Committee must elect a Chairman among one of its members. The BSCI Steering Committee convenes as often as necessary, but at least twice a year. Decisions are taken by simple majority. Members of the BSCI Steering Committee are elected for a three year term. They can be re-elected to the Committee up to two times, for a total of nine years.

Tasks of the BSCI Steering Committee

1. Running the BSCI activities (including legal framework) within the given budget and drafting an annual action plan regarding the BSCI activities; 2. Appointing and revoking the members of the Stakeholder Council; 3. Upon proposal of the Stakeholder Council, appointing and revoking one (1) member of the Stakeholder Council as observer at the BSCI Steering Committee; 4. Establishing and delegating tasks to one or more Working Group(s) and the overseeing of this/these; 5. Proposing to the Board of Directors the determination of the terms and conditions of the status and the relations with national contact groups;

Tasks of the BSCI Steering Committee..

6. Consulting the National Contact Groups (NCG) for which the Board of Directors has determined the terms and conditions of the status and the relations; 7. Cooperating with other organisations and stakeholders regarding the BSCI activities at different levels; 8. Consulting with the BSCI Secretariat regarding the appointment of one or more candidate(s) Secretary(ies) and the revocation of one or more Secretary(ies); 9. Proposing to the Board of Directors to establish BSCI contact persons in supplier countries; 10. Monitoring the implementation of the commitments of the BSCI Participants;

Tasks of the BSCI Steering Committee..

11. Proposing to the Board of Directors sanctions vis--vis the BSCI Participants 12. Deciding on issues related to the implementation of the BSCI Code of Conduct including the tools and integrity requirements; 13. Proposing to the Board of Directors the adoption of amendments to the BSCI Code of Conduct; 14. Proposing to the Board of Directors the adoption and regular update of a list of Risk Countries; 15. Organising a BSCI annual conference.

3. The BSCI Working Groups

Are appointed by the Steering Committee Are appointed to address specific issues regarding the BSCI. The BSCI Steering Committee determines the mission, composition, powers, conduct of meetings and governance, convocations modalities and drafting of agendas, quorums and voting procedures, and drafting of minutes of the Working Group(s). They report to the steering committee at prescribed timelines or due to the exigencies of the work they have been given. Currently, there are Working Groups on:
System Auditing Capacity Building Food and Primary Production Communication

Working Groups Membership

When appointing Working Group members, the different nationalities, businesses and company sizes are taken into account . The Working Group(s) may be composed of non-members (including stakeholders) and representatives of members who;
Must be experts in the respective fields covered by the Working Group(s) concerned and; Are able to substantially contribute to support the BSCI Steering Committee.

Half of the Working Group members have to come from retail companies. A Working Groups size is limited to 19 members. Representatives of BSCI participants can apply to join a Working Group by submitting a request to the BSCI Steering Committee, which, in turn, decides on the application in question. Each Working Group elects a chair who is given a two-year term.

 Working Group meetings are normally held in Brussels. On an exceptional basis, the Working Group chair can decide that a meeting be held in another city. Working Group meetings can also be held through telephone conferences, video conferences or other technical means of communication. Based on the request/mandate of the BSCI Steering Committee, the Working Group chair in cooperation with the responsible BSCI secretariat staff will define the agenda and support documentation which will be sent to the Working Group members at least one week before a meeting. The Working Group(s) may invite one or more third party(ies) to attend without voting rights to one or more meeting(s) or part(s) of meeting(s) of the Working Group(s). Any member of the BSCI Steering Committee shall have the right to attend the meetings of the Working Group(s) without a voting right but with the right to be heard. A member of a working group may be excluded at the discretion of the steering committee, or if they fail to attend 3 consecutive meetings A member can be reinstated if they show evidence that they will attend future meetings.

Working Groups Meetings

 The BSCI Steering Committee shall appoint the members of the Stakeholder Council. A stakeholder council shall constitute of non-members of the BSCI who can come from:
Trade Unions Stakeholder NGOs operating in more than one (1) country. Associations, organisations, foundations, or federations active in suppliers, import or export business; Governments; and International institutions or organisations.

4.0 Stakeholder Council

The members of the Stakeholder Council are appointed for a three (3) years term, renewable twice. Their mandate shall be non-remunerated. The Stakeholder Council shall appoint a chairperson amongst its members.

 If the chairperson is unable or unwilling to chair the Stakeholder Council, the Stakeholder Council shall be chaired by the oldest member of the Stakeholder Council present. Non-members of the council can be invited, without voting rights, to attend meetings or parts of meetings of the council Any Member, director, and/or member of the BSCI Steering Committee shall have the right to attend the meetings of the Stakeholder Council without a voting right but with the right to be heard. A representative of the BSCI Secretariat participates in the meetings of the BSCI Stakeholder Council in order to inform its members about project development. Upon request, the members of the BSCI Stakeholder Council have access to all available BSCI documents (Confidentially).

4.0 Stakeholder Council

 Granted by the FTA by-laws. Their Powers include:

4.0 Stakeholder Council Powers..

Proposing to the BSCI Steering Committee the appointment of one (1) member of the Stakeholder Council as candidate to be an observer at the BSCI Steering Committee. Upon request of the BSCI Steering Committee, providing advice to it on any issue Providing advice to the steering committee on; The amendments of the BSCI Code of Conduct; Issues related to the implementation of the BSCI Code of Conduct including the tools and integrity requirements; and The cooperation with other organisations and stakeholders regarding BSCI activities at different levels.

5.0 National Contact Groups

National Contact Groups (NCG) are not governance bodies of the BSCI. However, they play a critical role in promoting the values and principles of the BSCI and enhancing dialogue among the BSCI Participants and Stakeholders at their respective national level. They are regulated by the BSCI National Contact Groups Terms and Conditions.

 Q&A