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BSCI Annual Conference 

Break out Session 

BSCI Implementation in 10 Steps

BSCI Implementation in 10 Steps

Practical experiences 

BSCI Annual Conference 2012 

Maria Blume – Manager Corporate Social Responsibility

General Information 

1983 Formation of the company 

1995 With the First ALDI PC, MEDION revolutionized the computer market 

1999 Initial Public Offering “MEDION AG“ 

2005 opening MEDION Factory Outlet in Essen 

2008 MEDION Webshop online 

2011 MEDION & Lenovo merging together 

Headquarters in Essen/Germany 

BSCI member since May 2010 

Most producers in China and Taiwan 

The production facilities in Germany are not included in the BSCI process 


MEDION Products 


Awards 


MEDION Worldwide 

MEDION is currently operating in 25 countries, 1015 employees worldwide 

Australia 

Austria 

Belgium 

Canada 

Czech Republic 

Denmark 

Finland 

France 

Germany 

Greece 

Hungary 

Island 

Italy 

Luxembourg 

Netherlands 

Norway 

Poland 

Portugal 

Singapore 

Slovenia 

Spain 

Sweden 

Switzerland 

UK 

United States 

Maria Blume – Manager Corporate Social Responsibility 

5

BSCI Member Structure 

4% 

Accessories 

Cosmetics 

DIY 

Electronics 

Food/beverages 

Furniture 

Garments and textiles 

General merchandise 

Household goods 

Paper goods 

Shoes 

Sporting Goods 

Toys 

Construction material 

Home textiles 


BSCI Cycle in 10 steps 


Step 4: Submit your Commitment 

• MEDIONs commitment is based on 

“Buying Volume” 

• For the new BSCI Platform MEDION has to 

ensure that the “Buying Volume” field in 

the “Private Information” section of our 

producer profiles are duly filled out 



Submission necessary at 

• Beginning of each calendar year for existing members 

• 6 months after joining the BSCI for new members 

• In the producer list behind the name of the producer in the 

“commitment” column you can click on either “full audit” or “re-audit” 

– according to you audit planning for the calendar year 

(only if your company 

is the RSP holder 

and our producers 

are in risk countries) 


RSP Holder 



Measurement of 2/3 rd commitments 

• In the new BSCI Platform the quality and quantity commitment is 

automatically calculated by the system to “audits conducted” 


Step 5: Self Assessment & 

Awareness Raising Workshops 

• New producers get a “Starter Pack” including MEDIONs Membership 

Paper, Producer Information Sheet, BSCI Self Assessment Document 

and a List of all BSCI Auditing Companies 

• Frequent invitations via BSCI Homepage to Awareness Raising 

Workshops in China and Taiwan 

• Depending on the producers location and buying volume 

• Workshops for producers are free of charge and all workshops in China 

are in Mandarin – for the other countries in local or national language 


Pre-Audit by MEDION 

• Pre-Audit initiated by me 

• I visit the factory on-site, focus on producers with high buying volume 

• Pre-Audit announced to ensure all relevant persons are on-site 

(Factory Management Representatives, Human Resource Manager, Responsible Person for Health and Safety, Quality Manager, 

Responsible Person for Environment) 

• Morning Meeting 

• Introduction into BSCI process 

• Presenting BSCI Code of Conduct and all BSCI requirements 

• In the afternoon production site and dormitory inspection 

• Afterwards creating an “Improvements Plan” and support from 

Germany 



• Exit sign and light installation for escape route 

before 

after 



• Exit sign installation in warehouses 

before 

after 



• Fire alarm installation in canteen stairway 

before 

after 



• Required space between the stacks and the wall in all warehouses 

before 

after 



• Evacuation plan installation with escape routes in the whole factory and 

mark “YOU ARE HERE” 

after 


Step 6: BSCI Full Audit 

• BSCI Full Audit is scheduled one or two months after MEDIONs Pre-Audit 

• Announced to ensure all documents are available 

• Preferred auditing companies Bureau Veritas, Intertek and TÜV South 

• Normally producer pays for the Full Audit 

• BSCI Full Audit is valid for the factory or in some cases only for one 

building of the factory (especially factories manufacturing for other clients 

like Acer, DELL, Microsoft where we find more than 10.000 employees) 

• BSCI Full Audit Report with a note about the limitation 

• Upload BSCI Full Audit Report within 10 days into BSCI Platform 


Experiences in China 

Most “non compliant” findings in China: 

1. Working Time 2. Compensation 3. Health & Safety 

Chinese Law: 

40 h working time 

+ 

12 h overtime 

max. 36 h overtime monthly 

BSCI Standard: 

48 h working time 

+ 

12 h overtime 

Social insurance 

payment: 

e.g. not all employees 

receive medical, maternity 

and industrial injury 

insurance, pension and 

unemployment insurance 

Minor issues found 

e.g. pictures 


Brands / Direct Sales 

• With creating the Commitment Formula, brands were excluded in order to 

put the focus clearly on the manufacturing plant that exists either directly 

with the producer or via supplier 

• With the Electronic Industry, pioneers like HP started systems and founded 

organizations like EICC, GeSi etc. and did a lot themselves 

• The BSCI relies on the fact that brands represent a lower risk than other 

producers. 


Thank you 

• Maria Blume 


Our mandate: 

To help limiting the harmful 

effects of alcohol 

2

Brief history 

• In 1917 the Swedish Government started controlling the sales of alcohol 

since consumption was rocketing 

• 1955 Systembolaget was founded. No longer possible for private stores to 

get a license to sell alcohol 

• Import monopoly abandoned on joining EU in 1995 

• Retail monopoly allowed as exception within EU 

• Growing Customer Satisfaction Index over the last 10 years 

Sidfottext datum och sidnummer är valfritt att ha med och kan ändras 3

Systembolaget in brief 

• 417 stores (383 self-service) 

• 116 million customer visits 

• > 500 agents in rural areas 

• > 4 800 employees 

• Turnover > 24 billion SEK (2,4 bill 

Euros)

• Systembolaget buy only through 

importers registered in Sweden 

• As a foreign producer/ supplier you 

need an importer (or to be 

registered with Swedish tax 

authorities) 

• 700 approved importers/ suppliers 

in Sweden- 450 active with 

Systembolaget 

• Top 10 suppliers stands for: 

• spirit 88% 

• wine 60% 

• beer 97% 

Our partners 

• Openess and transparency 

• Neutrality towards supplier and 

brand- blind tastings 

• Supplier satisfaction index is 

measured

Our vision: 

A society where everyone can 

enjoy alcoholic drinks considering 

health and without harming 

themselves or others.

Corporate Social Responsibility 

7

Implementation strategy (2009-2013) 

Step 1 

Action 2013 

AUDITING 

Working on system 

for auditing 

Action 2010 

Action 2011 

Action 2012 

CoC 

AGREEMENT 

REPORTING 


for reporting 

Working with our suppliers to make 

CoC become part of suppliers’ 

purchasing contract 

Working on a common CoC together with 

our suppliers 

Action 2009 

DIALOGUE 

Introductory CSR-dialogue with our 

suppliers. 

The CSR platform and the CoC is the central pillar of the Nordic CSR cooperation 

TOOLS: Training, Dialogue Framework, Risk Analysis and Questionnaires 

8

and Systembolaget 

• Systembolaget became a participant of BSCI April 1st 2011 

• Decided to adopt the BSCI CoC without making any changes 

• Internal communication through intranet to all employees 

• Special internal communication to Purchase Department with BSCI workshop 

• External communication to suppliers prior to joining 

• Update information through special communication website 

• Press release


Step 2 

Action 2013 

AUDITING 


for auditing 

Action 2010 

Action 2011 

Action 2012 

CoC 

AGREEMENT 

REPORTING 


for reporting 





our suppliers 

Action 2009 

DIALOGUE 

Introductory CSR-dialogue with our suppliers. 



10

Registration of suppliers 

• CoC included in the purchasing conditions from 1st of January 2012 

• Suppliers to register themselves initially 

a) Save us from administration 

b) Better involvement from suppliers, especially through deadline 

• Sub-suppliers/producers of products to our fixed range must be registered 

• E-learning for new suppliers, including understanding of the CoC 

• New suppliers will be registered by us 

11


Step 3 

Action 2013 

AUDITING 


for auditing 

Action 2010 

Action 2011 

Action 2012 

CoC 

AGREEMENT 

REPORTING 


for reporting 





our suppliers 

Action 2009 

DIALOGUE 

Introductory CSR-dialogue with our suppliers. 



12

Supply chain for wine, beer and spirits 


• Filtering by risk 

country evaluation 

• Listing top 

producers by 

volume from sales 

statistics 

• South Africa 208 

producers 

• Chile 97 producers 

• Argentina 72 producers 

Risk assessment 

3% 3% 5% South Africa: 18,1% , (-2,4p.p.) 

Australia: 11,9% , (-0,9p.p.) 

20% 

4% 

Spain: 11,2% , (-0,7p.p.) 

Italy: 20,2% , (3,1p.p.) 

7% 

France: 9,5% , (0,3p.p.) 

Chile: 7,4% , (0,2p.p.) 

7% 

18% 

USA: 6,6% , (0,8p.p.) 

Germany: 4,4% , (-0,1p.p.) 

10% 

Argentina: 2,9% , (-0,2p.p.) 

Portugal: 2,8% , (0,1p.p.) 

11% 12% 

Other: 4,9% , (-0,2p.p.) 

Market shares by origin Jan-Sep 

2012 in litres 


First Auditplan 

• 2013 South Africa, Chile and Bulgaria; total of 14 audits 

• 2014 Chile and Argentina; total of 8 audits 

• Additional audits can/will be conducted when needed 


Getting started with BSCI 

Fleur Meerman 

BSCI annual conference 

Brussels 

21-11-2012

the unique HEMA concept 

3

our mission 

HEMA wants to make people’s lives 

easier and more fun. 

4

since 1926 

• the great depression in the 20 th century 

• a store for "ordinary" people 

• rounded prices of 10, 25 and 50 cents 

• a revolution for the Netherlands 

• a wide range of products, but limited product choices 

5

about HEMA 

• HEMA acquired by Lion Capital in June 2007 

• Lion Capital is a private equity investment firm that focuses on the consumer 

sector 

• Lion has been investing in private equity capital since the early 1990s 

6

HEMA in 2012 total 623 stores 

Netherlands 

509 stores 

Belgium 

89 stores 

Germany 

10 stores 

France 

11 stores 

Luxembourg 

4 stores 

7

HEMA facts 

•35.000 private label textile, hard goods and food products 

15

HEMA Facts 

• around 1000 suppliers worldwide 

• around 500 suppliers and 1500 production locations in risk countries 

• supplier change approx. 100 per year 

• different ways of buying 

• direct 

• importers 

• agents 

• buying offices in Hong Kong, Shanghai and Dhaka 

• hundreds of HEMA social compliance audits per year 

• founding member of BSCI, since 2003

HEMA Social Compliance approach since 2011 

• focus on the continous improvement of our suppliers and production 

locations based on the reality 

• HEMA training of buyers, suppliers, importers, and agents 

• working together to improve (cooperation) 

• not the paper work but the reality (=transparency) 

• entry level for suppliers: HEMA Minimum Requirements (MRQ)

step 6: Proceed to the full audit for new producers 

• standard e-mail to inform them about our Social Compliance policy 

• honest and open relation – real and accurate wage and working hours 

• step by step improvement 

• in house workshops at HQ or trading offices 

• HEMA MRQ 

• BSCI development approach 

• Code of Conduct 

• self assessment 

• general awareness raising workshop BSCI 

• new factories are visited and if necessary CAP is made


• preferred audit company: Intertek 

• they know our approach: focus on real and acurate results 

• agreement to call us during audits if they think factory is not showing 

real results 

• good price negotiated


• HEMA requests Intertek via BSCI platform to schedule audit for 

factories within certain time frame 

• Intertek contacts factory directly 

• audit is scheduled and HEMA receives update via platform 

• audit report uploaded into database by Intertek within 10 days 

• audit report checked by HEMA and CAP put into HEMA format

step 7: Follow up on Corrective Action Plan (CAP) 

• CAP in HEMA format e-mailed to factory 

• factory needs to fill out the format and indicate root cause, corrective 

action, preventative action, responsible person and date to be 

completed 

• follow up BSCI CAP by 

• agent 

• buyer 

• CSR team

step 8: Invite producers to advanced workshops 

• focus is continuous improvements 

• producers are invited to advanced BSCI workshop 

• also factories with audit result Good

step 9: Proceed to the re-audit 

• before the deadline of the agreed CAP the factory is contacted to 

inform what the status of the CAP is: 

• audit report 

• CAP in HEMA format 

• when necessary support is given via our own auditors or Head Office 

• re-audit takes place and the process starts again as described in step 

8/9

step 9: Proceed to the re-audit

step 9: Proceed to the re-audit 

• what if the factory does not make improvements 

a group meeting between buyer, category manager and social 

compliance manager will take place to decide next steps 

• the factory needs to show improvements if not we will not work with them 

step 10: End of three year cycle: review and 

restart

process steps HEMA social compliance 

HEMA 

HEMA 

HEMA 

HEMA 

Send supplier HEMA 

requirements on social 

compliance* 

MRQ factory visit/audit 

Go/No Go 

& CAP 

Go/No Go supplier based 

on MRQ 

Approve, follow-up on CAP & support implementation 

HEMA 

Potential supplier 

Supplier Supplier Supplier 

Fill-out MRQ selfassessment 

& 

Declaration of Supplier 

Implement CAP 

Develop action plan for full 

standard 

Supplier 

BSCI 

self-assessment 

Supplier 

Plan BSCI audit within 12 

months after placement of 

first order 

*CoC 

MRQ letter 

MRQ PPT 

MRQ 

MRQ self-assessment 

Declaration of Supplier

questions 

15

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