In the world of global business, the Business Social Compliance Initiative (BSCI) audit has become a cornerstone for ensuring ethical and responsible supply chains. But how exactly does the BSCI audit rating work? Let's dive in.

The BSCI audit rating is calculated automatically by an IT system, not by the auditor. During the audit, the auditor answers each question based on their professional judgment with one of three responses: "Yes", when there is satisfactory evidence; "No", when the evidence is unsatisfactory; and "Partially", when there's some but not enough satisfactory evidence.

The audit focuses on 13 performance areas (PAs), and each PA gets an individual rating from 'A' (outstanding) to 'E' (unacceptable). This rating is determined by the degree of fulfillment for each question within that PA. Some questions are labeled as “crucial questions”. For example, in the areas of child labor, bonded labor, and occupational health and safety, these crucial questions have the greatest impact on the rating.

The overall BSCI audit rating reflects how well a company has integrated the BSCI Code of Conduct into its daily operations. An "A" rating indicates that a company has demonstrated a very high level of compliance, with typically 86% - 100% of the requirements met across the PAs, and it usually means no follow - up audit for two years. A "B" rating (71% - 85% compliance) also allows for a two - year validity without a follow - up audit under normal circumstances.

A "C" rating (51% - 70% compliance) is considered acceptable but requires a follow - up audit after one year. "D" (30% - 50% compliance) and "E" (below 30% compliance) ratings show insufficient or unacceptable performance, often leading to immediate rectify and reform and a need for a new audit as soon as possible.

Understanding the BSCI audit rating system is crucial for companies aiming to maintain high ethical standards in their supply chains, as well as for consumers who are increasingly demanding socially responsible products.