Recently, the latest version of SMETA was launched: SMETA 7.0. In this updated Sedex standard, the focus is mainly on management systems and on the level of responsibility among companies. What exactly changed, and what are our first experiences with conducting the new SMETA audit? We will tell you all about it in this article.
Within the world of sustainability audits, the Sedex standard plays an important role. SMETA (Sedex Members Ethical Trade Audit) is currently the most widely used socio-ethical audit. Within this standard there are two variants: the 2-pillar audit, and the more extensive SMETA 4-pillar audit.
Meanwhile, even fast food giant McDonald's cannot ignore SMETA anymore: the company abandons their old SWA program and goes for the Sedex standard. Reason for many suppliers and other players in the chain to make the switch as well.
The difference between SMETA 7.0 and SMETA 6.1
In the latest version of SMETA, SMETA 7.0, management systems play a much larger role than in SMETA 6.1. Within the entire standard, management system assessment with a fixed scope has been introduced into the standard. This eliminated the observations from the old SMETA.
A management system is a comprehensive framework of processes, policies, procedures and tools. These are strategically designed and then implemented in the company so that the organization can plan, organize, execute, control and continuously improve activities.
If you want to get started with SMETA 7.0, the procedures management system should at least be based on ten key points from the ETI Base Code:
Employment is freely chosen
Freedom of association and right to collective bargaining are respected.
Working conditions are safe and hygienic.
Child labor is not permitted.
Legal and living wages are paid.
Working hours are not excessive.
No discrimination is practiced.
Regular employment is provided and any subcontracts and home workers are used responsibly.
No harsh or inhumane treatment is allowed.
Environmental and business ethics are monitored from the 2-pillar or 4-pillar variant of SMETA.
Another major difference between SMETA 7.0 and SMETA 6.1 is that with the new SMETA, companies write their procedures against the Workplace Requirements. We will discuss this in more detail later in this article.
Management System Assessment (MSA) and Elements in SMETA 7.0
In the new SMETA, a company's management system is assessed using four factors called “Elements” within SMETA. That assessment is known as Management Systems Assessment (MSA). We briefly list the Elements for you.
Policies and Procedures
Companies must be able to demonstrate that they operate with policies and procedures that ensure compliance with Workplace Requirements. These requirements fall within the lines of the ETI Base Code.
Resources
Every organization must appoint a manager of sufficient seniority who has responsibility within the operation and ultimate responsibility for implementing policies and procedures.
Communication and training
Companies must clearly inform and train all their personnel, including management and outside workers, on the relevant policies and procedures.
Monitoring
Organizations must be able to present evidence showing that the policies and procedures they have established meet the Workplace Requirements, for example through internal audits.
The four elements are assessed during the new SMETA audit. In doing so, the auditor uses so-called gradings. These consist of: 'robust management system', 'some improvements recommended', 'fundamental improvements required' and 'no control'.
When assessing the Elements in the MSA during the SMETA 7.0 audit, the auditor must consider the likelihood that the element in question will meet the Workplace Requirements now and in the future. It also considers whether the Element is relevant with what the organization does and in what context.
Workplace Requirements of SMETA 7.0
SMETA's Workplace Requirements break down the items from the Base Code into clear auditable requirements. The auditor must document where those requirements may not be met.
The SMETA Workplace Requirements are designed to be workable down to the site level. They clearly specify what is expected of the auditee to comply with SMETA 7.0. After registering with Sedex, the Workplace Requirements are visible to members.
Our experiences with SMETA 7.0
By now, we have already completed a number of SMETA 7.0 audits ourselves. What are our initial experiences? We noticed that overall, there is now more focus on documentation at the companies. They really need to work more on that. And not just with policy, but especially with actually implementing it: someone needs to be appointed who is responsible for implementing and monitoring the policy. As we see it now, the new SMETA is much less non-committal than SMETA 6.1. In doing so, the procedures you write against the Workplace Requirements are virtually unchanged in the basics, but at the detail level they are much more specific.
Approven Partners helps you meeting the new SMETA standards
We can imagine that you find it difficult to adjust your organization's policies and procedures to comply with SMETA 7.0. And that makes sense, because it is quite complicated. But Approven Partners is happy to help. Because besides performing various CSR audits ourselves - including SMETA - we also offer Consulting. Together with you we make sure your organization is ready for the audit.
Would you like to know more about this? Then please email hello@approven.partners or call +31 70 800 22 40. We hope to talk to you soon!