More and more companies want to meet the requirements from SMETA. By undergoing this socio-ethical audit, they know that they are doing business correctly and that they are dealing with people and the environment according to a generally recognized standard. As an auditor and consultant in the field of SMETA audits, sustainability and ethics within organizations, Approven Partners is your CSR partner to go to.
SMETA audits: what exactly are they, what can companies do with them, which variants are there and how does Approven Partners perform them? In this article we explain it to you in detail!
SMETA audit: meaning
SMETA means Sedex Members Ethical Trade Audit. It is the audit program of Sedex, (Supplier Ethical Data Exchange), a British initiative that provides a platform where suppliers and customers can easily exchange their audit results and other data with each other. The SMETA audit is also known as ETI audit or Sedex audit.
With SMETA, there is a standardized and comprehensive assessment program to evaluate ethical and social responsibilities of suppliers and factories in the global supply chain. It helps organizations understand how to meet ethical standards as well as how to conduct their operations responsibly throughout the supply chain.
The SMETA audit program is based on internationally recognized (labor) standards and it allows companies to assess their suppliers' labor, health, safety, environmental, business ethics and supply chain risks.
What is the ETI Code?
The ETI Base Code - or simply ‘ETI Code’ - consists of a set of internationally recognized labor standards established by the Ethical Trading Initiative. They aim to promote working conditions in supply chains. Worldwide, they are considered the reference standard for conducting social audits and developing action plans for ethical trade and production. Companies applying this code are expected to comply with national and other laws relevant to them. There are also additional standards set regarding the environment and governance.
If you want to comply with the ETI Code as a company, you have to deal with several main topics. These include your management systems, having a Code of Conduct and how you communicate both internally and externally. Stakeholders also come into play: how do you identify them? What impact do you have on them in terms of human rights? Do you abide by collective bargaining agreements and allow a union? What about free employment? Forced labor? Child labor? Health and safety? Not only in your own business where you have control and visibility, but also in the supply chain. The image below shows the main topics covered in the ETI Base Code.
The benefits of SMETA audits
Companies in Europe sometimes think there is not much added value in auditing on socio-ethical issues. After all, they are in a country where everything is well and properly regulated. But of course, that doesn't mean that their entire supply chain automatically operates at such a similar level. With the SMETA audit, you ensure that all your suppliers meet the same requirements, creating a fair level playfield.
Another advantage of the SMETA audit is that it offers a solution to audit fatigue: too many audits. In fact, one SMETA audit is accepted by multiple clients, so you end up needing only one socio-ethical audit.
So being SMETA-audited brings several benefits to companies. To name a few:
Trust. This way of working gives thousands of customers confidence that they are working with suppliers who have been assessed for sustainability and social-ethical standards.
Compliance. SMETA audits facilitate compliance with existing and future legislation.
Prioritize high risk suppliers. Ability to audit and assess suppliers that fall under “high risk” over a specified time period.
Increased visibility. Increased understanding of own company and supplier social and ethical performance.
Efficient supplier audits. Data can be shared with multiple customers, significantly reducing the need for year-round audits. SMETA audits can also significantly reduce the number of customer questionnaires.
Improve supplier performance. The SMETA audit provides an action plan of corrective measures to take supplier performance to the next level and address issues uncovered during audits. Specifically, this means for them: reducing the number of audits, creating a level playing field and improving performance.
How does an Approven Partners SMETA audit work?
Approven Partners handles SMETA in a human, efficient, workable and systematic way. We prefer not to be robots that stoically go through questionnaires and leave you tired at the end of the day. When we perform an audit at your company, we look at the subjects together and let different employees from the organization speak. That way everyone is at ease and we get a good picture of the ins and outs of the organization.
After conducting the SMETA 2-pillar or 4-pillar audit, we prepare a Corrective Action Plan Report (CAPR) with our findings. Consider, for example, working practices or conditions that go against local laws and regulations, such as violating the Working Hours Act. It may also be the case that you have not yet met the additional requirements from Sedex, such as organizing an evacuation drill or assessing your temporary employment agency through due diligence.
We then post both the report and the CAPR on the Sedex platform. Your clients at the audited organization can now see how you are working on sustainability and ethics. After that, there are two ways to pick up and close findings. The first is that you collect evidence and upload it on the platform. It is then reviewed and closed when compliant. The second option is to schedule a follow-up audit, in which follow-up open items are reviewed again on-site.
With Approven Partners, we differentiate our approach by offering the ability to combine several standards in one audit. Whether it's just SMETA, or also SWA, WCA or another CSR audit, we are APSCA registered auditors and can therefore take in multiple standards at once.
Need help getting ready for the SMETA audit, or just looking for a suitable auditing party? Approven Partners is here for you. Send your email to hello@approven.partners.
Comments