LOOKING FOR A SEDEX AUDIT CHECKLIST SEDEX AUDIT PREPARATION

ARTCILE 1 Major Benefits of SEDEX Audits are: 

SEDEX Audits reports reduce supply chain audit duplication by providing a widely acceptable single format for Social Compliance Audits on SEDEX portal.

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Social Compliance Audits as per SMETA Standard enable companies to effectively share and manage supply chain ethical information through this.

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SMETA Audits enhances ethical trading programs in supply chain.

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Reduces risks in social responsibility and sustainability through Social Compliance Audits as per SMETA Standard.

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Brands and buyers are able to view, share data of suppliers’ social compliance audits on SEDEX database.

SEDEX audit can be initiated either by Buyer (member A) or Seller (member B). Sedex offers a simple and effective way of managing ethical and responsible practices in supply chain.

Sedex Advance, a secure, online database which allows members to store, share and report on information on four key areas: 

Labour Standards

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Health & Safety

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The Environment

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Business Ethics

For getting more out of your sedex audit , please contact us +91-9316012883 or email us at info@eurocert.in

ARTCILE 2

WHAT IS A SEDEX AUDIT

Before we explain what is Sedex Audits we have to know about Sedex and SMETA. Sedex is a Standard used for Ethical Trade Audits. SEDEX is a non-profit organization

which works by the secure online data base for the improvement of ethical and responsible business practices. Sedex members can share and manage information related to Labour Standards, Health & Safety, The Environment and Business Ethics.

Sedex members are committed for enhancement. The main role of Sedex is to share and manage supply-chain information in an effective manner, aiming at Continuous improvement.

A Two-Pillars Sedex audit Covers: 1. Labour Standards 2. Health & Safety 3. Additional Elements: • Management Systems • Entitlement to Work • Subcontracting and Homeworking • Environment (shortened) please contact us +91-9316012883 or email us at info@eurocert.in

ARTCILE 3

WHAT IS A SMETA AUDIT?

SMETA (Sedex Members Ethical Trade Audit) is the Audit methodology which is created by the Sedex members to provide a protocol which is shared with a feel of selfassurance. SMETA is comprised of Ethical Trade Initiative Base Code and the local laws as its Standards for monitoring the audit methodology. SMETA can use other codes which are based on conventions of ILO (International Labour Organization). SMETA is not a type of new methodology, in fact it is a new audit process which compile good practices in an ethical way. Audit report format of SMETA is easily understandable for all.

Areas of Audit • Labour Standards • Health & Safety • Environment • Business Ethics • Management System • Code Implementation • Entitlement to work • Subcontracting • Home working

ARTICLE 4

FAQ of Sedex Audit 1.

How to register your company on Sedex Advance

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Full Registration process (Supplier B Members)

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How to pay sedex membership fee

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How to Apply and complete Global SAQ

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How to initiate an Audit

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How to download sedex audit report template (For Auditors)

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How to add and submit corrective actions

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Renewing supplier membership for sedex

please contact us +91-9316012883 or email us at info@eurocert.in

ARTICLE 5 Major changes in SMETA Audit 6.1

Major Amendments in SMETA Version 6.1 After SMETA 6.0 version the new and advanced SMETA 6.1 version has been introduced in May 2019 which is based on the feedback received from Sedex stakeholder forum (SSF)’s SMETA working group. Before starting explaining the major differences between SMETA 6.0 version and 6.1 version let’s understand what these terms are. Sedex is an organization which works for the improvement of ethical and responsible business practices. Sedex gives a platform to Exchange Information with the clients. Many types of social audits are performed such as BSCI, WRAP, SA8000 and ICTI, and all social audits can be uploaded onto the Sedex platform and SMETA (Sedex Members Ethical Trade Audit) is the Audit methodology which is created by the Sedex members to share audit reports confidently. SMETA is a new audit process which compiles good practices in an ethical way. The audit report format of SMETA is easily understandable for all. SMETA version 6.1 is now available in SEDEX advance. Now all the SMETA audits must be conducted against SMETA version 6.1.

Major Changes in version 6.1 1) Audit Details: 2-pillar Comprises of Labour Standards and Health and safety plus Environment. There was no environment in version 6.0 and the “Environment” is upgraded to “Environment 4-pillar”. This helps us in identifying whether the checklist contains questions about the environment were part of 2-pillar or 4-pillar. Other 2 pillars of Labor standards and Business Ethics remain unchanged.

2) SMETA Declaration: To make the report smoother, an option is added that the readers can check the credentials of audit team about Association of Professional Social Compliance Auditors (APSCA) certificate in detail. This information contains Lead auditor APSCA number, Lead auditor APSCA status, team auditor APSCA number, and the Interviewer auditor APSCA number.

3) Site Details: A New feature added in Site Details where GPS address and “Latitude/Longitude” boxes were found.

4) Grievances Mechanism: This question “Does the grievances mechanism meet UNGP expectations?” moved from “9: No Harsh or Inhumane Treatment is allowed” to section 0A: universal rights covering UNGP. 5) Worker Analysis: To improve clarity of “migrant worker” the definition is changed as “The term “migrant worker” refers to a person who is engaged or has been engaged in a remunerated activity in a country of which they are not a national or permanent resident or has purposely migrated on a temporary basis to another in-country region to seek and engage in a remunerated activity”. The previous definition is permanent resident, it was given and where they do not intend to remain permanently. Also a new question is added so that auditor can prepare in advance for the audit from the site and that question is “B: Please list the nationalities of all workers, with the three most common nationalities listed first.”

To boost the transparency, stability, and accuracy these are the minor changes which have been made in the report version 6.1.

For getting a Sedex/SMETA audit done please contact us +91-9316012883 or email us at info@eurocert.in

ARTICLE 6 SEDEX AUDIT MINIMUM REQUIREMENTS

Sedex is all set to embark on a journey to improve Sedex Audit Quality in a Big way.

It is hoped that the Auditor Quality will improve and Low Quality Audit jobs will be Punished .

Eurocert as a Approved AAC is all set to comprehensively increase all parameters of SMETA Audit Quality -Audit Quality -Auditor Quality

- Overall management Effectiveness -Integrity Contact us NOW to know More- +91-9316012883 The Minimum criteria for a Sedex Audit is as given below

Full Initial Sedex audit Periodic Sedex Audit Full Follow up

Precondition Previous 12 month records unless the site is newly established -3 months Precondition At least 3 months records after the previous audit Precondition At least 3 months records after the previous audit Auditor may check from the month after the previous audit to the most recent full month

ARTICLE 7

SEDEX Self Assessment Questionnaire

The Sedex Self Assessment Questionnaire contains 4 major pillars – Labour Standards, Health & Safety, Environment and Business Ethics. All four pillars count on legal requirements, international standards and good practice.

A SMETA 2-Pillar audit contains 2-Pillar of Labour Standards and Health & Safety. These are inescapable modules for any SMETA audit. It also comprised of additional elements of Management Systems, Entitlement to work, Subcontracting and Homeworking and a shortened Environment assessment.

A SMETA 4-Pillar audit cover all the above elements; with the addition of pillars of Environment (extended assessment which replaces shortened assessment) and Business Ethics. These added pillars could not be required for all the Sedex members and it is very important that sites of employment and the auditors are clear when these additional modules are required.

The basic 2-Pillars of a SMETA audit are managed by the standards contained in the Ethical Trade Initiative Base Codes. The additional pillars of Environment (extended version) and Business Ethics mentioned in 4-Pillar audit are managed by standards landed up at process of membership and multi-stakeholder consultation.

Frequency of Sedex audit: Sedex does not govern how often sites should accept social audits, however buyer members typically need sites to follow ‘audit cycles’ depending upon the risk factor

involved. For uniformity, Sedex members are recommending the below approach to audit recurrence: 

For High risk – annual audit

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For Medium risk – 2-yearly audit

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For Low risk – it depends upon the customer’s wisdom

Also note that the segmentation of sites into high, medium or low risk categories is usually depends upon the buying organisation of the site.

For getting a Sedex/SMETA audit done please contact us +91-9316012883 or email us at info@eurocert.in

ARTICLE 8 How much does a Sedex Audit Cost

Sedex Audit cost Sedex is Social Ethical Data Exchange, which helps in managing data of ethical supply chain. Sedex was founded in 2001 by a group of retailers to ease the monitoring practices and meet the social audit standards.

Sedex Audit cost may vary with the number of employees working within the premises of the auditee, whether the employees are permanent, temporary, contractual or agency workers. It also depends upon the type of audit auditee required, 2-pillar or 4-pillar audit.

For 2-pillar audit will be conducted on the following standards: 

Labour

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Health and Safety

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Some additional elements are also covered, 1.

Universal rights covering United Nations Guiding Principle

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Entitlement to work

3.

Management Systems

4.

Subcontracting and Home working

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Some extent to environment (Shortened)

SMETA 2-pillar audit helps in auditing against Human Rights framework and Ethical Trade Initiative Base Code, Local Law and the additional elements listed above.

The cost for the 2-pillar will be approximately USD 465 to 615 per Manday, excluding Taxes, travelling, boarding and lodging (Manday will be calculated with the help of table for auditor day, as mentioned in Best Practice Guidance Document) For 4-pillar audit will be conducted on the following standards: 

Environment (extended) – this replaces the Environment (shortened) section detailed above

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Business Ethics

The cost for the 4-pillar will be approximately USD 540 to 690 per Manday, excluding GST, travelling, boarding and lodging (Manday will be calculated with the help of table for auditor day, as mentioned in Best Practice Guidance Document) For getting a Sedex/SMETA audit done please contact us +91-9316012883 or email us at info@eurocert.in

ARTICLE 9 HOW TO JUDGE A SEDEX AUDIT REPORT

How can you judge the audit Report: Before you start reviewing a report you should be aware of the 

major labour related issues in the region

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major legislation for labour and environment

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major subcontractor and overtime legislation about the region in which the factory is located.

Review the report for these issues and auditor treatment for these subjects.

HOW TO ASSESS A AUDIT REPORT 

What type of audit trails were investigated by the auditor for these issues?

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What type of documents were assessed and referred to in the audit report?

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Are the photograph taken with time-stamp?

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Are the photograph taken with a Geographical Stamp?

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Is the summary report for each issue in the report detailed enough?

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Any declaration about the conflict of interest mentioned in the report.

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For getting a Sedex/SMETA audit done please contact us +91-9316012883 or email us at info@eurocert.in

ARTICLE 10 HOW SHOULD BUYERS/BRANDS USE SEDEX AUDIT ?

How should Buyers use Sedex Audit Buyers particularly in Europe and Asia are more and more using ethical audit to determine risks in their supply chain. The supply chain risks are typically of 3 broad categories 

The branding risk because of bad publicity because of unethical practices in the supply chain

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Logistics risks because disruption which could come from less compliant supply chain

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The risks of quality and consistency

While the ethical audits do determine these risks – it is not easy for brands and buyers to take just a report from any ethical audits and manage these risks effectively.

The major challenges to this process is 

Managing information

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Managing long term relationships with supplier given that the minimum wage and the political climate of supplier location varies very fast in these times

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Managing follow-up of risks uncovered in one audit

Given that there are already challenges in the management of supply chain risks – it becomes very costly if the brand also has to manage the conduct of ethical audits themselves – this is where they use platform like sedex. While information is easily

available for sharing between the multiple buyers, sedex does not guarantee any quality and veracity of this information. 

For getting a Sedex/SMETA audit done please contact us +91-9316012883 or email us at info@eurocert.in

ARTICLE 11 WHAT CAN YOU EXPECT DURING A SEDEX AUDIT

As a manufacturer going to face a Full initial Sedex/SMETA 2 Pillar audit ca, you can expect the following:- This list is not comprehensive - But this is broadly what you can expect 

Auditor Will conduct a opening Meeting

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Auditor will interview the management

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Auditor will interview workers

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Auditor will Review worker contracts

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Auditor expects all Legal compliance and permissions

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Auditor will review payroll and wage records

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Auditor expects a Health and safety Risk assessment - and action taken to reduce risks

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Auditor will take a factory tour - his basic focus would be health and safety of workers 

For getting a Sedex/SMETA audit done please contact us +91-9316012883 or email us at info@eurocert.in

ARTICLE 12 LOOKING FOR A SEDEX AUDIT CHECKLIST

S E D E X A U D I T P R E PA R AT I O N The Self Assessment provided by the Sedex is a great point to start with your Sededx Audit preparation - Also this Sedex Audit checklist- Nonexhaustive can be a good reference point to start your SMETA audit preparation.

Please note that This is not a exhaustive checklist - This is not what limits a SMETA auditor- He may ask other documents . http://eurocert.asia/wp-content/uploads/2020/07/Sedex-Audit-checklist-Nonexhaustive.xlsx

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For getting a Sedex/SMETA audit done please contact us +91-9316012883 or email us at info@eurocert.in

HOW to Get a Sedex Approval Done Sedex Claims that the