SEDEX Audit is also known as SMETA (Sedex Members Ethical Trade Audit). It is a comprehensive assessment used by businesses to evaluate their supply chain partners' ethical and social compliance. Here SEDEX is the certifying organization's body where as SMETA is the audit methodology.
SMETA is the most widely used format of social audit in the world and is conducted per SMETA guidelines. Registered companies openly share information about the social and ethical practices they implement in Sedex.
This social audit typically lasts for one to three years depending on the certification type and program requirements. Organizations must recertify to maintain their certification status.
What does the SEDEX Audit consist of?
Being a Sedex member is important as it exposes an organization to suppliers and customers worldwide who are actively conscious about environmental, labor, and human rights. Keeping in contact with these companies can improve ethical business practices in business supply chains. The Sedex Self-Assessment Questionnaire consists of 4 major pillars.
Labor Standards: It includes assessing whether workers are paid a fair amount, have reasonable working hours, and suitable working conditions, and are not subjected to any form of discrimination or forced labor.
Health and Safety: The Sedex audit evaluates whether the workplace is safe and healthy for employees. It checks if necessary measures are placed or not to prevent accidents, injuries, and exposure to harmful substances.
Environmental Practices: Suppliers are assessed on their environmental impact, including waste management, energy consumption, emissions, and compliance with environmental regulations. It helps in the sustainable growth of the business with less carbon footprint.
Ethical Sourcing: Sedex audits also examine the origin of materials and products to ensure they are sourced ethically and sustainably, without contributing to deforestation, habitat destruction, or other environmental or social harms.
Management Systems: The effectiveness of the supplier's management systems is reviewed to ensure they have processes in place to monitor and improve their ethical and social performance continually.
Sedex audits are often carried out by third-party auditors and audit firms who are well-trained and accredited by Sedex. The audit is done with respect to document reviews, interviews with management and workers, and on-site inspections. Following the audit, the audited supplier is given a detailed report highlighting any noncompliance areas and making recommendations for improvement. This enables the supplier to take corrective action while demonstrating their commitment to ethical business practices.
For corporations, ensuring that their suppliers undertake Sedex social audits helps eliminate risks connected to ethical and social compliance in their supply chains. It also enhances their reputation as responsible business citizens dedicated to sustainable and ethical sourcing procedures. SEDEX audits stand as a beacon of ethical integrity, transforming supply chains into bastions of accountability and transparency. Each audit signifies a step forward in building a sustainable future, where businesses and communities thrive in harmony, guided by principles of social responsibility and ethical conduct.