ETI/SMETA Audits

ETHICAL TRADING INITIATIVE(ETI) AND SMETA(SEDEX MEMBERS ETHICAL TRADE AUDIT)

The Background of ETI

Ethical Trading Initiative (ETI) is an alliance of global brands and retailers, trade unions, campaigning organizations and charities that work together to improve the lives of workers in the global supply chains. ETI provides practical tools and guidance for the member companies to help them implement codes of labour practice in their supply chains. Currently ETI has 45 member companies and members’ ethical trade activities cover over 30,000 suppliers which collectively employ over 3.3 million workers around the world.

The ETI Base Code is a generic code of labor practice and is internationally recognized as a model code. All ETI member companies and many other retailers and brands have adopted the Base Code and have committed to make sure their suppliers work towards it over time.

ETI Base Code Consists of Nine Principles

1. Employment is freely chosen
2. Freedom of association and the right for collective bargaining are respected
3. Working conditions are safe and hygienic
4. Child labor shall not be used
5. Living wages are paid
6. Working hours are not excessive
7. No discrimination is practiced
8. Regular employment is provided
9. No harsh or inhumane treatment is allowed

Where does SEDEX fit in?

Sedex, the Supplier Ethical Data Exchange, is a web-based system designed to help organizations manage data on labour practices in their supply chain. Supplier members can benefit from fewer audits, as they are able to post their audit reports on the SEDEX system for viewing by all customers.

Sedex members have agreed on a common methodology, called the Best Practice Guide to improve audit standards and promote mutual acceptance of audit reports.

SGS is a founding member of the Sedex Associate Auditor Group collaboratively working with Sedex to drive convergence in audit methodology and reporting.

In addition to the principles in the ETI Base Code, SMETA audits also review performance against Immigration and Right to Work; Management systems and implementation; Sub-contracting & Homeworking and Environmental issues.

Prior to the audit, SGS requests access to the self-assessment questionnaire already completed by sites to be audited. The audit length then typically ranges from 1-4 days on site depending on the number of employees.  

At the end of the audit a corrective action plan is left with the facility and a full report I then provided which can be uploaded to the Sedex database if required.

SGS can then work with the sites to verify the completion of corrective ation plans.

Source: www.ethicaltrade.org