In today's globalized economy and trade, the importance of social compliance is becoming increasingly prominent. Companies must ensure that their suppliers do not have problems such as unfair discipline, child labor, etc.
It seems that this is an easy problem to solve. It is usually relatively easy to review your own company's internal practices, but when you seek suppliers from other countries for trade cooperation, it becomes complicated
In this article, I will explain what
social compliance audits are, how to conduct social compliance audits, and why social compliance audits are important.
What is a
social compliance audit?
A
social compliance audit, also called an ethical audit in some places, is a review of a company to assess the steps and measures it takes to ensure employee safety, equal and fair treatment, working conditions and environmental awareness.
Sometimes it extends to the lives of the communities around the company's services and its supply chain and distribution operations.
How is a
Social Compliance Audit Conducted?
1.Sedex Members Ethical Trade Audit (SMETA)
2.amfori Business Social Compliance Initiative (BSCI)
3.ILO Ethical Trading Initiative（ILO）
4.Responsible Jewellery Council (RJC)
5.Initiative for Compliance and Sustainability (ICS) audit
Why do brands need
social compliance audits?
Unethical suppliers pose a serious threat to a company's normal operations.
According to the latest Supply Chain Risk Insight Report from the British Standards Institute, among other things, 25% of UK exports come from countries with a high threat rating for the use of forced labor.
Once a company fails a social compliance audit, it cannot resume operations until the problem is resolved. The company will also need to prove that it complies with the regulations, and the factory's bad history will also be recorded in the report.
