Social Compliance Audit
A compliance audit is a formal review process that evaluates whether an organization is adhering to laws, regulations, policies, and industry standards relevant to its operations. It’s conducted either by internal audit teams or by external auditors and ensures that the organization is operating in a legal and ethical manner.
Compliance audits answer the question, “Is this company doing what it’s supposed to be doing?” The audit report covers the strength of compliance preparations, security policies, risk management procedures, and user access controls over the span of the audit. It fills any gaps in compliance while also making recommendations for ways to solve the issues.
If you want your company to remain profitable and in business for the long term, then knowing the rules and regulations of compliance audits that apply to your industry is a must. Learn more about each type of audit and how SIT can help you stay compliant easily.
How is a Social Compliance Audit Conducted ?
In order to ensure transparency, social compliance audits are usually performed by independent auditors that follow a set of international standards. These standards may vary depending on the location of the facility and the type of audit required.
International standards for social compliance audits include:
• SA 8000 – the leading social certification standard for factories and organizations worldwide
• Sedex Members Ethical Trade Audit (SMETA)
• amfori BSCI – a Business Social Compliance Initiative for social compliance and improvements within the factories and farms
• ILO Ethical Trading Initiative
• Responsible Jewellery Council (RJC)
• Initiative for Compliance and Sustainability (ICS) – French Federation of Commerce and Distribution (FCD)
Improve Your Social Compliance with SIT’s Audits
We conduct social compliance audits against your code of conduct, international standards or our own checklist.We believe that social compliance audits are key to safeguarding workers’ rights and ensuring ethical practices across supply chains. These audits protect vulnerable workers and also help your business demonstrate a serious commitment to fair, responsible operations.
If you’re not sure which solution or standard is best for your needs, please contact our technical experts who will be glad to advise. Social compliance audits are conducted on-site and normally cover specific locations identified in advance, such as production sites, manufacturing facilities, warehouse and storage areas, etc. We may also be able to provide remote monitoring and verification services, if you prefer.
Key Benefites of Social Compliance Audits
Ensure workers are treated ethically and their rights are respected throughout your supply chain including freedom of association, fair pay, health and safety, and prohibition of child labour
Demonstrate compliance to due diligence requirements by conducting social compliance audits and improve your supplier relationships
Minimise risks with safer working conditions that reduce the chance of harm to employees in your supply chain and damage to business reputation
Gain a competitive advantage by demonstrating your organisation’s ethical stance to consumers and avoid damage to your brand reputation due to the actions of your suppliers
Ensure independent certification of auditor’s competencies in accordance with the Association of Professional Social Compliance Auditors (APSCA) framework
SIT is committed to apply the APSCA Code of Professional Conduct while conducting its social compliance audits. Audit activities are conducted by professional auditors and their information is subject to quality control and approval before finalisation.
Why Choose SIT for Your Social Compliance Audits?
Years of experience: Benefit from our decades of experience in delivering reliable supplier audits. We match technical experts from our global network to your project needs.
International presence: Take advantage of our global reach, providing you with consistent and standardised audit practices across multiple regions, enhancing compliance and oversight.
Expert partnership: SIT’s experts are recognised by authorities, both nationally and internationally, and have a history of completing successful audits across various industries.
Dedicated project manager: Enjoy the convenience of having a single point of contact with a dedicated project manager who ensures your audit project is managed efficiently and delivered on time.
Customised solutions: Receive tailored audit solutions that align with your specific business goals and compliance requirements.
Is your business committed to social compliance issues? Do you want to show consumers they can trust you and your products? Let us help you improve confidence in your supply chain with a SIT social compliance audit.
6 Key Procedures in a Social Compliance Audit
The audits may be scheduled ahead of time or conducted unannounced. The precise workflow of a social audit may differ depending on the standards used, but will always include the following key procedures:
01
Opening meeting
Confirm exact scope of the audit and
agenda of activities with management.
Workers’ representative participation is
recommended.
02
Site tour
Conduct facility tour to observe the
physical working environment and safety
measures. We request to take some nonconfidential pictures.
03
Interviews
Interview relevant stakeholders.
Depending on the standard, these can
include management, supervisors,
workers and/or external parties.
04
Documents
Cross-check information
against relevant documentation,
including any management
systems and legally required
records (such as permits,
licences, etc.)
05
Closing meeting
Present audit results and clarify outstanding
items. Depending on the standard, a draft
audit report may be issued or submitted
later. In both cases, it still goes through
independent technical review and approval
before final release.
06
Corrective action plan
Depending on the standard, a list of nonconformities or areas for improvement may be
issued for the management to address. Progress
can be monitored through a review of corrective/
improvement actions or a follow-up audit.
Why do Large Brands Need Social Compliance Audits?
The latest Risk Index Report by the British Standards Institution (BSI) says at-risk countries account for 48% of worldwide apparel production, 53% of the world’s apparel exports, and 26% of total electronics exports.
China, India, Vietnam, Bangladesh, and Myanmar are considered the five highest risk countries for human rights violations, according to Forbes. Other high-risk countries include Syria, Egypt, Libya, Mali, and Guinea-Bissau.
The BSI report also warns that efforts by Asian governments to boost their economies are resulting in a greater prevalence of child labor abuses in supply chains.
As a result, all large British companies now have to disclose what they are doing to stop slavery and human trafficking in their supply chains, as part of their obligations under the Modern Slavery Act.
Conclusion
Many importers are worried about social accountability in their supply chains these days. When working with manufacturers in underdeveloped nations, social audits can be useful in ensuring that the working conditions at supplier facilities are acceptable. The SA8000 standard, which includes nine core areas of social accountability, is used in the majority of social audits.
Hiring a third-party supplier audit services provider like SIT to help get an auditing service provider is important. It is a smart method to satisfy your company’s and consumers’ social accountability goals. Visit or contact SIT to discover more about their services if you want to secure a socially responsible supply chain.
