The Sedex Members Ethical Trade Audit (SMETA 6.0) is a comprehensive and accessible checklist for ensuring ethical business practices across any supply chain, no matter how remote.
In fact, it is transformative, turning any business into a positive force for the ethical business movement.
What makes SMETA 6.0 and its 2- and 4-Pillar checklist so effective for businesses?
This article covers Sedex and its SMETA 6.0 2- and 4-Pillar audits, its effective checklist format, and qualifications for carrying out a SMETA audit.
Sedex & SMETA
Sedex is a member-owned, global trade service provider that focuses on ethical business practices at every link of the business chain.
Their focus is organized into four “Pillars” of positive behavior: 1) Labor, 2) Health and Safety, 3) The Environment, and 4) Business Ethics.
Having established a global presence that spans nearly two decades – with over 60,000 members in 180 countries across 35 industry sectors – Sedex is able to unify some of the most remote businesses and suppliers in the world.
Ultimately, their goal is to empower ethically-minded businesses, through tools such as their shared information pools. It is through these shared information pools that they derive their strength.
Member-shared experiences with suppliers, buyers and manufacturers reward positive business practices and punish unethical behavior through unfiltered exposure.
SMETA 6.0 Audit Checklist
Sedex has also created its Sedex Member Ethical Trade Audit, or SMETA 6.0 audit methodology, encapsulated in a checklist format that is:
- Unified,
- Detailed,
- Comprehensive, and
- Applicable to any business, buyer, or supplier.
According to Sedex, their auditing methodology is designed to “help businesses identify opportunities for improvement and work with their suppliers to make changes.”
As well, the SMETA 6.0 audit checklist is meant to “reduce duplication and ‘audit fatigue’ by allowing suppliers to share one set of data with multiple customers.”
The SMETA audit has three basic elements: A Best Practices Guide, Audit Report, and Corrective Action Plan.
Once complete, audits are uploaded to the Sedex database. Annually, nearly 20,000 audits are added to the information pool.
SMETA 2-Pillar & 4-Pillar Audits
2-Pillar Audit – For a SMETA audit to be considered official, it must include completed ‘Labor’ and ‘Health and Safety’ modules in the 2-Pillar audit. The 2-Pillar Audit is directed by standards established by the Ethical Trading Initiative (ETI) Code of Conduct.
4-Pillar Audit – Businesses interested in a more extensive performance audit can add “The Environment” and “Business Ethics” modules to their report. Standards for Pillars 3 & 4 have been developed through Sedex-member and stakeholder collaboration.
Why is the SMETA 6.0 Audit Checklist Format Effective?
For the SMETA 6.0 Audit to be effective, each Pillar must balance an extensive amount of criteria with an accessible format so that no high-risk areas are obscured or overlooked.
A typical section, such as the “Worker Interview Summary,” provides auditors with detailed ‘yes/no’ and ‘favorable/unfavorable’ questions concerning employee morale, communication standards, etc.
Accompanying these checklist questions are spaces for auditors to contribute additional notes as they see fit.
The “Worker Interview Summary” exemplifies the SMETA 6.0 audit’s adherence to:
- Privacy and integrity for employees to speak honestly
- Fairness for the company under audit
- Protection for the auditor against undue influence by the company under audit
Essentially, the SMETA auditing report acts as a roadmap for the auditor, eliminating knowledge gaps, as well as ambiguities that an audited facility might be tempted to exploit in their own interest.
The Sedex Offline Audit Tool (OAT)
This real-time tool is an additional benefit to auditors working in remote places without wifi access.
With OAT, auditors can carry out their audit reports and corrective action plans on-site while information is still fresh in their minds, and upload them at their convenience.
Auditors don’t have to worry about forgetting pertinent details or making checklist errors.
Who Can Conduct SMETA Audits?
Sedex members have full access to the SMETA 6.0 audit format, and Sedex buyer/seller members can perform these audits on their own businesses.
However, to perform SMETA on an outside business (or anywhere within your supply chain), the auditing body must have a Sedex Affiliate Auditing Company (AAC) account.
Tags: Sedex SMETA