Sedex Resources Webinar: SMETA Audit – getting prepared October 6th and October 14th 2015 1 SMETA Audit – getting prepared A conversation with Muriel Johnson, Nora Wolters, Marieke Hoelscher (Sedex), Jonathan Mason (AGM Thames) Explains the Pre-Audit Pack and CAPR How to use those documents to prepare for an audit Q&A from the audience It is NOT a SMETA Training, specific situations (confidentiality), all circumstances 2 SMETA Audit – getting prepared 3 SMETA Audit – getting prepared A conversation with Muriel Johnson, Sophie Preisig, Nora Wolters, Marieke Hoelscher (Sedex), Jonathan Mason (AGM Thames) Explains the Pre-Audit Pack and CAPR How to use those documents to prepare for an audit Q&A from the audience It is NOT a SMETA Training, specific situations (confidentiality), all circumstances 4 SMETA Audit – getting prepared On today’s agenda: What is a SMETA Audit? The Pre-Audit Pack Q&A Session 1 Corrective Action Plan Report (CAPR) Q&A Session 2 5 SMETA Audit – getting prepared What is social auditing? Formal assessment of working conditions Measures performance against a certain standard Triangulates: Management interviews/information Documentation /site tour Worker interviews 6 SMETA Audit – getting prepared What is SMETA (Sedex Members Ethical Trade Audit)? What SMETA is: What SMETA is NOT: × × × × × Standard Report Good practice methodology Facilitates audit sharing Reduces duplication Available to all (open source) A standard Certification scheme Pass/fail audit Not exclusive Accrediting auditors – for members 7 SMETA Audit – getting prepared Facts about SMETA One of the world’s most used ethical audit formats Can be shared with most customers It is publicly available – Sedex membership is not required to use SMETA Latest version: SMETA 5.0, released in December 2014 Dec 2014 8 SMETA Audit – getting prepared What is the difference between different audit types? First Party: a company that “self-audits” their own employment site using their own audit resource Second Party: an audit or assessment undertaken by a body with a trading relationship with the site such as a retailer, brand, vendor or agent Third Party: an audit or assessment undertaken by an independent party e.g. an independent commercial audit company, NGO or trade union. 9 SMETA Audit – getting prepared Preparing for a SMETA Audit The Pre-Audit Pack Comprehensive guidance to getting prepared 16 documents General Audit Info Pre-audit actions for suppliers and auditors Avoiding bribery – Code of integrity Core & Scope SMETA procedure Post-audit action 10 SMETA Audit – getting prepared Preparing for a SMETA Audit General Audit Information: SMETA Guide to Pre-Audit Information Overview about the background and usage of the Pre-Audit Pack 1. Auditing Factsheet What is Sedex? What is SMETA? How do I share my audit with my customers? 2. A letter to the site introducing the audit and auditor Background information to a SMETA audit and recommended preparations. 11 SMETA Audit – getting prepared 2A & 2B. Pre-Audit Actions for auditors and suppliers Essential Pre-Audit Actions for Sites Outlines the activities required of a supplier site in preparation for an audit. Essential Pre-Audit Actions for Auditors Guidance to explain the benefits of the SMETA process 4. Avoiding bribery – Code of integrity Code of Integrity and Professional Conduct of an Auditor Audit Company Suggestion for a possible code, covering the professional conduct of the auditor 12 SMETA Audit – getting prepared 5A & 5B. Code & Scope Ethical Trading Initiative Base Code The ETI Base Code is founded on the conventions of the International Labour Organisation (ILO) and is an internationally recognised code of labour practice. Audit Scope This outlines the areas which are covered by the audit activity. It may be included in the introductory letter, but for the purposes of this guidance it has been included within the ‘Suite of Documents’ as a separate document. 13 SMETA Audit – getting prepared 5C, 5E & 5F SMETA Procedure List of Required Documents To assist the site with audit preparations the auditor should provide a list of typical documents that should be made available to the audit body on the day of the audit. Principles of Worker Interview Information for Sites Informs the site of the need for a private and comfortable space for worker interview and gives details of how the auditors will select appropriate workers. Data Protection Waiver In countries where there are data protection requirements, e.g. all EU countries, auditors should obtain the written permission of workers to view personnel files during the interviews, via the use of data consent forms. 14 SMETA Audit – getting prepared 5H. Worker Information Leaflet ETI Code requires that employees are fully aware of the code and that there are standard communications which will support a supplier site in communicating the code to workers 5G. Information on Sedex and Details of SMETA Supplements This gives information on the location of the standard SMETA documents as well as guidance available to members in preparing for a SMETA audit 5I. Audit Agenda/ Timetable This information sheet includes two examples (1) typical audit plan for a one day audit, (2) typical audit plan for a 2 day audit with 2 auditors over one day. 15 SMETA Audit – getting prepared 5J & 5K. Post-Audit Action Non-Compliance Process and Sedex This document gives some brief details on the definitions of non compliances, observations and good examples. It explains the purpose of the Corrective Action Plan Report (CAPR) and the actions required of the supplier site to agree (or dispute) the non-compliances. Details of Report Receivership Describes the normal ownership of audit information and highlights the importance of obtaining ‘audit release’ information from the site if the customer expects to see details. 16 SMETA Audit – getting prepared Time for your questions (5 mins) 17 SMETA Audit – getting prepared Corrective Action Plan Report (CAPR) Left with the supplier on the audit day signed by both parties Also available: Guide to Completing a SMETA Corrective Action Plan Report 18 SMETA Audit – getting prepared Non-Compliance Number The reference number of the non-compliance from the Audit Report, for example, Health & Safety No.3 New or Carried Over Is this a new non-compliance identified at the follow-up or one carried over (C) that is still outstanding Verification Evidence and Comments Details on corrective action evidence Preventative and Corrective Actions Details of actions to be taken to clear non-compliance, and the system change to prevent re- occurrence (agreed between site and auditor) Agreed by Management and Name of Responsible Person: Note if management agree to the noncompliance, and document name of responsible person 19 SMETA Audit – getting prepared Time for your questions 20 SMETA Audit – getting prepared Thank you for your attention! 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