What is social compliance?

Social compliance is a continuing process in which organizations endeavor to protect the health, safety, and rights of their employees, the community and environment in which they operate, and the lives and communities of workers in their supply and distribution chains. Social compliance and social responsibility may address concerns about:

  • Labor rights for workers
  • Fair labor laws
  • Harvesting and the use of conflict minerals
  • General environmental
  • Sustainability questions.

what is the importance of social compliance audits?

Social compliance auditing is practiced mainly by retailers and manufacturers, also called purchasers or brands. Auditing allows brands to maintain oversight of the social practices of their supply chain, including maintaining company-established codes of conduct regarding purchasing and following local labor, health, and safety laws.

Attention to social compliance also serves to protect your brand reputation among consumers. The information garnered during social compliance audits and by producing continuous improvement plans for suppliers and retailers can help companies address critics and articulate an understanding of worker conditions and necessary improvements.

How social audit conducted?

Social audit is a way of measuring, understanding, reporting and ultimately improving an organization’s social and ethical performance.  Social audit is conducted based in local labor, CoC/standard, health and safety laws.

why is being social compliant important for your company?

  • Brand reputation among consumers
  • Trains the community on participatory local planning.
  • Encourages local democracy.
  • Encourages community participation.
  • Benefits disadvantaged/minority
  • Promotes collective decision making and sharing responsibilities.
  • Develops human resources and social capital

What are the objectives of a social audit?

  • Creating awareness among beneficiaries and providers of local social and productive services.
  • Increasing efficiency and effectiveness of local development programmers
  • Scrutiny of various policy decisions, keeping in view stakeholder interests and priorities, particularly of rural poor.
  • Estimation of the benefits for stakeholders of timely certification

What is an Audit?

Systematic, independent and documented process for obtaining evidence and the respective objective assessment, to determine the extent to which audit criteria are fulfilled.

FIRST PARTY AUDIT OR INTERNAL AUDIT

An audit performed by the organization itself, using internal or external auditors to it.

SECOND PARTY AUDIT OR A SUPPLIER AUDIT

Audit performed by parties with direct interest in the organization, such as their clients, according to a set of requirements defined by them.

THIRD PARTY AUDIT

Audit performed by external organizations, and in accordance with the defined standards framework (audits for certification purposes).

What is a social scheme/Standard?

A document established by consensus and approved by a recognized organization, which provides rules, guidelines or specifications for activities or their outputs, ensuring an optimum level of order in a given context.

The Standards play a key role in raising quality, safety, efficiency, interoperability, as well as delivering all these benefits at a lower cost.

In general, the Standards are voluntary. They become mandatory if there is any legal document that determines their compliance.

Normally, the designation of the Standards is composed of an alphabetic prefix followed by a numerical code. European standards are prefixed with EN. EN ISO identifies the European standards that resulted from the adoption of an ISO standard, that is an international standard.

The rules facilitate trade in so far as, in addition to reducing costs, they reduce the asymmetries of information between supply and demand.

What is SMETA?

SMETA is an audit methodology, providing a compilation of best practice ethical audit techniques. It is designed to help auditors conduct high quality audits that encompass all aspects of responsible business practice, covering SEDEX’s four pillars of Labor, Health and Safety, Environment and Business Ethics.

SMETA is designed for suppliers to share one audit with multiple customers, meeting multiple customer requirements and reducing duplication in ethical auditing based on the ETI base code.

The Ethical Trade Initiative (ETI) is a ground-breaking alliance of companies, trade unions and voluntary organizations which promotes the implementation of corporate codes of practice which cover supply chain working conditions. Their ultimate goal is to ensure that the working conditions of workers meet or exceed international labor standards.

It is composed of two key elements: the ETI Base Code and the accompanying Principles of Implementation. ETI has developed a code of labor practice reflecting the most relevant international standards with respect to labor practices and the local labor laws.

SMETA audits are only valid when registered on SEDEX Advance, a collaborative platform for buyers, suppliers and auditors to store, share and report on information quickly and easily.

What is WRAP?

The WRAP Principles are based on generally accepted international workplace standards, local laws and workplace regulations, and include the spirit or language of relevant conventions of the International Labor Organization (ILO). The Principles encompass human resources management, health and safety, environmental practices, and legal compliance including import/export and customs compliance and security standards.

Attaining a WRAP certification involves a 5-step process. It begins with the production facility filing an initial application with WRAP and paying the registration fee. Then the facility will conduct a self-assessment of its compliance with WRAP’s 12 Principles, which is followed by an additional audit conducted by one of the accredited monitoring partners. The audit report is sent to WRAP, where it is decided whether a certification is granted.

WRAP audit can is validating according the type of certification:

  • Silver Certificate (valid for 6months)
  • Gold Certificate (valid for 1 year)
  • Platinum, Certificate (valid for 2 years)

What is SA8000?

SA8000 is an auditable certification standard based on international workplace norms of international Labor Organization (ILO) conventions, the Universal Declaration of Human Rights, the UN Convention on the Rights of the Child and the local labor law. Those seeking to comply with SA8000 have adopted policies and procedures that protect the basic human rights of workers.

SA8000 Audit cycle is three years with surveillance audits every six months.

What is amfori-BSCI?

amfori is the leading global business association for open and sustainable trade. Their vision is of a world where all trade delivers social, environmental and economic benefits for everyone.

amfori – BSCI Audit cycle is two years with a follow-up audit prior to the completion of 12 month from the full audit date.

What is a CTPAT security audit?

ALGI offers you audit that cover security concerns. These items may be included as a package in the social auditing or be evaluated as one individual aspect of compliance. Security Assessments include:

  • Assessment of the current state and electiveness of your security practices and procedures.
  • Evaluation of management systems and record keeping such as local manifesting procedures and export licenses.
  • Assisting in process improvements, where needed, to electively comply with security and customs requirements

Why you should choose ALGI?

Personalized Services: We commit to the delivery of a responsible service, our scheme and code of conduct specialized team, will assist you during the pre and post audit activities so that the audit entailment and social compliance requirements are well understood.

Impartiality Transparency and Confidentiality: In our commercial agreement and customer service, and of course, during the auditing and reporting process.

Operational Quality:

  • By allocating the most competitive and reliable Audit Team
  • By strictly attaching our service to the scheme or international standard criteria
  • By being specialized in the country/industry

Best Cost-efficient service:

  • Most precise and neat Audit Report that can help you improve your social compliance management system
  • Technical accuracy in the definition of audit man-days according to your business and the scheme’s requirements
  • A responsible audit fees