As a leading provider of ethical trade audits, Partner Africa offers various audit options to help businesses ensure responsible and sustainable practices in their supply chains.
One of the most widely recognized and respected audits in this field is the SMETA (Sedex Members Ethical Trade Audit). In this guide, we’ll provide an overview of a SMETA audit entails, its benefits, and address some common curiosities surrounding SMETA social audits.
What is a SMETA Audit?
SMETA (Sedex Members Ethical Trade Audit) is a widely used social audit methodology created by Sedex, a global membership organization dedicated to driving improvements in ethical and responsible business practices in global supply chains. SMETA audits are designed to assess a site’s performance against various ethical trade standards, including labour rights, health and safety, environmental practices, and business ethics.
Why choose SMETA?
While there are various types of social audits available, such as amfori BSCI, WRAP, and SA8000. SMETA has gained significant popularity due to its comprehensive approach and wide acceptance among Sedex members. The key advantages of SMETA include:
- Standardized methodology: SMETA provides a consistent global auditing procedure that Sedex members can share with confidence.
- Flexibility: SMETA can be tailored to use with other codes based on International Labour Organisation conventions.
- Widespread acceptance: Many retailers and brands accept SMETA audits, reducing the need for multiple audits.
- Transparency: SMETA offers full transparency of the standards and protocols used.
The SMETA Four Pillars: Understanding the Core Focus Areas
Social audits typically encompass a wide range of ethical and responsible business practices. SMETA streamlines this complexity by organizing these elements into four main categories, known as the Four Pillars. This structured approach enables a comprehensive yet focused assessment of a site’s ethical performance. The four pillars of SMETA are:
- Labour Standards: This pillar covers areas such as freely chosen employment, freedom of association, working conditions, child labour, living wages, working hours, discrimination, regular employment, and harsh or inhumane treatment.
- Health and Safety: This pillar assesses workplace safety, including fire safety, machine safety, emergency procedures, and worker health.
- Environment (SMETA 4 pillar only): This extended assessment examines environmental management practices, waste handling, energy use, and water conservation.
- Business Ethics (SMETA 4 pillar only): This pillar evaluates the site’s business practices, including anti-corruption measures, responsible sourcing, and ethical conduct.
SMETA 2 Pillar vs SMETA 4 Pillar: Which One Do You Need?
SMETA offers two distinct audit options to cater to varying business needs and industry requirements. Understanding the difference between these options is crucial for choosing the most appropriate audit for your organization. Let’s explore the SMETA 2 Pillar and SMETA 4 Pillar audits:
1. SMETA 2 Pillar Audit: This covers Labour Standards and Health and Safety, along with additional elements such as Universal Rights covering UNGP, Management Systems, Entitlement to Work, and Subcontracting and Homeworking.
2. SMETA 4 Pillar Audit: This includes all elements of the 2-Pillar audit plus extended assessments on Environment and Business Ethics.
The choice between a SMETA 2 Pillar and SMETA 4 Pillar audit depends on your company’s needs, your customers’ requirements, and your industry sector. For example:
- Businesses in agriculture or food processing are more likely to need a SMETA 4 Pillar audit due to the significant environmental impacts of their operations and the increasing focus on sustainable farming practices.
- Manufacturing companies, especially those in industries with complex supply chains like electronics or textiles, often opt for SMETA 4 Pillar audits to address both environmental concerns and ensure ethical business practices throughout their supply chain.
- Retail businesses or those primarily involved in distribution might find a SMETA 2 Pillar audit sufficient if their direct operations have limited environmental impact.
- Companies in the service sector, such as call centres or software development firms, might start with a SMETA 2 Pillar audit, focusing on labour standards and health and safety.
However, it’s important to note that many businesses across all sectors are increasingly choosing SMETA 4 Pillar audits as environmental and ethical concerns become more prominent in global business practices. If you’re unsure which audit type is most appropriate for your business, Partner Africa can provide expert guidance. Our team can help you assess your specific needs, industry requirements, and customer expectations to determine whether a SMETA 2 Pillar or 4 Pillar audit is the best fit for your organization.
Key Benefits of SMETA Audit for Businesses and Suppliers
- Reduced audit fatigue: SMETA’s widely accepted methodology can help reduce the number of audits a supplier needs to undergo.
- Improved supply chain transparency: SMETA provides a comprehensive view of ethical practices across your supply chain.
- Risk mitigation: Identifying and addressing ethical trade issues can help protect your brand reputation.
- Continuous improvement: SMETA audits focus on driving ongoing improvements in ethical practices.
- Cost-effective: By reducing duplicate audits, SMETA can help lower overall auditing costs.
The SMETA Social Audit Process: From Initiation to Report
Here’s a very brief overview of what the SMETA audit process typically looks like:
- Self-Assessment Questionnaire: The process begins with completing your Self-Assessment Questionnaire on Sedex.
- Audit Request: Request your audit from a Sedex Affiliated Audit Company and complete the Audit Company pre-audit application forms.
- Pre-Audit Information: The audit company sends pre-audit information to the site at least 2 weeks prior to the audit.
- On-Site Audit: The audit includes an opening meeting, site tour, document review, worker and management interviews, and a closing meeting.
- Closing Meeting: The auditor produces a CAPR (Corrective Action Plan Report) for signature at the closing meeting.
- Audit Report and CAPR: The auditor produces a final detailed report and CAPR on Sedex.
- Follow-up: Depending on the findings, an onsite follow-up or desktop follow-up will be required to verify corrective actions.
Key Insights and FAQs about SMETA Audits
Can you fail a SMETA Audit?
SMETA audits do not have a pass/fail system. Instead, they identify areas of non-compliance and observations, which are then addressed through corrective action plans.
What are common non-compliance issues in SMETA Audits?
Frequent issues include excessive working hours, inadequate health and safety measures, insufficient wages, and lack of proper management systems.
What is the duration of a SMETA Audit?
The duration is based on the number of workers, site size, and complexity. It can typically range from 1 – 4 auditor days for the on-site portion.
Who conducts SMETA Audits?
SMETA audits are conducted by Sedex approved Affiliated Audit Companies.
How often do you need to do a SMETA audit?
The frequency depends on the risk level of the site and customer requirements, but typically ranges from one to three years.
Conclusion: The Value of SMETA Audits in Today's Business Landscape
SMETA audits offer a comprehensive, widely-accepted approach to assessing and improving ethical trade practices in global supply chains. Whether you’re a supplier looking to demonstrate your commitment to responsible business practices or a buyer seeking to ensure ethical standards in your supply chain, SMETA audits provide a valuable tool for driving continuous improvement and maintaining transparency in your operations.
The standardized methodology of SMETA allows for consistent evaluation across different industries and geographical locations, making it easier for businesses to compare and benchmark their performance. Moreover, the focus on corrective action plans rather than pass/fail results encourages a culture of ongoing improvement, helping businesses to constantly evolve their ethical practices.
As consumer awareness of ethical and sustainable business practices continues to grow, SMETA audits are becoming increasingly important for maintaining brand reputation and meeting stakeholder expectations. By proactively engaging in SMETA audits, businesses can stay ahead of regulatory requirements, mitigate risks, and position themselves as leaders in responsible business practices.
For all your social and ethical audit needs, including SMETA audits, contact Partner Africa. As experienced providers of ethical trade audits, we offer expert guidance throughout the entire SMETA process. Our team can help you navigate the complexities of ethical trade compliance, ensuring that your business meets the highest standards of social responsibility. Whether you need a SMETA 2 Pillar or 4 Pillar audit, Partner Africa is here to support your journey towards more ethical and sustainable business practices. Get in touch with us today to learn how we can help you achieve your ethical trade goals.
