SEDEX Audit - Responsible Management

SEDEX :- Responsible Management of the Supply Chain
Audit has always been an integral part of an Organization. Internal and Independent audits plays and
vital role in effective Business growth and also in order to maintain the effective system of Internal
Controls, achieving Companies Business Objectives, Obtaining reliable financial reports, preventing
fraud and misappropriation of its assets, and minimizing its costs of capital audit becomes life of
good Organization. In the world of International Standards where the entire structured format is
available to monitor every aspect of making the Business Effective. There in SEDEX an association
comes into existence to develop the social standard & ethical practices for the Organization
worldwide and SMETA is the procedure to do this particular Audit.
What is SEDEX & SMETA?
SEDEX stands for “Supplier Ethical Database Exchange” an association commenced by not-for-profit
global Organizations & Trade Associations. Primary function of SEDEX Audit is to develop Social
Standard & Ethical Practices for worldwide Organizations. This Audit fulfils the following
requirements related to workers & working conditions and also the requirements of International
Labour Organization (ILO) & other Labour related issues.
SMETA stands for “Sedex Members Ethical Trade Audit” this is an Audit Methodology created by
SEDEX for compilation of good practice in Ethical Audit Technique and gives a central agreed
protocol which can be confidentially shared.
SMETA & ETI (Ethical Trading Initiative) Code:
The ETI Base Code is an internationally recognised code of Labour practice in order to improve the
lives of worker across globe. Where in the partnership of Companies, trade unions and Voluntary
Organizations strengthen this Practices. SMETA uses the ETI Base code as Monitoring Standards.
Pillars of SMETA AUDIT
To describe the Key steps of Planning, Executing and Documenting, SMETA Best Practice Guidance
(BPG) has been classified into following Auditing pillars:

2 Pillar
SMETA Audit
4 Pillar
SMETA Audit
2 Pillar SMETA Audit: It includes the following area
Labour Standards& Health and Safety (Covers ETI Base Code)
Other, Elements which comprises of the following:
Universal Rights Covering UNGP
Management Systems
Entitlement to Work
Subcontracting and Home working
Environment
4 Pillar SMETA Audit: It includes the following area
Requirements of SMETA 2-Pillar Audit
Environment
Business Ethics
SMETA has been developed to provide guidance to both the pillar2 and Pillar4 audits, wherein the
Individual supply chains are allowed to choose their requirements. Based on the conventions of the
International labour Organization (ILO) the guidance can be tailored and adopted to carry out the
Audits.
Pre-Requisites of Audit:Following given list of Pre-Requisite which is required for conducting Audit:
1) Audit Process
Audit Request
Preparation for an Audit
Selection of Auditor/ Auditing team
Audit Body Management System
Communication with the Site
Preparation for an Audit
2) Audit Execution
Opening Meeting
Tour of the Employment Site
Management and Worker Interviews
Document Review
Pre-Closing Meeting
Closing Meeting and Summary of Findings
3) Audit Report and Audit Outputs
Audit Report Compilation

Describing Non-Compliances, observations and Good Examples
SEDEX and Uploading the Audit
Information Management
Audit Records
4) Audit Follow Ups
Follow Up Audits
Appeals and Disputes
The SMETA Audit Report and CAPR(corrective action plan report) remain the property of audit
requestor and will only be shared with other party on the basis of pre-agreement with the audit
requestor.