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SMETA (Sedex Members Ethical Trade Audit)

SMETA Ethical audits

Auditing the supply chain for compliance with labor and social standards and business ethics can have a significant impact on compliance with human rights and is an important tool to help identify risks.

SMETA (Sedex Members Ethical Trade Audit) is a widely recognized global social compliance scheme. SEDEX (Supplier Ethical Data Exchange) is an online platform that allows companies to maintain data about their ethical and responsible practices and enables them to share this information with their customers. Through SEDEX, ethical and social audit information is shared and reported. The SMETA enables businesses to assess the risk to supplier working conditions, as well as identify opportunities for improvement and make changes in relation to labour, health and safety, the environment and business ethics throughout the supply chain. With a social audit, companies demonstrate their commitment to human rights and worker health and safety. SMETA is used in two directions: by buyers to evaluate suppliers and by suppliers to improve their social responsibility, meet social standards and enhance the company's reputation. On the one hand, buyers use SMETA as a criterion when selecting suppliers to ensure that they meet certain social standards. On the other hand, suppliers can use SMETA as a tool to self-assess and improve their social responsibility practices.
The latest version of SMETA, SMETA 6.1, was updated in May 2019.

Scope
SMETA is developed to provide the framework for conducting ethical and social trade audits. Audits can be carried out on 2 or 4 audit pillars – the key areas in which an organization's social responsibility is assessed. By providing guidance for two types of audit, SMETA allows individual supply chains to choose the requirements that best suit their needs and objectives.

SMETA audits can be based on:

2 pillars:

Labor standards and;
Health and safety.

These areas are mandatory for SMETA audits. Also assessed are: management systems, right to work, subcontracting, home working and abbreviated environmental assessment.

4 pillars:

Labor standards;
Health and safety;
Environment (extended assessment);
Business Ethics.

This is an extended audit with added pillars: "business ethics" and "environment".
SMETA audits are carried out by an independent third party – by companies or organizations approved by Sedex.

Basic documents
SMETA consists of four main documents that support audits. They can be used by any auditor or audit organization, including those who are not members of the SEDEX organization. But an audit can only be called a "SMETA audit" if it is carried out using the criteria set out in the following documents:

SMETA Best Practice Guidance - A guide to best practices
SMETA Measurement Criteria - Measurable criteria
SMETA Audit Report - Audit report
SMETA Corrective Action Plan Report (CAPR) - Corrective Action Plan Report.

The information that is visible on the SEDEX platform for clients is the audit report and the corrective action plan.

How is the SMETA audit conducted?
The SMETA audit proceeds as follows:

Opening meeting.
Document review – auditors check the organization's existing processes and systems against the Ethical Trading Initiative (ETI) core code and local laws.
Site audit – auditors conduct an audit of the company's site to see the working conditions on site. They check for dangerous working conditions, overtime, discrimination, low pay and forced labor conditions enshrined in International Labor Organization (ILO) conventions. The team audits the following areas: wages, right to work, working hours, health and safety at work, temporary workers, provision of rest time, fair treatment of staff.
Meeting with management and interviews with workers.
A closing meeting, which also includes providing a corrective action plan report.

What are the benefits of SMETA Audit?

Auditing provides supply chain visibility into social and ethical issues.
Suppliers can share audit reports with their customers, reducing the likelihood of duplicate audits and saving time, money and resources.
Suppliers signal to their customers that they have zero tolerance for human rights violations such as child and forced labor and that they comply with legal labor standards.
SMETA provides a corrective action plan to help address any issues that may arise.
SMETA audits do not contradict management system standards (ISO 9001, ISO 14001, ISO 45001, SA8000, etc.) or sector standards (BRCGS, IFS Food, FSSC 22000, CLOBALG.A.P., etc.) and can to be conducted in parallel.

The CONSEJO team can consult your organization before and during a SMETA audit, helping you to prepare, collect, and store the necessary information. We will help you align your organization with SMETA criteria and maintain your ethical business practices. We will advise you on taking corrective action.

SMETA (Sedex Members Ethical Trade Audit)

Implementation of management standards

CONSEJO Ltd. is a consulting company with over 20 years of practical experience in the development, implementation and maintenance of management systems in accordance with international standards and regulatory requirements. The company provides consulting services in the areas of quality management, environmental management, occupational health and safety, food safety, information security, cybersecurity, risk management and sustainable development. Our expertise covers standards and schemes such as ISO 9001, ISO 14001, ISO 45001, ISO 22000, ISO/IEC 27001, IFS Food, BRCGS and HACCP, as well as consulting services related to NIS2, DORA, GDPR and EcoVadis.

The CONSEJO team has been involved in over 1,500 projects for organizations across various sectors of the economy, including manufacturing, construction, energy, information technology, transport, trade, the food industry and services. Our approach focuses on developing management systems that work effectively in practice, tailored to the specific characteristics and needs of each organization. We work closely with our clients, providing consulting support, staff training and assistance during implementation. We strive to deliver high-quality services within the agreed deadlines and solutions that support successful certification and create long-term value for businesses.

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