Ethical Trade Audit

Ethical trade audit is the general name for audits assessing whether working conditions in the supply chain conform to ethical-trade principles (most often the ETI Base Code). SMETA is the most common methodology for this audit. It produces a report and a corrective action plan, not a certificate.

• Manufacturers supplying UK and European retail
• Suppliers of ETI-member brands
• Buyers with an ethical-trade commitment
• Businesses in the agriculture and food supply chain

Not mandatory; it is carried out at customer request. Modern-slavery legislation (e.g. the UK Modern Slavery Act) imposes a disclosure obligation on large companies; a supply-chain audit forms the basis for that disclosure.

• ETI Base Code principles — Employment is freely chosen
• Freedom of association and the right to collective bargaining are respected
• Working conditions are safe and hygienic
• Child labour shall not be used
• Living wages are paid
• Working hours are not excessive
• No discrimination is practised
• Regular employment is provided
• No harsh or inhumane treatment is allowed
• Records review, site observation and worker interviews
• The findings report and the corrective action plan

1. 1Determining Scope and ProgrammeThe sites and processes to be audited, and the audit duration the scheme requires, are determined.
2. 2Pre-assessmentA gap analysis is optionally carried out; gaps become visible before the main audit.
3. 3On-site AuditRecords review, site observation and worker interviews are carried out against the scheme's checklist.
4. 4Reporting of FindingsFindings are reported according to the scheme's classification. The output of these schemes is an audit report, not a certificate.
5. 5Corrective Action and Follow-upA corrective action plan is submitted for the findings; it is closed with a follow-up audit under the scheme.

The validity period of audit reports is set by the scheme and is mostly between one and two years. The report is used for the period the buying brand accepts.

• Organisation and site details
• Headcount and shift pattern
• Legal permits and licences
• Relevant policies and procedures
• Payroll, time and personnel records

There is no fixed list price; the cost is calculated based on the following variables and provided in writing in the quote.

• The number of sites to be audited and the headcount
• The audit duration the scheme prescribes
• Whether a pre-assessment (gap analysis) is requested
• Whether a follow-up audit is required

Most of these schemes produce audit reports, not documents, and are subject to the scheme owner's (e.g. Sedex, amfori, RBA) own approval system; Accreditation in the classical sense is not found in every scheme. Auditor competence and report validity are determined by the scheme owner's rules.

The scope under which this scheme can be offered varies according to your product and activity; it is confirmed in writing at the quote stage.

• SMETASedex Ethical Trade Audit
• SedexSedex Membership and Ethical Data Sharing
• amfori BSCIamfori BSCI Social Compliance
• RBAResponsible Business Alliance
• Social Compliance Audit
• Human Rights Due Diligence
• SA8000Social Accountability
• WRAPWorldwide Responsible Accredited Production