Download the Essential Pre-Audit Activities for Suppliers Sites for an overview of the required pre-audit activities. Suppliers must review this document before the audit. Suppliers are encouraged to pay special attention to ensuring that union or worker representatives are briefed and understand the audit process. The workforce should be informed about the audit, including the code against which the audit is conducted. Personnel should be given Worker Education Materials (leaflets or DVDs), as the ETI Base Code requires that all employees are fully aware of the code. A designated site contact should be available to address workforce queries, i.e., the HR manager. Labor providers must also be informed about the audit, emphasizing the need for appropriate personnel and documentation on the audit day. For more details, please refer to the document.

The SMETA audit  evaluates your production site and accommodations against national and local laws, the Ethical Trading Initiative (ETI) Base Code and various labor standards. Please keep in mind that your client may specify additional requirements, like working with a designated audit firm or the type of SMETA (2-pillar or 4). Contact your Insite CSR Associate  for brand-specific guidance or assissitance in  reaching out to your client for clarification. Click here: to download an overview of the Scope of a SMETA and more details. For an example of an Audit Itinerary and more details, click here to download an Example Audit Agenda.

Please ensure that the following key personnel are available on the audit day for the opening and closing meetings: Plant Manager, Production Manager, Health & Safety and Environmental Manager, HR Manager and Payroll Manager.  Representatives from the union and employees should also be invited to participate in the audit process. During the Opening Meeting, Our Lead Compliance Specialists will introduce the Insite auditing team, explain the audit process and gather general facility information related to the SEDEX audit. In the Closing Meeting, the Insite team will review the entire process with management and address any outstanding questions, issues or concerns.

Insite’s success is built on personal and professional integrity and commitment to excellence.  We operate a strict Code of Ethics for our staff, which prohibits the acceptance of gifts, payments or benefits in any form, direct or indirect. At the onset of every audit, the Lead Compliance Specialist will present the Insite Integrity Letter to the facility management. They will be asked to read the letter, state their understanding, sign it and adhere to it. The letter presented by our auditors will provide instructions on using a local number to call our Ethics Link. This allows for the anonymous reporting of unethical behavior by an Insite employee, factory workers, factory management, agents or vendors. Click here for an example of the Integrity Letter: Integrity Letter USA version. 

It will be necessary to interview a cross section of workers, approx. 5- 10% of the workforce. These interviews may be in groups or one on one. Management must not be present at these interviews, in order to safeguard the confidentiality of individuals. When interpreters are necessary, there must be no links between the site and the interpreter to ensure total impartiality. Learn more about the interview process, its purpose and the potential benefits of worker interviews by downloading the Principles of Worker Interview Information for Supplier Sites.

Nearly all areas of focus during the audit require visual observation of the facility. In observing the facility for compliance, the compliance specialist will draw upon their personal experience and knowledge of non-compliance issues, commonly identified during the facility tour. The Insite compliance team will observe and gather information regarding all areas of the facility without exception, which includes any dormitories.

During the audit, auditors will request various documents for review. Examples of required documents include general human resource files (e.g., business license, employment contracts), payroll records, working hour policies, benefits details and health and safety documents (such as training records, policies, risk assessments, and accident logs). These records must be available on-site throughout the duration of the audit. To download a list of required documents click here: Facility Documents and Records

When a site's practices do not agree with a code or legal requirements, the auditor will document the non-compliance. This allows the site to propose necessary corrective actions. The site management will discuss and finalize these actions, which will be documented in the Corrective Action Plan Report (CAPR). A copy of this report will be provided to the facility's management during the audit. Click here: to learn about the Non-Compliance Process and SEDEX.

The party that pays for the audit is considered to be the owner. The audit owner, which is usually the supplier site, controls access to the data. The SEDEX system supports this process by ensuring that the supplier can decide who should have visibility of their audit information. Many retailers and brand members of SEDEX have agreements with their supply chain to have immediate visibility of audit data. Insite Compliance will always proceed on the basis that the data belongs only to the audit payer, unless informed otherwise.

Insite will upload completed audit reports to the SEDEX platform within 10 business days of the audit completion. Once the audit results are submitted by Insite, they will be visible in SEDEX for Supplier review and publication.

Audit follow-up is a process where an auditor verifies the corrective actions that a site has completed. It can take the form of a desktop follow-up, where corrective actions can be verified remotely (e.g., photographic or documentary evidence) or a site visit follow-up, where an auditor needs to review corrective actions in person. When auditor verification of adequate corrective actions necessitates a site visit, Insite will ensure that the site is fully informed about the content and purpose of the re-visit. A site re-visit is required only when corrective actions cannot be verified using evidence supplied by “desktop” review. For more details, go to: Audit Follow-Up Information. Click here: to learn about the Non-Compliance Process and SEDEX.

Here is a list of additional documentation that contains helpful references or must be downloaded and signed before the audit.

Starting your compliance journey with a SMETA audit 
Author SEDEX

SMETA 6.1 Best Practice Guidance 
Author SEDEX 

Ethical Trading Initiative (ETI) Base Code
Author ETI

Goods Providers Self-Assessment Questionnaire 
Author SEDEX (Other non goods industry should got to the SEDEX Dashboard for their SAQ)
 

Non Compliance Process and SEDEX
Author SEDEX

The SEDEX Glossary of Key Terms
Author SEDEX