SMETA Audits
The Sedex Members Ethical Trade Audits (SMETA) methodology enables organisations to assess their sites and suppliers to understand working conditions in their supply chain.
What Is SMETA
The Sedex Members Ethical Trade Audit (SMETA) is a social audit methodology that assesses all aspects of responsible business practice.
SMETA is the most widely used social audit in the world with over 40,000 audits uploaded onto the SEDEX platform every year. It was designed to minimise duplication of effort and provide members and suppliers with a reliable and consistent audit format.
It combines the requirements of the ETI Base Code, which is founded on the conventions of the International Labour Organisation, as well as relevant local laws.
SMETA 7.0 is the latest methodology.
SMETA audits can be conducted against two or four auditing pillars.
A SMETA 2-pillar audit covers:
- Labour Standards
- Health & Safety
- Environment.
A SMETA 4-pillar audit covers the same areas as a 2-pillar audit:
- Labour Standards
- Health & Safety
- Environment
Plus, the addition of
- A more in-depth Environment assessment, and
- Business Ethics.
Social audits enable businesses to assess their suppliers, monitor health and safety for workers, and signal zero tolerance of human rights abuses such as child and forced labour.
Once an audit is complete, buyer and supplier businesses can work together to address any issues, based on a Corrective Action Plan (CAPR). You need only complete a SMETA audit at a site once and you can share it with multiple customers via the Sedex platform.
Only audit companies (and their auditors) that meet a set of criteria set out by Sedex can conduct SMETA. These are known as a Sedex Affiliate Audit Company (AAC), and are independent organisations from Sedex.
Intertek SAI Global is one of the largest providers of Sedex Members Ethical Trade Audits (SMETA) conducting on-site SMETA audits at factories around the globe to assess how labour, health and safety, environmental and business ethics standards are being met. Sedex members are then allowed to store, share and report on this information in a secure, online database in an effort to improve working conditions in the global supply chain.
SMETA 7.0
Key Benefits of the SMETA Audit
Demonstrate Your Commitment To Human Rights
Reduce Audit Duplication In Your Supply Chain
Minimise Social Responsibility And Sustainability Risks
Frequently Asked Questions
Sedex stands for Supplier Ethical Data Exchange. They are the not-for-profit member organisation that leads work with buyers and suppliers to deliver improvements in responsible and ethical business practices in global supply chains.
Sedex created the SMETA audit procedure, to standardize the way responsible supply chain activities are assessed.
The most up to date procedure is SMETA 7.0.
A SMETA audit can be conducted either as a Two Pillar or Four Pillar audit.
A Two Pillar Audit consists of the following aspects:
- Labour Standards
- Health & Safety
- Additional Elements
- Universal Rights covering UNGP
- Management Systems
- Entitlement to Work – Subcontracting and Homeworking
The two additional pillars in a Four Pillar Audit include:
- Environmental
- Business Ethics
All four pillars take into account legal requirements, international standards and good practice.
The length of a SMETA Audit depends on the number of employees in your organisation. Our experience and process allows for an audit to typically last from one to four days on site.
At the end of the audit, a corrective action plan is left with you, and a full report is provided and uploaded to the SEDEX database.
After the auditing process is complete, we work with you to verify the completion of your corrective action plan.
Historically, SMETA audit outputs included:
- Non-Compliances (NCs): Instances where standards were not met.
- Observations: Potential risks identified by auditors that did not yet constitute NCs.
- Good Examples: Situations where standards were exceeded.
SMETA 7.0 introduces two features, “Workplace Requirements” and the “Management Systems Assessment (MSA)”.
Workplace Requirements clearly outline the audit criteria in relation to the Ethical Trade Initiative (ETI) Base Code and local legislation. This provides clear guidance on compliance for suppliers and meets buyers’ expectations for adherence to the code.
Management Systems Assessment (MSA) is the fixed-scope assessment that evaluates the systems at audited sites, helping businesses identify areas where system failures might lead to compliance issues and ensuring more effective risk management.
A new finding classification, Collaborative Action Required (CAR) findings, has also been introduced under SMETA Workplace Requirements to address specific, complex issues that may require collaborative action between the audited party, buyers, and other stakeholders to resolve.
- Audit Findings: A collective term encompassing all possible outcomes of a SMETA audit, including Non-Conformances, Non-Compliances, Collaborative Action Required Findings, and Good Examples.
- Collaborative Action Required (CAR): CAR findings are a specific type of NC recorded against fixed Workplace Requirements. These findings occur when a site practice doesn’t meet the Code, but the responsibility for corrective action involves multiple stakeholders, not just the audited site.
- Good Example: A Good Example is noted when site practices exceed the Code or legal requirements, exceeding the expected standards.
- Non-Conformance: Non-Conformance refers to instances where a site meets the law but does not meet the Code.
- Non-Compliance: Non-Compliance occurs when a site fails to meet local, national, or international legal requirements.
This updated framework ensures that risks are better identified, managed, and addressed with a more collaborative approach to compliance.
SMETA 7.0 is ideal for businesses seeking to:
- Improve their ethical trade practices.
- Align with global labour standards.
- Enhance corporate governance.
- Build consumer trust by demonstrating a commitment to sustainability.
SMETA audits are widely applicable across industries that involve complex supply chains, including:
- Manufacturing
- Retail
- Agriculture
- Textiles
- Electronics
These industries benefit from SMETA’s ability to assess and enhance labour practices across multiple suppliers and regions.
SMETA 7.0 provides a framework that aligns with internationally recognised labour standards, such as those set by the International Labour Organization (ILO). It also helps businesses meet evolving local and global sustainability regulations, ensuring compliance and reducing legal risks.
The Road to an Effective Human Rights Due Diligence Program in the Supply Chain
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