Last Updated on June 1, 2023 by Ossian Muscad
Many companies recognize the importance of responsible business practices and ethical supply chain management. To ensure compliance, many businesses turn to SMETA (Sedex Members Ethical Trade Audit)—an audit method used across 150 countries to assess all aspects of responsible business practices in the global supply chains. This article will take a comprehensive look at what SMETA is and how to create a checklist that your company can use to ensure compliance.
An Overview of SMETA
SMETA (Sedex Members Ethical Trade Audit) is an internationally recognized auditing method used to assess and improve the ethical and responsible business practices of global supply chains. It was developed by Sedex, a non-profit organization that focuses on promoting transparency, sustainability, and ethical practices among businesses.
SMETA covers four key areas:
- Labor Standards: This includes fair wages, working hours, employment contracts, child labor, and forced labor policies.
- Health and Safety: This involves assessing workplace conditions, safety measures, risk assessments, and accident prevention.
- Environment: The audit evaluates a company’s environmental management system, waste management, resource usage, and pollution control measures.
- Business Ethics: This includes an assessment of the company’s anti-corruption policies, transparency, and adherence to legal and ethical standards.
Companies that undergo a SMETA audit can demonstrate their commitment to ethical trade and responsible sourcing. In addition, the audit helps identify areas for improvement and supports businesses in implementing best practices to maintain a sustainable and ethical supply chain.
What is the SMETA Audit Method?
The SMETA (Sedex Members Ethical Trade Audit) method is a comprehensive auditing process designed to assess a company’s ethical and responsible business practices in its supply chain. The audit focuses on four key areas: Labor Standards, Health and Safety, Environment, and Business Ethics. Here’s an overview of the SMETA audit method:
Step 1: Preparation
Before the audit, the company needs to gather relevant documentation, such as policies, procedures, records, and any previous audits. The auditor will use this information to understand the company’s operations and compliance with ethical standards.
Step 2: On-site Audit
The auditor visits the company’s facilities to evaluate working conditions, interview workers and management, and review documentation. The on-site audit includes:
- A site tour to observe working conditions, safety measures, and environmental practices.
- Worker interviews to gather insights into labor practices, payment, working hours, and overall worker well-being.
- Management interviews to assess their understanding of ethical trade requirements and the implementation of policies and procedures.
- Document review to verify compliance with legal and ethical standards, including employment contracts, wage records, and training documentation.
Step 3: Audit Report
After the on-site audit, the auditor compiles a detailed report outlining the findings, non-compliances, and opportunities for improvement. The report helps companies understand their performance against the SMETA requirements and identify areas to improve to achieve better ethical and sustainable practices.
Step 4: Corrective Action Plan
If non-compliances are identified during the audit, the company must develop a corrective action plan (CAP) to address these issues. The CAP should outline specific actions, responsibilities, and timelines for resolving non-compliance.
Step 5: Follow-up and Continuous Improvement
The company needs to monitor the implementation of the CAP and ensure that improvements are made. In some cases, follow-up audits may be required to verify the effectiveness of the corrective actions. Companies are encouraged to continuously improve their ethical trade practices and maintain transparency in their supply chains.
By following the SMETA audit method, companies can demonstrate their commitment to ethical trade and responsible sourcing, enhancing their reputation and contributing to long-term success.
What is a SMETA Checklist?
A SMETA checklist is a tool used by auditors and companies to ensure that all relevant aspects of ethical and responsible business practices are assessed during a SMETA audit. The checklist serves as a guide to help auditors systematically review the company’s performance in the four key areas covered by SMETA: Labor Standards, Health and Safety, Environment, and Business Ethics.
What Items To Include in a SMETA Checklist?
A SMETA checklist typically includes various criteria, questions, and indicators related to these four areas. Here’s an overview of what a SMETA checklist might cover:
Labor Standards
- [ ] Employment contracts and terms
- [ ] Working hours and overtime policies
- [ ] Wages and benefits
- [ ] Child labor and young workers
- [ ] Forced or bonded labor
- [ ] Discrimination and harassment
- [ ] Freedom of association and collective bargaining
Health and Safety
- [ ] Workplace safety measures and equipment
- [ ] Risk assessments and hazard identification
- [ ] Accident prevention and reporting
- [ ] Emergency preparedness and response
- [ ] Worker training and awareness
- [ ] Occupational health services
- [ ] Worker accommodation (if applicable)
Environment
- [ ] Environmental management system
- [ ] Waste management and disposal
- [ ] Energy and resource usage
- [ ] Emissions and pollution control
- [ ] Compliance with environmental laws and regulations
Business Ethics
- [ ] Anti-corruption policies and procedures
- [ ] Legal compliance
- [ ] Transparency and disclosure
- [ ] Ethical sourcing and procurement
By using a SMETA checklist, auditors can systematically evaluate a company’s ethical trade practices and identify areas for improvement. Companies can also use the checklist as a self-assessment tool to prepare for a SMETA audit and ensure they meet the necessary ethical standards.
Create a SMETA Checklist Using a Low-code Platform
SMETA compliance is critical for organizations in the global supply chain. Fortunately, an easier way to create a SMETA audit checklist is using a low-code platform like DATAMYTE. DATAMYTE’s low-code platform lets you drag and drop various components to quickly build an audit checklist tailored to your requirements.
DATAMYTE is a quality management platform with low-code capabilities. The DataMyte Digital Clipboard, in particular, is a low-code workflow automation software that features a checklist and smart form builder. This tool lets you create a comprehensive SMETA checklist to use and share with your team.
To create a checklist or form template using DATAMYTE, follow these steps:
- Log in to the DATAMYTE software and navigate to the ‘Checklist’ module.
- Click “Create Checklist.”
- Add a title to your checklist; select the category where it belongs.
- Start adding items to the checklist by clicking “Add Item.”
- Define the description of each item, what type of answer it requires, and other relevant specifications (e.g., reference documents, acceptance criteria, limits).
- Assign a team member responsible for conducting the inspection using the checklist.
- Add signature fields for approvals (e.g., supervisors, quality assurance personnel).
- Save the checklist—you can now access it anywhere, and it will be available on any device.
DATAMYTE also lets you conduct layered process audits, a high-frequency evaluation of critical process steps, focusing on areas with the highest failure risk or non-compliance. Conducting LPA with DATAMYTE lets you effectively identify and correct potential defects before they become major quality issues.
With DATAMYTE, you have an all-in-one solution for creating and implementing SMETA checklists. Book a demo now to learn how DATAMYTE can help you streamline your SMETA compliance efforts.
Conclusion
SMETA is an important standard for global organizations that are part of the supply chain. Creating a SMETA audit checklist is critical in ensuring compliance and ethical trade practices. Low-code platforms like DATAMYTE provide an easy way to create, store, and share SMETA checklists with your team. Get started today!
