Eight FAQs for new SMETA audit company – from difference between 2 pillar and 4 pillar to SMETA auditor qualification
The Sedex Members Ethical Trade Audit (SMETA) is a widely recognized programme developed by Sedex to drive responsible supply chains across different industries. As an Sedex Affiliated Audit Company (AAC), Eurofins Assurance runs SMETA audits around the world for businesses of different sizes. Among these businesses, some of them are new to this social audit standard and often come with different queries.
Summarising our experience, we have produced this FAQ for other newcomers on SMETA audits to support their ethical and environmental commitments.
What is the difference between 2 pillar and 4 pillar SMETA audit?
There are two additional modules in SMETA 4-Pillar audit, which are Environmental Assessment (detailed) and Business Ethics. Environmental Assessment Module focuses on the companies’ compliance against local and national environmental laws, proper environmental policy and impact measurements, as well as recent environmental regulations violations. Business Ethics Module looks at integrity, anti-bribery and grievance policies in place and proper communications on these matters to staff.
Companies can decide if 2-pillar or 4-pillar audits are more appropriate for their operations and compliance purposes.
How long is a SMETA audit valid for?
A SMETA audit report is valid for 12 months from the date of issue. In order to maintain the business’ compliance record, in general, companies start the booking and preparation of new SMETA audits three to four months before the expiry date.
How much does SMETA audit cost?
Since SMETA audit is a field activity, the fee is calculated per man-day rate. The total number of man-day required ranges from two man-day to five man-day on average, depending on various factors that include:
- Number of workers
- Number of buildings (including warehouses and storage facilities, if any)
- Total area of the site
- Special requirements of the site owners
In some cases, the site owners would require shorter audit duration so more than one auditor would be sent for the audit work so the total number of man-day can be shortened.
When considering man-day rates, it is clear that the fees vary based on geographical locations and services providers. You are encouraged to get quotations from different services providers for comparison.
Are SMETA audits mandatory?
SMETA audits are not mandated by regulations. However, as social responsibility has become a critical part in the modern business landscape, many companies are requesting their suppliers to demonstrate such compliance and ensure the sourcing activities are ethical. SMETA by Sedex is one of the programmes that is recognised and accepted by various buyers so it is very common that suppliers find this as a pre-requisite when they work with new buyers.
It is also worth noting that with different human rights due diligence laws being developed or implemented in EU, US and other countries, companies will be required to carry out different risk management activities in their supply chain and demonstrate their compliance upon requests properly. SMETA audit, in these cases, is an effective and helpful tool to identify and mitigate human rights impacts in their supply chain.
Is SMETA audit a certification?
No, SMETA is not a certification programme. After the on-site audit, companies will receive audit reports that detail the findings on current systems, summary of evidence and most importantly, issues of non-conformance. There is also no scoring system or pass/fail on the SMETA audit reports. Similarly, companies will not receive certificates from Sedex or auditing bodies.
Is Sedex membership required for SMETA audit?
Yes, companies must be Sedex members in order to request SMETA audit and enjoy other membership benefits.
What is the qualification of a SMETA auditor?
A SMETA auditor progresses from a junior auditor to Lead Auditor over a few years of time where he or she will be groomed on field audit skillsets, local labour/ environmental regulation and SMETA protocol knowledge, report writing skills and crisis management.
APSCA (Association of Professional Social Compliance Auditors) was established about one decade ago to professionalism, consistency and credibility of individual auditors and organizations performing independent social compliance audits. Afterwards, it has become an industry practice to conduct social audits by APSCA-qualified services providers and auditors. When you look for your next SMETA audit, remember to get from a services provider that has ASPCA Full Member Firm membership and provides CSCA and ASCA social auditors for your work.
How is SMETA audit different from other schemes?
While schemes and standards tend to have similar purposes on ethical performance, leveraging SMETA audit, which is an internationally-recognised standard, helps to reduce audit fatigue and avoid duplicated effort and resources for factories to undergo multiple social audits. Likewise for buyers, managing compliance through one single standard facilitates easier communications and understanding.
Check out our SMETA audit service and see how we can support you. You can also make your SMETA audit booking online instantly if you are ready!
