Your SGS Handbook for Mastering Sedex and SMETA Audits in UAE, KSA, and Beyond in GCC Countries in 2024.

February 16, 2024

Sedex stands as a foremost ethical trade membership organization globally, committed to enhancing labor conditions within international supply chains. Adherence to their SMETA scheme signifies a commitment to responsible corporate conduct.

By populating the Sedex platform with your audit information, you ensure that your sustainability achievements are visible and verifiable to clients and relevant stakeholders.

This article offers comprehensive guidance on Sedex and SMETA audits, answering every question you might have about the process. Authored by SGS UAE Lead Auditor Reghu Nair, who boasts over 15 years of experience in the field of Social Accountability Auditing.

What is Sedex?

Sedex is a global platform that helps businesses store, analyze, share, and report on sustainability practices with the world’s largest data platform for supply chain assessment.

It is used by organizations and businesses for monitoring their performance in areas such as labor rights, health and safety, environmental impact, and business ethics.

What is SMETA?

Sedex Members Ethical Trade Audit or SMETA is the most widely used format for social audits in the world, enabling businesses to assess their sites and suppliers to understand working conditions in their supply chain.

SMETA assesses a site based on the organization's compliance with labor, health and safety, environment and business ethics criteria. Reference is made to a human rights standards framework, the Ethical Trading Initiative (ETI) Base Code, local law, and additional elements.

How is SMETA Different from other Social Audits?

SMETA distinguishes itself from other social audits in several keyways:

Comprehensive Ethical Focus: SMETA audits cover not just labor standards, but also health and safety, environment, and business ethics. This broader scope provides a more holistic view of a company's ethical practices compared to audits that might focus only on labor issues.

Best Practice Techniques: SMETA incorporates various best practice techniques in ethical auditing. This makes it a more robust and thorough audit process compared to some other social audits which may have a more limited or less comprehensive methodology.

Flexibility and Efficiency: One of the unique aspects of SMETA is its design for suppliers to share one audit with multiple customers. This reduces the need for multiple audits (audit fatigue) and is more efficient for suppliers, as they don’t need to undergo numerous audits for different customers.

Sedex Platform Integration: SMETA is closely integrated with the Sedex platform, a globally recognized online platform for sharing responsible sourcing data. This allows for greater transparency and easier access to audit data for a wide range of stakeholders.

Global Recognition and Acceptance: While there are many social audit standards, SMETA is one of the most widely recognized and accepted globally. Its comprehensive nature and integration with the Sedex platform make it appealing to a wide range of global companies.

Non-Prescriptive Methodology: Unlike some audits that have very specific criteria, SMETA uses a non-prescriptive approach, allowing for more flexibility in meeting the audit requirements based on the unique circumstances of each company.

Member-Driven Approach: As a part of the Sedex system, SMETA is influenced and updated by its member organizations, ensuring that it remains relevant and adapts to changing global standards and practices in responsible sourcing.

Expanding Horizons with SMETA: Unlocking Business Growth Across Industries

SMETA audit is a key for industries like manufacturing, consumer goods, textiles, food and beverages, and packaging linking them to new markets and major brands. Embracing these ethical standards builds trust and opens doors to global business growth, fostering sustainable, reputable market presence.

What is the process of SMETA Audit?

The process for conducting a SMETA (Sedex Members Ethical Trade Audit) audit involves a series of structured steps:

Registration with Sedex

Site of Employment Registration

A Site of Employment refers to any physical location where goods are produced, or services provided. This could be a factory, warehouse, office, farm, or any site with a workforce.

Registration Requirement: Companies must register at least one Site of Employment on the Sedex platform.
Self-Assessment Questionnaire (SAQ)

Audit Arrangement and Execution

Reporting and Utilization of Results

Throughout the SMETA audit process, the emphasis is on gaining a comprehensive understanding of the ethical practices at each Site of Employment, thereby contributing to more sustainable and responsible supply chains.

Arranging for a SMETA Audit with SGS in UAE, Saudi Arabia and other GCC Countries

Organizing a SMETA audit can be a streamlined process when working with SGS, a leading provider of testing, inspection and certification services. Here's how you can arrange a SMETA audit with SGS:

Contacting local SGS offices

SGS has a global presence with qualified local auditors in major markets including UAE, Saudi Arabia, Oman, Qatar, Kuwait and other GCC countries.

You can initiate the process by contacting your local SGS office. Our auditors can deploy personnel not only proficient in local languages but also well-versed in local customs, culture, and importantly, the national laws and regulations.

Guidance for audit preparation

When you book a SMETA audit with SGS Middle East, you will be provided with comprehensive guidance to prepare effectively for the audit.

SGS ensures that suppliers understand the audit activities and criteria thoroughly. You will receive clear instructions on the key personnel and documents that need to be available on the day of the audit.

SGS will also inform you of any specific circumstances that may need special attention during the audit, such as the confidentiality of sensitive data or the need for a translator.

Understanding additional requirements

It's important to note that end-customers may have supplementary requirements that they wish to add to the standard SMETA process. These might include specifications on audit duration, notification procedures, the way the report is to be circulated, etc.

Companies needing a SMETA audit are advised to contact their local SGS office to check if such special requirements apply to their audit.

By choosing SGS in UAE, Saudi Arabia, and other GCC countries for your SMETA audit, you benefit from our global network, local expertise, and comprehensive support throughout the audit process. This ensures that your audit is conducted efficiently, effectively, and aligned with global standards and specific customer requirements.

Key steps during a SMETA Audit

Assessment criteria: Evaluating the site against labor rights, health & safety, environment, and business ethics based on SMETA Best Practice Guidance.
Compliance with ETI code: Checking adherence to the Ethical Trading Initiative (ETI) Base Code, local laws, and regulations.
End-customer specific requirements: Incorporating any specific requirements from end-customers.
On-site evaluation: Conducting a thorough tour of employment facilities and workplaces to observe physical and working conditions.
Document review: Examining company documents and records such as timecards, payrolls, wage slips, and personnel files.
Employee interviews: Interviewing a cross-section of workers to understand their experiences and corroborate documentary evidence.

Frequently Asked Questions

No, SMETA audits can only take place on-site.

At the end of a SMETA audit, the auditor identifies positive and negative practices relative to SMETA and legislative standards. A comprehensive report is then prepared, adhering to SMETA best practices, to provide the audited company with insights into their operations.

This report not only ensures recognition by end-customers but also offers the company a chance for independent review and improvement, leveraging feedback from employee interviews for enhanced satisfaction and retention.

No, SMETA audits do not result in a certification. No compliance certificate is issued post-audit. Instead, the audit team provides two key documents to the site management: the SMETA Report, detailing all audit-related information, and the Corrective Action Plan Report (CAPR), listing audit findings and corrective actions. The CAPR serves as a record of improvements made by the site, including outcomes from any follow-up audits if required.

After a SMETA audit, the SMETA Report, Corrective Action Plan Report (CAPR), and audit findings are uploaded to the Sedex platform. However, these documents and information are only visible to selected end-customers based on the audited company's decision.

This approach facilitates the sharing of validated documents and information, reducing audit duplication, while maintaining control: the audited company retains full authority over access to the audit results, granting viewing rights to specific customers as it deems appropriate.

At SGS, we turn ethical compliance into a seamless journey, ensuring every link in your supply chain reflects the highest standards of social responsibility.

Reghu Nair, Social Accountability Auditor, SGS Gulf Limited

Need more information on SMETA or social accountability audits?

Our team of experts is ready to provide you with detailed guidance and support. To get in touch, simply fill out our contact form and we'll ensure your queries are addressed promptly and professionally.

This article has been written by:

SGS Gulf Limited

Reghu Nair

Social Accountability Auditor (UAE)

About SGS

We are SGS – the world's leading testing, inspection and certification company. We are recognized as the global benchmark for sustainability, quality and integrity. Our 99,600 employees operate a network of 2,600 offices and laboratories, working together to enable a better, safer and more interconnected world.

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