April 01, 2024
In today's world, where supply chain transparency, ethical practices and accountability are paramount, social audits have become increasingly important.
But what exactly are they, and why do they matter? Authored and approved by SGS authorized auditors with over 17 years of experience in social audits, this article aims to demystify this complex topic.
We break it down into simpler terms, making it accessible even to those without a technical background, ensuring you understand the crucial role of social audits in promoting transparency and ethical conduct.
What is a Social Audit?
Imagine a financial audit but instead of scrutinizing numbers, a social audit examines an organization's impact on society, especially its own employees, and its commitment to ethical practices including the stakeholders. It delves into areas like labor conditions, human rights, health & Safety, environmental sustainability, community engagement, and more. Think of it as a comprehensive assessment of the social responsibility of a company, government agency, or even an NGO.
What's the Aim of Social Audits?
Social audits strive to achieve several key objectives:
- Transparency and Accountability: They ensure openness and responsible behavior by uncovering and addressing any inconsistencies between an organization's claims and its actual practices.
- Continuous Improvement: By highlighting areas where the organization falls short, social audits pave the way for positive change and improvement in social performance.
- Stakeholder Engagement: They provide a platform for incorporating the voices of stakeholders like employees, communities, and governments into decision-making processes.
- Enhanced Reputation: Demonstrating commitment to social responsibility through successful audits can boost an organization's reputation and attract more responsible investors and customers.
Who Benefits from Social Audits?
Social audits aren't just for show; they bring tangible benefits to various industries and entities:
- Manufacturing & Supply Chains: Companies involved in manufacturing and complex supply chains use social audits to ensure ethical labor practices throughout their operations and avoid reputational risks.
- Retail & Consumer Goods: Consumers increasingly demand ethically sourced products, and social audits help retailers demonstrate responsible sourcing practices.
- Financial Services & Investments: Responsible investors often consider social responsibility alongside financial performance, making social audits crucial for attracting such investments.
- Government & Public Services: Social audits ensure transparency and accountability in government programs and service delivery, leading to better social outcomes.
- Non-Profit Organizations: Social audits help NGOs demonstrate the effectiveness of their programs and their commitment to ethical fundraising and operations.;
SGS Social Audit Expertise in the UAE and other GCC Countries
SGS, a leading certification company, offers comprehensive social audit solutions in the UAE and across the GCC region. Our experienced auditors combine international expertise with local knowledge to ensure your social audit is rigorous, reliable, and tailored to your specific needs.
Common Abbreviations in Social Audits:
Navigating the world of social audits can be confusing, especially with all the abbreviations thrown around. Here's a simplified table of the top commonly used abbreviations to help you decipher the jargon.
List of Social Audit Standards resulting in an Audit Report (No certificate issued)
| No. | Abbreviation | Meaning | Explanation |
| 1 | SMETA | Sedex Members Ethical Trade Audit | The world’s most widely used social audit format. Businesses use SMETA to understand and make improvements to working conditions and environmental performance in their business and supply chain. |
| 2 | ICS | Initiative Clause Sociale | An international sectoral initiative with the aim to enhance working conditions along global supply chains of its members, retailers and brands. |
| 3 | RBA | Responsible Business Alliance | The world's largest industry coalition dedicated to responsible business conduct in global supply chains. |
| 4 | SLCP | Social and Labour convergence Program | It provides the tools to capture accurate data about working conditions in global supply chains. This multi-stakeholder initiative replaces the need for repetitive social audits by facilitating data sharing. |
| 5 | BSCI | Business Social Compliance Initiative | Set of labor standards adopted by the BSCI assessing social compliance in the supply chains. |
List of Social Audit Standards resulting in a Certificate
| No. | Abbreviation | Meaning | Explanation |
| 1 | ITEP | ICTI Ethical Toy Program | ICTI Ethical Toy Program certification requires factories to uphold the following standards to support the rights and well-being of factory workers. |
| 2 | SA8000 | Social Accountability Standard SA8000 | The SA8000 Standard and certification system provide a framework for organizations of all types, in any industry, and in any country to conduct business in a way that is fair and decent for workers and to demonstrate their adherence to the highest social standards. |
| 3 | WRAP | Worldwide Responsible Accredited Production Certification | Achieving a WRAP certification is a collaborative approach, working with facilities to ensure they remain in compliance with WRAP 12 Principles. |
| 4 | RJC | Responsible Jewellery Council | The world’s leading sustainability standard setting organization for the jewelry and watch industry. The RJC certification programs are RJC Code of Practices 2019 (COP), RJC Chain of Custody 2017 (COC). |
| 5 | FSSC24000 | Food Safety System Certification – Social Management System | The audit and certification scheme for social management systems that aligns with the ISO Management System approach and the ISO Harmonized Structure. |
Most Common Social Audit Terms and Abbreviations
| No. | Abbreviation | Meaning | Explanation |
| 1 | Announced Audit | An audit where audit date is agreed with / or disclosed to the audited site in advance. | |
| 2 | CAP | Corrective Action Plan | A plan outlining how an organization shall address the root cause of the identified non-compliance / non-conformity. |
| 3 | EHS | Environment, Health and Safety | Aspects that are often in focus of social standards. |
| 4 | ESG | Environmental, Social, and Governance | Framework for assessing sustainability-related topics. |
| 5 | ETI | Ethical Trading Initiative | ETI was created in 1998 by a small group of visionaries who believed in the power of collective action to make a difference to the lives of workers in companies' supply chains. |
| 6 | FLA | Fair Labor Association | FLA has worked for more than 20 years toward a future where responsible business means that fair working conditions are the standard, not the exception. |
| 7 | GDPR | General Data Protection Regulation | PASS |
| 8 | ICTI | The International Council of Toy Industries | Established in 1975, the International Council of Toy Industries (ICTI) is a not-for-profit membership organization of the worldwide toy, play, games, and youth entertainment industry. Its membership is comprised of established national toy associations from roughly 20 countries; each national association has own membership made up of brands operating within its geography. |
| 9 | ILO | International Labour Organization | ILO is devoted to promoting social justice and internationally recognized human and labour rights, pursuing its founding mission that social justice is essential to universal and lasting peace. |
| 10 | KPI | Key Performance Indicator | Measurable metrics to track progress of Individual’s as well as organization’s objectives and target. |
| 11 | NC | Noncompliance/Non-conformance | Non-fulfilment of a standard / statutory requirement. |
| 12 | OECD | The organization for Economic Co-operation and Development | OECD is an international organisation that works to build better policies for better lives. Our goal is to shape policies that foster prosperity, equality, opportunity and well-being for all. We draw on 60 years of experience and insights to better prepare the world of tomorrow. |
| 13 | OHSAS | Occupational Health and Safety Assessment Standard | Internationally recognized standard for occupational health and safety management system. The OHSAS 18001 has been replaced by ISO 45001 in 2018. |
| 14 | SAC | Sustainable Apparel Coalition / Cascale | Formerly known as the Sustainable Apparel Coalition. Cascale brings together 300 leading apparel, footwear, and textile brands, retailers, manufacturers, sourcing agents, service providers, trade associations, NGOs, and academic institutions – all working toward a shared vision of an industry that gives back more than it takes to the planet and its people. |
| 15 | SAI | Social Accountability International | Founded in 1997, Social Accountability International (SAI) is a global non-governmental organization advancing human rights at work. SAI’s vision is of decent work everywhere - sustained by an understanding that socially responsible workplaces benefit business while securing fundamental human rights. |
| 16 | SAQ | Self-Assessment Questionnaire | Document used by organizations to provide initial information about their social practices. |
| 17 | Sedex | Supplier Ethical Data Exchange | Sedex’ mission is to supply data-driven insights, tools, and services to help companies continuously improve environmental, social, and governance (ESG) outcomes. |
| 18 | Semi - announced Audit | An audit where the audit date(s) shall fall within a disclosed window period. | |
| 19 | SMETA 2 - Pillar Audit | SMETA audit covering
| Labour Standards, Health and Safety and additional elements such as Universal Right covering UNGP, Management Systems, Entitlement to work, Subcontracting and Home Working and Environment (shortened). |
| 20 | SMETA 4 - Pillar Audit | SMETA 2 Pillar audit requirement
| SMETA 2 Pillar audit requirement plus Environment (extended) and Business Ethics. |
| 21 | Unannounced Audit | An audit where no prior notice is given for the audit date(s). | |
| 22 | UDHR | Universal Declaration of Human Rights | The Universal Declaration of Human Rights (UDHR) is a milestone document in the history of human rights. Drafted by representatives with different legal and cultural backgrounds from all regions of the world, it set out, for the first time, fundamental human rights to be universally protected. |
| 23 | UN | United Nations | The United Nations is an international organization founded in 1945. Currently made up of 193 Member States, the UN and its work are guided by the purposes and principles contained in its founding Charter. |
| 24 | UNGC | United Nations Global Compact | A corporate sustainability initiative for companies to align strategies and operations with universal principles on human rights, labour, environmental and anti-corruption, and take action that advance societal goals. |
| 25 | UNGP | United Nations Guiding Principles on Business and Human Rights | UNGP defines global standards for preventing and addressing the risk of adverse impacts on human rights linked to business activity. |
SGS Social Audits in UAE and GCC Countries
Elevate your social responsibility in the UAE and GCC with SGS's comprehensive social audit solutions. Our deep expertise and global network ensure the highest quality assessments, tailored to your business needs.
We help you:- Instill trust in customers and stakeholders
- Prepare to meet industry and customer requirements
- Benefit from a large pool of auditors, located in key production hubs
- Meet a vast variety of customer requirements through numerous scheme approvals
About SGS
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