As customers and markets grow globally, ethical actions and clarity are even more important now. For companies, who want to achieve and maintain a high level of ethical standards and expand globally, SEDEX audit is the perfect solution. SEDEX offers a structure to analyze ethical practices across your supply chain and is available in two types: Sedex 2-pillar and Sedex 4-pillar audits.
The difference between the two is the depth and area of focus of the audits. This can significantly impact your business. Let’s break it down and get deeper into it for more in-depth insights to understand better.
What is a SEDEX Audit?
A Sedex audit, a type of social audit, helps businesses improve their ethical practices and supply chain processes. It is a method of social auditing that includes SEDEX’s four pillars which are; labor, health and safety, environment, and business ethics.
By undergoing Sedex social audit companies can show that they are dedicated to ethical practices with legal standards. These audits are important for businesses wanting to establish trust with their stakeholders and maintain a competitive edge in global markets.
Sedex Certification Offers two pillars of audit
Why Sedex Certification Matters?
Sedex certification proves a business follows fair and ethical practices. It builds trust with customers, partners, and suppliers by focusing on safe working conditions, fair practices, and caring for the environment. This helps businesses grow and stand out in the market.
Note: Check out our blog for complete information about how Sedex Certification is Required For Amazon, Flipkart, Walmart & Export House.
Types of Sedex Audits
1. SEDEX 2-Pillar Audit
It focuses on two core areas:
➔ Labour Standards: The main objective of the Sedex 2-Pillar Audit is to protect the rules and regulations of working, working environment, working hours, remuneration and wages, contracts of employment, employment discrimination, use of child labor, use of forced labor, and other related matters.
➔ Health and Safety: The workplace environment to prevent accidents and ensure worker well-being. Working environment and safety equipment, firefighting equipment, and health care. The auditor will observe the business’s performance.
Key Advantages of SEDEX 2-Pillar
➔ Focus on core issues like the quality of civil employee lives and their safety.
➔ Cost Effective: Compared to the 4-Pillar audit, it tends to be less expensive.
➔ The entire process is so simplified.
2. SEDEX 4-Pillar Audit
The Sedex 4 Pillar Audit builds upon the 2 Pillar Audit and includes two additional areas:
➔ Environment: Analyse the company’s environmental impact, including waste management, energy use, and carbon footprint.
➔ Business Ethics: Checks practices like preventing corruption, clear management, fair trade practices, and following legal rules.
Advantages of SEDEX 4-Pillar
- Detail Review: This offers a detailed analysis of all the important ethical and environmental factors.
- Boosted Trust: It ensures ethical practices, and this may be good for companies who want to build image.
- Stand-Out Advantage: Extending the firm’s dedication to various ethical issues helps the firm to be unique in the market.
Feature of Sedex 4 Pillar Audit
| Feature | Sedex 4 Pillar Audit |
| Scope | Labor Standards, Health & Safety, Environment, Business Ethics |
| Focus | Detail evaluation of sustainability and governance |
| Complexity | A more detailed, longer process |
| Best For | Large businesses with complex supply chains |
Case Studies: Real-World Examples
Case Study 1: A Small Garment Manufacturer (Sedex 2 Pillar Audit)
A garment factory with 100 workers wanted to improve its ethical practices. They started with the Sedex 2-Pillar Audit.
➔ Outcome:
- Improved workplace safety measures.
- Ensured all employees received fair wages.
- Gained trust from international buyers, leading to a 15% increase in orders.
Case Study 2: A Multinational Electronics Company (Sedex 4 Pillar Audit)
A global electronics brand wanted to improve its sustainability efforts. They chose the Sedex 4-Pillar Audit to meet their CSR goals.
➔ Outcome:
- Cut carbon emissions by 20% with energy-saving processes.
- Provided anti-corruption training for all employees.
- Built lasting partnerships with environmentally conscious clients.
Choosing the Right Audit: Sedex 2-Pillar and Sedex 4-Pillar
➔ Business Size and Scope: Some companies just starting with ethical compliance might find the 2-Pillar audit enough for their needs. However, larger companies or those with complex operations may benefit more from the 4-Pillar audit, as it covers a wider range of areas.
➔ Customer Requirements: Certain customers or markets may need the Sedex 4-Pillar audit to obtain specific ethical or environmental requirements.
➔ Available Support: Check if your company is ready for the Sedex 4-Pillar audit and whether it can meet the extra time, cost, and other requirements.
Why Choose Sedex Certification?
Whether you opt for a Sedex 2 Pillar Audit or a Sedex 4 Pillar Audit, the importance of sedex certifications are:
- Boosts Credibility: Demonstrates ethical and sustainable practices.
- Opens Opportunities: Builds trust with clients and suppliers globally.
- Drives Improvement: Helps identify and rectify compliance gaps.
Note: To get the complete details about the importance of Sedex certification you can visit our blog.
How Legal4sure Works as a Sedex Consultant
Legal4sure, the top Sedex Consultant offers end-to-end consultancy services to help businesses complete Sedex 2 Pillar and Sedex 4 Pillar audits. Our turnkey solutions provide a smooth process, from factory gap assessments to CAPR closure.
- Gap Analysis & Documentation Support
- Audit Preparation & Training
- SMETA Audit Support
Key features of Legal4sure as Sedex Consultant
- Expertise in Both 2 Pillar and 4 Pillar Audits
- Turnkey Solutions
- Customizable Approach
- Compliance with Global Standards
- Training and Development
Steps for Acquiring Sedex SMETA Certification
There are various steps through which legal4sure ensures that the suppliers easily achieve the Sedex certification with complete documentation and verification. These steps are as follows:
- Initial Consultation and Gap Assessment
- Document Fulfillment and Preparation
- Sedex Training for Employees and Management
- Implementation of Sedex Compliance Measures
- Pre-Audit Readiness Check
- Coordinating the Sedex Audit
- Audit Closure and CAPR Management
Note: For more in-depth information about the step-by-step process to achieve SEDEX certification
Conclusion
Both the SEDEX Audit 2-Pillar and the SEDEX Audit 4-Pillar provide a detailed overview of various ethical practices; however, these two tools are developed to meet different requirements and have different scopes. The Sedex 2-Pillar audit offers a smooth approach to assessing labor and safety measures and the Sedex 4-Pillar audit includes a broader examination of the company’s environment as well as business conduct.
Choosing Legal4sure Means
- Time Efficiency
- Cost-Effective Solutions
- Improved Reputation
- Sustainable Practices
Secure your Sedex Certification from our experienced team of skilled consultants and auditors. Contact Us at +91 9310655040 now to get started!
Queries Sedex 2 Pillar Audit And Sedex 4 Pillar Audit
➔ Why should I choose a Sedex 2 Pillar Audit instead of a 4 Pillar Audit?
Ans. If your business has just recently started dealing with issues of ethical compliance or has a relatively simple supply chain, then a Sedex 2 Pillar Audit should be adequate. It works on the principles and the best thing about it is cost effective.
➔ Is Sedex certification mandatory?
Ans. While not necessarily mandatory, obtaining a Sedex certification increases your brand reputation, and marketability in the retail, manufacturing, and agriculture sectors, etc.
➔ How does a Sedex 4 Pillar Audit help my business?
Ans. Sedex 4 Pillar Audit enhances ethical efficiency showing stakeholders environmental and social responsibility with comprehensive ethical practices.
➔ What’s the cost difference between the two Sedex audits?
Ans. The Sedex 4 Pillar Audit is more detailed and requires additional resources, making it costlier than the Sedex 2 Pillar Audit. However, the benefits often outweigh the cost of Sedex certification.
➔ How do I prepare for a Sedex audit?
Ans.
- Conduct internal assessments.
- Train employees on ethical practices.
- Implement necessary health, safety, and environmental measures.