SEDEX Audit Requirement

The Sedex audit framework assessment, particularly, the SMETA (Sedex Member Ethical Trade Audit), and are most used framework. They are meant to assess the extent to which business organizations implement the ethical principles of carrying out business. These audits are done under various standards such as; the ILO conventions and local laws hence making the Sedex audit a very effective way of checkpoint in the supply chain.

Introduction to SEDEX and SMETA

A SEDEX audit assesses the ethical performance of businesses across key Sedex pillars:

Companies get SEDEX audits to confirm they are running their business ethically by local laws and internationally.

SMETA audits are valuable as such audits serve to show the buyers that the supplier has a serious approach to the issues under consideration. Any business seeking prospective partners among giant brands like Walmart, Tesco, and Amazon, in particular, passes through a Sedex audit. A Sedex audit ensures that the business organization has complied with the necessary ethical and social standards to attract buyers in the international market.

SEDEX 2 Pillar Audit VS Sedex 4 Pillar Audit

1. SEDEX 2-Pillar Audit

2. SEDEX 4-Pillar Audit

Core SEDEX Audit Requirements

The SEDEX audit requirements include four main categories that will guarantee a review of the entire business conduct of a certain firm.

1. Labor Standards

The most important aspect of the SEDEX audit is labor standards These criteria ensure that workers are treated fairly and humanely in compliance with local and international labor laws:

Fair Wages: Employers are required to dispense at least the minimum wages, allotted by the government and any records of wages should be legit. There is always a guarantee that wage practices meet legal and ethical requirements after a Sedex audit.
Working Hours: The Sedex audit checks whether the company observes the legal maximum on working hours for its employees so that the workers are not overworked.
Elimination of Child and Forced Labor: Businesses must assure all that they do not use child or forced labor. The Sedex audit concentrated on reviewing work practices to ascertain compliance with ILO standards and international legislation on work relations.
Freedom of Association: Employees must enjoy freedom of expression and collaboration as a team. The Sedex audit proves that all companies respect the rights of the workers accept the forming of workers’ unions and have no policy of revenge on those who engage in the formation of unions.
Non-Discrimination: Sedex audit checks on employment and remuneration policy against gender, race, nationality, age, and disability employment, promotion, or workplace opportunity.
Grievance Mechanisms: Employers need to avail strategies that will enable employees to raise their concerns discretely. From this, the Sedex audit determines if appropriate and safe grievance procedures are provided to the employees.

2. Health and Safety

A company’s commitment to creating a safe and healthy working environment is another key component of the SEDEX audit:

Risk Assessments: Companies are required to make frequent risk evaluations to establish possible risks with preventive measures taken recorded.
Workplace Safety: The Sedex audit questions if the company respects the occupational safety conventions such as the accessibility of the PPE or fire risk control measures, and the risk management plans.
Training Programs: All the employees should be trained in handling safety measures and disasters frequently, that is more often, especially within the construction and manufacturing industries.
Accident and Incident Reporting: There is reporting of accidents at the workplace and follow-up or Implementation of safety measures to avoid repetition of the mishap.
Facilities: SEDEX auditors also review whether the companies supply proper clean sanitary facilities as well as appropriate.

3. Environmental Standards

SEDEX audits place a significant emphasis on environmental sustainability, reflecting growing global concern over business environmental footprints:

Waste Management: Companies are evaluated on their ability to manage and dispose of waste responsibly, with emphasis on reducing, reusing, and recycling materials.
Resource Efficiency: SEDEX audits focus on the productivity dimension of resources such as water, energy, and material usage; hence, firms are disposed to adopt sustainable measures like energy saving and minimized water usage.
Pollution Control: Different pollution control measures ensure the protection of air, water as well as soil from pollution by different business entities. Transportation of dangerous goods and minimization of emissions are two core risk management points.
Carbon Footprint: Auditors can also look at the company’s general carbon footprint and prescribe ways through which the organization can reduce the levels of emissions and contribute towards the fight against climate change.

4. Business Ethics

Business ethics in a SEDEX audit examine how companies manage corruption risks, maintain transparency, and protect sensitive information:

Anti-Bribery and Corruption: It is required for companies to implement strict anti-corruption measures that interdict bribery and unethical giving in any form.
Transparent Governance: Auditors review governance structures to ensure transparency in decision-making, operations, and financial reporting.
Data Protection and Privacy: There are obligations required by international data protection laws that bear to business’s customer and employee data.
Carbon Footprint: Auditors can also look at the company’s general carbon footprint and prescribe ways through which the organization can reduce the levels of emissions and contribute towards the fight against climate change.
Whistleblower Protection: Managers and other authorities in the companies should give special protection to whistleblowers who are involved in reporting such unethical practices in organizations so that employees who work in the organizations can forward their concerns of unethical practices to the authorities without fearing for their job.

SEDEX Audit Process

Business ethics in a SEDEX audit examine how companies manage corruption risks, maintain transparency, and protect sensitive information:

1. Pre-Audit Preparation

Complete the pre-audit pack, which guides you through conducting the audit and includes the Self-Assessment Questionnaire (SAQ):

Providing certain basic information on labor, health and safety, environment and business, and ethics.
Various forms of supporting documents must be uploaded.
Upload relevant supporting documents.
The questionnaire length varies based on company size and operations.
There's no minimum number of questions for a risk score.
SEDEX recommends updating the SAQ every 6 months.

2. On-Site Visit

The audit includes an on-site visit where auditors conduct:

Interviews with workers and management to check that the company's practices match its documented policies.
Facility Inspections to assess workplace conditions, including cleanliness, safety, and environmental controls.
Document Reviews to confirm compliance with labor laws, environmental regulations, and business ethics.

3. Audit Report

After the on-site visit, auditors compile a detailed report that highlights areas of compliance and non-conformance. The report is shared with the company and uploaded to the SEDEX platform, where it is accessible to stakeholders and customers.

Corrective Actions and Continuous Improvement

One of the central elements of the SEDEX audit is the focus on continuous improvement. In case of any non-conformities, the companies are allowed to develop a Corrective Action Plan (CAP). This plan details the steps necessary to resolve the issues raised in the audit, such as:

Follow-up audits may be scheduled to ensure that corrective actions have been successfully implemented.

Documentation and Evidence Required for SEDEX Audits

To successfully pass a SEDEX Standard, companies must provide a wide range of documentation, including:

Registers of contracts of employment, wage payments, employee, and working hours.
Risk assessments and health and safety procedures
Environmental impact reports and waste management systems
Business ethics policies (e.g., anti-bribery, whistleblower protection).

Frequency of Audits

The frequency of SEDEX audits varies based on the company’s risk level:

SEDEX Audit and Registration

In addition to the fact that SEDEX audits, companies are also required pass through SEDEX registration. This stage includes signing up at SEDEX and filling the Self-Assessment Questionnaire (SAQ). The SAQ that is presented in the context aims at helping companies to assess their existing preparedness for the audit and offer auditors quantitative information prior to the assessment.

To stay at the top of the market, businesses are increasingly choosing for SEDEX compliance audits as part of their corporate responsibility strategy. Moreover, companies who wish to become suppliers to international business entities get the opportunity to contract for SEDEX ethical compliance certification consultancy services that can assist them in the course.

Why Choose Legal4sure?

SEDEX Audit Requirement expertise in Walmart, Flipkart, Amazon, Adani, and many more Legal4sure is here to help you with Sedex Audit.
Comprehensive support, starting with preparation for the audit before the auditor’s arrival, during the audit, and after the audit, when remedial control actions are planned and implemented.
Proven track record of helping businesses achieve SEDEX Audit Requirement smoothly and efficiently.

Are you willing to improve your company’s ethical compliance and open new markets for yourself? Apply for SEDEX Audit Requirement with Legal4sure now and see the transformation. We offer detailed SEDEX audit to guide you through every step of the certification process, from pre-audit consultation to corrective actions.

Contact Legal4sure today for a free consultation to take the first step toward Sedex Audit for Your Business!

Ready to Improve Your Business’s Ethical Compliance?

To gain greater supply chain transparency and credibility through SEDEX, you need to get an audit. Make your company adhere to ethical policies on labour, safety, and environment. Call us now and book your appointment and take the first step towards SEDEX Audit.