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SMETA stands for Sedex Members Ethical Trade Audit. It is a social auditing methodology used to assess ethical and responsible practices in supply chains. SMETA is designed to help businesses manage ethical standards throughout their supply chains by providing a standardized approach to auditing and reporting on labor rights, health and safety, environmental, and business ethics issues.
The SMETA audit is conducted by a third-party auditor and covers four main areas: labor standards, health and safety, environment, and business ethics. The audit includes an evaluation of the supplier's management systems and policies, as well as an assessment of their implementation in practice.
It is widely recognized and accepted by many multinational companies as a credible and reliable means of assessing and monitoring ethical standards in their supply chains. By complying with SMETA requirements, suppliers can demonstrate their commitment to ethical business practices and improve their reputation among customers and other stakeholders.
A SMETA audit assesses a supplier's ethical and responsible practices in four main areas: labor standards, health and safety, environment, and business ethics. Here are the key components of each area:
During the audit process, the auditor will review documentation, conduct interviews with management and employees, and carry out on-site observations to verify compliance with the above areas. The audit results in a report that identifies areas of non-compliance and makes recommendations for improvement.
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