Social Compliance Collaborative Program Efforts – an expanding element of the audit landscape in 2020 and beyond
While supply chain social compliance and related audit efforts have been around for well over 20 years, changes in relationships and the need to find efficiencies while understanding risk has caused many companies to take an expanded view of the types of information that can be used to support business decision making. Companies are being challenged to understand and make decisions related to nodes deeper into the supply chain – effectively expanding the number of facilities to be considered within the scope of their social compliance program efforts.
One of the most important tools to help reduce duplicative efforts, while expanding the population of factories and obtaining quality, reliable information on working conditions, is multi-stakeholder collaborative program efforts. Formal collaborative program efforts, including amfori (formerly Business Social Compliance Initiative, BSCI), Initiative for Compliance and Sustainability (ICS), SEDEX Members Ethical Trade Audit (SMETA), Social Labor Convergence Program (SLCP), and Worldwide Responsible Accredited Production (WRAP) provide a well-defined program parameters and allow multiple buyers and potential buyers to leverage the measurement efforts to support business decision making.
amfori (formerly BSCI)
amfori, the Belgium-based successor to the Fair Trade Association, is the global member-driven organization responsible for the amfori BSCI program. Through a standard evaluation and reporting protocol based on 11 Principles and consideration of 13 Performance Areas, amfori members can evaluate the performance of current and potential suppliers. Audit results, which are subject to a rating system, are made available to members through a technology platform. Generally, members are only allowed to access results based on approved access from the Responsible Holder (RSP) – which is presumably limited to existing and considered relationships. amfori audit efforts are executed through approved audit companies which are subject to an accreditation process. Beyond the audit effort, amfori also facilitates a range of social and environmental performance measurement and improvement efforts.
ICS (Initiative for Compliance and Sustainability)
Formed in 1998 by the Fédération Française du Commerce et de la Distribution (FCD), ICS is a France-based member organization comprised of brands and retailers. The ICS program efforts are based on a framework defined by the International Labour Organization (ILO) conventions, the universal human rights principles and applicable local regulations. ICS utilizes a common methodology and tools to facilitate social audits through ICS-accredited audit companies. ICS audits result in a graded evaluation – which is used by members to engage factories to complete appropriate corrective actions. In addition to social compliance efforts, ICS has a robust, parallel supply chain environmental sustainability effort.
SMETA (SEDEX Members Ethical Trade Audit)
The SMETA audit protocol is the standard for inclusion in the Supplier Ethical Data Exchange (SEDEX). A member-based organization, SEDEX provides an array of services including the technology platform for members to share audit results and facilitate collaboration. SMETA provides a standard audit and reporting protocol to consider Labour; and Health and Safety (2 Pillars) and Labour; Health and Safety; Environment; and Business Ethics (4 Pillar). SMETA Audits are performed by SEDEX Affiliated Audit Companies (AACs) and can be executed on behalf of both members and non-members. SMETA audits result in a graded evaluation – which is used to complete appropriate corrective actions through the platform based on guidelines for follow-up/remediation actions. Beyond the technology platform, SEDEX provides a variety of training; data analysis and continuous improvement solutions.
SLCP (Social Labor Convergence Program)
Initiated from the Sustainable Apparel Coalition, SLCP is driven by the signatories – companies that publicly support the objectives of the program. The SLCP created and launched the Converged Assessment Framework (CAF). It is a descriptive tool which is not aligned with any single standard and includes a verification methodology to collect relevant and essential data with the intent to objectively assess social and labor conditions and effectively eliminate duplicative audit efforts. Generally speaking, under the SLCP program, facilities complete a self-assessment which is subject to verification of selected elements based on the priorities of requesting party – whether brand or retailer. SLCP verifications are executed by approved Verification Bodies and qualified Verifiers.
WRAP (Worldwide Responsible Accredited Production)
As a certification program, WRAP provides a certificate to factories that meet standards outlined in the 12 WRAP principles. While there is an audit/measurement effort associated with the program – which in some respects is more rigorous than the evaluation under some other efforts focused on reporting results – WRAP does not issue reports beyond the certificate that is granted upon successful attainment of program requirements. WRAP audit/measurement efforts are executed through approved audit bodies – who are subject to an accreditation process.
Depending on the priorities and preferences of a company, collaborative efforts such as those outlined above can provide a mechanism to leverage efforts – and increase program efficiency and scope. As noted in the recent paper entitled Symphonization: The True Path to Harmonious Supply Chain Social Compliance Management – Avedis Seferian President & CEO of WRAP and Chairman of the Executive Board of the Association of Professional Social Compliance Auditors (APSCA) advocated for new paradigm for social compliance audits based on a menu of independent credible efforts such as those outlined above. In a world of limited resources and expanding expectations – there is certainly opportunity to create that new, more harmonic environment.
The Eurofins Consumer Product Assurance network of companies is an approved/accredited service provider under all of the programs introduced above. We can support the efforts of both buyers and factories to meet program requirements for audits and reporting, and help buyers developing their audit programs to best match their goals. Learn more about our factory audit services.
