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What is Social Compliance Audit?

A social compliance audit, also known as an ethical audit, is an inspection of an external production house, factory, farm, or packaging facility to verify whether the operation complies with social and ethical responsibilities, health and safety regulations, and labor laws.

What is the importance of Social Compliance Audit?

Social compliance auditing is practiced mainly by manufacturers, to maintain oversight of the social practices of their supply chain, including maintaining company-established codes of conduct regarding purchasing and following local labour, health, and safety laws.

Why do Large Brands Need Social Compliance Audits?

The ability to demonstrate or prove that your organization is serious about corporate social responsibility (CSR) which is essential for large brands.

What is an audit?

Systematic, independent and documented process for obtaining evidence and the respective objective assessment, to determine the extent to which audit criteria are fulfilled.

How are Social Audit conducted?

Social audit is a way of measuring, understanding, reporting and ultimately improving an organization’s social and ethical performance.  Social audit is conducted based in local labor, CoC/standard, health and safety laws.

What issues will result in a failed Audit for Social Compliance?

A failed audit means that unacceptable conditions have been discovered at the factory. These can be conditions that are considered illegal in the eyes of the local authorities and/or immoral in the eyes of your consumer market.

What should be included in a Social Compliance Audit?
  • Environmental impact resulting from the company's operations.
  • Transparency in reporting any issues regarding the effect on the public or environment.
  • Accounting and financial transparency.
  • Community development and financial contributions.
  • Charitable giving.
  • Volunteer activity of employees.
What is the purpose of social compliance?

Social compliance is the steps and measures a company takes to ensure the safety, equality, and fair treatment of its employees, as well as the working conditions and awareness of the environment

What Is the Goal of a Social Compliance Audit?

Facility audit serves to verify and document that a facility is complying with prescribed standards of employee safety, health, freedom of movement, and correct pay along with local regulations and laws. As part of a long-term auditing program, audits verify that facilities are on a path to continuous improvement in working conditions. Audits may identify opportunities for improvement in the following areas:

  • Underage labor
  • Collective bargaining
  • Discrimination
  • Document review
  • Dormitories
  • Environment
What is a social compliance management system?

A SMS is the set of policies, processes, and procedures that allow a business to manage its social performance on a continuous basis in order to track improvements.