Ethical Audit: the SCP Inc., has a team of qualified auditors and sector experts covering United States and most of Asian countries to carry out audits, run workshops, engage with workers, and assist factories.
They are all Advance SA8000 qualified and have a vast combined Ethical Audit experience of both factory management and also workers’ social welfare. They offer a wealth of experience in improving factory conditions and see auditing as an opportunity to help factories understand required standards and how to achieve them.
We are working with the supply chains of major brands such as Wal-Mart, Liz Claiborne and T.S.I. We are able to carry out audits for other big retailers or directly for suppliers, for a variety of standards and codes, including SA8000, WRAP, ETI Base Code and SMETA. For SEDEX members, we can upload audit results onto the SEDEX system as per available provision.
SCP has auditing facilities throughout Europe, China, India and Bangladesh.
Six steps to be considered for effective Ethical Audits:
Start with a detailed foundation. An ethical audit is a comparison between actual employee behavior and the guidance for employee behavior provided in policies and procedures. The more descriptive and specific ethics-related policies and procedures are, the easier it is to make these comparisons.
Develop metrics. Ethical audits may not be as black-and-white as financial or operational audits, but they run more smoothly when tangible ethics measures are in place. Consider adding ethics goals to annual performance reviews and, where possible, tying compensation to ethical behavior.
Create a cross-functional team. Include an HR professional familiar with people in the business unit being audited. Most ethics audit teams include an ethics and compliance manager where possible as well as an internal auditor and legal managers.
Audit efficiently. Audits frequently disrupt normal operations in business areas subjected to review. Before scheduling an audit, find out if internal auditors or the finance team may be conducting reviews of the same area. If so, combine these efforts to limit disruptions. Once the audit has been scheduled, create a plan that spells out employees to be interviewed, information that requires review and any processes that require observation.
Look for other issues. Keep an eye out for other improvement opportunities, and share those with relevant colleagues. For example, ethics issues in a sales area may have revenue-recognition implications from a financial reporting perspective.