SEDEX factory inspection

一、SEDEX audit checklist and the role of approval

Sedex is an abbreviation for Supplier Ethical Data Exchange. Background: SEDEX is a non-profit organization headquartered in London, UK, where companies from anywhere in the world can apply for membership. SEDEX has gained the favor of many large retailers and producers, and many retailers, supermarkets, brand owners, suppliers, and other organizations require farms, factories, and manufacturers to participate in the SEDEX Member Ethical Business Audit (SMETA) to ensure that their operations comply with relevant ethical standards. The audit results can be recognized by all SEDEX members and shared by them, So accepting SEDEX factory inspection by suppliers can save a lot of repeated audits from customers.

Supporting buyers: Most are British retailers such as Tesco Tesco, John Lewis, Marks and Spencer Martha, Sainsbury s, The Body Shop, Waitrose, and more.

Sedex is a network database used to help companies store labor code information within their business scope, and their customers can also share this information. Nowadays, Sedex has gained the favor of many large retailers and manufacturers, including Co op, Geest, Grampian Foods, HallmarkCards... Sainsbury and Tesco.

Scope of application: All industries.

SEDEX Membership Guidelines

Sedex is a membership organization where each member agrees to abide by common principles.

The key points of the guidelines are as follows:

1) All members agree to work hard to achieve their vision;

2) Members must treat the information downloaded from the website as confidential information;

3) All members can apply for election to join the board of directors or join working groups;

4) Each company can only input data for use in the workshops they own;

5) All members promise to wholeheartedly provide data to the Sedex system and regularly update it;

6) All members can use the corresponding functions of the Sedex system based on their membership type;

7) Members will be able to use and evaluate data, but the sole purpose can only be to evaluate compliance with their labor standards and other ethical standards.

Sedex Factory Audit Document List

1.1 Company Insights - Personnel Output Value Brand Market Distribution

1.2 Company Organizational Structure

1.3 Company Plan

1.4 Supplier Review Records

1.5 Business License

2.1 Employee Handbook

2.2 Records of Factory Discipline, Regulations, Rewards and Punishments

2.3 Dormitory Rules and Regulations

3.1 Recruitment Procedure

3.2 Personnel Records Employee Registration Form (All Employees)

3.3 Labor Contract

3.4 Medical examination records

3.5 Registration Certificate and Work Arrangement for Underage Workers

3.6 Comprehensive Time (Overtime) Approval

3.7 Payment record vouchers for social security (work-related injury pension medical insurance) and other expenses

3.8 Leave Application Form

3.9 Resignation Records

3.10 Warning Form

4.1 Work Card/Attendance Form

4.2 Piecework production (machine shift) records

4.3 Local minimum wage documents

4.4 Salary Table (One Year)

4.5 Salary slip with worker signature

4.6 Record of salary deductions/fines

5.1 Factory building structure safety qualification

5.2 Factory Fire Safety Certificate

6.1 Company's Health and Safety Policy

6.2 (Fire and Health) Safety Director Qualification Certificate (Appointment Letter Training Completion Certificate)

6.3 Fire Safety Certificate/First Aid Personnel Qualification Certificate

6.4 Fire drills/fire escape procedures/first aid plans and records

7.1 Elevator lifting equipment registration permit/acceptance/annual inspection certificate

7.2 Qualification Certificate for Special Operations Personnel (Elevator Crane Electrician Korean Worker)

7.3 Equipment Maintenance Technician Qualification Certificate

7.4 Boiler and Pressure Vessel Use Registration Certificate/Annual Inspection Certificate

7.5 Fireman's Work Permit

8.1 Hazardous Chemicals Permit/Storage Empty Record/Safety Emergency Measures/Safety Data Sheet

8.2 Certificate of on-the-job training for chemical hazardous material warehouse management personnel

8.3 Workshop Toxic and Harmful Work Environment Inspection Report

8.4 Generator Room Noise Test Report

8.5 Pollutant Discharge Permit/Environmental Testing Report

9.1 Canteen Hygiene Permit and Canteen Employee Health Certificate

9.2 Medical Personnel Qualification Certificate

9.3 Work injury medical accident handling records/corrective and preventive measures

9.4 Regular pest control records

10. Security Code Regulations and Work Permit

11. Minutes of Trade Union Organization Meetings/Procedures and Responsibilities of Trade Union Representatives

Benefits of factory inspection through Sedex

(1) Establishing a management system that meets international requirements can gain international recognition and increase the ability to compete head-on with well-known brands

(2) Encourage consumers to establish positive emotions towards the product;

(3) Stabilize cooperation with buyers and expand new markets, laying a solid foundation for long-term development;

(4) Enhance management systems, improve relationships with employees, and thereby increase productivity and profits;

(5) Minimize potential business risks such as work-related injuries or fatalities, legal proceedings, or lost orders;

(6) Developing new markets and customers: socially responsible companies will stand out from competitors;

 二、SMETA Sedex Member Supplier Ethical Trade Review Guidelines

0: Implementation of management systems and guidelines

0.1 Expect suppliers to implement and maintain a management system to meet the requirements of the guidelines. Suppliers are expected to meet the requirements of this guideline and sustainably maintain their management systems to comply with it.

0.2 Suppliers should designate a senior management personnel responsible for system operation to ensure compliance with the code requirements. Suppliers need to designate a senior management representative to be responsible for compliance with this guideline.

0.3 Communicate the guidelines to all employees and their suppliers. Suppliers are expected to introduce and communicate this guideline with all employees.

0.4 If feasible, suppliers should extend this guideline to their supply chain. Suppliers need to communicate this guideline with all suppliers to ensure compliance throughout the entire supply chain.

1. Free choice of employment relationship

1.1 Forced labor, imprisoned labor, and involuntary prison labor cannot be used.

1.2 Workers should not be required to pay a mortgage or hand over their identity documents to the employer. After giving reasonable advance notice, workers are free to leave their employer.

2. Respect for freedom of association and the right to collective bargaining

2.1 All workers without exception have the right to join or form trade unions of their own choice and the right to engage in collective bargaining.

2.2 Employers should adopt an open attitude towards the behavior of trade unions and their organizational activities.

2.3 Employees' representatives cannot be discriminated against, as they have access to perform their functions as employee representatives in the workplace.

2.4 In cases where the right to freedom of association and collective bargaining is restricted by law, employers promote rather than hinder the establishment of independent and free forms of association and bargaining.

3. Safe and hygienic working conditions

3.1 Provide a safe and hygienic working environment, taking into account the general knowledge of the industry and any special hazards. Appropriate measures should be taken to prevent the occurrence of various accidents and health damage incidents caused by, related to, or occurring at work. Minimize the various inherent hazards in the work environment as much as possible and practical.

3.2 Workers should receive regular and documented health and safety training, which should be repeated for new or changed workers.

3.3 Clean toilet facilities and drinking water should be provided for workers, and if possible, sanitary equipment for storing food should also be provided.

3.4 The accommodation conditions provided should ensure cleanliness, safety, and meet the basic needs of workers.

3.5 Companies that comply with this Code should designate a senior management representative responsible for health and safety.

4. Do not use child labor

4.1 No New Recruitment of Child Workers

4.2 The company shall formulate or participate in and promote policies and projects to ensure that any child found to be used as a child laborer receives high-quality education until they are no longer children.

4.3. Children and adolescents under the age of 18 cannot be employed to work at night or in dangerous conditions.

4.4 These policies and procedures must be consistent with relevant International Labour Organization (ILO) standards.

5. Pay subsistence wages

5.1 The wages and allowances paid for each standard working week must at least meet the national statutory standards or industry regulations, whichever is higher. In any case, the wages paid should always be sufficient to meet basic needs and provide some disposable income.

5.2 Before all workers start working, they should be provided with written and easily understandable information about the employment conditions related to wages, and each time wages are paid, they should be provided with detailed information about the wages during the period covered by this wage.

5.3 Without the explicit consent of the workers, deductions from wages are not allowed as a disciplinary measure, nor are any deductions from wages other than those stipulated by national laws allowed. All disciplinary measures must be documented.

6. Working hours should not be too long

6.1. Working hours must comply with national laws, collective agreements, and the provisions of clauses 6.2-6.6 below, whichever provides strong protection for workers. Articles 6.2 to 6.6 are based on international labor standards.

6.2. Working hours (excluding overtime) shall be determined by the contract and shall not exceed 48 hours per week.

6.3. All overtime must be voluntary. Overtime must be used responsibly, taking into account all aspects such as degree, frequency, and overall working time of individual workers and workers. Overtime shall not be used as a substitute for formal employment. Overtime must always be compensated with an additional price, and the recommended standard is no less than 125% of the normal salary.

6.4. The total working time within any 7 days shall not exceed 60 hours, except as provided in Article 6.5.

6.5. Only in exceptional circumstances where all the following conditions are met, any working hours within 7 days can exceed 60 hours: domestic law allows this; Collective agreements freely reached with workers' organizations representing a considerable proportion of workers allow for this; Appropriate measures have been taken to protect the health and safety of workers; And employers can prove that overtime is indeed an exception, such as unexpected production peaks, accidents, or emergencies.

6.6. It is necessary to ensure that workers take at least one day off every 7 days, or, if permitted by domestic law, two days off every 14 days.

★ International standards suggest gradually reducing normal working hours to 40 hours per week under appropriate conditions without reducing workers' wages.

7. Prohibition of Discrimination

7.1 In terms of employment, salary, training, promotion, dismissal or retirement, no one shall be discriminated against based on their race, social status, nationality, religion, age, disability, gender, marital status, sexual orientation, trade union affiliation, and political party affiliation.

8. Formal employment relationships

8.1 To the greatest extent possible, the work carried out must be based on a formally recognized employment relationship established in accordance with national laws and practices.

8.2 According to labor or social security laws and regulations, the responsibility of employees based on formal employment relationships cannot be avoided through the use of labor contracts, subcontracting contracts, or home work arrangements, or through apprenticeship programs that do not truly want to impart skills or provide formal employment. Any similar responsibility cannot be avoided through excessive use of fixed term employment contracts.

8A Subcontracting and Home Work

8A.1. Subcontracting, home work, and external processing will not be allowed if no agreement has been reached with the main customer before.

8A. 2. Able to have a system and process system to manage behaviors such as subcontracting, home work, and external processing.

9. Do not allow harsh and inhumane treatment of workers (disciplinary)

9.1 It is prohibited to use physical abuse or corporal punishment, or threats of physical abuse, sexual or other harassment, as well as malicious language or other forms of intimidation.

The provisions of this Code constitute the minimum rather than the highest standards, and this Code should not be used to hinder companies from pursuing higher standards. Companies applying this Code are required to comply with national and other applicable laws, and to provide better protection for workers when legal provisions and this Code are applicable to the same matter.

10A Migrant Workers and Their Work Rights

10A1 suppliers may only hire or use workers with legal work rights

10A2 must check the original documents of all workers, including non directly employed employees such as service providers (such as security personnel), intermediary companies, and dispatched employees, to confirm their legitimate work rights, and retain relevant documents.

10A3 intermediary companies and labor dispatch companies must provide workers who have been registered and registered with them.

On the basis of considering the above issues and relevant laws, suppliers should take measures to properly control intermediary companies, labor dispatch companies, and other institutions and retain relevant documents

10B2 Environment 2-Pillar

10B2.1 Suppliers should seek continuous improvement in environmental operations or at least comply with local and international legal and regulatory requirements

10B2.2 Suppliers should understand and comply with the environmental requirements of the end customer

The above is the content of the SMETA 2-Pillar audit. If it is the SMETA 4-Pillar audit, in addition to the above content, it also includes the following content:

10B4 environment 4-Pillar (including 2-Pillar audit content)

01 December 2014

10B4.1 Suppliers should at least comply with local and national environmental standards related to environmental standards.

10B4.2. If required by law, suppliers must be able to demonstrate that they have relevant legal permits, including the use and disposal of resources such as water and waste.

10. B4.3. Suppliers should be aware of the environmental/regulatory requirements of their end customers and have a system to monitor these performance.

The following 10B4.4-4.11 belong to the audit content of 4-Pillar - to be observed items

10B4.4. Suppliers should complete the relevant content of the self-assessment questionnaire and provide it to the auditors.

10B4.5. Suppliers should have environmental policies that cover environmental impacts and notify all relevant parties (including their own suppliers).

10B4.6. Suppliers should be aware of the significant environmental impacts of their premises and processes.

10B4.7. Sites should measure their impact, including continuous recording and regular inspections of the use and emissions of natural resources (such as energy and water use) (details can be found in the 4-module audit report and audit inspection).

10B4.8. Suppliers should make continuous improvements to their environmental performance.

10B4.9. Suppliers should have any environmental certificates or any environmental management system documents available for review.

10B4.10. The supplier should appoint an individual responsible for coordinating the improvement of the environmental protection effectiveness of the premises.

10B.4.11. If the venue has recently suffered (or is about to suffer) any fines/lawsuits due to non-compliance with environmental regulations.

10C Business Ethics (4-Pillar's Review Content - Observed Items)

10C. 1. Suppliers should complete the relevant self-assessment survey questionnaire and provide it to auditors.

10C. 2. Suppliers should receive and preferably confirm in writing the auditor/auditing company's business practice policies.

10C. 3. Suppliers should engage in commercial activities ethically and should not engage in bribery, corruption, or any type of fraudulent business practices.

10C.4. Suppliers should be aware of any applicable laws, business practice standards/regulatory requirements of their end customers, and the system in place to supervise their implementation.

10C. 5. Suppliers should have a business practice policy regarding bribery, corruption, or unethical business practices. The business practice policy should be clearly communicated to all relevant parties.

10C. 6. Suppliers must have a dedicated person responsible for implementing standards related to business practices.

10C. 7. Suppliers should have a transparent system in confidential reporting and handling unethical business practices, so that the reporter does not have to worry about retaliation.

10C. 8. Suppliers should ensure that employees in positions with higher risks in the field of business ethics (such as sales, procurement, and logistics employees) are trained on what measures to take when problems occur.

 三、SEDEX 2-Pillar and 4-Pillar Interpretation and Reviewer Days