SMETA (Sedex Members Ethical Trade Audit) is a globally recognized methodology for evaluating and enhancing workplace conditions, environmental impact, and ethical business practices.  

What is SMETA ? 

SMETA adheres to international frameworks like the Ethical Trade Initiative (ETI) Base Code and International Labour Organization (ILO) conventions, ensuring consistent and reliable assessments across supply chains.  

As a versatile and thorough auditing system, SMETA is designed to meet the diverse needs of businesses, helping them identify risks, implement corrective actions, and foster a culture of accountability and sustainability. 

Why Choose SMETA? 

  • Comprehensive Audit Coverage

SMETA audits address four critical pillars: 

  • Labor Standards: Evaluates adherence to human rights, fair pay, and protections against forced labor. This ensures that businesses comply with both international labor laws and local legislation to create a fair and equitable working environment.
  • Health & Safety: Reviews workplace safety, hygiene, and emergency preparedness protocols. These assessments are crucial for mitigating risks and ensuring employee well-being. 
  • Environmental Practices: Assesses resource efficiency, waste management, and compliance with environmental regulations. By addressing these factors, companies can minimize their ecological footprint and contribute to global sustainability efforts. 
  • Business Ethics: Examines anti-corruption policies and adherence to ethical governance standards. This pillar helps companies maintain integrity and avoid reputational damage. 
  • Global Standards Alignment 

SMETA’s framework is grounded in globally recognized benchmarks, including the ETI Base Code and ILO conventions, ensuring that businesses meet high standards of ethical trade. This alignment significantly boosts a company’s credibility, offering assurance to stakeholders, clients, and regulatory bodies about their commitment to responsible practices.  

Beyond enhancing credibility, compliance with these rigorous standards facilitates access to new markets, strengthens competitive positioning, and provides a foundation for long-term sustainability. Adopting SMETA’s methodology not only ensures adherence to international regulatory requirements but also promotes a proactive approach to mitigating risks and driving ethical excellence throughout the supply chain. 

  • Encourages Continuous Improvement 

Rather than employing a pass/fail system, SMETA Sedex focuses on using audit insights to identify areas for improvement, driving sustained ethical growth and better operational practices. This approach fosters a culture of ongoing learning and adaptation, enabling businesses to stay ahead in an evolving marketplace. 

Why choose Sedex for SMETA ? 

  • Global Expertise

With over two decades of experience, Sedex supports more than 75,000 businesses worldwide in creating sustainable supply chains. This experience ensures that every client benefits from customized solutions designed to tackle their specific challenges and goals. 

  • Advanced Tools 

The Sedex platform is equipped with cutting-edge features, including real-time risk assessments, event monitoring, and comprehensive data-sharing capabilities. These tools enable businesses to identify risks early, optimize supply chain operations, and make data-driven decisions that align with their ethical goals. 

  • Tailored Training 

Sedex offers a wide range of training programs, from internal auditor courses to capacity-building workshops. These initiatives empower organizations to develop robust compliance strategies, ensuring long-term adherence to ethical and sustainability standards. 

  • Unmatched Benefits 

Partnering with Sedex means gaining access to: 

  • Enhanced transparency, fostering trust among stakeholders. 
  • Streamlined auditing processes, reducing duplication and costs. 
  • Risk mitigation strategies that safeguard against operational disruptions. 
  • Strengthened brand reputation, attracting socially conscious consumers and investors 
  • Community Engagement 

Joining the Sedex community connects businesses to a global network of like-minded organizations dedicated to promoting responsible practices. This collaboration drives innovation, facilitates knowledge sharing, and accelerates progress toward a more sustainable future. 

Key Benefits of SMETA Audits

By implementing SMETA audits, businesses ensure their compliance with industry best practices, local and global legislations and guidelines, enhancing consumer confidence and promoting continuous commitment to your business towards the supply chain. 

  • Increased Transparency

Integrated with the Sedex platform, SMETA audits provide detailed reporting tools that enhance visibility into supply chain performance and support informed decision-making. Transparency builds trust with stakeholders and strengthens relationships with suppliers, employees, and customers.

  • Enhanced Brand Reputation

By demonstrating a commitment to ethical practices, businesses can strengthen trust among customers, stakeholders, and regulatory bodies, fostering competitive advantage. A strong reputation for integrity and sustainability attracts socially conscious consumers and investors. 

  • Streamlined Cost Management

SMETA enables suppliers to share a single audit report with multiple clients, reducing redundancy and saving resources. This shared approach not only cuts costs but also simplifies compliance processes for businesses operating in complex supply chains.

  • Risk Reduction

Identifying and mitigating risks related to labor standards, safety, and environmental practices helps prevent operational disruptions and legal issues. Proactively addressing these risks protects businesses from potential fines, lawsuits, and reputational harm. 

The SMETA Audit Process

The audit process follows the rules of most management systems and includes the following steps: 

  • Preparation
  • Fill out a Self-Assessment Questionnaire (SAQ) to identify compliance gaps. 
  • Share the SAQ with a Sedex-approved audit company. 
  • On-Site Audit
  • Auditors evaluate facilities, review documents, and interview staff. 
  • Results and improvement recommendations are summarized in a Corrective Action Plan Report (CAPR). 
  • Report Submission
  • Findings are uploaded to the Sedex platform for stakeholder access. 
  • Follow-Up
  • Address non-compliances, monitor progress, and conduct re-audits if needed. 

Target audience for SMETA 

  • Retailers and Brands: Seeking ethical assurance from their supply chains. SMETA audits help ensure that suppliers meet stringent ethical and sustainability standards. 
  • Suppliers: Looking to meet client demands for sustainability and transparency. By adopting SMETA’s methodology, suppliers can enhance their marketability and build stronger relationships with buyers.  
  • Manufacturers: Committed to improving workplace standards and reducing risks. SMETA audits provide a clear roadmap for achieving compliance and fostering a safe, ethical working environment. 

Industry-Specific Needs

The SMETA audit is required by many global companies, striving for improvement throughout the supply chain and verifying compliance of their partners regarding local and global standards. SMETA audit validates the commitment of the company to improve, to provide transparency to their stakeholders and their inspiration towards a better future. 

Additional Information

It is important to note that this certification is often necessary for businesses wishing to collaborate with large retail chains or international markets, where compliance with ILO guidelines is a prerequisite. 

Frequently Asked Questions about SMETA audit

Is SMETA a certification? 

SMETA audits do not aim towards certifying a management system that the company has established, rather than assessing their risks and opportunities, providing a safeguard against possible exposure of the company to laws and regulations. SMETA audit is a dynamic audit scheme that evaluates the current state of the company and provides information for improvement. 

Is there a pass/fail grade or other relevant score? 

No, as the core of the SMETA audit is continuous improvement, instead of achieving a short-term goal, there is no scoring or any grade after the audit. However, there could be findings that occur during the audit that the company shall correct and amend. 

What is the audit circle?  

It is recommended that all companies plan a SMETA audit at least every 2 years if not annually. However, this greatly depends on the client’s and supplier’s request. 

The certification body Q-CERT has SEDEX-approved auditors and provides SMETA audit services. 

For more information about the SMETA audit or questions, you can contact our Certification Body. For additional details, you can visit the official Sedex website.