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Process of social compliance audit: General guide for retailers

Using an auditor’s report to help you decide whether to collaborate with a supplier for your brand is critical. You can be unsure whether the report is accurate.

We understand that taking risks is a necessary aspect of doing business. However, by learning how the audit is conducted, you can turn this risk into an opportunity to make smarter business decisions.

Social Compliance Audit: Description

The practice of measuring, analyzing, and improving a business’s social and ethical performance by a set of criteria or framework is known as social compliance auditing.

Overview of the Social Compliance Audit Process

  • Prior to the Audit

➢ The registration

It’s essential to let your supplier know well in advance that you’ll be auditing them. You can provide the supplier with your specifications so that they can see if they can meet them. If your supplier decides to comply and progress with the audit, they must submit corporate data,

including details about the facilities that will be utilized to manufacture your items. These details can be saved or registered in your system.

➢ The scheduling

If you offer suppliers ample time to assess if their existing system meets your requirements, they will be grateful. Your suppliers are likely to be busy days, and they may not have enough time to accommodate a quick visit.

➢ The preparation

Your supplier will have adequate time to review your needs and arrange their facilities to meet your standards once the site visit is scheduled.

  • While the audit is in process

➢ The facility inspection

This stage involves a third-party auditor inspection at your supplier’s facility where your products will be produced. Thus, your auditor will have a general understanding of your supplier’s safety and health practices, minimizing the possibility of legal action in case of fire or accident at the factory.

➢ The document review

The relevant documentation will be reviewed by the auditor to ensure that your provider complies with your criteria.

➢ The employee interview

Social compliance is a key element of excellent labour practises, and the auditor can assess if the examined documents match the results of the employee interview at this stage.

This might be a game-changer since the auditor will make comparisons between what the administration displays and what their staff say at this point.

➢ The reporting

After gathering all evidence, the auditor will meet with the supplier to discuss any issues or areas that need to be improved, using the Corrective Action Plan (CAP). The auditor will send the final audit report to either you or your supplier.

In the aftermath of the audit

➢ The CAP review

When you get the audit report, one of the first things you should look at is the auditor’s findings, often known as the Corrective Action Plan (CAP). This section outlines which aspects of the supplier’s performance need to be improved for them to meet your requirements completely.

➢ The reporting

After all corrective measures have been accepted, the auditor will amend the report based on the CAP results and deliver you or your supplier the ultimate audit report.

Wrapping Up

With this knowledge, you should feel more confident in making decisions in the future. Connect with Guangdong Inspection, one of the leading social compliance audit companies in Vietnam, for hassle-free social compliance auditing.