Why is Social Audit Important for your Business

Are you sure if the suppliers you’re dealing with for business are trustworthy? Do you know if they are resorting to unauthorized techniques to get your things done? A stumble may prevent a fall if you could find out everything you need to know about your suppliers to upkeep your reputation. Here comes social audit in the picture.

What is a social audit?      

A social audit can be of two types. From a company’s perspective, the social audit means the process of evaluating a company’s performance in terms of Corporate Social Responsibility to maintain a good repute in front of their stakeholders. From a company’s supplier’s perspective, it means a complete assessment of the supplier to check if they adhere to the worker rights and social responsibility norms.

In this blog, we shall focus on the social audit conducted on a company’s suppliers.

How a is a social audit conducted on the suppliers

ü A team of highly experienced inspectors or a professional social auditor is sent to the production site depending on the business requirements.

ü They vet the site and check if they comply with the internationally recognized social accountability standards.

ü The auditors check if the suppliers are abiding by the labor rights or resorting to any type of malpractices.

ü The site’s work environment, resources, administration, and other relevant factors are also considered for a complete assessment.

Things a Social Auditor looks for

Child labor/Forced labor: Child labor is still illegally practiced by a lot of industries even after years of stringent vigilance. A few industries also exploit their employees by forcing them to work by means of violence and abuse. If a supplier practices any of these then it makes a place in the assessment report of the social auditor.

Health and safety: Is the manufacturing unit safe and healthy for the employees? If not, are the employers taking adequate measures to prevent it? A social auditor takes these things into consideration for fostering better work environment.

Management: It depends on the management and administration of the supplier to maintain a good work environment. The Human Resources policies are also thoroughly checked to measure the performance of the suppliers.

Besides, freedom of association and right to bargain, discrimination, and other disciplinary practices are also taken into consideration to assess the work operations of a supplier.         

Bottom line

A social audit on the production site is important to avoid joining hands with substandard suppliers, nurture a sustainable supply chain, make better sourcing decisions, maintain a good repute, and last but not the least, get peace of mind.

Are you interested to get a complete social audit of your suppliers? Guangdong Inspection is a leading inspection company operating in Bangladesh, Myanmar, Foshan, and the Philippines. Click here to send an enquiry now!