Ethical Audit (EA)

Ethical Audits for a Socially Responsible Supply Chain

Ensure that the companies and factories in your supply chain adhere to ethical standards.

QIMA’s ethical audit is a comprehensive on-site inspection conducted in accordance with international standards, including SMETA, BSCI, FSLM, WRAP, and other relevant guidelines. This audit helps you identify potential risks, such as labor violations, environmental damage, or unethical practices, so you can address them before they escalate.

On this page you can learn all about:

• What is an Ethical Audit?

• Our Solutions

• International Standards

• Client-Specific Audit Procedures

• QIMA's Best-in-Class Ethical Audit Program

• Why Perform an Ethical Audit?

• QIMA Benefits

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What is an Ethical Audit?

An ethical audit, also known as a social compliance audit, is an auditing procedure that allows brands to ensure that their suppliers treat their workers fairly.

For your business, demonstrating that products are sourced from ethical supply chains is no longer an optional step, it is a necessity. Consumers, governments, and NGOs are pressuring brands and retailers to comprehensively eliminate unethical practices in their supply chains.

Ethical issues, such as unsafe working conditions, forced labor, or excessive working hours, must be addressed at every level, and a high level of transparency should be demonstrated.

QIMA ethical audits help companies ensure ethical practices across their supply chains. Our social compliance audits provide both peace of mind and visible proof to consumers and stakeholders that their supply chains are ethically managed.

Our Solutions

QIMA offers a comprehensive selection of ethical audit programs.

We can conduct audits according to a wide range of international standards, your company's own in-house specifications, or our own Best-in-Class program.

We have extensive experience in conducting ethical auditing of supply chains, as well as a first-rate pool of experts who can contribute knowledge and insights to support these audits effectively. All QIMA auditors are professionally certified and undergo regular training to stay up to date with the latest standards and regulatory requirements.

International Standards

QIMA can conduct ethical audits according to the following international standards:

• Sedex Members Ethical Trade Audit (SMETA)

• amfori Business Social Compliance Initiative (BSCI)

• International Labour Organisation (ILO) Ethical Trading Initiative (ETO)

• Responsible Jewelry Council (RJC) accredited audit

• Initiative for Compliance and Sustainability (ICS) audit

• Ethical Toy Program (ICTI)

• Higg Facility and Social Labor Module (FSLM)

• WRAP (Worldwide Responsible Accredited Production)

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Client-Specific Audit Procedures

In many cases, brands need us to incorporate their existing practices for managing ethics in the supply chain into our auditing procedures.

If your company already has procedures in place to monitor and manage ethical practices in your supply chain, we can tailor our existing ethical audit programs to meet your needs. In this case, your suppliers will comply with both your specific requirements and the standards of our auditing programs.

QIMA's Best-in-Class Ethical Audit Program

By incorporating best practices from existing standards, we have developed our own Best-in-Class ethical audit program.

QIMA auditors will visit a factory and use GPS coordinates to confirm that your products are only being manufactured at the approved facility and no unauthorized subcontracting is taking place.

QIMA Best-in-Class on-site auditing process includes the following stages:

1. Opening meeting: Our auditors meet the managers at your supplier’s facility for an opening discussion. Audits can be scheduled in advance or conducted without prior notice.

2. Factory tour: Auditors thoroughly inspect the facility, including the production area or factory floor, warehouse, canteen, and dormitory, among others. During this tour, auditors assess critical aspects, such as working conditions and health and safety management.

3. Documentation review: Auditors go through employment records and other important documents to identify potential issues, such as payment amounts and conditions, working hours, discrimination, or the withholding of employee property, documents, or salaries.

4. Employee interviews: Auditors privately interview employees to gain personal insight into conditions at your supplier’s facility. Questions may cover a range of potential issues, including but not limited to hiring and firing policies, working hours, working conditions, pay arrangements, the use of child labor or forced labor, and health and safety management. These interviews are voluntary and conducted in complete privacy.

5. Closing meeting: Auditors conclude their visit by meeting with the facility’s management team to review their findings. If necessary, they will discuss non-compliance issues, suggest steps for improvement, and introduce a corrective action plan (CAP).

Furthermore, our Supplier Workshops (held before and during the audit) help educate your suppliers about the audit program, engage them more effectively, and assist them in achieving compliance.

Our worker interviews are structured to ensure transparency and honesty. During the interview, our auditors use voice stress analysis and cross-check information to detect any deception or inconsistencies. Factory staff are also given an opportunity to provide anonymous feedback.

Why Perform an Ethical Audit?

Maintaining ethical standards throughout the supply chain is crucial for businesses that value social responsibility.

Here are the main reasons why you should conduct an ethical audit:

• Ensure that your company and suppliers comply with international labor laws, environmental regulations, and industry standards while reducing the risk of legal issues or fines.

• Demonstrate a commitment to social responsibility and enhance the company’s reputation.

• Identify potential issues such as unsafe working conditions, child labor, discrimination, or environmental harm and avoid negative publicity or legal repercussions.

• Strengthen trust with customers, investors, and other stakeholders.

• Ensure long-term sustainability of your business.

• Enhance employee satisfaction and retention.

• Improve your company's Corporate Social Responsibility (CSR) and Environmental Social Governance (ESG) ratings.

By conducting ethical audits, you can gain an accurate picture of ethical compliance within your supply chain, which can help improve your brand image, build consumer loyalty, and contribute to safer and more transparent supply chains.

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