Ethical Audit (EA)

What Is an Ethical Audit?

An ethical audit, otherwise known as a social compliance audit, is an auditing procedure that brands can use to ensure that their suppliers do not subject their workers to mistreatment.

For modern businesses, demonstrating that products are sourced from ethical supply chains is no longer an optional step taken to give products a “feel-good” factor. Consumers, governments and NGOs have been putting pressure on brands and retailers to comprehensively eliminate unethical practices in supply chains for a long time now. As a result, nowadays, for businesses with international supply chains, stricter requirements exist related to eliminating unethical practices.

Ethical issues, such as dangerous working conditions, the use of slavery or excessive working hours, need to be addressed directly with the businesses that exist in supply chains, and a high level of transparency should be demonstrated.

Brands can use QIMA ethical audits for both their own peace of mind and to demonstrate to consumers and other stakeholders that their supply chains are run ethically.

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 expertise to call upon. 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 related to managing ethics in the supply chain in 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 cover your needs. Your suppliers will comply to your specific requirements as well as to the requirements of our auditing programs.

QIMA's Best-in-Class Ethical Audit Program

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

When QIMA auditors visit a factory, they 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. An opening meeting: the first stage is for our auditors to meet the managers at your supplier’s facility for an opening discussion. Audits can be scheduled ahead of time or they can happen completely unannounced.

2. A factory tour: auditors comprehensively inspect the facility. Areas such as the production area or factory floor, warehouse, canteen and dormitory will all be inspected. During this tour, auditors will gain insight into a range of important matters, such as working conditions and health and safety management.

3. A documentation review: auditors go through employment records and other important documents to look for potential issues. Issues may be found related to matters 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 get a personal insight into conditions at your supplier’s facility. Questions can be asked about a range of potential issues. Hiring and firing policies, working hours, working conditions, pay arrangements, the use of child labor or forced labor and health and safety management can all be discussed, for example. These interviews are are voluntary and conducted in complete privacy.

5. A closing meeting: auditors conclude their visit by meeting with the facility’s management team to go through 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, get them more involved and help them achieve compliance.

Our worker interviews are structured and held in a way that ensures 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. This can be achieved by ensuring decent working conditions and human rights for all workers involved in the supply chain, complying with statutory requirements, preventing unauthorized subcontracting, and fostering cooperative relations with suppliers.

By carrying out ethical audits, businesses can receive an accurate picture of their ethical compliance in their supply chain, which can help improve their brand image, gain consumer loyalty and contribute to safer and more transparent supply chains.