Analysis of how to implement SMETA 2P factory inspection in Indonesia and ThailandWhat are the commo

Mondo Finance Updated on 2024-01-29

SMETA factory audit is the abbreviation of global ethical audit, which is a simplified version of a set of ethical audit self-assessment established for enterprises, and is a mandatory factory audit requirement for McDonald's, Disney and other enterprises. SMETA factory audit is a non-certified audit, mainly for social responsibility, the purpose of which is to ensure that the best business complies with social ethics and regulations, protects the rights and interests of employees, and maintains environmental sustainability.

SMETA 2P factory audits are subject to the following basic requirements:

1.Comply with local laws and regulations, including labor laws, environmental laws, etc.

2.Protect the rights and interests of employees, including wages, working hours, safety, etc.

3.Maintain environmental sustainability, including waste reduction, energy conservation, emission reduction, etc.

4.Comply with business ethics, including honest management, fair trade, etc.

The specific implementation steps of SMETA 2P factory inspection are as follows:

1.According to the materials and information provided by the first business, formulate a detailed audit plan, including the purpose, scope, time, personnel, etc. of the audit.

2.According to the audit plan, conduct on-site inspections of the production site of the first business to understand the production situation, employee treatment, environmental status and other aspects of the first business.

3.Review the documents provided by the company, including employee contracts, payroll, work schedules, health and safety records, etc., to ensure that the company complies with relevant laws and regulations and business ethics.

4.Record and give feedback on the problems found in the audit, and require the first business to rectify and reply within the specified time.

5.According to the audit results, prepare a report, evaluate and summarize the ethical status of the business, and put forward suggestions for improvement.

6.Submit the report to the client or relevant organization so that the client or relevant authority can understand the ethical status of the business and make decisions accordingly.

Common questions with SMETA 2P audits include:

1.For factories that have been in operation for 3 months, SMETA but have a business license for less than 3 months, the auditor may check the actual operation time and wage hours records of the factory. If the payroll hours record is incomplete, it may cause the review to fail. 2.The SMETA 2P factory audit focuses on labor standards, including working hours, human rights and payment terms. If there is a violation of the employee's rights, such as too long overtime, too low salary, etc., it may become the reason for the failure of the audit.

3.Smeta 2P audits also focus on health and safety aspects such as the availability and use of personal protective equipment (PPE) and the presence of hazardous working environments. If these issues are present, they can also lead to non-conformance of the audit.

4.The SMETA 2P audit also assesses aspects such as management systems, right to work, subcontracting and shortened environmental assessments. If a facility has deficiencies in these areas, it can also lead to a failed audit.

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