As a fundamental principle, all businesses everywhere, regardless of size or sector, are responsible for respecting human rights, as recognised by the UN Guiding Principles on Business and Human Rights (UNGPs).
Ethical audits such as SMETA/SEDEX, SIZA, GRASP, etc. are meant to ensure businesses can determine their level of risk and mitigate the risk of abusing their workers’ rights and by extension, the environment of which the workers live and work.
Ethical audits are designed to dig deep into company records and systems to ensure the information provided’s reliability and accuracy. In most cases, companies do not deliberately infringe on workers‘ rights, but it is because they do not have enough information and expertise on-site to advise on issues of compliance.
It is also not lost that audits can become a box-ticking exercise if they are driven by the desire to certify a site for sourcing rather than genuinely trying to assess workers’ situation. Time and again, we have heard of audits having little real involvement with workers and the companies that commission them not investing in high-quality follow-ups.
Generally, in the food and beverage industry, they would be Food Safety Management Systems (FSMS) audits and ethical audits. FSMS audits generally deal with quantitative, easily measurable data supported by procedures and policies Ethical issues; on the other hand, are more often qualitative or subjective in nature. Several qualitative research techniques make an ethical audit possible. Considering multiple perspectives to gain a big-picture understanding of a company’s commitment to ethics is the key to an ethical audit.
Detecting unethical business practices can be difficult in your own business. It’s especially challenging when your suppliers are trying to hide unethical activity from you.
Normal audits can also miss critical issues such as discrimination against minority groups or management resistance to allowing workers their right to freedom of association. If companies manage risk, they need to have confidence in the working conditions of the people who produce the goods they sell. Audits can help with this, but their scope is limited. To meaningfully improve labour standards, audits must be used alongside human rights due diligence.
ASC Food Safety Consultants help with monitoring ethical practices in business by conducting ethical audits on suppliers and offering pre-readiness certification audits for standards such as SIZA, SMETA, etc.
The benefits of having ASC Food Safety Consultants help with ethical audit consulting are the following:
- Work with highly experienced and motivated consultants.
- Strengthen and protect your brand image and reputation
- Manage liability within your global supply chain
- Secure long-term relations with customers and suppliers and continued development in the area of social accountability
- Secure stakeholders including investors, customers, regulators, activists, labour unions and the news media
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Key facts
- All businesses, regardless of size or sector, are responsible for respecting human rights under the UN Guiding Principles on Business and Human Rights.
- Ethical audits such as SMETA/SEDEX, SIZA and GRASP help companies determine their level of risk and reduce the risk of abusing workers' rights.
- Most companies do not deliberately infringe on workers' rights; they often lack the on-site information and expertise to advise on compliance.
- Unlike food safety (FSMS) audits, which deal with quantitative, measurable data, ethical issues are more often qualitative or subjective in nature.
- Audits can become a box-ticking exercise if they are driven by the desire to certify a site for sourcing rather than genuinely assessing workers' situations.
- ASC Food Safety Consultants conduct ethical audits on suppliers and offer pre-readiness certification audits for standards such as SIZA and SMETA.
Frequently asked questions
What is an ethical audit and why does it matter for worker welfare?
An ethical audit examines a company's records and systems to verify that worker rights are respected and to identify risks of abuse. It matters because all businesses are responsible for respecting human rights under the UN Guiding Principles on Business and Human Rights. Ethical audits such as SMETA/SEDEX, SIZA and GRASP help companies determine their level of risk and mitigate the risk of abusing their workers' rights.
What ethical audit standards does the article mention?
The article names SMETA/SEDEX, SIZA and GRASP as ethical audit standards designed to help ensure worker rights are protected. ASC Food Safety Consultants specifically conduct ethical audits on suppliers and offer pre-readiness certification audits for standards such as SIZA and SMETA.
How is an ethical audit different from a food safety audit?
Food Safety Management System (FSMS) audits generally deal with quantitative, easily measurable data supported by procedures and policies. Ethical issues, by contrast, are more often qualitative or subjective in nature, which makes them harder to measure. Standard audits can also miss critical issues such as discrimination against minority groups or management resistance to allowing workers their right to freedom of association.
Why do companies fail to comply with worker rights requirements?
In most cases, companies do not deliberately infringe on workers' rights. The article explains that non-compliance usually happens because companies do not have enough information and expertise on-site to advise on compliance issues. This is where ethical audit consulting helps close the knowledge gap.
How can ethical audit consulting benefit a South African food business?
According to ASC Food Safety Consultants, ethical audit consulting helps strengthen and protect brand image and reputation, manage liability within a global supply chain, and secure long-term relations with customers and suppliers. It also helps secure stakeholders including investors, customers, regulators, activists, labour unions and the news media, while giving businesses access to experienced consultants.
Can an ethical audit become a meaningless box-ticking exercise?
Yes. The article notes that audits can become a box-ticking exercise if they are driven by the desire to certify a site for sourcing rather than genuinely trying to assess workers' situations. A meaningful audit should focus on truly protecting worker welfare rather than simply obtaining certification.