SMETA

SMETA (Sedex Members Ethical Trade Audit) is among the most widely recognized ethical auditing methodologies, developed by Sedex (Supplier Ethical Data Exchange). SMETA itself is not a separate standard or certification scheme; rather, it is an assessment tool that measures a company’s compliance with ethical trade practices. It is based on internationally recognized labor and ethical standards and covers areas such as labor rights, occupational health and safety, environmental management, and business ethics.

SMETA can be used by any organization wanting to evaluate and improve its social and ethical practices. It is especially valuable for businesses supplying large firms that typically require SMETA assessments from their suppliers. SMETA applies mainly to manufacturing, agricultural, commercial, and other types of organizations aiming to demonstrate corporate social responsibility and ethical business practices.

SMETA audits can follow two approaches: 2-Pillar or 4-Pillar Audit.

• 2-Pillar Audit focuses on fundamental social compliance elements, i.e., labor practices and worker health & safety.
• 4-Pillar Audit adds two more elements: environmental management and business ethics.

Independent accredited Certification Bodies carry out the assessment, visiting the company’s site to interview workers and management, review documented evidence, and evaluate the implementation of policies and procedures. Results are detailed in a report stored in the Sedex database, which is accessible to the company’s clients and partners.

Preparedness and successful SMETA evaluations depend on how well a company conforms to labor standards and its internal processes. Companies already implementing standards like SA 8000, ISO 45001, or ISO 14001 have an advantage because many SMETA criteria mirror those in other quality management systems.
Working with experienced consultants can facilitate preparation, helping identify nonconformities and improving processes before the audit.

SMETA is not a certification program but rather an auditing methodology demonstrating a company’s adherence to ethical and social criteria demanded by clients and partners. The process begins with the company registering on Sedex, thus joining a network of businesses implementing responsible practices. Preparations include reviewing and developing policies and procedures, as well as training staff on relevant requirements. An independent audit then evaluates the company, producing a comprehensive report added to Sedex’s database, where interested clients and partners can access it. The company can opt for periodic re-audits to improve performance and maintain partner confidence, ensuring ongoing compliance with the methodology’s ethical and social requirements.

A successful SMETA audit offers multiple advantages:

• Demonstrating social responsibility and compliance, enhancing the company’s reputation
• Improving working conditions and reducing labor-related risks
• Strengthening competitiveness, as many corporations demand SMETA assessments from their suppliers
• Ensuring transparency and responsible business conduct, improving relationships with customers, suppliers, and investors
• Recognizing the company within the Sedex network and opening new collaboration opportunities

Time required for SMETA preparation and evaluation depends on the level of existing compliance and the complexity of operations. Companies already following quality management or CSR systems can complete the process within 1–3 months, whereas businesses lacking such procedures may need more time.