About Social Standards. SEDEX & SMETA: Practical Guide for Manufacturers and Suppliers

[Audio] About Social Standards. SEDEX & SMETA: Practical Guide for Manufacturers and Suppliers.

[Audio] The Context. The Context. 2.

[Audio] Section 1. Section 1. 3.

[Audio] Modern Slavery & Forced Labour Global Estimate: In 2021, about 49.6 million people globally were living in some form of modern slavery. Of these, 28 million were in forced labour (work against their will) And 22 million were in forced / child / coerced marriages.

[Audio] Modern Slavery & Forced Labour-India Estimates vary widely. Conservative numbers suggest 8–18 million in overall..

[Audio] Child Labour Around 138 million children globally are in child labour (i.e. aged 5–17, doing work that is harmful, excessive, or interferes with schooling). Of those 138 million, 54 million are doing hazardous work (i.e. work that endangers health, safety or morals)..

[Audio] Child Labour-India According to the Census 2011, there were ~ 10.12 million children in the 5–14 age group working (i.e. “child labourers”) in India..

[Audio] Freedom of Association and Collective bargaining Trade Union act of 1926 governs this in India.

[Audio] Working Hours Comparison: Factories Act vs Shops & Establishments Acts Aspect Factories Act, 1948 Shops & Establishments Acts (states) Applicability Factories (manufacturing units) Shops, offices, IT companies, service sector, commercial establishments Daily Limit 9 hours 8–9 hours Weekly Limit 48 hours 48 hours Rest Interval ½ hr after 5 hrs ½ hr after 5 hrs Spread-over 10.5 hrs (12 with approval) 10–12 hrs (depending on state) Overtime >9 hrs/day or >48 hrs/week, OT = 2× >9 hrs/day or >48 hrs/week, OT = 2× Women’s Working Hours Not specific in Act, governed by state rules Often restricted after 8–9 pm unless permitted Weekly Off 1 day mandatory 1 day mandatory.

[Audio] Working Hours Excessive Over time occurs.

[Audio] Living Wages Basic Minimum Wages is the norm Living wages for a decent living is not a practice.

[Audio] Discrimination at work place Exits at Recruitment, promotions , transfers access to training Gender based , Caste based , Disability based , Age Based , Remuneration based etc.

[Audio] Grievance Redressal Either no system in place or Mostly unfair to the victims Lack of clarity on who will remediate.

[Audio] Health and Safety at Work Globally, about 1 million workers are injured daily, and >5,000 die daily from occupational causes (injuries + diseases) India The Directorate General Factory Advice Service & Labour Institutes (DGFASLI) data for 2020 reported 32,413 accidents in industries (registered factories, etc.), resulting in 1,050 fatalities and 3,882 non-fatal injuries.

[Audio] Large scale global brands/buyers – want to save their reputation and minimize supply chain disruptions.

[Audio] Social Standards intent is to minimize problems.

[Audio] Section 02 Overview of Leading Global Standards on Social Aspects at Workplace.

[Audio] A. Labour & Human Rights Standards ILO Core Conventions UN Universal Declaration of Human Rights (UDHR) UN Guiding Principles on Business & Human Rights (UNGPs).

[Audio] OECD Guidelines for Multinational Enterprises SA 8000 (Social Accountability International) ETI Base Code (Ethical Trading Initiative) SEDEX SMETA (Sedex Members Ethical Trade Audit).

[Audio] B. Occupational Health, Safety & Well-being ISO 45001 (Occupational Health & Safety) ISO 45003 (Psychological Health & Safety) ILO OSH Guidelines.

[Audio] C. Diversity, Equity, and Inclusion UN CEDAW (Convention on Elimination of Discrimination Against Women) ISO 30415 (Diversity & Inclusion in HRM) GRI Standards – Social Series (GRI 401–419).

[Audio] D. Fair Pay & Living Wages Anker Living Wage/Income Methodology Fair Labor Association (FLA) Code of Conduct Fairtrade Standards (Hired Labour & Small Producers).

[Audio] E-CSR, ESG & Accountability ISO 26000 (Social Responsibility Guidance) AA1000 Accountability Principles IFC Performance Standards UN Global Compact – Social Principles.

[Audio] Identify and discuss Human Rights Violations at:- Global Level Regional Level National Level Organizational Level Public Places - House Hold Level Individual Level.

[Audio] Section -03 – About SEDEX Stress that Sedex itself does not grant certificates; companies share SMETA audit data on Sedex..

[Audio] What is SEDEX? Sedex = Supplier Ethical Data Exchange: A Global membership organization that helps companies manage and improve their supply chain practices related to ethical trade, labour rights, health & safety, environment, and business ethics. Stress that Sedex itself does not grant certificates; companies share SMETA audit data on Sedex..

[Audio] Platform for Responsible Sourcing SEDEX provides an online platform where companies upload and share data about their ethical and responsible business practices. Stress that Sedex itself does not grant certificates; companies share SMETA audit data on Sedex..

[Audio] Global Reach Used by over 75,000 businesses worldwide, including leading brands and Indian exporters supplying to Europe, US, and global retailers. Stress that Sedex itself does not grant certificates; companies share SMETA audit data on Sedex..

[Audio] Improves Transparency Encourages suppliers (factories, farms, service providers) to disclose compliance status, so buyers can identify risks like child labour, unsafe working conditions, or corruption. Stress that Sedex itself does not grant certificates; companies share SMETA audit data on Sedex..

[Audio] SEDEX in the Indian Context Many Indian exporters (textiles, apparel, food processing, furniture, pharma, etc.) undergo SMETA audits because European and global buyers demand it. SEDEX helps Indian companies show compliance with: Indian laws (Factories Act, POSH Act, Minimum Wages, ESI/PF, Pollution Control Board rules, etc.) International standards (ILO conventions, UN SDGs, ISO standards, etc.) Stress that Sedex itself does not grant certificates; companies share SMETA audit data on Sedex..

[Audio] What are the Benefits of SEDEX Membership for Indian Entities Access to global buyers – Many multinational retailers require SEDEX registration. Reduced audit fatigue – One SMETA audit report can be shared with multiple buyers. Risk management – Identifies non-compliance risks early (e.g., excessive overtime, poor safety). Reputation & trust – Demonstrates commitment to ethical business. Improved efficiency – Encourages systematic record-keeping and compliance. Stress that Sedex itself does not grant certificates; companies share SMETA audit data on Sedex..

[Audio] SEDEX (Supplier Ethical Data Exchange) is not owned by a single company or individual. It is a UK-based non-profit membership organisation (registered as Sedex Information Exchange Ltd in London). Stress that Sedex itself does not grant certificates; companies share SMETA audit data on Sedex..

[Audio] It is member-owned, meaning: The organisation is governed by a Board of Directors. The Board is made up of representatives from member companies (both buyers and suppliers) and independent experts. Members include retailers, brands, importers, and suppliers across 180+ countries. Stress that Sedex itself does not grant certificates; companies share SMETA audit data on Sedex..

[Audio] SEDEX India Address- SEDEX INDIA PRIVATE LIMITED Company type: Private Limited Company (subsidiary of Sedex Global, UK) CIN (Corporate Identification Number): U74999HR2019FTC078252 Incorporation date: 12 December 2019 Registered office: 14th Floor, Tower 5B, DLF Epitome, DLF Cyber City, Phase III, Gurugram, Haryana – 122002, India Stress that Sedex itself does not grant certificates; companies share SMETA audit data on Sedex..

[Audio] Section 04 What is SMETA ? Stress that Sedex itself does not grant certificates; companies share SMETA audit data on Sedex..

[Audio] SEDEX Audits are typically known as SMETA (Sedex Members Ethical Trade Audit) Stress that Sedex itself does not grant certificates; companies share SMETA audit data on Sedex..

[Audio] SMETA audits are to be performed by SEDEX approved Auditors only –For the updated list check their Website The official website for SEDEX is: https://www.sedex.com/ Stress that Sedex itself does not grant certificates; companies share SMETA audit data on Sedex..

[Audio] SMETA Audit Scope: 2‑Pillar vs 4‑Pillar Buyers often prefer 4-pillar for higher-risk categories..

[Audio] Pillars ↔ ETI / Topic Mapping Pillar Key Topics 1.Labour Employment freely chosen; Child labour; Wages; Working hours; Discrimination; Regular employment; Humane treatment; FoA/CB 2.Health & Safety H&S risk assessment; PPE; Emergency; Machinery; Chemical safety 3.Environment Legal compliance; Waste; Water; Air; Objectives/targets 4.Business Ethics Anti‑bribery; Conflicts; Gifts & hospitality; Whistleblowing.

[Audio] Certification vs Audit Important Clarification Sedex is a data-sharing platform; it does not issue certificates SMETA is a methodology used by accredited auditors to assess sites Outcome = Audit report + CAPR uploaded to Sedex for buyer visibility.

[Audio] SMETA Audit Scope: 2‑Pillar vs 4‑Pillar 2‑Pillar (minimum): Labour Standards (ETI Base Code) Health & Safety- =[ISO 45001 ] 4‑Pillar (expanded): Environment =[ISO 14001 ] Business Ethics (anti-bribery, integrity) =ISO 37001/ISO 37002] Buyers often prefer 4-pillar for higher-risk categories..

[Audio] Section 05 About ETI. Section 05 About ETI.

[Audio] ETI Base Code – 9 Principles (Overview) What is ETI? ETI (Ethical Trading Initiative) is a global alliance of companies, trade unions, and NGOs that promotes respect for workers’ rights worldwide. Established in the UK in 1998. Members include big brands (like Tesco, Primark, M&S), unions, and NGOs..

[Audio] Its central tool is the ETI Base Code, which is: Based on ILO conventions,a set of labour standards covering freely chosen employment, freedom of association, safe working conditions, living wages, reasonable hours, non-discrimination, and no child labour..

[Audio] How SEDEX and ETI are Connected SEDEX (Supplier Ethical Data Exchange) is a platform for sharing data and audit results. SMETA audits (Sedex Members Ethical Trade Audit) use the ETI Base Code as their reference standard..

[Audio] ETI = Sets the standards (ETI Base Code). SEDEX/SMETA = Provides the platform + audit methodology to verify and share compliance with those standards. Together, they ensure ethical trade and responsible sourcing across global supply chains..

[Audio] 1. Freely chosen employment; no forced labour 2. Freedom of association & right to collective bargaining 3. Safe and hygienic working conditions.

[Audio] 4. No child labour 5. Living wages are paid (fair remuneration) 6. Working hours are not excessive.

[Audio] 7. No discrimination is practiced 8. Regular employment is provided (no disguised subcontracting) 9. No harsh or inhumane treatment.

[Audio] The Four Pillars) Labour Standards: ETI Base Code compliance Contracts, wages, working time, HR practices Health & Safety: Risk assessments, PPE, machine safety, chemical safety Emergency preparedness & first aid ----------------------------------------------------------------------------- [Following are part of SMETA Audit but Not an ETI Base Code] Environment: Legal permits, emissions/waste/water controls Aspect-impact evaluation & objectives Business Ethics: Anti-bribery policy & training Conflict of interest, gift & hospitality controls Whistleblowing mechanisms .Fair Dealing and Integrity.