What Is Social Compliance Auditing?
Social Compliance Auditing is basically a corporate buzzword which covers a broad range of concepts, the most obvious of which is making sure your workers are treated fairly (but this is not the only one).
The idea of a Social Compliance Audit, or Corporate Social Responsibility is relatively new, but has been brought about by consumers who wish to ensure their products are made with all due consideration given to the people and processes involved. This has been a big problem in recent years, as companies outsource their production to China and other 3rd world countries, where laws on environmental and worker protection are non-existent at worse and regarded as best-practice guidelines at best. The most famous case in the news recently involved a Foxconn factory where Apple products are made in Shenzhen, China. A total of 15 workers committed suicide due to inadequate working pay and the promise of insurance money for families if they were to die. Foxconn responded by erecting nets outside the windows to prevent falls, as well as a global pay increase of around 20% to all workers.
Still, this is just one instance of an international problem that highlights the importance of Social Auditing. Indeed, the problem is not just limited to 3rd world countries – a recent Dispatches program from Channel 4 in the UK highlighted a number of factories within the UK itself that were illegally employing Indian workers at half of the national minimum wage and in inadequate working conditions, producing clothes for resale in prominent high street retailers. Companies can no longer ignore their Corporate Social Responsibility and must be vessels for social change.
A Social Compliance Audit consist more precisely of:
– Child labor, checking the proof of age and whether “young workers” (15-18) do not exceed hourly limits for school and shifts.
– Forced labor, checking that the company does not require a monetary deposit to be given a job, or doesn’t withhold money to force continuation of the job.
– Health and safety standards, such as protective equipment and emergency procedures.
– Freedom of unions
– Discrimination and harassment checks
– Disciplinary procedures in place
– Check for illegal confinement, physical beatings or fines levied.
– Working hours and renumeration
I hope that gives you an idea of some of the procedures involved with a Social Compliance Audit. You find out more at this website.