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US Customs and mandatory Human Rights Due Diligence (mHRDD) laws are starting to focus attention on the lack of independence that exists with most social compliance or ethical sourcing programs and certification schemes. This attention will likely lead to a big shift in how brands engage suppliers and verify labour and human rights practices. Come learn the nuts and bolts of this important topic in order to prepare for this shift in our Two Part Series.
In Part One we discussed what regulators think of the current social compliance audit model and as well as some of the key drivers for integrity and bribery such as “comply or die” audit model, misaligned buyer-factory intentions, and the dominance of the factory-select audit model that lacks independence.
While social audit integrity (falsifying records, worker coaching, and bribery) has been a substantive problem for years, it continues to grow and morph with the times. It’s estimated by well placed on-the-ground practitioners that 70% of all social audits conducted in high risk markets such as China, Bangladesh, India, Pakistan, Vietnam are tainted in some way – something that continues to be profiled in exposes year after year. To further demonstrate this, during the webinar we provided updated black-market pricing for passing social audits for ten different well-known audit firms (anonymized) which can varies by firm and brand program.
In Part Two, we will discuss in more detail the roles and responsibilities that different actors will need to play in reversing this shocking trend. This includes processes and procedures that brands, certification schemes, audit firms, APSCA, auditors, and factories will need to implement in order to restore independence and credibility to this very important process.
- Brands: audit structure, quality control over your program, understand audit firm integrity mechanics, how to review social audit reports (red flags)
- Audit Firms: Integrity management systems
- Auditors: roles and responsibilities
- Certification schemes: audit structure, quality control over your program, understand audit firm integrity mechanics, how to review social audit reports (red flags)
Please submit comments and questions you would like to have covered to [email protected]