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A Social compliance audit—also commonly known as a social audit or ethical audit—looks at more than just what’s being produced in your supply chain. For example, an inspection might look at the quality of your products on the production line, a social compliance auditor looks beyond that to assess the working standards of a factory following a rigid set of standards and procedures.

Typically, the company should prove that it conducts its business while complying with certain social and ethical responsibilities and abide by local laws. A social compliance auditor examines all these things and more to offer peace of mind for your supply chain operation.

What Is a social audit?

Our social audit follows the internationally recognized standards & criteria established by various International organisation. These standards includes requirements regarding the prevention of child labour, health and safety, discrimination, remuneration and more.

What Is Evaluated in a Social Compliance Audit?

A social compliance auditor can either be an in-house employee, or an independent third-party. The auditing procedure can vary, as the auditor typically would audit the business based on the aforementioned international standards. Some of the issues an audit could uncover include unfair pay, harassment, bad health and safety, underage labor, excessive working hours, and many other factors that would be considered unacceptable. When a social compliance audit is finished by an ethical auditor, a report will be issued which documents the findings and includes pictures.

At CDG, some of the things our social compliance audit monitors include the following:
Child labor laws
Forced labor laws
Discrimination laws
Minimum wage laws
Worker living standards
Working hours
Overtime wages
Social benefits
Safety and health
Protection of the environment

What Are the Procedures in a Social Compliance Audit?

The following is a simplified social compliance checklist. In order to ensure your company meets the required standards, you can take these steps to get an idea about where your company stands.
Review your company’s code of conduct and its code of ethics.
Define your company’s “stakeholders” by identifying every individual or group that is affected by the performance or success of your business.
Identify the social needs that affect all of your company’s stakeholders, including clean streets, crime and vagrancy reduction.
Devise a system for identifying social targets, gathering data on addressing an issue and implementing strategies to positively affect the situation and reporting the results of those efforts.
Contract with an independent auditing firm that specializes in social responsibility programs; meet with representatives of the audit firm to discuss your efforts and your need for an independent review.
Allow the auditor to complete the independent verification process and then compare his results with the internal observations of the functional group leading your social responsibility effort.

Conclusion: The Key Guide To Social Compliance and Audits

A Social compliance audit is performed to ensure a company adheres to certain rules and regulations of local laws or of a specific agreement. Typically, the company in question may hire a third-party social compliance auditor to overcome language barriers or cultural differences in the international trading context.

About CDG

CDG is one of very few inspection accredited (ISO 17020 accredited by ILAC channel) agencies in India. We conduct food safety or food hygiene inspections.