Supply chains pose one of the largest reputational risks for many companies. Communicating standards and monitoring performance can be extremely challenging and complex, especially where products and services are sourced from countries where labour standards are less well defined and poorly implemented.

International standards have been developed by the International Labour Organisation, and implemented via a number of multi-stakeholder organisations such as the Ethical Trading Initiative. Typically, supply chain programmes are built on: clear communication of standards, via the issue of a code or policy; training and support material to assist factories in their understanding of requirements; with monitoring being performed through a combination of self-assessment and independent auditing.

In several cases, the “audit burden” is now being shared with the proliferation of industry initiatives to publish and share information on factory compliance, with the aim of reducing costs while at the same time making step wise improvements in working conditions.

There is growing evidence of the commercial benefits that derive from sound and responsible factory management. In many manufacturing countries, there is now competition between factories for skilled labour. Well-run factories are finding they can benefit from attracting and retaining high-calibre workers, seeing increased productivity and quality, reduced absence and increased trust from customers. Communicating these benefits is one of the next challenges, so that suppliers become self-motivated to improve working conditions.

We see auditing as a means of promoting improvements in working conditions, building healthy relationships with factories, and protecting brand integrity. Ethical supply chain management is so much more than simply protecting a brand. It offers a means of working with factories to improve quality, reduce costs and promote sustainable growth.

We have experience of working very closely with supply chains and understand this potential for improvement. Our services reflect this philosophy, providing auditing that is rigorous, forming relationships that are productive and offering support that is practical.

For example, our audit process involves a detailed and thorough assessment, including interviews with workers to check opinions and help identify any issues. Throughout, we seek examples of good practice so as to form and be able to communicate a balanced view of conditions, management capability and commitment. At the end of each audit, we feed back our findings and agree all non-compliances, jointly developing an action plan to address them. Our reports to clients are highly informative, balanced and include this action plan which enables our clients to follow up. We can also offer support if requested e.g. by providing training, further information or re-audits.

Where possible we work with internal buying teams, technologists and auditors to develop:

•  effective, affordable and consistent ways of evaluating working conditions
•  the ability of suppliers to implement change and improvements
•  internal risk assessment capability
•  accurate and effective communication channels
•  effective support and follow-up

We provide a range of services through an international network of supply chain auditors to help support ethical supply chain programmes:

•  supply chain mapping and risk assessments to provide an overview of performance and enable efficient use of resources
•  on-site risk assessment audits, including worker interviews, give a higher level of assurance and identify areas for improvement
•  reports provide in-depth information where a major risk is suspected or has been identified
•  all audits include meetings with factory management to discuss and agree any remedial actions and appropriate timescales
•  audit reports are checked centrally for consistency, with standardised grading of non-compliance points so that sites can be compared. The reports include a valuable auditor's overview of strengths and weaknesses
•  practical, coordinated follow-up programmes and direct liaison with suppliers, if needed
•  integration with your internal sourcing, procurement and auditing functions

•  awareness of ethical issues in the workplace and the business case for improving standards
•  guidance on how to approach and prepare for factory audits
•  developing implementation and response plans, illustrated with practical case studies
•  specific focus on areas of local concern e.g. working hours, freedom of association etc.

We also provide in-house training for buyers, merchandisers and technologists to equip them to assess working practices and /or conduct follow up meetings during factory visits.

We recommend a regular independent review to help clients manage these internal audit programmes as efficiently as possible, to promote robust supply chain assurance and improvement at the lowest cost.