SMETA – Sedex Members Ethical Trade Audit

Overview

SMETA (Sedex Members Ethical Trade Audit) is one of the most widely used social audit methodologies in the world. It is not a certification but a standardized ethical audit framework that allows businesses to assess social and ethical practices of suppliers, demonstrate compliance with labour, health & safety, environmental, and ethical standards, and share audit reports via the SEDEX online platform.

Globally, it is used by buyers (retailers, brands) and suppliers (manufacturers, exporters) to ensure responsible business practices across the supply chain.

Objectives

  • Assess social and ethical practices of suppliers.
  • Demonstrate compliance with labour, health & safety, environmental, and ethical standards.
  • Facilitate sharing of audit reports via the SEDEX online platform.
  • Ensure responsible business practices in the supply chain.

Eligibility Criteria

Exporters / Factories

  • Meet buyer requirements for ethical trade, especially in EU/UK/US.

International Retail Brands

  • Ensure responsible sourcing and compliance of their suppliers.

Audit Firms & Compliance Consultants

  • Assess, prepare, and verify supply chain practices.

Documents Required

Legal & Regulatory

  • Company Incorporation Certificate (COI)
  • GST / PAN / IEC
  • Factory/shop license
  • Labour law registrations (ESIC, EPFO)
  • Fire NOC, Building safety certificates
  • Pollution control certificate (if applicable)

HR & Labour Compliance

  • Wages and attendance records (last 12 months)
  • Appointment letters, ID cards, contracts
  • Overtime registers
  • Leave records
  • Age proof for employees
  • POSH Committee records

Health & Safety

  • Safety policies and training logs
  • Fire extinguishers & service records
  • First aid kits, medical room
  • Emergency exits and signage
  • PPE distribution records

Environment & Ethics

  • Waste disposal records
  • MSDS for chemicals (if any)
  • Code of conduct / whistleblower policy
  • Anti-bribery and anti-corruption policy

Benefits

  • Required by EU/UK/US buyers, improving credibility with global brands.
  • Enhances worker welfare and reduces legal & reputational risk.
  • Promotes regulatory compliance aligning with ETI Base Code & UN SDGs.
  • Opens more export opportunities with preferred status from global retailers.
  • Facilitates transparency and builds global supply chain traceability.