5 replies to this topic

[kconf]

Hi all,

Do I have to ensure our suppliers Management, Finance, Purchasing and Logistics teams are aware of the ETI Base Code for us to fully meet compliance? How would I know each of my supplier is compliant to be able to call ourselves compliant? 

 

Trying to fill this form out if someone can help. 

 

THE ETI BASE CODE COMPLIANCE CHECKLIST

 

This document ensures the awareness and compliance of the company stated below regarding the ETI (Ethical Trading Initiative) Base Code.

 

Company Name:

 

 

 

Please check what applies to your company.

☒  Our Company’s Management, Finance, Purchasing and Logistics teams are aware of the ETI Base Code

☐  Our Suppliers Management, Finance, Purchasing and Logistics teams are aware of the ETI Base Code

☐  Our company is registered with SMETA and has completed the 3^rd Party Social Responsibility Audit (check one below)

☐ SMETA 2 PILLAR                                   ☐ SMETA 4 PILLAR

Please check what best describes your company’s position regarding compliance.

☐ Fully meets                                    ☐ Partially meets                                ☐ Does not meet

 

 

 

Signed:

 

(Signatory to be qualified technical employee or Officer of the Company only please.)

Name:

 

Title:

 

Date:

 

 

[SHQuality]

That would be part of your supplier approval process: asking the right questions, the occasional audit and checking their certifications and SMETA registrations.

[GMO]

 

Do I have to ensure our suppliers Management, Finance, Purchasing and Logistics teams are aware of the ETI Base Code for us to fully meet compliance? 

 

 

Yes. It's a pretty reasonable thing to ask. Purchasing decide who you buy from, finance and logistics might spot if you're buying from someone new. Your supplier management will know if they're ETI base code compliant or not.

 

 

 How would I know each of my supplier is compliant to be able to call ourselves compliant? 

 

 

Two ideas. Firstly, build it into contracts. (First it might already be there so check.) If it's not already built in you will need to going forward and inform your suppliers that they need to be complaint and confirm by "x" date. Your procurement team will need to be involved in this. In the meantime, I'd recommend doing some spot audits (even if they're only remote ones) for due diligence unless they already have an ethical audit they will share with you. Ethical gaps are common in my experience.

 

A better idea IMO is to use a company like SEDEX or similar to do SMETA audits on you and insist your supply chain do the same. You can then link to your suppliers on the SEDEX platform. That will take longer but it's more robust.

 

Lastly and just to pull out the pin and chuck in the grenade... Is this your job? Just thought I'd ask. Ethical auditing might have "audit" in there but doesn't make it technical. In fact it has more in common with HR and EHS / H&S than Technical. Not saying you shouldn't support it but the reality is most sites end up with Technical taking this on because nobody else wants to and sometimes customer technical teams look after it as well, so if you fail it's pain coming your way. But if you do take it on make sure that you have support. I've had A LOT of pain in plants where HR and H&S do not see it as their concern and trust me that is awful.

[TimG]

 

Lastly and just to pull out the pin and chuck in the grenade... Is this your job? Just thought I'd ask. Ethical auditing might have "audit" in there but doesn't make it technical. In fact it has more in common with HR and EHS / H&S than Technical. Not saying you shouldn't support it but the reality is most sites end up with Technical taking this on because nobody else wants to and sometimes customer technical teams look after it as well, so if you fail it's pain coming your way. 

 

GMO has a point. The ETI/SMETA stuff has always been handled by a mix of HR/account managers or in my current facility the VP of Finance/ops and HR. I support them by providing copies of required training and sign offs. The previous director here was pretty staunch in his opinion of quality getting involved in those. His little bit of involvement is in a file called "SJW CRAP".

[jfrey123]

Short answer for the OP:  If your company has a SMETA or similar audit that meets ETI, then you can mark that top check box and return that form.  Your company complies, and that's that.  The only way to know whether your suppliers meet it along with you is to ask them, and start including it in your approval process for suppliers.

 

Adding to the overall discussion, the corp I work for now decided to try and offload SMETA compliance to our corporate FSQA team, because "Your team does all that audit stuff..."  I'm not involved in it, but the director who does has successfully started looping in our HR and Production directors as well since findings touch things like payroll and hours worked and staffing, etc.  So they tried to off load it, but our team dragged them all back into it.

 

From the supplier approval side that I run, we haven't updated our process (yet) but we've got forms xxxxxx back 10 years on some of these suppliers where they completed our checklists for what we called "Social Accountability" and a "Supplier Code of Conduct."  These were made well before my time, likely to meet a customer's demand that we extend social welfare checks down the supply chain since we service said customers.  Last year it became pretty common for new suppliers to send me SMETA audits completely unprompted, so it feels like the industry is aware of these shifting goal posts. 

[GMO]

Just be aware, people always think with SMETA / SEDEX style audits that it will be the suppliers you might not think of suppliers who will bite you in the butt. Think about the H&S controls with your engineering contractors. What about the overtime your canteen staff are paid? Do you know if your security guard working for a contractor is working excessive hours. That kind of thing.