In the modern-day and age, informational asymmetries are quite non-existent. Coupled with increasing awareness regarding acts and policies of the company, there has been upward pressure on companies that have forced them to do better in terms of meeting the respective KPIs and ensuring that they can comply with their social policy that can extrapolate better options in terms of their understanding and overall approach.
Social Compliance tends to be an increasingly important aspect, for that matter. Therefore, it calls for companies to ensure that their policies align with ethical conjectures and positively impact all stakeholders.
For this purpose, they are advised and instructed to carry out a Social Compliance Audit that can give them a clear picture of what they are supposed to do, in terms of covering the relevant ground, and what needs to be carried out in order to ensure that they are able to cover substantial ground on corporate social responsibility and other auditors.
What does a Social Compliance Auditor Do?
Social Compliance Audit mainly talks about ensuring that policies and practices are in place to protect workers’ underlying rights, health, and safety. This does not only include the perspective of the company itself, but also the suppliers and the distributors of the company.
This element needs to be taught to get a better understanding regarding the approach that the companies adopt in lieu of protecting, safeguarding, and ultimately providing their employees with the rights they deserve.
There is multiple ground that needs to be covered Social Compliance Auditor, predominantly to ensure that companies are in line with the traditional and expected social practices.
They include features like Child Labor, Health and Safety, Freedom of Association, Discrimination, Disciplinary Practices, Working Hours, Remuneration, and Management System.
In this regard, the Social Compliance Auditor is expected to form a stringent protocol to ensure that the company accounts for all these dimensions. This also requires them to prepare a checklist and draw up substantive audit procedures to test for all the assertions that can help them draw reasonable assurance regarding the company’s social compliance.
In this regard, there are multiple blueprints available and can be used to get a holistic idea regarding the ground that needs to be covered in terms of the audit. Numerous international standards can be followed in terms of ensuring that The company fulfills social compliance.
These standards include SA 8000, SMETA, ILO Ethical Trading Initiative, and Initiative for Compliance and Sustainability (ICS). These standards are used as guidelines to conduct the audit, which can help the auditors assess the overall extent to which social compliance has been taken care of within the company.
There are a number of key procedures that should be included in the key audit procedures. This includes Opening Meeting, Health, and Safety Tours, Employee Documentation Review, Employee Interview, as well as Closing Meeting.
The underlying objective of following this process is to ensure that all the proper ground has been covered and all the relevant proofs have been collected. Based on these observations and understandings, the company can then be able to strategize and ensure that they are able to get a proper understanding of the policies that they need to inculcate to get a proper understanding of the state of affairs.
In the case where the company is unable to keep these requirements intact, it might result in a failed audit. This would eventually lead to a severe loss of reputation, and the company facing lawsuits and penalties for harnessing these terms and conditions.
For the general betterment, it is highly recommended that companies abide by these terms and conditions so that they are able to maintain their reputation in the market, to say the least.
Therefore, it can be seen that numerous aspects need to be covered by a Social Compliance Auditor. From the auditor’s perspective, it is necessary to ensure that different perspectives of the audit are included in the procedural setting so that there is no ambiguity.
More than anything, Social Compliance Auditor can also be considered to play an advisory role, which can help organizations revamp their policies to be more socially proficient in ensuring that all stakeholders’ rights are protected.