A social audit is necessary to find out whether or not the factory fulfills its social obligations in terms of working conditions, worker health insurance, and labor practices. This audit service ensures that the factory is operating within an ethical framework of standards. Many importers are now requiring manufacturers to maintain ethical working conditions throughout their supply chains.
Apart from helping to protect factory workers from unsafe working conditions, let’s discuss a few of the benefits to importers who conduct social compliance audits in this article.
Minimizing legal problems
By conducting a social audit, Importers are protected from being indirectly involved in any scandals regarding the working conditions in their supply chain. For example, most social compliance standards forbid the use of child labor, requiring the factory to comply with national and local child labor laws. Factories need to verify all employees’ ID information to make sure that they are in a legal age to work. Following such rules and laws helps to prevent unethical child labor and ensures that local laws are followed.
Save the brand reputations
Brand reputation is very important for a company. Many big brands and retailers are proud of their social compliance standards, which they promote on their websites and in marketing materials. However, many big companies are still using child labor to produce their products. For instance, H&M, this company many time has been involved in major humanitarian issues over many years. Although, they are showing their image of an Eco-friendly brand but still, child labor is being used in bulk. The track of this company has been marked as they used to bring children from the Philippines and assign works to them.
Help you to find a good and reputable supplier
For all businesses, to satisfy your customers’ need in terms of quality and quantity are essential no matter you sell online or in-store. In this globalization era where everyone has access to everything, any negative news will easily spread among customers. Once you have a quality issue or in the worst cases your supplier didn’t treat their employees in a good way and you as a buyer don’t know about it, it will influence your brand reputation and it might affect a large number of potential customers.
This kind of situation needs to be avoided. To minimize future risks, conduct an audit and quality control inspection are necessary when you are importing goods from Indonesia. You can detect existing quality issues at an early stage. But before start working with a new supplier, you can conduct a social audit as the solution.
The Social Audit (SA) in Indonesia verifies that you are doing business with factories respecting social rights. In today’s marketplace, it is essential to protect your image by ensuring that your supply chain is socially compliant and responsible. You will be able to qualify new suppliers and understand if it is suitable to work with them or not.
Generally speaking, customers prefer to buy from brands that are sustainable and socially responsible and care about their employees, from the production workers on the factory floor on up.
Contact us for more information about the social audit in Indonesia.