In today’s global marketplace, consumers and regulators alike are demanding greater transparency and ethical responsibility from brands. Social compliance due diligence is now a mandatory requirement for softline brands, driven by a complex web of international laws, local regulations, and customer demands for verifiable proof of ethical sourcing.

The Sedex Members Ethical Trade Audit (SMETA) is the globally recognized framework to meet these due diligence demands, offering a robust methodology for assessing working conditions, H&S, environmental practices, and business ethics.

El SMETA audits are conducted by API, an approved audit body and a group company within the Worms Safety group. The goal is continuous improvement, with a Corrective Action Plan Report (CAPR) guiding suppliers when non-compliances are found.

From Regulation to Practice: How SMETA Supports Supply Chain Due Diligence in Softline Industry

Legislation worldwide now mandates that companies implement effective human rights and environmental due diligence systems to identify, prevent, and mitigate adverse impacts. For the softline industry, this requires a heightened focus across the entire supply chain, from fabric sourcing to garment manufacturing.

While these regulations do not specifically mandate social audits, leading brands are increasingly incorporating SMETA audits as a critical component of their due diligence frameworks. Comprehensive SMETA assessments, like those provided by our alliance API, deliver the visibility and data needed to meet these compliance obligations. Key regulations impacting the softline sector include:

• EU Corporate Sustainability Due Diligence Directive (CSDDD): Requires large companies to conduct due diligence on their value chains to address human rights and environmental issues.
• UK Modern Slavery Act 2015: Mandates transparency from companies on their efforts to combat forced labor and human trafficking in their supply chains.
• German Supply Chain Due Diligence Act (LkSG): Requires companies to establish robust risk management systems to address human rights and environmental risks.
• California Garment Worker Protection Act (SB-62): Increases accountability for labor practices in the garment industry and strengthens the enforcement of supplier codes of conduct.

Common SMETA Non-Compliances in the Soft-Line Industry

There are several recurring non-compliances during SMETA audits in the softline sector. Understanding these common challenges is the first step toward building a more compliant and ethical supply chain.

Here are eight of the most common non-compliances we see in apparel, textile, and footwear manufacturing:

Proactive Compliance: Best Practices for Success in the Softline Industry

At SgT, we believe in a proactive approach to compliance. By working with our clients and their suppliers, we can help embed ethical practices into every aspect of the softline supply chain. Here are some best practices for success:

• Conduct a thorough self-assessment: Before an official SMETA audit, we encourage suppliers to conduct a thorough self-assessment to identify and address potential issues.
• Develop a robust management system: We work with suppliers to develop robust management systems with clear policies and documentation for all SMETA areas, from working hours to chemical management.
• Engage and train your team: A successful ethical compliance program requires buy-in from everyone. We help suppliers train their teams so that all employees understand the SMETA requirements and their roles in meeting them.
• Address previous audit findings: We work with suppliers to address any findings from previous audits, demonstrating a commitment to continuous improvement.
• Foster a culture of continuous improvement: A SMETA audit should not be seen as a one-time event, but as part of an ongoing journey of improvement. We work with our clients and their suppliers to foster a culture of continuous improvement, where audits are seen as opportunities to learn and grow.

Conclusion

SMETA compliance is an essential part of building a resilient, ethical, and sustainable softline supply chain. By proactively addressing common non-compliances and fostering a culture of continuous improvement, companies can not only meet regulatory requirements but also create long-term value for their business, their workers, and the environment. Póngase en contacto con nosotros and let’s begin this journey.