[Social Compliance standards]

OHSAS 18001 AND SEDEX

 A Project Report on

“Social Compliance standards”

Submitted in partial fulfilment for the Degree of

Master of Fashion Management

Under the guidance of

Associate Professor Pratik Ghosh

Department of Fashion Management Studies

On 10 April, 2020

Submitted By

Shruti Jhunjhunwala

Akanksha saxena

Department of Fashion Management Studies

NATIONAL INSTITUTE OF FASHION TECHNOLOGY

BENGALURU-560102
DECLARATION

We hereby declare that this project submitted to National Institute of Fashion Technology,
Bengaluru in partial fulfilment for the award of Master of Fashion Management is the
original work carried out by us under the guidance and supervision of Mr Pratik Ghosh,
Department of Fashion Management Studies and NIFT Bengaluru. We, further declare that
this project or part thereof has not been submitted in any form for any other degree or
diploma. All information included from other sources has been duly acknowledged.

Shruti Jhunjhunwala

Akanksha saxena

Place: Bengaluru

Date: 10 April, 2020

 TABLE OF CONTENTS

OHSAS 18001/ ISO 45001

 BENEFITS
 THE INTENDED USERS OF THE STANDARD
 ISO 45001 RELATION TO OTHER STANDARDS
 DIFFERENCES BETWEEN OHSAS 18001 AND ISO 45001
 ISO 45001:2018 MIGRATION GUIDANCE FOR CLIENTS
 TOP TIPS TO GET THE MOST OUT OF YOUR HEALTH AND
SAFETY MANAGEMENT SYSTEM
 NEXT STEPS ONCE IMPLEMENTED

OCCUPATIONAL SAFETY AND HEALTH IN THE TEXTILES SECTOR

 RISK ASSESSMENT STEP BY STEP

SEDEX
 SERVICES

 PROCEDURE OF SEDEX CERTIFICATION

 ADVANTAGES OF SEDEX CERTIFICATION

SEDEX MEMBERS ETHICAL TRADE AUDIT (SMETA)

 MEASUREMENT CRITERIA BY CLAUSE
 BENEFITS

DUE DILIGENCE FOR RESPONSIBLE SUPPLY CHAINS IN THE

GARMENT AND FOOTWEAR SECTOR

COVID-19 MEASURES

BIBLOGRAPHY
OHSAS 18001

OHSAS 18001 is the world-recognised standard for occupational health and safety
management systems.
This standard (Occupational Health and Safety Assessment Series) is compatible with ISO
9001 and ISO 14001 certification, to help your business effectively comply with the
occupational health and safety regulations.

OHSAS 18001 places a proactive and preventative emphasis on risk-control factors by

identifying and assessing the likelihood and severity of hazards in the workplace.

OHSAS 18001 is an essential management system for your business, along with quality,
environment and other management systems. It will help your company reduce direct and
indirect costs while preventing injuries in the workplace. By conforming to OHSAS 18001,
your company safeguards its stakeholders – employees, suppliers and customers – from
risk. Third-party certification will credibly demonstrate your organisation’s implementation
of a comprehensive system for ensuring health and safety in the workplace.

The OHSAS 18001 criteria address the following main aspects:

 Planning to identify the hazards, together with risk assessment and management.
 OHSAS management programme.
 Structure and responsibility.
 Training, presentation and skills.
 Consultation and communication.
 Operational management.
 Preparation for emergency situations and solutions.
 Performance measurement, monitoring and improvement.

To further protect and promote employees' health, performance and safety, a new OH&S
Management system standard - ISO 45001 - was launched in March 2018. ISO 45001
replaces OHSAS 18001, which has been in application since 2007. Organisations which
currently hold OHSAS 18001 certification needs to transition to ISO 45001 by March 2021, in
order to meet the requirements of the new standard.

ISO 45001
BACKGROUND
An organization is responsible for ensuring that it minimises the risk of harm to the people
that may be affected by its activities (e.g. its workers, its managers, contractors, or visitors),

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and particularly if they are engaged by the organization to perform those activities as part of
their “occupation”.

There were, according to an estimate by the International Labour Organization (ILO), 2.34
million deaths in 2013 as a result of work activities. The greatest majority (2 million) are
associated with health issues, as opposed to injuries. The Institute of Occupational Safety
and Health, IOSH, estimates there are 660000 deaths a year as a result of cancers arising
from work activities.

ISO is developing an occupational health and safety (OH&S) management system standard
(ISO 45001) which is intended to enable organizations to manage their OH&S risks and
improve their OH&S performance. The implementation of an OH&S management system
will be a strategic decision for an organization that can be used to support its sustainability
initiatives, ensuring people are safer and healthier and increase profitability at the same
time.

An organization’s activities can pose a risk of injury or ill-health, and can result in a serious
impairment of health, or even fatality, to those working on its behalf; consequently it is
important for the organization to eliminate or minimize its OH&S risks by taking appropriate
preventive measures. An organization’s OH&S management system can translate its
intentions to prevent incidents into a systematic and on-going set of processes (supported
by the use of appropriate methods and tools) and can reinforce the organization’s
commitment to proactively improving its OH&S performance.

It is logical that those working closest to an OH&S risk will be knowledgeable about it. As
such, the participation of workers in the establishment, implementation and maintenance of
an OH&S management system can play an important role in ensuring that the risks are
managed effectively. ISO 45001 emphasizes the need for worker participation in the
functioning of an OH&S management system, as well as requiring that an organization
ensures that its workers are competent to do their assigned tasks safely.

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OHSAS 18001:2007 (initial version OHSAS 18001:1999) is the predecessor to the recently released
ISO standard ISO 45001:2018. The OHSAS standard was recognised internationally but it is not an
ISO standard.

Over time it has become increasingly apparent that too many workers are suffering from OHS
related illnesses, injuries and deaths, placing an unacceptable burden on people, their families and
with moral and welfare costs to society overall.

This was recognised and hence the need to have a systematic structure for the management of the
activities. ISO 45001:2018 is an ISO standard and has been designed to have greater compatibility
with existing ISO standard management system revisions including ISO 9001:2015 and ISO
14001:2015.

It uses the same management system structure and reflects the requirements identified by the
International Labour Organization guidance for OHS systems. It has been developed over a number
of years by International bodies and industry experts.

Owing to this compatibility ISO 45001:2018 should build on all the success of OHSAS 18001 and
allow the benefits to be enhanced and potentially integrated in other generic management system
standards.

In 2021 OHSAS 18001 will be withdrawn leaving ISO 45001 the primary international OHS
management system standard.

ISO 45001 IS NOT

ISO 45001 does not state specific criteria for OH&S performance, nor is it prescriptive about
the design of an OH&S management system. An organization’s OH&S management system
should be specific to meeting its own needs in preventing injuries and ill-health;
consequently a small business with low risks may only need to implement a relatively simple
system, whereas a large organization with high levels of risks may need something much
more sophisticated. Any type of system may be capable of being in conformity with the
requirements of the standard, provided it can be shown to be appropriate to the
organization and is effective.

ISO 45001 does not specifically address issues such as product safety, property damage or
environmental impacts, and an organization is not required to take account of these issues
unless they present a risk to its workers.

ISO 45001 is not intended to be a legally binding document, it is a management tool for
voluntary use by organizations from SME’s upwards whose aim is to eliminate or minimise
the risk of harm.

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 NOTE: There are a number of ILO conventions and standards (ILS) concerning OH&S that
have been adopted by countries around the world, to varying degrees. ISO 45001 is broadly
aligned with the provisions of the ILS.

HELPS YOU WITH

 Worker Safety
 Risk Management
 Risk Reduction
 Injury Prevention
 Enhanced Occupational Health Measures
 Statutory Identification and Compliance Evaluation
 Improve Productivity
 Enhance Organizational Safety Culture

THE BENEFITS OF USING ISO 45001

An ISO 45001 based OH&S management system will enable an organization to improve its
OH&S performance by:

• Developing and implementing an OH&S policy and OH&S objectives

• Establishing systematic processes which consider its “context” and which take into
account its risks and opportunities, and its legal and other requirements

• Determining the hazards and OH&S risks associated with its activities; seeking to eliminate
them, or putting in controls to minimize their potential effects

• Establishing operational controls to manage its OH&S risks and its legal and other
requirements

• Increasing awareness of its OH&S risks

• Evaluating its OH&S performance and seeking to improve it, through taking appropriate
actions

• Ensuring workers take an active role in OH&S matters

In combination these measures will ensure that an organization’s reputation as a safe place
to work will be promoted, and can have more direct benefits, such as:

• Improving its ability to respond to regulatory compliance issues

• Reducing the overall costs of incidents

• Reducing downtime and the costs of disruption to operations

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• Reducing the cost of insurance premiums

• Reducing absenteeism and employee turnover rates

• Recognition for having achieved an international benchmark (which may in turn influence
customers who are concerned about their social responsibilities).

BENEFITS OF HEALTH & SAFETY CERTIFICATION

Reduced operating costs

Less down-time due to incidents and ill health and lower costs from legal fees and
compensation means money saved.

Improved stakeholder relationships

Make the health and property of staff, customers and suppliers more of a priority and
people will respond.

Legal compliance

Understand how statutory and regulatory requirements impact your organization and its
customers.
Improved risk management

Identify potential incidents and implement controls and measures to keep risk as low as
possible, protecting employees and customers from harm.

Proven business credentials

Independent verification against a globally recognized industry standard speaks volumes.

Customer satisfaction and safety

Meet customer requirements consistently whilst safeguarding their health and property.

Corporate Social Responsibility

Implementation of a structured management system can aid demonstration of CSR and

organizational culture.

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PDCA CYCLE
ISO 45001 has adopted the four stage Plan-Do-Check-Act (PDCA) cycle for achieving
continual improvement. This is an inherent part of the systematic approach to determine
workable solutions, assessing the results, and implementing ones that have been shown to
work.

The PDCA cycle can be applied not only to management systems as a whole, but also to
each individual element to provide an on-going focus on continual improvement. At the
core of each stage is ‘Top Management’ who is pivotal to ensure the OH&S system is
managed effectively.

In the context of ISO 45001, refer to the following PDCA cycle:

Establish OH&S objectives, processes and resources required to deliver results in

accordance with the organizations OH&S Policy.

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DO: Implement the processes as planned to include worker participation, hazard
identification and emergency preparedness.

CHECK: Monitor, measure and evaluate OH&S activities and processes.

ACT: Take actions to continually improve to including findings of incidents, addressing non-
conformance and audit findings.

THE INTENDED USERS OF THE STANDARD

The simple answer is all organizations. It should not matter if your organization is a micro
business, or a global conglomerate; if it is a non-profit organization, a charity, an academic
institution, or a government department. As long as your organization has people working
on its behalf, or who may be affected by its activities, then using a systematic approach to
managing health and safety will bring benefits to it.

The standard can be used by small low risk operations equally as well as by high risk and
large complex organizations. While the standard requires that OH&S risks are addressed and
controlled, it also takes a risk based approach to the OH&S management system itself, to
ensure a) that it is effective and b) being improved to meet an organization’s ever changing
“context”. This risk based approach is consistent with the way organizations manage their
other “business” risks and hence encourages the integration of the standard’s requirements
into organizations’ overall management processes.

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RISK BASED THINKING/AUDITS
Any company that operates an OH&S management system must ensure there are effective
measures to evaluate performance which enables continual improvement internally. This
section outlines the different methodologies of auditing in relation to the OH&S system to
ensure it is effective at all levels of the organization and meets the requirements of the
standard.

Risk Based Thinking

Risk Based Thinking (RBT) is a central tenet of ISO 45001. RBT requires the Management
Team to continually assess the issues that affect OH&S aspects of an organization and
ensure that appropriate targets, resources and controls are in place. RBT empowers
organizations to make dynamic changes to their objectives and focus, whilst at the same
time ensuring that resources are in place to control changes and unforeseen circumstances.
In relation to OH&S, risk-based thinking extends to areas outside of the organization which
may influence safety.

For example, procurement of products and services (including contractors) and the impact
of supplied products and services. The organization must determine the methodology for
risk-based thinking with consideration of compliance obligations and the participation of
workers. For operational aspects the standard clearly defines the hierarchy of control for
hazard identification and the reduction of risks with the involvement of workers. This
methodology requires the organization to reduce risks associated with hazards to a
reasonably practicable level.

1st Party - Internal Audit

Internal audits are taken at a moment in time to determine if policies and practices are
effective and achieving the intended aim. The internal audit is an opportunity to engage
with workers and to capture a true reflection of processes. Audits may identify positive
evidence of conformity including compliance obligations; however through inspection and
observation they may identify improvement opportunities and non-compliance in breach of
the management standard.

Audit Planning

Developing an audit plan does not have to be a complicated process. Through risk based
thinking a series of audits can be scheduled to focus areas of higher risk and to engage with
identified groups of workers. It’s up to the organization to determine the frequency
provided it is defined. In addition to operational aspects the plan will cover core processes
including compliance obligations, management review and documented information.

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Walk Through Audits

A less formal approach maybe adopted in addition to the audit plan by conducting ‘walk
through’ audits. This may be conducted by senior leadership or at operational level to
inspect areas of the organization to pre-determined questions. This is a further opportunity
to engage with workers, promote communication and build a positive safety culture within
the organization.

2nd Party - External Audits

Second party audits are usually conducted by customers or organizations on their behalf;
however they may be conducted by regulators to ensure the organization complies with
legal requirements. External audits are a useful way to substantiate an organization OH&S
claim and to gather first-hand information and contact with workers prior to commitment to
a formal business relationship. Second party audits may be planned; however, notice may
not be provided from regulators emphasising the requirement to ensure OH&S
organizational requirements are prepared.

3rd Party - Certification Audits

Third party audits are conducted by UKAS accredited certification bodies such as NQA in
compliance of the ISO 45001 OH&S standard. Depending on the number of employees,
sites, risk and complexity of the organization, the certification body will determine the
number of audit days required to cover the full scope of the standard. Prior to certification,
the organization may consider a gap analysis conducted by either consultant or certification
body to identify gaps against the OH&S standard.

ISO 45001 RELATION TO OTHER STANDARDS

ISO 45001 follows the high level structure approach that is being applied to other ISO
management system standards, such as ISO 9001 (quality) and ISO 14001 (environment). In
developing the standard, consideration has been given to the content of other international
standards (such as OHSAS 18001 or the International Labour Organization’s “ILO –OSH
Guidelines”) and national standards, as well as to the ILO’s International Labour standards
and conventions (ILSs).

Those adopting the standard, once it has been published, should find its requirements
consistent with the other standards. This will allow for a relatively easy migration from using
an existing OH&S management system standard to using ISO 45001, and will also allow for
the alignment and integration with the requirements of other ISO management system
standards into their organization’s overall management processes.

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ANNEX SL
Prior to the introduction of Annex SL (previously known as ISO Guide 83), organizations who
implemented ISO 9001 Quality, ISO 14001 Environmental and ISO 27001 Information
Security standards had difficulty integrating management systems. Based on different clause
structures and terms of definition, the absence of Annex SL could lead to potential gaps
between management systems an unnecessary burden on resources. The introduction of
Annex SL including ISO 45001 has enabled multiple standards to adopt the same high-level
structure to harmonise 10 core clauses, making it easier to integrate common management
standards.

Annex SL consists of 10 core clauses:

1. Scope

2. Normative references

3. Terms of definition

4. Context of organization

5. Leadership

6. Planning

7. Support

8. Emergency preparedness

9. Performance evaluation

10. Improvement

The first three clauses provide a background to the standard with useful information
including terms of definition. The rationale of ‘Context of the Organization’ (clause 4) is that
the system focuses on processes and requirements needed to achieve organizational policy
objectives. This is achieved by understanding the organization and the context in which it
operates. The Clause sets out the requirements for the organization to define the ‘Scope’ of
the system, and the subsequent planning of the system.

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Clauses 5 to 10 are common to all management system standards, ISO 45001 specifically
relates to occupational health and safety issues. So, whilst there is commonality, there are
OH&S processes to be established, implemented and maintained including understanding of
the policy framework, identification of hazards, management control of risks and worker
participation. A successfully deployed Annex SL enables an integrated management system
(IMS) which simultaneously handles the requirements of ISO 45001, ISO 9001 and ISO
14001. Typically, this would include a harmonised documented information, procurement,
audit and management review process without the necessity of duplication.

DIFFERENCES BETWEEN OHSAS 18001 AND ISO 45001

While both standards are targeted toward improvements in working conditions, ISO
45001 takes a proactive approach to risk control that starts with the incorporation of
health and safety in the overall management system of the organization, thus driving top
management to have a stronger leadership role in the safety and health program.

OHSAS 18001 takes a reactive approach of hazard control by delegation of hazard control
responsibilities to safety management personnel rather than integrating the responsibilities
into the overall management system of the company.

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Understanding the differences between the programs is important for employers as they
move into the new system and explore the organizational possibilities. Below are several of
the main differences between the two standards:

 Management Commitment

In ISO 45001, management commitment is central to the standard’s effectiveness and

integration. The shift in the new standard is toward managerial ownership. The safety
culture of the organization is to be supported by the engagement of management with
workers, and demonstrated by a top-down emphasis. Instead of providing oversight of the
program, management should be true safety leaders.

This means an active, participatory role in the organization’s safety and health for C-suite
and those in management. Protection of workers as well as performance improvements are
roles of leadership under the new ISO 45001.

 Worker Involvement

Workers also have broader participation in the new standard, with employees working with
management to implement the safety management system (SMS). Employees should be
provided training and education to identify risks and help the company create a successful
safety program. Internal audits and risk assessment results should be openly shared with
workers and allow for employee input. According to ISO 45001, the responsibility of safety
management belongs to everyone in the organization.

 Risk versus Hazard

ISO 45001 follows a preventative process, which requires hazard risks to be evaluated and
remedied, as opposed to hazard control, under OHSAS 18001. Think of the new standard as
proactive, rather than reactive. In adopting ISO 45001, your organization will find and
identify potential hazard risks before they cause accidents and injuries. Audits, job safety
analyses and monitoring of workplace conditions will be vital to ensure the proactive
approach prescribed by ISO 45001.

 Structure

One obvious and important difference between ISO 45001 and OHSAS 18001 is the
structure. The new standard is based on Annex SL, which replaced ISO Guide 83, and applies
a universal structure, terminology and definitions. You’re probably well familiar with this
structure if you also use other systems such as ISO 9001 and ISO 14001. Through using the
same structure, multiple management systems are easier to implement in a more
streamlined and efficient way.

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Ultimately, ISO 45001 can be best summarized as a whole-company, proactive approach to
incorporating a safety culture. It is a framework that can take your organization to the next
level in safety and health.

WHAT REMAINS UNCHANGED FROM 18001?

The overall intent to focus on hazard, risk, and controls, the Plan-Do-Check-Act model,
planning and policy, legal requirements, improvement objectives, action planning,
monitoring, awareness, competency and resources needed to support the system remain
similar to 18001.

ISO 45001:2018 MIGRATION GUIDANCE FOR CLIENTS

MIGRATION GUIDANCE PLAN

NQA considers ISO 45001:2018 to be a significant development primarily due to changes in

structure, and the introduction of additional concepts and themes.

It is their goal to ensure that they perform value added audits that establish an
organization’s level of conformity to the standard and in doing so, help their clients
understand both the intent and the philosophy behind the changes.

NQA’s philosophy is to maintain a simplistic migration approach that is easy for their clients
to comprehend and apply.

Their goal is to provide us with the guidance and tools to make the migration from OHSAS
18001:2007 to ISO 45001:2018 as smooth and cost-free as possible.

STEP 1: MIGRATION GUIDELINES - ISO 45001:2018

1. The International Accreditation Forum (IAF) has stated that organizations will have 3
years from the date of the standards publication to migrate their OHSMS to become
compliant to the new standard.
2. All current existing certificates to OHSAS 18001:2007 will expire three years after
release and publication of ISO 45001:2018.

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3. Migration from OHSAS 18001:2007 to ISO 45001:2018 may be accomplished during a
single visit. A minimum of one day additional time shall be added to the duration to
effectively evaluate the changes and effectiveness of implementation. Based on IAF
MD-21:2018 – issue 1.
4. If a client’s OHSAS 18001:2007 certificate expires before they are able to fully migrate
to the ISO 45001:2018 standard, they may be re-registered to OHSAS 18001:2007
(subject to a cut-off period to allow for subsequent migration).

The expiration date of this re-registered certificate will be within the three year anniversary
of the release of ISO 45001:2018.

5. A new certificate to the 2018 version will be issued when it can be satisfactorily shown
that a client has fully met the requirements of the new standard. As is the current
practice, all major non-conformities must be formally closed out and corrective actions
for any minor non-conformances must be received and accepted by NQA, prior to
issuance of a certificate.

Prior to the Migration Audit being undertaken, clients are required to complete the NQA ISO
45001:2018 Gap Analysis Document. Clients are also encouraged to complete an internal
audit and management review against the new standard, as this exercise serves both to
ensure that all requirements have been addressed in the management system and to
provide easy reference to these requirements during the migration audit. As a minimum,
the client must have completed a formal gap analysis using the document mentioned above
and reviewed the output with Top Management at management review or an equivalent
mechanism.

STEP 2: YOUR MIGRATION PROCESS

Based on the three-year migration timeline, they have developed the following migration
process for organizations that currently have a registered OHSAS 18001:2007 system with
NQA:

MIGRATION AT ANNUAL AUDIT

 Migrations will be conducted at the time of annual surveillance or recertification

audit.

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  Additional mandatory time will be added to the audit duration in order to allow the
completion of a full and effective migration assessment against the new standard
requirements.
 The additional time will be a minimum of one day. Additional time will be
determined according to unique criteria of the organization. This will be determined
by NQA. To find out your specific migration audit duration please talk to a member
of the NQA team.
 If successful, NQA will issue a new certificate with the valid until date (VUD):

o At a surveillance audit - this will reflect the previous certificate.

o At a re-certification audit – this will reset the three year certification cycle
o In the circumstance where the three year certification cycle has been
restricted by the end of the migration period, and the migration has taken
place during a surveillance audit, the VUD date will be reset to three years
from the date of the previous reassessment or initial certificate VUD.

STEP 3: INFORM NQA

They need to know when you wish to migrate from OHSAS 18001:2007 to ISO 45001:2018.

STEP 4: GAP ANALYSIS TOOL

The NQA ISO 45001:2018 Gap Analysis Document provides a simple framework for
evaluating your OHSMS against the requirements of ISO 45001:2018. The document
highlights:

 The new concepts introduced in ISO 45001:2018 and the related clauses, processes and
functional activities
 The new and amended clauses between OHSAS 18001:2007 and ISO 45001:2018

Please complete each table by recording the evidence acquired from one full internal audit
against the requirements of ISO 45001:2018. Complete all sections prior to your migration
assessment and ensure it is available for your assessor at the opening meeting.

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TOP TIPS TO GET THE MOST OUT OF YOUR HEALTH AND SAFETY
MANAGEMENT SYSTEM:
1. To have an effective OH&S management system the organization must have
commitment from ‘Top Management’ to implement and continually improve.

2. Develop the management system as a tool to protect workers and business

interests and not just to satisfy the standard.

3. Use ‘context’ to understand how the organization can internally and externally
impact on OH&S including workers.

4. Inform interested parties and workers of their objectives when implementing

the standard to gain ‘buy in’ and generate a positive safety culture.

5. When designing processes ensure that they are relevant to the environment
they are intended to be used. In other words, do not overcomplicate the system.

6. Build the requirements of the standard in to existing processes and control –

OHS is not an add-on.

7. Consider integrating this standard into existing management systems such as ISO
9001 Quality and ISO 14001 Environmental. This will help embed OH&S into the
thinking of both Top Management and Workers leading to a safe workplace.

8. Implementation of this standard is not a burden on your organization. Risk

based thinking with the participation of workers should improve safety culture and
productivity.

NEXT STEPS ONCE IMPLEMENTED

AWARENESS TRAINING

• Your organization should raise awareness about various standards covered under IMS.

• You should hold separate training meetings for top management, middle management
and junior level management, which will help to create a motivating environment, ready for
implementation.

POLICY AND OBJECTIVES

• Your organization should develop an Integrated Quality Policy/Environment Policy/Health

& Safety Policy/Information Security Policy and relevant objectives to help meet the
requirements.

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• By working with top level management your company should hold workshops with all
levels of management staff to outline the integrated objectives.

INTERNAL GAP ANALYSIS

• Your organization should identify and compare the level of compliance of existing systems
against requirements of the standards under your new IMS.

• Relevant staff should all understand the operations of the organization and develop a
process map for the activities within the business.

DOCUMENTATION / PROCESS DESIGN

• The organization should create documentation of the processes as per requirements of

relevant standard(s).

• You should write and implement a manual, functional procedures booklet, work
instructions, system procedures and provide associated terms.

DOCUMENTATION / PROCESS IMPLEMENTATION

• Processes / Documents developed in step 4, should be implemented across the

organization covering all the departments and activities.

• The organization should hold a workshop on the implementation as per applicable for the
ISO standard requirements.

INTERNAL AUDIT

• A robust internal audit system for the organization is essential. Internal Auditor Training is
recommended and NQA can provide Internal Auditor Training for the standard(s) that you
are implementing.

• It is important to implement corrective actions for improvements, in each of the audited

documents, in order to bridge gaps and ensure effectiveness of IMS.

ORGANISE A MANAGEMENT ‘SYSTEM’ REVIEW MEETING

• Top level management must review various official business aspects of the organization,
which are relevant to the standards being implemented.

• Review the policy, objectives, results of internal audit, results of process performance,
results of complaints/feedback/legal compliance, and results of risk assessment/incidents
and develop an action plan following the meeting - which must be minuted.

THOROUGH GAP ANALYSIS OF IMPLEMENTED SYSTEMS

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• A formal pre-certification gap analysis should be conducted to assess effectiveness and
compliance of system implementation in the organization.

• This final gap analysis will prepare your organization for the final certification audit.

CORRECTIVE ACTIONS

• Organization should be ready for final certification audit, providing that the gap analysis
audit conducted in the last step and all the non-conformities (NC) have been assigned
corrective actions.

• Check that all the significant NCs are closed and the organization is ready for the final
certification audit.

FINAL CERTIFICATION AUDIT

• Once completed, your organization is hopefully recommended for registration to ISO

9001/14001/ISO 45001.

OCCUPATIONAL SAFETY AND HEALTH IN THE TEXTILES SECTOR

The textiles and clothing sector is a large, diverse sector across all Member States and with a
turnover of over EUR 200 billion. An industry with a long history, the products manufactured
range from hi-tech synthetic yarns to wool fabrics, cotton bed linen to industrial filters,
nappies to high fashion. The sector employs over 2.5 million workers, many of them women.
In some states, women form the majority of workers in the sector.

The industry can be split into a number of sub sectors:

• The treatment of raw materials, i.e. the preparation or production of various textiles
fibres, and/or the manufacture of yarns such as through spinning

• "Natural" fibres, including cotton, wool, and silk

• "Man-made" fibres, including cellulosic fibres such as viscose, synthetic fibres such as
polyester, and fibres from inorganic materials such as glass

• The production of knitted and woven fabrics (i.e. knitting and weaving)

• Finishing activities such as bleaching, printing, and dyeing

• The transformation of the fabrics into goods, including the “clothing” industry, carpets and
other textile floor covering manufacture, the production of home textiles such as bed linen,
and the manufacture of technical or ‘industrial’ textiles.

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The textile and clothing sector in Europe is changing as a result of developing technology
and economic conditions, with businesses restructuring, modernising, and adapting to
technological change. There is a trend of moving away from mass production of simple
products towards a wider variety of products with a higher added value. The technical and
industrial product subsector in particular is an area where European producers are world
leaders. These developments have also had an impact on employment in the sector, with
changes in employment models (e.g. subcontracting), and as a result of the techniques
involved, on the hazards and risks to which workers are exposed.

Hazards and risks in the textiles sector

The textiles sector contains many hazards and risks to workers, ranging from exposure to
noise and dangerous substances, to manual handling and working with dangerous
machinery. Each processing stage from the production of materials to the manufacturing,
finishing, colouring and packaging poses risks for workers, and some of these are
particularly dangerous for women’s health. This short document cannot cover all the
hazards and risks in all the parts of the textiles sector, but highlights some of the key issues,
particularly to women workers, and how worker safety and health can be managed.

Musculoskeletal disorders

Musculoskeletal disorders (MSDs) are the most common work-related health problem in
Europe, with almost one in four workers reporting backache and one in five complaining of
muscular pains. Manual handling, the lifting, holding, putting down, pushing, pulling,
carrying or movement of a load, is the largest cause of injury in the textiles sector. Manual
handling can cause either cumulative disorder from the gradual deterioration of the
musculoskeletal system, such as lower back pain, or acute trauma such as cuts or fractures
due to accidents.

In the textiles sector, risk factors for MSDs include:

• Working in awkward postures, such as during spinning, cutting, product control, and
packaging,

• Repetitive movements, such as during spinning, cutting, product control, and packaging,

• Fatigue from manual handling, during the storage, inspection, treatment, shipping,
finishing, and cutting of textiles.

Exposure to chemical agents

Many different groups of chemical substances are used in the textiles sector, including dyes,
solvents, optical brighteners, crease-resistance agents, flame retardants, heavy metals,
pesticides, and antimicrobic agents. They are used in dyeing, printing, finishing, bleaching,
washing, dry cleaning, weaving slashing/sizing, and spinning.

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Respiratory and skin sensitizers can be found in the textiles industry, for example textiles
fibres, reactive dyes, synthetic fibres, and formaldehyde. The textile industry has been
evaluated as a sector with an increased carcinogenic risk. Several studies have showed an
increased risk of nasal, laryngeal and bladder cancer in women.

Exposure to dusts and fibres

The exposure of workers to dusts from material such as silk, cotton, wool, flax, hemp, sisal,
and jute can occur during weaving, spinning, cutting, ginning, and packaging. Division of
tasks along gender lines may mean that women are exposed to organic dusts more than
men, with respiratory diseases being diagnosed more often in women than men. Exposure
to fibres and yarns may cause nasal or bladder cancer.

Exposure to biological agents

In some activities, such as carding and willowing, workers may be exposed to biological
agents such as anthrax, clostridium tetani (the causative agent for tetanus), and coxiella
burnetti (which causes Q fever). Exposure to biological agents can result in allergies and
respiratory disorders.

Exposure to physical agents

Workers may be exposed to noise and vibrations, for example during weaving, spinning,
sewing, twisting, and cutting. Exposure to loud noise can result in permanent hearing
damage such as noise-induced hearing loss and tinnitus. Exposure to vibration, particularly
together with risk factors for MSDs, can lead to long-term harm. Electromagnetic fields may
also be found in some workplaces in the textiles sector.

Accidents in the textiles sector

The textiles sector has many hazards that can cause injury to workers, from transport in the
workplace (lift truck), dangerous large work equipment and plant, to the risk of slips from a
wet working environment. Workers being struck by objects, such as moving machinery parts
and vehicles are a significant cause of injury in the sector. There also exists the risks of fire
and explosions, for example from heating plants used for vapour generation.

Psychosocial issues in the textiles sector

Work-related stress has been defined as being experienced when the demands of the work
environment exceed the workers’ ability to cope with or control them. Work-related stress
may be an issue in some areas of the textiles sector, being associated for example with
repetitive and fast paced work, and where the worker has no influence on how the job is
done.

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Legislation

Much of Europe’s legislation for protecting the safety and health of workers is based on a
common structure. This is a series of directives made up of council directive 89/391 (the
“framework directive”) and its “daughter directives” on a range of more specific subjects
such as noise, chemical agents, and manual handling. The directives, transposed into law in
all Member States set minimum standards, so check with the relevant national enforcing
authorities. These directives take the same approach to prevention; risk assessment
followed by prevention measures based upon the following common principles of
prevention:

 Avoiding risks
 Evaluating the risks which cannot be avoided
 Combating the risks at source
 Adapting the work to the individual
 Adapting to technical progress
 Replacing the dangerous by the non-dangerous or the less dangerous
 Developing a coherent overall prevention policy
 Giving collective protective measures priority over individual protective measures
 Giving appropriate instructions to the workers

RISK ASSESSMENT STEP BY STEP

The legal requirement for risk evaluation or assessment applies to all employers. The
process for carrying out a risk assessment can be broken down into a series of steps:

Step 1

Identifying hazards and those at risk

Looking for those things at work that have the potential to cause harm, and identifying
workers who may be exposed to the hazards. Using workers’ knowledge helps to ensure
hazards are spotted and workable solutions implemented. Consultation encourages workers
to commit themselves to health and safety procedures and improvements.

A risk assessment should cover all workers regardless of whether they are employed on
long- or short-term contracts. Where there are persons employed by another organisation
on site, there is a duty on the two employers to cooperate and safeguard the health and
safety of workers.

Risk assessment should take account of differences in workers, such as by gender, age, or
disability. For example, older employees may learn differently than a younger worker, and

21
also have different concepts of risk due to a lack of experience. Different prevention
measures may be required for these worker groups. Work, its organisation and the
equipment used should be adapted to the worker, not the other way around. This principle
is enshrined in EU legislation.

Workers with disabilities should be considered specifically in the risk assessment process.
For example, people with disabilities may be subjected to bullying, which can lead to work-
related stress. Consultation with workers with disabilities is vital to ensure a risk assessment
is appropriate.

Step 2

Evaluating and prioritising risks

Evaluate how likely it is that the hazard will lead to harm or injury, and how severe that
injury is likely to be. Consider what control measures are in place and whether they are
sufficient. It is essential that the work to be done to eliminate or prevent risks is prioritised.
The focus for cost-effective and sustainable risk management should be on collective
protection and preventative measures.

Step 3

Deciding on preventive action

Identifying the appropriate measures to eliminate or control the risks. List the preventive
measures needed in order of priority, then take action, involving the workers and their
representatives in the process. Targeting the underlying problems is the most cost-effective
method of risk management.

Step 4

Taking action

Risk assessment is the first step to successful risk management. Put in place the preventive
and protective measures through a prioritisation plan (most probably all the problems
cannot be resolved immediately) and specify who does what and when, when a task is to be
completed, and the means allocated to implement the measures.

Interventions should be agreed with the workforce, either directly or through worker safety
representatives. The agreed solutions should be carefully implemented, monitored and
evaluated. The information arising from the risk assessment must be shared with the
appropriate persons. Action should be supported by appropriate training.

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Step 5

Monitoring and reviewing

The assessment should be reviewed at regular intervals to ensure it remains up to date. It

has to be revised whenever significant changes occur in the organisation or as a result of the
findings of an accident or “near miss” investigation.

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SedEx is one of the world’s leading ethical trade service providers, working to improve
working conditions in global supply chains. It provides practical tools, services and a
community network to help companies improve their responsible and sustainable business
practices, and source responsibly.

Using Sedex enables companies to work together to better manage their social and
environmental performance, and protect people working in the supply chain. Sedex has over
60,000 members in 180 countries, across 35 industry sectors including food, agriculture,
financial services, clothing and apparel, packaging and chemicals. Its offices are in London,
Gurugram, Santiago de Chile, Shanghai, Sydney and Tokyo. Sedex has over 15 years of
expertise operating in responsible sourcing and works with some of the world’s most
recognisable brands and standard setting organisations, such as the United Nations and
Ethical Trade Initiative.

Trading in a globalised economy is a complex business. With the opportunity to make new
partnerships and unlock fresh markets come challenges around accountability.

Whether a global retail brand or manufacturer, an international agent, or a single production

site, Sedex can help simplify the business of responsible trade. When we join Sedex, we don’t
just access their services. We join a global community of leaders in responsible sourcing.

Their services enable their members to save time and money managing their data around
ethical performance, and to get the insight that can support their continuous improvement.
The approachable, multi-lingual Sedex Helpdesk is open to all members, along with published
guidance, online learning and updates on best practice.

Managing multi-tier data more simply

By using their products and services their members can manage their multi-tier, responsible
sourcing data simply and efficiently. They can take advantage of standardised formats and
reports and collaborate by sharing common information.

Providing cost-effective solutions

Sedex is ‘owned’ by its members, so it is completely focused on providing the responsible

sourcing data, technology solutions, products and services their members need. Their scale
and expertise also help them bring together members and stakeholders to drive convergence
between different industry standards and methodologies.

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Driving continuous improvement

They understand supply chain management as a continuous, collaborative process of

improvement. Their audit methodology helps businesses identify opportunities for
improvement and work with their suppliers to make changes. They also reduce duplication
and ‘audit fatigue’ by allowing suppliers to share one set of data with multiple customers.

Take control with Sedex Advance

Sedex Advance is the largest collaborative platform in the world which allows us to capture,
analyse, manage and present risk information in our supply chain, for our industry. Increase
our social, environmental and ethical sustainability, to enhance and protect our corporate
reputation, globally.

For buyers, they make it simpler to understand how supply chains are performing, and to
identify and act on opportunities for improvement.

For suppliers, they make it easy to share information with multiple buyers in an agreed
format. This frees up time spent on unnecessary duplication.

SERVICES
 SLCP Assessments

Sedex is an accredited host of SLCP – the Social & Labor Convergence Program.
SLCP provides a Converged Assessment Framework that aims to improve working conditions
in global apparel and footwear factories. Sedex provides the platform for facilities (suppliers)
to upload their SLCP assessments and have these verified by a verifying body.

SLCP is a multi-stakeholder program aiming to improve working conditions within the global
apparel and footwear sectors. SLCP has over 200 signatories, including manufacturers, brands,
civil society, standard holders, (inter) governmental organisations and service providers. SLCP
signatories jointly develop and maintain the Converged Assessment Framework.

Collaborating on this program enables both Sedex and SLCP to jointly meet their mission to
improve working conditions in the global apparel and footwear industries and positively
impact the people working in supply chains.

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 Using Sedex as an accredited host:

Sedex is the world’s leading online collaborative platform for sharing responsible sourcing
data to improve working conditions in supply chains. We work with nearly 10,000 buyers and
suppliers working in the global apparel and footwear sectors and support over 55,000
businesses in 180 countries.
Sedex can provide your business with the tools, training, networking and solutions to manage
risk in your supply chain, improve your ethical business practices, and achieve sustainability
and higher business performance.

They are partnering with SLCP as they believe they can continue to reduce duplication and
make lasting improvements to positively impact working conditions.

Facilities (Suppliers) who join Sedex can share their SLCP assessments and other documents
with their customers using their platform. Using Sedex also provides you with a wide range of
tools and guidance to help your business share analyse and assess issues on your site,
supporting you to improve your health, safety and working conditions in your business.

For members who are using SLCP, Sedex offers webinars outlining how to manage this process
on Sedex Advance. By engaging with their webinars, as well as step-by-step guidance on Sedex
e-Learning, you will have all you need to set yourself up for SLCP assessments. There is also
guidance for auditors who are working as part of the Social and Labour Convergence
Programme.

 Worker Wellbeing Assessment

A new worker-centric tool that measures worker satisfaction and job quality to support buyers
and employers increase to move beyond compliance and measure their impact on workers’
lives. The Tool package consists of a survey that can be carried out with workers through a
range of approaches, guidance on methodology and a reporting framework.

The Worker Wellbeing Assessment is included within the Sedex membership and is made up
of a Guidance & Reporting tool, which can be accessed through their e-learning platform.

The tool can be used using 4 different collection methods:

1. Site Management – 1st Party

2. Buyer / customer – 2nd Party
3. Audit company – 3rd Party
4. Mobile Survey Provider – 3rd Party

Mobile survey providers already offering the Worker Well-being Assessment:

 &Wider

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 Laborlink
 Labour Voices
 Ulula
 Workplace Options

 Sedex Ethical Trade Coordinator Service

The Ethical Trade Coordinator Service supports Buyer (A) and Buyer/Supplier (AB) members to
manage their supply chain processes and increase supply chain transparency. The service
provides you with a dedicated Sedex resource to directly assist you with stakeholder
engagement, audit support and analysis, helping you to identify and manage risks within your
value chain.

Sedex can provide you with the resources to support ethical trade in your organisation. They
have the expertise and insight to understand common issues and challenges affecting your
business.

Sedex will assist you with implementing the Sedex platform and supply chain best practice
processes. They will engage with stakeholders to facilitate supplier-customer relationships
and supply chain mapping. This will create visibility of supplier sites, support audit grading and
reporting, and minimise non-compliance issues, allowing you to focus resources on other
important aspects of your business.

BENEFITS

 Support supplier and stakeholder engagement and minimise outstanding non-compliances.

 Help to effectively implement your ethical trade strategy.
 Facilitate communications and enhance relationships between customers and suppliers.
 Have immediate access to in-house expertise about Sedex platforms and industry knowledge.
 Save time and resources for staff to focus on other aspects of the business.
 Support audit grading and reporting for your sustainability and ethical departments.
 Increase transparency of your supply chain and your ethical performance.

 Supplier Engagement

Sedex’s Supplier Engagement service saves time and money by managing the whole process
of engaging with suppliers. They connect with a multitude of suppliers around the world every
day. They understand them and they speak their language.

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 Sedex Supplier Engagement Service provides:

Outreach
They’ll contact suppliers to introduce Sedex and explain the benefits of responsible sourcing.

Guidance
They’ll help them join Sedex and complete the Sedex Self-Assessment Questionnaire (SAQ).

Linking
They’ll ensure our supplier’s link to us to share their information.

Visibility
You’ll get access to high-quality, multi-tier supply chain data.

BENEFITS

 Proven process with successful track record of high-quality supplier engagement

 Experienced, multi-lingual, global team partners with you to manage the entire project
 Saves you time and money
 Improves the quality and quantity of your supply chain data, giving you greater visibility of any
risks
 Tailored to your unique needs and budget
 Set time frames and regular reporting keeps you up to date on project progress
 Provider of choice to many of the world’s largest companies

 Forced Labour Indicator Reports

The more complex and multi-layered the supply chain, the greater the risk that labour abuses
may be present. Particular risks are found at the commodity and raw material levels but also
affect processing, manufacturing, warehousing and transport.

BENEFITS

Simplifies managing complex supply chains

 Allows you to pinpoint possible issues specific to an individual production site;

 Saves time and reduces costs by using your existing Self-Assessment Questionnaire (SAQ) &
Audit data to focus specifically on indicators of potential forced labour;
 Is a key tool for businesses to use in presenting their ‘slavery and human trafficking’
statements.

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 Managing reputational risk

 Provides a clear signal of the company’s stance on forced labour and can enhance their ethical
standing;
 An early identification of potential risks and their drivers enables risk mitigation to protect
brand reputation.

Allows business focus

 Reporting on ‘slavery and human trafficking’ is a board issue, our reports could aid to facilitate
board level discussions;
 The forced labour scores make it easier to recognise risks within the supply chain and
prioritise the focus for your business;
 Allows members to engage internally, improving the collaborative opportunities which are
necessary for managing the forced labour risk (strengthen relationships).

Sedex E-Learning

Sedex e-Learning will support you to increase your employees’ knowledge of sustainability
and understand priority areas for responsible sourcing. The tool is now available for you to
access through your member account anywhere at any time, supporting you to take a holistic
approach throughout your corporate social responsibility planning. Sedex e-Learning is
accessible to all members through Sedex Advance and replaces the Knowledge Hub.

PROCEDURE OF SEDEX CERTIFICATION:

SEDEX is certainly not a standard setting body, implicit rules or confirmation. Rather the job
of SEDEX standard is to empower you to viably share and oversee inventory network data,
with the point of driving consistent improvement. SEDEX has two points, one is to facilitate
the weight on providers confronting numerous audits, polls and affirmations, and the other
is to drive upgrades in the moral execution of worldwide supply chains. SIS is having
encountered group for SEDEX Certification experts who guide customers to make process
speedy and successful. The SEDEX declaration is given by perceived confirming body and
they do site audit for SEDEX affirmation. After accreditation they complete yearly
affirmation audit.

Ventures for SEDEX Certification:

 Miniaturized scale level audit of the current framework

 Set up the SEDEX documentation

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  Make enrolment on SEDEX.
 Lead mindfulness program (top + centre + base level).
 Structure a guiding advisory group and team for each degree of panel
 Distinguish and characterize procedure approach
 Characterize strategy and set up targets
 Plan archives of SEDEX the executives framework.
 Execution and preparing of all work force in the utilization of methodology and
configurations.
 Self-evaluation of the framework
 Evaluate the framework through first inner audit.
 Take restorative activities for non-similarities.
 Apply for SMETA audit.
 Complete the audit.

ADVANTAGES OF SEDEX CERTIFICATION:

 Simple to get to data or information at one secure spot

 Creates Ethical strategic policies
 Keep up and oversee business information or data appropriately
 Improves business proficiency of the association
 Lessen remaining task at hand and produce more noteworthy worker inclusion

SEDEX MEMBERS ETHICAL TRADE AUDIT (SMETA)

SMETA is intended to profit retailers and purchaser brands and their providers, decreasing
duplication of exertion in moral exchange auditing. Organizations who are not individuals
from SEDEX Certification are capable and urged to utilize SMETA also.

SEDEX is an extensive stage that empowers the compelling administration of complex

worldwide supply chains, prompting genuine business benefits for our association.

MEASUREMENT CRITERIA BY CLAUSE

Freely chosen employment

 There is no forced, bonded or involuntary prison labour.

 Workers are not required to lodge “deposits” or their identity papers with their
employer and are free to leave their employer after reasonable notice.

30
Freedom of Association

 Workers, without distinction, have the right to join or form trade unions of their own
choosing and to bargain collectively.
 The employer adopts an open attitude towards the activities of trade unions and
their organisational activities.
 Workers’ representatives are not discriminated against and have access to carry out
their representative functions in the workplace.
 Where the right to freedom of association and collective bargaining is restricted
under law, the employer facilitates and does not hinder, the development of parallel
means for independent and free association and bargaining.

Health and Safety

 A safe and hygienic working environment shall be provided, bearing in mind the
prevailing knowledge of the industry and of any specific hazards. Adequate steps
shall be taken to prevent accidents and injury to health arising out of, associated
with, or occurring in the course of work, by minimising, so far as is reasonably
practicable, the causes of hazards inherent in the working environment.
 Workers shall receive regular and recorded Health & Safety training and such
training shall be repeated for new or reassigned workers.
 Access to clean toilet facilities and to potable water and, if appropriate, sanitary
facilities for food storage shall be provided.
 Accommodation, where provided, shall be clean, safe and meet the basic needs of
the workers.
 The company observing the code shall assign responsibility for Health & Safety to a
senior management representative.

Child Labour and Young Workers

 There shall be no new recruitment of child labour.

 Companies shall develop or participate in and contribute to policies and programmes
which provide for the transition of any child found to be performing child labour to
enable her or him to attend and remain in quality education until no longer a child.
 Children and young persons under 18 shall not be employed at night or in hazardous
conditions.
 These policies and procedures shall conform to the provisions of the relevant ILO
Standards.

Wages and Benefits

 Wages and benefits paid for a standard working week meet, at a minimum, national
legal standards or industry benchmark standards, whichever is higher. In any event
31
 wages should always be enough to meet basic needs and to provide some
discretionary income.
 All workers shall be provided with written and understandable information about
their employment conditions in respect to wages before they enter employment and
about the particulars of their wages for the pay period concerned each time that
they are paid.
 Deductions from wages as a disciplinary measure shall not be permitted nor shall
any deductions from wages not provided for by national law be permitted without
the expressed permission of the worker concerned. All disciplinary measures should
be recorded.

Working Hours

 Working hours must comply with national laws, collective agreements, and the
provision below, whichever affords the greater protection for workers.
 Working hours, excluding overtime, shall be defined by contract and shall not exceed
48 hours per week.
 All overtime shall be voluntary. Overtime shall be used responsibly, taking into
account all of the following: the extent, frequency and hours worked by individual
workers and the workforce as a whole. It shall not be used to replace regular
employment. Overtime shall always be compensated at a premium rate, which is
recommended to be not less than 125% of regular rate of pay.
 The total hours worked in any 7-day period shall not exceed 60 hours, except where
covered by clause below.
 Working hours may exceed 60 hours in any 7-day period only in exceptional
circumstances where all of the following criteria are met:

1. This is allowed by national law.

2. This is allowed by collective agreement freely negotiated with a workers’
organisation representing a significant portion of the workforce.
3. Appropriate safeguards are taken to protect the worker’s health and safety.
4. The employer can demonstrate that exceptional circumstances apply such as
unexpected production peaks, accidents or emergencies.

 Workers shall be provided with at least one day off in every 7-day period or, where
allowed by national law, 2 days off in every 14-day period.

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Discrimination

 There is no discrimination in hiring, compensation, access to training, promotion,

termination or retirement based on race, caste, national origin, religion, age,
disability, gender, marital status, sexual orientation, union membership or political
affiliation.

Regular Employment

 To every extent possible, work performed must be on the basis of recognised

employment relationships established through national law and practice.

 Obligations to employees under labour or social security laws and regulations arising
from regular employment relationships shall not be avoided through the use of
labour-only contracting, sub-contracting, or home-working arrangements, or
through apprenticeship schemes where there is no real intent to impart skills or
provide regular employment, nor shall any such obligations be avoided through the
excessive use of fixed-term contracts of employment.

Harsh or Inhumane Treatment

 Physical abuse or discipline, the threat of physical abuse, sexual or other harassment
and verbal abuse or other forms of intimidation shall be prohibited.

 Companies should provide access to a confidential grievance mechanism for all

workers.

BENEFITS

Improve your reputation

Demonstrate to stakeholders and customers that you are committed to driving

improvements in your supply chain.

Gain competitive advantage

Many customers see Sedex as an important part of their responsible sourcing practices and
companies increasingly view Sedex membership as a condition of supply.

Reduce risk
The reports available on Sedex, and specifically the Sedex Risk Assessment tool, can help
assess the likelihood of issues occurring in your supply chain. Improve supplier relationships

33
The Sedex model encourages increased supplier engagement, helping you to drive ethical
and responsible improvements within your supply chain.

Save time and money

Sedex allows more time and resources to be spent on making improvements rather than on
completing multiple audits and unnecessary paperwork. SMETA is not a new code of
conduct or standard to which audits should be conducted. It is rather a compilation of best
practice in ethical trade audit technique, intended for experienced auditors to help them to
conduct high quality audits that will be accepted by multiple retailers and brands

Improve your notoriety

Exhibit to partners and clients that you are focused on driving upgrades in your inventory
network.
Increase upper hand
Numerous clients see SEDEX as a significant piece of their mindful sourcing practices and
organizations progressively see SEDEX participation as a state of supply.
Diminish hazard
The reports accessible on SEDEX, and explicitly the SEDEX Risk Assessment instrument, can
help evaluate the probability of issues happening in your store network. Improve provider
connections.
The SEDEX model supports expanded provider commitment, helping you to drive moral and
capable enhancements inside your production network.
Set aside time and cash
SEDEX enables additional time and assets to be spent on making enhancements as opposed
to on finishing various audits and pointless desk work.
SMETA is definitely not another set of accepted rules or standard to which audits ought to
be directed. It is fairly an aggregation of best practice in moral exchange audit system,
planned for experienced examiners to assist them with conducting top notch audits that will
be acknowledged by various retailers and brands.

DUE DILIGENCE FOR RESPONSIBLE SUPPLY CHAINS IN THE GARMENT AND

FOOTWEAR SECTOR:

The garment and footwear sector employs approximately 75 million people globally.
Enterprises working in these sectors have the potential to generate growth, employment and
skill development. However, human rights abuses, labour exploitation and environmental
degradation are a common thread throughout the sector’s supply chain. It is therefore
incredibly important to take a due diligence approach when operating in the sector.

34
 The industry urgently needs to progress three key issues to uphold human rights:

 Purchasing practices
 Exploitation of foreign migrant workers
 Environmental/climate impacts.

Challenges in achieving responsible global supply chains:

 There can be a tendency for brands to pick and choose a specific human right standard rather
than applying the full range of international labour standards. It is an important duty for
companies to protect people against human rights abuses and uphold health, living standards
and equality.

 During a poll, Forum participants identified regulation as the biggest gap between uptake and
implementation of due diligence.

 Poor purchasing practices by buyers and retailers can result in up to 22% lower wages for
workers. Aggressive price negotiation, inaccurate forecasting, late orders, power imbalance
between buyer/supplier, short lead times and last-minute changes put suppliers under
intense pressure and lead directly to poor working conditions and low pay for workers.

 Garment and footwear production generate between 5 – 10% of global pollution impacts and
accounts for an estimated 8% of global climate change impacts.

 Investors are moving beyond due diligence only considering the environment, social and
governance (ESG) based on the performance of the potential investee(s).

Recommendations to uphold due diligence:

 Brands should emphasise the need to address systemic issues collectively rather than working
on small individual initiatives. For example, WWF recommended brands should identify key
sourcing region’s issues and join collaborative efforts to address governance matters. The
Forum emphasised the importance freedom of association’ unions can have on better wages
and working conditions. Freedom of association is the right of workers to join and form trade
unions and bargain collectively. Collaborating with workers’ representatives helps to provide
broader views and can help increase broader morale and productivity. Freedom of association
and collective bargaining is a fundamental human right, even though many countries still
restrict workers from forming unions.

 To uphold good purchasing practices, purchasers need to constantly consider the potential
impact of their decisions on suppliers. Purchasing practices are where companies can have the
greatest impact on upholding human rights and responsible pricing is associated with nearly

35
 10% higher wages. Companies can implement responsible purchasing practices by ensuring
production timelines and demands are realistic and building positive relationships with
suppliers.

 Carrying out audits and engaging with workers in supply chains can help to identify and
address migrant labour exploitation. Sedex offers our ethical and social audit methodology
SMETA, and the Worker Wellbeing Assessment to identify and share how workers feel about
their job and provides an opportunity to share perspectives not captured in audits.

 Addressing living wage issues should be at industry level as it is an issue that cannot be
achieved by retailers and brands alone.

 Businesses should establish pro-active approaches to anti-bribery and corruption. For

example, companies should seek to understand how third-party auditors combat bribery and
corruption in their own operations.

 The OECD Garment Guidance recommends enterprises to create supplier contracts with the
obligation to support supply chain due diligence. Contracts should focus on the risks in the
upstream production e.g. enterprises that rely on the extraction of raw materials e.g. cotton
production.

COVID-19 MEASURES
The recent outbreak of coronavirus (COVID-19) has become an increasingly global
challenge that is impacting business operations, global supply chains and SMETA audit
schedules. Sedex recognises that this is a constantly developing situation, and the
protection of people working in business and global supply chains is paramount. The
outbreak of the virus and governments restricting movement across countries to contain
the virus, will significantly impact global trade. This has caused widespread business and
worker rights related concerns, as it may lead to the possibility of thousands of workers
being laid off or some business going bankrupt. Sedex believes it is important to protect
worker rights, while maintaining business continuity where possible, during and after the
coronavirus outbreak.

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BIBLOGRAPHY

https://www.nqa.com/medialibraries/NQA/NQA-Media-Library/PDFs/NQA-ISO-45001-Gap-
Guide.pdf

https://www.nqa.com/medialibraries/NQA/NQA-Media-Library/PDFs/NQA-ISO-45001-
Implementation-Guide.pdf

https://www.certificationeurope.com/insights/tag/iso-45001/

https://www.iso.org/home.html

https://www.certificationeurope.com/insights/tag/health-and-safety/

https://www.sedex.com/sustainability-resources/csr-blog

https://cdn.sedex.com/wp-content/uploads/2019/05/SMETA-6.1-Best-Practice-
Guidance.pdf

https://cdn.sedex.com/wp-content/uploads/2019/05/SMETA-6.1-Measurement-Criteria.pdf

https://www.sedex.com/

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