How to Better Prepare EICC and Buyers’ Audit C Y Tam Product Manager SGS Hong Kong Limited 15 July 2011 How to Better Prepare EICC and Buyers’ Audit ROADMAP TO SUCCESS 1. Know your clients’ required audit type 2. Know the audit criteria 3. Know your gap from conformance 4. Action Plan 5. The Audit 2 1. Know Your Clients’ Required Audit Type A company utilizes its own internal auditors to audit 2nd Party EICC Based Audit their suppliers or potential suppliers Use the EICC process, code and its provisions and tools A company uses an EICC approved independent 3rd Party EICC Based Audit audit firm to audit a supplier or potential supplier or in some cases the company’s own facilities. Use the EICC process, code and its provisions and tools 3rd Party EICC Audit managed solely by EICC appointed EICC Validated Audit (VAP) Audit Program manager (APM) Executed by an EICC approved independent Audit firm A validated audit Report (VAR) is quality reviewed and released by the APM 3 2. Know the Audit Criteria EICC Code of Conduct Applicable Local Laws and Regulations International Standards Client Specific Code of Conduct / Requirements Labor Health & Safety Management Systems Ethics Environment Common Audit 4 2. Know the Audit Criteria Need Expertise in CSR / OHS / EMS / Sales / Sourcing / QA Maintain and update a legal database 5 2. Know the Audit Criteria Pay Attention to all sections of EICC Code … declare support for the code and actively pursue conformance to the Code and its standards in accordance with a management system as set forth in the Code. … At a minimum, participants shall also require its next tier suppliers to acknowledge and implement the Code. 6 3. Know the Gap from Conformance Self Assessment Questionnaire Gap Assessment • Competent employee • External party 7 4. Action Plan Action Plan to Close the Gap Establish company policy covers Labor / Ethics / Health & Safety / Environment Assign responsible persons Objective and targets Timeline Establish action plans Implement the plans Review the progress 8 4. Action Plan External support Seminar Training Consultancy 9 5. The Audit Before the Audit Logistics support Discuss the audit plan Obtain a document list from audit firm Provide auditors with a meeting room with internet and telephone lines 10 5. The Audit 11 5. The Audit Opening Meeting Management and other involved personnel to attend Introduce your company to the audit team CSR program organization, goals and performance 12 5. The Audit Document Review Available at the start of audit: • Personnel records • Attendance records, payrolls … • System documents, procedures, training records … • Permit, license, certificates … • Others (refer to document list)… 13 5. The Audit Site Visit Production areas Facilities areas (equipment rooms, wastewater treatment, etc.) Office areas Material, chemical and waste storage areas Distribution Centers / shipping and receiving Canteens and kitchens Dormitories 14 5. The Audit Escorting Site Visit Provide an escort to auditor Familiar with site operation and factory personnel Ensure auditors have access to all facilities Not an auditee to answer all question 15 5. The Audit Gathering Information from Management Ensure key staff members are available: • • • • • • • • • • • • Site manager(s) Production manager(s) Maintenance staff Environment manager(s) Health & Safety manager(s) Quality manager(s) Human Resources manager(s) On site services staff such as canteen, dormitory supervisors, security staff Finance manager / payroll manager Procurement manager / supply chain manager Onsite medical staff Other personnel (as appropriate) 16 5. The Audit Gathering Information from Workers Formal and information interaction with worker About 20‐30 min for each formal interview Sample size based on global leading practice Group and individual sessions Private and confidential 17 5. The Audit Closing Meeting The same group of auditee personnel to attend Provide additional evidence or clarification Agreement on the findings Classification of findings: • Priority issue • Major non‐compliance • Risk of non conformance • Minor non‐compliance 18 SGS World’s largest Inspection, verification, testing, certification, and information company Global network Over 1,250 offices and labs 150 countries Founded 64,000+ employees In 1878 in Geneva, Switzerland Expertise & Confidentiality 19