The SEDEX audit (Sedex Members Ethical Trade Audit, or SMETA) is a widely used standard for ethical supply chain audits, ensuring that businesses adhere to international standards related to labor rights, health and safety, environmental protection, and business ethics. This audit is recognized by clients worldwide, including those in the U.S. and Europe, and can be requested by clients who require it.
SMETA audits come in different formats, with the 2P and 4P audits being two of the most common types. The main difference between these two audits lies in the scope and depth of the areas they cover.
1. 2P Audit (2 Pillar Audit)
The 2P audit focuses on two main pillars:
Labor Standards:
This pillar assesses whether the company complies with labor laws related to wages, workers’ rights, and the prohibition of child and forced labor.
Health and Safety:
This pillar ensures that the company provides a safe and healthy working environment, preventing workplace accidents and occupational diseases.
The 2P audit primarily focuses on labor rights and workplace safety, ensuring that a company meets the basic ethical and compliance standards. It is suitable for businesses seeking basic ethical compliance audits.
2. 4P Audit (4 Pillar Audit)
The 4P audit builds upon the 2P audit by adding two additional important pillars:
Labor Standards:
As in the 2P audit, this pillar ensures compliance with wage, child labor, and forced labor regulations.
Health and Safety:
This pillar also ensures that the working environment is safe and healthy for employees.
Environmental Protection:
The 4P audit includes an assessment of the company’s environmental practices, such as resource use, waste management, pollution control, and adherence to environmental regulations and sustainability requirements.
Business Ethics: This pillar evaluates whether the company follows fair trade principles, prevents corruption and unethical business practices, and ensures transparency and integrity in all business transactions.
The 4P audit is suitable for companies that need a comprehensive evaluation of their supply chain’s ethical and sustainability practices. It goes beyond labor rights and health and safety to address environmental and business ethics as well.
Key Differences Between 2P and 4P Audits
Scope:
The 2P audit focuses on labor rights and health and safety, while the 4P audit expands to include environmental protection and business ethics.
Depth:
The 4P audit is more comprehensive, making it ideal for companies looking for a more thorough assessment of their supply chain’s ethical and sustainable practices.
Target Audience: The 2P audit is often used by smaller businesses or those just beginning to implement ethical trade practices. In contrast, the 4P audit is typically requested by larger companies or those working with international brands that require more in-depth evaluations.
Audit Costs
The cost of a SEDEX audit can vary depending on the type of audit. Since the 4P audit covers more areas than the 2P audit, including environmental assessments and business ethics, it generally costs more. The decision to choose either a 2P or 4P audit is typically based on the client’s requirements. If more stringent social responsibility standards are needed, the 4P audit is the preferred choice. Additionally, the audit costs may vary depending on the auditing company and the size of the company being audited—larger businesses with more employees and a larger facility will generally incur higher audit costs.
2P Audit: Focuses on labor rights and health and safety, suitable for basic ethical and compliance checks.
4P Audit: Includes labor rights, health and safety, environmental protection, and business ethics, making it suitable for more comprehensive supply chain audits.
Choosing between the 2P and 4P audit depends on the client’s needs. If a company requires a more thorough review of its supply chain’s ethical and sustainable practices, the 4P audit is the ideal option.
At Top Jewelry Ltd, we are proud to hold the SMETA 4P audit certification and undergo annual updates to ensure continuous compliance with Sedex standards. If you need more information or would like to see our latest audit report, feel free to contact us at sales@top-jewelry.cn or sales@top-jewelry.net.