1. Introduction to the Standard

Definition

SMETA (Sedex Members Ethical Trade Audit) is a social compliance audit methodology developed by Sedex – Supplier Ethical Data Exchange, a global non-profit organization headquartered in the United Kingdom. Sedex focuses on promoting ethical and sustainable business practices within global supply chains.

SMETA is not a standalone certification like ISO 9001 or SA8000. Instead, it is an audit methodology that enables businesses to demonstrate their commitment to compliance with labor standards, health & safety, environmental protection, and business ethics.

The methodology is based on internationally recognized frameworks such as: International Labour Organization (ILO Conventions), United Nations Guiding Principles, Ethical Trading Initiative (ETI Base Code), Applicable national legislation

SMETA audit results are uploaded and shared on the Sedex platform, allowing buyers, brands, and retailers to access, monitor, and review supplier performance across the supply chain. This enhances transparency and trust among stakeholders while reducing duplicated audit costs for both businesses and customers.

Objectives of SMETA

Ensure compliance with legal and international standards on working conditions, occupational health & safety, environmental protection, and business ethics.

Provide a transparent, objective, and globally recognized audit mechanism.

Help businesses improve internal management systems, strengthen risk control, prevent legal and reputational risks, and enhance corporate credibility.

Meet international customer requirements, particularly in industries with complex supply chains such as textiles, footwear, electronics, food, packaging, and FMCG.

Structure of SMETA Audit

SMETA has two main audit types:

2-Pillar Audit: Covers Labour Standards and Health & Safety.

4-Pillar Audit: Includes the two pillars above plus Environment and Business Ethics.

Companies can select the appropriate audit scope depending on customer requirements or their own sustainability strategy.

Applicability

SMETA applies to all types of businesses within the supply chain — from manufacturers and service providers to assemblers and subcontractors.

Participating in SMETA helps companies demonstrate capability and social responsibility when cooperating with international brands and retailers such as H&M, Unilever, Nestle, Procter & Gamble, Adidas, and IKEA.

Benefits of Implementing SMETA

For Businesses

• Enhance corporate reputation and global brand image.

• Increase opportunities to secure new orders, especially from major brands requiring social compliance evidence.

• Establish a structured, transparent, and effective social responsibility management system.

• Reduce the risk of order rejection or partnership loss due to non-compliance.

• Build a solid foundation for sustainable development and stronger engagement with employees and communities.

For Customers / Partners

• Obtain reliable and verified evidence of suppliers’ social responsibility performance.

• Reduce costs, time, and effort by avoiding multiple duplicated audits.

• Promote transparency and continuous improvement across the entire supply chain.

2. Certification Bodies

SMETA audits are conducted by independent third-party audit organizations such as: SGS, Bureau Veritas, TUV, QIMA, etc.

3. Audit Costs

SMETA costs generally include two main components:

1. Sedex Membership Fee

• Annual Sedex membership fee: approximately 210 GBP (~7,400,000 VND)

2. Audit Fee

Audit costs are calculated based on:

• Travel and accommodation expenses

• Sedex audit registration fee

• Audit report review cost

• Number of employees at the facility

• Audit scope: 2-Pillar or 4-Pillar

ISOCert provides comprehensive consulting services to help businesses build and strengthen their social compliance systems in accordance with the SMETA standard, meeting international customer requirements. Our experts support companies from documentation preparation and Sedex registration to post-audit corrective action guidance, ensuring an efficient and successful audit process.