Good Practices to Reduce Forced and/or Child Labor in Supply Chains Part 2

Core Components of a Compliance Program 1. Code 2. Social Audit Program a. Audit tools b. Auditors b. Auditors c. Auditing Process c. Auditing Process d. Corrective Action Plans d. Corrective Action Plans e. Difference between an investigation and an audit e. Difference between an investigation and an audit 3. Using Data 4. Trace-Ability 5. Accountability

Codes Names that are used Names that are used Purpose(s) of the code Purpose(s) of the code Company vs. Industry codes Company vs. Industry codes

Who is a Social Auditor Internal Auditors Internal Auditors External or 3 rd party auditors External or 3 rd party auditors Independent monitors Independent monitors Knowledge and Skills Standards for Knowledge and Skills Standards for Social Auditors

Audit Tools Formats Formats How they are used How they are used Audit reports after the audit Audit reports after the audit

Auditing - 1 Staffing Staffing Size of team Size of team Team leadership Team leadership Team coordination Team coordination Staff turnover Staff turnover

Auditing - 2 Time Allotment Time Allotment Preparation Preparation Knowing the industry Knowing the industry

Audit - Interviews Location Location Body language Body language Languages Languages Reading the person Reading the person

Audit – 4 Report writing Report writing Timing Timing Content Content Using the reports Using the reports Connecting with Vendors Connecting with Vendors

Audit - 4 Corrective Action Plans Corrective Action Plans Short term Short term Long term Long term Who writes them Who writes them Who follows up Who follows up Holding Vendors Accountable Holding Vendors Accountable

After the Audit Using data Using data Mapping Mapping Database integration Database integration Integrating sourcing and compliance – using sourcing as an impetus to bring about change on the ground Integrating sourcing and compliance – using sourcing as an impetus to bring about change on the ground Looking for patterns Looking for patterns Looking for outliers Looking for outliers

CORE QUESTION Keeping things under control vs Bringing about positive change