IGEP Trust is responsible for conducting the audits for ISES 2020. Trained by trainers of ISES 2020 standard (under the supervision of the ISES 2020 committee and management). A brief procedure of the audit conducted for the standard is mentioned below along with some basic information about the ISES 2020 standard.
The ISES 2020 is the revised and advanced former ISES 2000, which was developed in 1995 / 96. The ISES 2020 comprises ten years of work and audit experience with the ISES 2000 with various companies of different sectors. The revised standard was mainly extended by health safety and environmental aspects.
The ISES 2020 relies on the responsibility of the companies complying with the national regulations under labour, social and environmental law in India and relevant international conventions and declarations as mentioned below.
The ISES 2020 covers eleven areas of requirements:
For companies and suppliers, the benefits of adopting ISES 2020 are significant. The widespread integrated management system of ISES 2020 based on the philosophy of a total quality management covers the fields of social accountability, health and safety as well as environment. It has a direct effect on the product, work and production quality of a company. It not only addresses relevant aspects to the employer but also addresses important issues for the employees of a company, local population, customers and or other stakeholders. The improvement of working conditions and reduction of pollution has a direct effect on ameliorating production efficiency, leading to positive impacts on the competitiveness of the company.
A commitment in improving working conditions and environmental aspects can lead to various benefits for a company, including: enhancing the reputation of the company, improving of the employee recruitment as well as benefits in quality, productivity and profitability. An increased organizational efficiency as well as the compliance with national and international laws and regulations are further advantages employers can gain by adopting the ISES 2020.
Benefits for employees and workers are mainly: better working conditions including the guarantee of minimum living wages, guaranteed times off for recreation, a more secure work environment, fewer accidents and an increased awareness of labour rights.
For others especially the local population, the benefits of companies adopting ISES 2020 lie in the improvement of environmental conditions as well as in a clearer more credible and transparent information system about the social and environmental responsibility. An identification of companies making progress towards humane working and living conditions becomes possible. On this basis, customers and investors can also make ethical purchasing and investment decisions. Certainly, a central aspect of the audit is the assessment and evaluation of the compliance with the requirements of the standard. However, the ISES 2020 approach goes beyond and gives assistance to the companies that are adopting the standard. Non-compliance with aspects of the requirements does not lead to immediate exclusion of certification. Instead, IGEP has chosen an approach of cooperation with the companies. In case of non-compliance the auditors and Standard committee will- together with the company- develop a corrective action plan (CAP). The CAP contains measures that have to be implemented to meet the minimum social and environmental standards and be accredited. This form, of cooperation promotes the companies in improving organizational and productive efficiency and hence national and international market competitiveness. Only in cases of total unwillingness and disinterest in setting socially and environmentally compliance, companies will be excluded from the certification process. This is particularly the case in critical deviation from the standard requirements like abolishing child labour, bonded labour, etc.
A further particularity of the ISES 2020 is the holistic approach. This covers on one side all production steps and production groups, integrating the supply chain with regard to social and environmental issues. On the other side the ISES 2020 approach includes a total quality management focusing not only on aspects of production, but as well on a personal management system, aspects of accounting and of continuous improvement. Thus covering the whole value chain.
The ISES 2020 implementation and audit process can be separated into six different phases, in which the first three phases represent a linear process. The self-assessment phase and the first audit follow the awareness raising phase. After that a cyclic process follows. The cycle of improvement consisting of the audit, the correction phase, the implementation phase and the re-audit. These four phases have a cyclical progression as they are repeated in case of non-conformance with one or more requirements and/or after a period of one year as a re-evaluation process. This assures continuous improvement together with the special and unique characteristics of ISES which consists of unannounced audits. All manufacturers must agree to them at the beginning of the certification process. They are all integral part of the ISES work and can be carried out at any time.
During an awareness raising workshop the main aspects of corporate social responsibility and the ISES 2020 are being explained. This first phase is meant as introduction in which the requirements of the ISES 2020 are being explained. During the workshop, a guidance document is handed out. It gives detailed information on the single requirements of the standard and supports the self-assessment process and preparation of the upcoming audit process.
For cost and efficiency reasons, a careful preparation for the audit is recommendable. Following the introductory workshop, the company should start the self-assessment phase on the basis of the information and the sheets for self-assessment and for improvement.
Steps to be taken to prepare for the audit:
After thorough preparation the company should arrange for the first audit being conducted at the whole chain. The audit will be conducted by specially trained auditors of IGEP Trust. The purpose of this audit is to analyze the social and environmental performance of the company, in order to identify any need for improvement and to agree on appropriate corrective action where necessary.
Usually, the first audit serves as a survey with the help of which the necessary corrective actions are arranged between the auditors, the companies (whole value chain) and ISES 2020. In case of a careful preparation on this basis, simple corrective actions should be implemented immediately. Furthermore, complicated actions necessary for compliance are to be carried out according to an agreed time plan (as per the standard compliances) The audit itself is conducted systematically, uniformly and completely. The auditors are subject to an obligation of neutrality. The audit normally comprises the following components:
The introductory meeting is for the participants to introduce themselves and to clarify the framework conditions. This includes the procedure and time of audit, which persons should be available, what documents will be examined and the clarification of outstanding questions.
The interview serves as a further intensive information exchange with the companies. In the case of the audit it may be repeatedly necessary to clarify matters with the company’s management. Part of the interview will be the answering of the questionnaire.
Numerous documents have to be examined and checked during the audit in order to assess whether they comply with the requirements. The auditor has to be given full access to all personnel files, and book keeping documents, etc.
During the audit, the auditor will inspect the site of the company. Main matters of inspection are the fire protection equipment, emergency exits, health and safety matters, machines and electrical equipment, room temperature, ventilation and lighting, general cleanliness, sanitary facilities and required social amenities.
One of the elements in a complete audit is the conduct of interviews with the selected employees in the company, particularly from the production area. These interviews are used to check matters which cannot be properly assessed by means of documents, by site inspection or by interviews with the top management.
Anonymity must be maintained. The employees who are to be interviewed must be selected without the knowledge and influence of third parties. During the interview no further person may be present, apart from the auditor. Interviewed employees enjoy special protection (Interview details must remain confidential between auditor and the interviewed person). Any exertion of influence on employees before the interview or disadvantages for employees who have been interviewed will lead to a mark down in audit results or in the worst case to baselessness of the audit.
Based on the information of the documentation check, the site inspection and the interviews, the auditor determines the audit results and composes a written report.
At the end of the audit a final meeting is held with top management. The audit results with necessary corrective actions are discussed in detail. The corrective action plan has to be agreed to by the responsible manager. .
Complaints can be made:
For these cases there is a complaint mechanism. IGEP Trust provides an opportunity to submit an appeal against abuse, fraud, non-accepted and non-fulfillment of the controls which were/has to be carried out by the auditors.
The complaint should be sent to “IGEP Trust” addressed to Sh. Harihara Subramaniam (Chairman) or Mrs. Sharda Subramaniam (Secretary) via Email (IGEPTRUST@IGEP.ORG) or by post (The Peach Tree, 2nd Floor, Block – C, Sushant Lok, Phase – 1, Sector 43, Gurgaon-122002, Haryana, India).
* If there is no amicable and accepted solution of the matter within two weeks, then the board of IGEP Trust will authorize an advisory team of three people i.e.: trade union, industry representative, civil society. The consultants should not be involved with the complaint and the case. All parties must accept each member of the consulting team.
* In case that the company had good faith in the reliability of the procedure but the respective work has not been done as promised and expected:
The advisory team is to come to a conclusion to clarify the matter within four weeks. This result is summarized in a report and submitted. On this basis the board will then come to a binding and final decision within two weeks.
It must be ensured that the involved parties and the IGEP Trust Board are informed: