Tag: audits

5W2H of Process Audits: What You Should Know

We’ve used 5W2H to discuss Product Quality Control before, and now we’re using this popular tool to provide insight regarding process audits.

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Who?

Quality auditors are often certified and/or have other applicable training specific to the types of audits they perform.

Quality auditors must be professional, ethical and objective. They must be able to select appropriate quality and auditing tools and techniques and use them effectively in a variety of applications. In addition, they must verify, document and communicate results.

Investing in Sustainability & Social Responsibility

A recent TED Talk that caught our attention includes Chris McKnett making a solid case for investing in sustainability.  In fact, several TED related talks focus on this topic and do an exceptional job demonstrating the benefits of this long-term strategy.

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In McKnett’s talk, he highlights three additional components to sustainable investing that add to the commonly accepted and used financial indicators. He prefaces the discussion effectively disputing many of the common objections we hear.  He argues sustainability and sustainable investing is “less complicated than you think, has better performance than you can believe and is more important than we can imagine.”

Why social responsibility at factories matters

We continue to see an increase in requests for social responsibility audits and are pleased to see the growing commitment in this regard.  Aside from reducing quality risks and cost, ensuring social responsibility improves quality of life and ultimately affects the quality of products being produced as well.

Principles of social responsibility per the ISO 26000 guideline include:

• Accountability
• Transparency
• Ethical behaviour
• Respect for stakeholder interests
• Respect for the rule of law
• Respect for international norms
of behaviour
• Respect for human rights

“The SA 8000 standard is based on the UN Declaration of Human Rights, conventions of the ILO, UN and national law, and spans industry and corporate codes to create a common language to measure social performance.  It takes a management systems approach by setting out the structures and procedures that companies must adopt in order to ensure that compliance with the standard is continuously reviewed.”

The nine elements of the SA 8000 standard include:

Celebrating worker contributions & realizing the benefits of social audits

The first Monday in September is observed as Labor Day in the United States, which is a national holiday celebrating the contributions of workers.  Similar holidays are observed throughout the world.

Today, Samsung announced issues at several factories in China, indicating age disparities and other health and safety concerns.  They are committing to an evaluation of 144 suppliers before the end of the year, using documentation as a way to verify conformance to local regulations.  Apple and many other multinationals are facing similar issues and are working with NGOs, industry organizations and other 3rd parties such as Pro QC to improve supplier conditions and stakeholder confidence.

We have written several articles relating to on-site and verified social audits and are finding the request for such services are steadily increasing throughout the world.  Organizations of all  sizes and throughout industries are realizing the benefits of proactive supplier management in this regard.

Benefits of ensuring worker’s rights through social audits include:

Human Resources – Recruitment & Retention Benefits 
Higher employee morale leads to greater rates of retention, which cuts the costs of recruiting and training new staff. In addition, a growing trend in recruitment appears to be concern regarding a company’s corporate social responsibility activities.

Increased Product Quality & Safety
Reducing defects and accidents enhances product quality. A less fatigued and adult workforce is less likely to cause accidents or defects on the production line. In addition, a supplier that shows little concern over health and safety is more likely to produce poor quality products.

Risk Management 
Proactive corporate responsibility offsets the risks of scandals or accidents that can create unwanted attention from consumers, regulators, government or the media.

Brand Development
Investing in a socially accountable supply chain benefits a company’s brand by differentiating from competition and building a positive reputation in the minds of consumers.

Stronger Management 
Providing training, defining responsibility and developing manuals will strengthen the management of the company.

Government Intervention 
If businesses take voluntary steps to ensure social accountability, they are more likely to avoid mandated government regulation and taxation.

For additional information regarding the components of social audits, read our full newsletter article.   The American Society for Quality, through theSRO, has recently issued the latest Pathways to Social Accountability as well, which always includes several relevant and convincing case studies.