Basic Course Slides

SAI copyright©SA8000 Basic Auditor Training Course Q2 2022 Version R 1
Introductions & Materials
 Please introduce yourself to your course

mates?
 Name
 Job title/responsibility
 Knowledge of and experience with social
auditing and SA8000
 Expectations for this course
 Your Materials:
 Course Slides
 Student Handbook
 SA8000 and Supporting Documents (links
in handbook)
 Extra Handouts (given by trainer)

Welcome and Course Overview
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Learning Objectives & Methods
objectives methods
 Apply the Attitude, Skills, Knowledge Class Discussion

techniques of a successful social
compliance auditor.
Case Studies and Roleplay
 Understand SA8000 principles, its
origin, intent and structure.
Individual Work
 Understand the interlinkages between
social performance indicators and
Management Systems. Group Exercises
 Be able to plan and conduct an

SA8000 audit, according to supporting “Virtual Tours” of Facilities
tools and procedures.

Virtual Meeting Etiquettes

Agenda
Day 1
9:00 – 9:45 Welcome & Overview
9:45 – 10:45 Session 1: Intro to CSR & Social Accountability
11:00 – 11:30 Session 2: SA8000 in Context
11:30 – 12:15 Session 3: Intro to Management Systems
12:15 – 1:15 Session 4: Social Audits & Auditor Competencies: Attitude,
Skills, Knowledge
LUNCH
2:00 – 3:00 Session 5: SA8000: Introduction and Element 1 & 2
3:15 – 5:15 Session 6: SA8000: Element 3 & 4
5:15 – 5:30 End of Day Review

Session 1:
Introduction to CSR & Social Accountability
Applicable Resources: Time Required:

Student Handbook 60 Minutes

What is Social Responsibility?
The responsibility of a company for the impact it has on society and the environment
The responsibility of a company for the impact it has on society and the environment
Principles for an effective social responsibility program
Contributes to sustainable Is in compliance with applicable

development, including the health laws and consistent with
and welfare of society international norms of behavior
Takes into account the Is integrated throughout

expectation of stakeholders the organization’s
practices and operations

Globalization; Corporations & Human Rights
• The second half of the 20th century was a
period with an surge in international trade,
which became known as economic
globalization. Multinational corporations
(MNCs) gained significantly greater scope,
power, and influence.
• For some, globalization produced many
benefits. For others, the impacts were much
more severe.
• The increasing size of global supply chains

made it more difficult to monitor human rights
violations.
• For example, in the nineties, several brands
were forced to re-evaluate how they conducted
business when forced labor and child labor
were discovered in their supply chains.

The Triple Bottom Line
• The phrase the “triple bottom line” was coined to describe the desire of a an
organization to have a positive impact on workers and community members
(people), the environment (planet), as well as profits (PPP). A balanced triple
bottom line creates shared value for the success of a company and the
community it influences.
TRIPLE
BOTTOM
LINE (PPP)

Workers’ Rights: A Global Concern
The corporate responsibility to respect human rights has now been
integrated into many international organizations & initiatives:
• UN Global Compact
• OECD
• G7
Additionally, the UN Sustainable Development Goals have brought human
rights and decent work to the forefront of a global conversation.

The Supply Chain Perspective involved in the production
of these jeans…

Social Responsibility: Why, Who, & How

Session 2:
SA8000 in Context

SA8000

SAI, SAAS, & Certification Bodies
 Social Accountability International (SAI) – Creator, owner

& manager of the SA8000 Standard
 Social Accountability Accreditation Services (SAAS) –

Provides independent oversight and accreditation to the
SA8000 program to ensure that the audits are undertaken
impartially, competently and effectively, providing quality
assurance to stakeholders and reducing risk to the system.
 Certification Bodies (CB’s) - Third party auditing firms that

audit facilities against a specific international standard. CBs
assess companies compliance to the SA8000 standard
requirements and present a report. The audit covers the
social performance indicators (1-8) and the management
system clauses (9.1- 9.10) of the SA8000 International
Standard.

SAI, SAAS, & Certification Bodies
MSMD

SA8000 Certification vs. Code of Conduct
Code of
Certification Conduct
 Audit requested by applicant company  Typically ordered by brand
 Audit performed by certification body  Audit performed by brand or

under license contracted second party
 Management system based on  Management system being

continual improvement increasingly adopted but Little
continuity
 Regularly scheduled audits
 Audits typically are not announced
 Multi-industry/cross sectors
 Some audits seen as “hostile” by
 Burden of proof on supplier to prove factories
compliance  Audit often done at time of order
placement
 Audit team must consult with external
sources such as NGOs, trade unions,  Stakeholder engagement is limited
etc.
 SA8000 Certificate is driver  Purchase order is driver

Standards & Codes

Vendor & Supplier Codes of Conduct
• Compliance with all the Code of

Conduct criteria is an
expectation of doing business
with buyers and suppliers.
• Every buyer will have a vendor
or supplier code of conduct that
they require supply chain
partners to sign and abide by it
• These can tend to be one sided,
focusing solely on supplier
requirements

What is SA8000?
 The world’s first auditable social
certification International standard for
decent workplaces across all sectors
 Based on the UN Declaration of Human

Rights, ILO Conventions, UN and national
laws
 Spans industry and corporate codes to

create a common language to measure
social performance
 Management systems approach that

facilitates the coverage of Social
Performance Indicators - child labor,
forced& compulsory labor, health & safety,
freedom of association & right to collective
bargaining, discrimination, disciplinary
practices, working hours, remuneration

Meaning of SA8000
What SA8000 Means What SA8000 Does Not Mean
Protection of workers’ rights

and workplace conditions
SA8000 does not ensure that
Compliance with legal and
nonconformities will never
other requirements.
occur, though full compliance
Continually enhance social
must be the goal.
performance management
system
Aim to prevent
SA8000 does not explicitly cover
nonconformities and have
environment or business ethics,
procedures in place to:
although, these issues are
 correct any
covered in the management
nonconformities that do
systems clauses of the
occur
Standard.
 Analyze the root cause of
such nonconformities
and take corrective action
to prevent recurrence

SA8000 Unique Features
 Perception that SA8000 is “The Gold

Standard” which has provided a
framework for other
standards/schemes.
 Social performance indicators &

Management Systems Approach
using Maturity Declaration as a tool
 Measurement Indicators
 Fully integrated into the audit

SA8000® Certification Statistics
 2,135, 430 workers in

certified organizations
 4,865 SA8000® certified

organizations
 60 countries
 56 industries

Session 3:
Introduction to Management Systems

SA8000 45 Minutes

The Challenge: A Real World Story

The Challenge: A Real World Story

What is a Management System?
 A management system is the set of policies, procedures, and

processes that enable an organisation to meet its objectives.
 Management system development: Creation of policies,

procedures, and processes.
 Management system implementation: Trained, committed people

routinely following the policies, procedures, and processes using five
important resources – Human, Financial, Technical, Technological,
Infrastructure
Development Implementation

Common Management Systems framework: ..

Benefits of Management System
Development and Implementation must result in Performance Improvement in the
organisation
Importance of Management System:
For Consistency, Continuity and Continual Improvement of Social Performance
• Social Risk Management

• Efficient use of resources
• Meeting customer/stakeholder expectations
• Stepping Stone in the process of Sustainability
• Participatory approach and better communication to address issues
of relevance
Audits are a vital part of the management system approach as they

enable the company to check how far their achievements meet their
objectives and show the degree to which their system conforms to the
code/standard

CHILD LABOR
Child labor shall FORCED OR
Requirements and REMUNERATION not be used COMPULSORY
Principles of SA8000 People must earn LABOR
enough to live on People have the
during a regular right to change
work week jobs and shall not
be forced to work
MANAGEMENT
WORKING SYSTEMS HEALTH AND
HOURS
SAFETY
Overtime is
Organizations must
utilize management People must not
limited, voluntary,
be endangered at
and paid at a systems to help
work
premium ensure ongoing
compliance
FREEDOM OF
DISCIPLINARY ASSOCIATION &
PRACTICES RIGHT TO
People must not COLLECTIVE
BARGAINING
be abused at
work and free People have the
from all corporal DISCRIMINATION right to organize
punishment and be heard at
Photo by SAI Hiring, wages, and
work
promotions must
be equal and fair

SA8000 : Three Year Audit Cycle
Pre-Certification + Self-Assessment
Covers all Elements of SA8000
Certification Audit:
Stage 1 Stage 2
Audit (includes MS Audit (includes MS
Maturity Maturity Declaration)
Declaration)
Surveillance Audits :
Single Site
Semi
Re Follow up &
Announced
Semi Announced Follow up Certification Recertificati
Audit #2
Audit #1 (onsite) Follow up Review Audit on Review
(onsite)
(includes MS Review Every six months
(includes MS (offsite/onsite (Announced) (offsite
Maturity (offsite/onsite) ) (prior to 30 /onsite 33- 35
Maturity
Declaration) months) months)
Declaration)
MD
End of Current Cycle 36 months ; New Cycle starts

Session 4:
Social Audits & Auditor Competencies

Procedure 200 60 Minutes
Student Handbook

Social Audits
 What is an audit?
 Systematic, independent and documented process for
obtaining audit evidence and evaluating it objectively to
determine the extent to which audit criteria are fulfilled
(definition from ISO)
 ISO 19011, version 2018

Who is involved in an audit?
 Standard Setting
Organizations/Industry Association/
Brand/Company - sets the
Standard or Code
 Certification Body or
Brand/Company - employs the
auditor
 The Facility - demonstrates
compliance
 Management
 Workers
 The Auditor - verifies compliance

Different Types of Social Audits
1st Party Audit (internal audits)
2nd Party Audit (Supplier, code of

conduct audit)
3rd Party Audit (Management Systems

audit leading to Certification)

Social Audits: The 6-Step Process
(According to ISO)
Please refer to the notes section “Social Audits & Auditor
Competencies: Extra Information” in your student handbook.
6. Completing
1. Initiating the the Audit &
Audit Follow-up
Activities
2. Conducting 5. Preparing,
Pre-Audit Approving, and
Information Distributing the
Review Audit Report
3. Preparing for 4. Conducting

the On-Site On-Site Audit
Audit Activities Activities

Social Audits: One Piece of the Puzzle
 On-site audit consists of:

 Onsite walk-through
 Worker and Manager
Interviews
 Document and Data Review
 Social Audits: One piece of the
puzzle
 Evidence can be subjective
 There can be situations that
are difficult for the auditor
to take on
 Other efforts needed
include: stakeholder buy-in,
fact finding rather than fault
finding and capacity building

Objective Evidence
• Gathering objective evidence:
• Observations
• Document & Record Verification
• Interviews
• Criteria for Evidence "There's a world of
difference between
(FARS)
truth and facts. Facts
• Factual
can obscure the
• Accurate
truth.”
• Relevant - Maya Angelou
• Significant

Social Auditors: Core Competencies
 Requirements of auditors vary

depending on the type of audit
 Specific requirements for SA8000, Attitude
BSCI, Sedex, etc. on auditor
competencies
 3 broad categories of competency
for all social auditors:
 Attitude, Skills, Knowledge
Skills Knowledge

ASK Approach Debrief
 ATTITUDE:
 Cultural awareness and sensitivity (e.g. attitude toward
discrimination challenges)
 Evaluating conflicting evidence
 Willingness to engage with external stakeholders
 Investigative approach
 Neutral attitude towards management and workers
 Open-minded and as objective as possible
 Ability to empathize with all parties
 Professionalism and discretion
 Including appropriate attire and demeanor
 Ability to lead or be part of team, as appropriate

 SKILLS:
 Document and Data Review
 Interviewing workers and managers
 Visual observation and Physical inspection
 Stakeholder engagement, including interviews with NGOs and
trade unions
 Analyzing the severity of problems
 Verification and validation of information
 Time management
 Audit planning and coordination
 Researching relevant laws and collecting data
 Audit report writing
 Writing non-conformances & Evaluating corrective action
effectiveness
 Employing effective sampling techniques

 KNOWLEDGE:
 Relevant UN and ILO Conventions
 SAAS Procedure 200 and SAAS Procedure 200A
 ISO management system principles: ISO 19011:2018 (ISO/IEC
17021)
 ISO standards e.g. ISO 14000, ISO 45001
 Relevant Standard or Code of Conduct
 Relevant industry information
 National and local law
 Trade agreements and treaties
 Local culture and regional issues
 Audit protocols

Attitude, Skills and Knowledge:
Common Problems
Attitude Skills Knowledge
• Bias toward • Poor interviewing • Misunderstanding of

either techniques application of law vs.
management or • Poorly written non- standard
workers conformances and • Weak knowledge of
• Cultural bias audit reports specific steps in audit
towards • Time management: process
discrimination • Not understanding
• What you can
• Unwillingness to cover and how which
investigate deep you can go documents/records
below the provide the greatest
• Ineffective and
surface insight
inefficient use of
• Fault finding time • Lack of awareness on
instead of fact sector specific issues
finding
SA8000: The Elements
Child Labour Remuneration
Forced or Compulsory Working Hours

Labour
Disciplinary Practices
Health and Safety
Freedom of Association Discrimination
Management Systems
Session 5:
SA8000 Elements 1&2
Child Labour & Forced Labour
Applicable Resources:
Please Take Out Your Copy of SA8000 Time Required:
60 Minutes
Reflections (Child Labour Videos)
Reflections on the Child Labour Videos as part of the pre course
reading material and use the SA8000 standard to discuss as a class

Child Labour Globally

SA8000 Element 1: Child Labour
• 1.1 Employing children is prohibited in the organisation and in its

supply chain.
• 1.2 Written policies and procedures for remediation of child labour
mandatory with effective communication to all personnel of its
existence irrespective of the risks noted
• 1.3 Young workers employment with conditions- 10 hours rule, No
overtime, No Night Work
• 1.4 Any situation which is hazardous, unsafe to physical and mental
health development-Not Permitted in and outside of workplace

What is Child Labour?
• Child labour is any work
performed by a child younger
younger than 15 or the local
legal school leaving or working
age if higher.
• This is not the same as young
workers who are under the age
of 18 but over the age of a
child.
Types of Child Labour
Employing underage workers
Employing young workers/apprentices
Presence of children in workplaces

Child Labour: Common Problems
Lack of understanding of the

health, safety and development
risk factors for child laborers
Lack of age verification

procedures
Misuse of apprentice programs

permitting children to work or
that are improperly used for
young workers
Ineffective communication of
child labor preventative programs
to workers and interested parties
SAI copyright©SA8000
Basic Auditor Training
Course Q2 2022 Version R
Child Labour: How to Demonstrate
Compliance
• Clearly define policies prohibiting child labor and defining special considerations
for young workers
• Implement age verification procedure that includes review of national ID cards,
birth certificate, school records
• Develop a remediation plan defining what to do in case children are accidentally
employed (example: child presents false ID that the company unknowingly
accepts)
• Rigorous employment process involving age verification
• Monitoring of suppliers/subcontractors including unannounced visits
• Communicate child labor policies and procedures to suppliers and contractors
Subcontractors
• Train all employees on Child & Young Worker Policy & Procedures

Child Labour: How to Verify Compliance
Observation Interviews Document & Data
- Site tour - Workers Review
- Dormitory facilities - Trade Unions - Policies & Procedures
- Stakeholders - Personnel Files & Age
- Subcontractors Verification
- Clinic Staff documents (National
- Management ID card, School
records, Birth
Interview to cover certificate, Medical
- Schooling records)
effectiveness - Pay Records
- Daily quotas - Internal Audit Reports
- Working conditions - Subcontractor Audit
reports
- Training records
Management Systems - Addressing
Child Labour
• Robust recruitment procedure supported with age proof information
of all personnel
• Practical Child Remediation Procedure detailing financial and other
support and effective communication
• Effective monitoring of procedures and practices including detection,
remediation and corrective action
• Key point:
160 million worldwide,79 million in hazardous work likely to increase
to 169 million due to Covid
Ref: ILO report 2020

Forced & Compulsory Labour
• 25 million people worldwide
• 9 million male ( 37%), 16 million female ( 63%),
17% children
• Slavery, servitude, debt bondage, human
trafficking
Modern Slavery
FORCED
Umbrella term, often used to
refer to both forced labor and
trafficking, as well as other forms
LABOUR of labor exploitation.
Debt Bondage
A form of indenture in which a
worker is compelled to work
until a debt is repaid. Debt bondage is
a common form of forced labor.
Human Trafficking
Recruitment, transportation,
transfer, harboring or receipt of
persons, through any form of
coercion, for the purpose of
exploitation.
SA8000 Element 2: Forced & Compulsory Labour
2.1 The organisation shall not engage in or support the use of forced or
compulsory labour, including prison labour, as defined in Convention 29,
shall not retain original identification papers and shall not require
personnel to pay ‘deposits’ to the organisation upon commencing
employment.
2.2 Neither the organisation nor any entity supplying labour to the
organisation shall withhold any part of any personnel’s salary, benefits,
property or documents in order to force such personnel to continue
working for the organisation.
2.3 The organisation shall ensure that no employment fees or costs are
borne in whole or in part by workers.
2.4 Personnel shall have the right to leave the workplace premises after
completing the standard workday and be free to terminate their
employment provided that they give reasonable notice to their
organisation.
2.5 Neither the organisation nor any entity supplying labour to the
organisation shall engage in or support human trafficking.

Key Points to Remember
Forced Labour may

not exist in direct
operations but in
supply chains,
subcontractors,
agencies,
outsourcing.
It can impact any

person,
Forced Labour may exist in all type
regardless of
of work, industry , employment ,
gender, age ,
occupation, contracted ,
migration status,
subcontracted or not contracted
ethnicity, race
ILO’s Combating Forced Labour: A Handbook for Employers and Business
Common Problems of Forced Labour
Wages Fees Informal arrangements Working hours

• Low or withheld • Involves payment for • No agreements or • Extra hours
• Penalties employment contracts • No register for
• Commissions • Debt Bondage • No records working hours
• No payslips
• Work quota/ target
Freedom of movement Harsh Treatment Working conditions

• Not allowed to leave • Discriminatory or • No drinking water
work or break until indecent treatment • Unhygienic and unsafe
target is met conditions

Group Exercise #1: Element 2:
Forced & Compulsory Labour
 Please read element 2: Forced Labour in SA8000

 Group Exercise # 1:
 30 minutes in groups
 Complete exercise in your Course Handbook .
 Class Poll and Discussion 15 minutes

Forced Labour :
How to Demonstrate Compliance
• Provide clear employment contracts that are understood by

workers
• Pay all reasonable job related training and equipment expenses
• Conduct training for workers to explain hiring, pay deductions
and rights
• Define and enforce policies and procedures regarding use of
employment agencies
Forced Labour :
How to Verify Compliance
- Site Tour - Workers Review
- Dormitory Facilities - Managers - Policies & Procedures
- Security guards - Trade Unions - Worker contracts
movement - Stakeholders - Security Guard
- Workers - Security Guards contracts
- Contracted workers - Payroll records
- Time recording system
Interview to cover - Overtime records
- Daily quotas - Recruiting agency
- Disciplinary actions contracts
- Recruitment process - Hiring & Termination
- Payment process documents
- Freedom to leave
workplace and
dormitory facility
Session 6:
SA8000 Elements 3 & 4
Health and Safety & Freedom of Association

Please Take Out Your 120 Minutes
Copy of SA8000

Health & Safety: Facts and Figures
 2.78 million deaths per year
 374 million non-fatal work-

related injuries each year,
resulting in more than 4 days
of absences from work.
 Every day, 6,500 workers die

from work-related diseases
• economic burden of poor
occupational safety and health
Rana Plaza Collapse – April 24, 2013
practices is estimated at 3.94 %
of global Gross Domestic
Product each year.

SA8000 Element 3: Health & Safety
3.1 Focus on providing a safe and healthy workplace environment and taking effective steps to
prevent potential health and safety incidents and occupational injury or illness at work.
• Emphasis on minimisation or elimination of all health and safety hazards prevalent in the industry.
3.2 Assessment of workplace risks to new, expectant and nursing mothers including those arising
out of their work activity, to ensure that all reasonable steps are taken to remove or reduce any risks
to their health and safety.
3.3 Provision of appropriate personal protective equipment at its own expense after effective
minimisation or elimination of the causes of all workplace hazards. The organisation shall provide first
aid and assist the worker in follow-up medical treatment for all workplace injuries.
3.4 Appointment of a senior management representative responsible for ensuring a safe and
healthy workplace environment for all personnel and for implementing this Standard’s Health and
Safety requirements.
3.5 Establishing and maintaining A Health and Safety Committee, comprised of a management well-
balanced group representatives and workers, Unless otherwise specified by law, at least one worker
member(s) on the Committee shall be by recognised trade union(s) representative(s) if they
choose to serve. In cases where the union(s) does not appoint a representative or the organisation is
not unionised, workers shall appoint a representative(s) as they deem appropriate. Its decisions shall
be effectively communicated to all personnel.
The Committee shall be trained and retrained periodically and competent to continually improve the
health and safety conditions in the workplace.
It shall conduct formal, periodic occupational health and safety risk assessments to identify and
then address current and potential health and safety hazards. Records of these assessments and
corrective and preventive actions taken shall be kept.
SA8000 Element 3: Health & Safety
3.6 Effective health and safety training, including on-site training, job-specific
training to be provided for all personnel.
Such training to be repeated for new and reassigned personnel, where:
• incidents have occurred,
• changes in technology and/or
• the introduction of new machinery present new risks to the health and safety
of personnel.
3.7 Establishing documented procedures to detect, prevent, minimise, eliminate or

otherwise respond to potential risks to the health and safety of personnel. Written
health and safety incidents records that occur in the workplace and in all residences
and property provided by the organisation.
3.8 Free access to: clean toilet facilities, potable water, suitable spaces for meal
breaks, and, where applicable, sanitary facilities for food storage to be provided
for all personnel.
3.9 Any dormitory facilities provided for personnel are clean, safe and meet
their basic needs, whether it owns, leases or contracts the dormitories from a
service provider.
3.10 All personnel shall have the right to remove themselves from imminent serious
danger without seeking permission from the organisation.
Health & Safety: How to
Demonstrate Compliance
1. Hazard
Identification
Identify hazard
source or situation
3. Risk 2. Risk Estimate level of

Reduce or
risk & determine
eliminate Risk Management Assessment tolerability
Hazard identification to include psycho social hazards

1. Hazard Identification

2. Risk Assessment
Likelihood
1 2 3 4 5
Remote Unlikely Possible Likely Certain
1
Trivial
2
Minor
Severity
3
Lost Time
4
Major
5
Fatal

2. Risk Management
• Can the hazard be removed

Elimination
completely?
• Can the hazard be reduced at
Reduction
source?
• Can the hazard be enclosed or
Enclosure
contained?
Remove Person • Can people be kept from the hazard?
• Can the hazard be diluted or contact

Reduce Contact
time reduced?
• Can something be provided to the
Personal Protection person to lessen the effect of
accidents?

Health and Safety:
• Implement clear procedures and verify effectiveness of related
training
• Prepare and maintain a risk analysis
• Encourage worker involvement in risk assessment and
identification of opportunities for improvement
• Prepare and maintain an emergency prevention and response
plan
• Maintain and review accident and incident logs
• Conduct and verify effectiveness of ongoing, periodic training
programs
Health and Safety:
Observation Interviews Document & Data Review

- Fire Exits - Workers - OHS related Policies &
- Hazardous chemicals - Worker representative Procedures
- Manufacturing risks - Management - Personnel Files & Age
- Personal Protective - Health and Safety Verification documents
Equipment Manager (National ID card,
- Workplace noise - Human Resources Medical records)
- Workplace temperature Manager - Risk Assessment
- First Aid kits To Cover in Interview: - Accident & injuries log
- Potable water supply - Worker/Manager - Internal Audit reports
- Toilet areas understanding of: - Training records
- Food storage - OHS risks
- Dormitory facilities - PPE Training
- Site Map - Emergency
evacuation
- Working hours
Exercise #2: Element 3: Health
& Safety
 Trainer to launch photo tour

 Refer to Group Exercise #2 in your course handbook
 Review an issue that you found in the photo tour using the
3 strategies for how to demonstrate compliance.
 Answer the questions in the exercise
 Present your findings to the class

SA8000 Element 4: Freedom of Association & Right
to Collective Bargaining
4.1 All personnel shall have the right to form, join and organise trade
union(s) of their choice and to bargain collectively on their behalf with
the organisation. The organisation shall respect this right and shall
effectively inform personnel that they are free to join a worker organisation
of their choosing without any negative consequences or retaliation from the
organisation. The organisation shall not interfere in any way with the
establishment, functioning or administration of workers’ organisation(s) or
collective bargaining.
4.2 In situations where the right to freedom of association and collective

bargaining are restricted under law, the organisation shall allow workers
to freely elect their own representatives.
4.3 The organisation shall ensure that union members, representatives

of workers and any personnel engaged in organising workers are not
subjected to discrimination, harassment, intimidation or retaliation for
being union members, representative(s) of workers or engaged in
organising workers, and that such representatives have access to their
members in the workplace.
Introduction to Freedom of Association
What is it? Why is it important? Who is involved?
• The right of workers • By collectively • Independent

and employers to organizing, workers employers’ and
form and join are able to challenge workers’
organizations of their abusive working organizations
own choosing is an conditions provide clear
integral part of a free partners for
and open society. collective bargaining
and social dialogue.

Function of a Union
To protect the rights of workers
Improve working conditions in the workplace

Bargain collectively for higher wages and better
benefits
Maintain labor peace
Employee profit sharing– union negotiations allow for
workers to share in success of organization
What is Collective Bargaining?

According to the ILO, collective bargaining refers to all negotiations which
take place between an employers and employees for:
a) determining working conditions and terms of employment; and/or
b) regulating relations between employers and workers; and/or
c) regulating relations between employers or their organisations and a
workers' organization or workers' organizations.
Common Problems
• Management appoints worker representative

• Management favors one worker organization over another
• Workers do not have access to information on their rights or
representatives
• Company advises workers that unions will discourage investment and
reduce orders
• Union organizers are harassed, fired, discriminated against or
“Blacklisted”

Freedom of Association:
• Define clear policy allowing freedom of association and collective
bargaining
• Allow workers to meet to address workplace issues
• Regular training on worker-manager communication
• Clearly communicate workers rights and responsibilities and
employer rights and responsibilities
• Regular meetings between management and worker representatives

Freedom of Association:
- Site tour - Workers Review
- Collective - Worker Representatives - FOA Policy &
Bargaining - Union Representative Procedures
Agreement - Trade Unions - Management Review
posted in - NGO’s minutes
workplace - Complaints
- Display of trade Interview to cover - Collective Bargaining
union/worker - Election process of worker Agreements
representatives representatives/union - Worker Meeting
representatives minutes
- Company effectiveness in
addressing issues
- Role of worker/s
representative
Group Exercise #3: Element 4: Freedom
of Association & Right to Collective
Bargaining
 Please refer to Group Exercise #3 in your

student handbook:
 30 minutes in groups
• Read Case Study
• Identify the specific problem
related to this plantation
• Class Discussion: 15 minutes

End of Day 1
Review and Questions

N/A N/A

Agenda
Day 2
9:00 – 9:30 Questions & Review of Day 1

9:30 – 10 30 Session 7 & 8: SA8000 Element 5 & 6
10:30 – 10:45 Break
10:45 – 12:30 Session 7 & 8: SA8000 Element 5 & 6 contd
12:30 – 1:15 LUNCH
1:15 – 3: 30 Session 9 & 10: SA8000 Element 7 & 8
3: 30 – 3: 45 Break
3: 45 – 5 :15 Session 9 & 10: SA8000 Element 7 & 8 contd

Sessions 7 – 10:
SA8000 Elements 5 – 8
Discrimination, Disciplinary Practices, Working Hours & Remuneration
Applicable Resources:
Please Take Out Your
Copy of SA8000

SA8000 Element 5: Discrimination
 5.1 The organisation shall not engage in or support discrimination in

hiring, remuneration, access to training, promotion, termination or
retirement based on race, national or territorial or social origin,
caste, birth, religion, disability, gender, sexual orientation, family
responsibilities, marital status, union membership, political
opinions, age or any other condition that could give rise to
discrimination.
 5.2 The organisation shall not interfere with the exercise of personnel’s
rights to observe tenets or practices or to meet needs relating to
race, national or social origin, religion, disability, gender, sexual
orientation, family responsibilities, union membership, political opinions
or any other condition that could give rise to discrimination.

SA8000 Element 5: Discrimination
Contd..
 5.3 The organisation shall not allow any behaviour that is threatening,
abusive, exploitative or sexually coercive, including gestures,
language and physical contact, in the workplace and in all residences
and property provided by the organisation, whether it owns, leases or
contracts the residences or property from a service provider.
 5.4 The organisation shall not subject personnel to pregnancy or
virginity tests under any circumstances.
Key Points in SA8000:

 Need to prevent discrimination from occurring but also need to
actively work against discrimination
 Gender discrimination is a focus, but includes all types of minorities
and disadvantaged populations

Discrimination: Common Problems
• Minorities or women denied equal

benefits and job opportunities
• Pregnancy testing to deny women
employment
• Manager selection and promotion not
reflective of workplace demographics
• Retribution for union activities
• Workers hired or promoted based on
religion or race
• Communication channels might exclude
minorities or migrant workers that do not
know the predominant language

Discrimination: Positive vs. Negative
Positive Negative
Designed to protect disadvantaged Designed to deny benefits, jobs,
workers opportunities
• Example: Medical exam used to • Example: Medical exam used to

protect workers from health screen workers who have HIV,
risks in a steel factory or who are pregnant
• Example: Using a quota to • Example: Denial of job
ensure that there is female opportunity for women to retain
representation in the workforce men

Group Exercise #4 : Element 5:
Discrimination
 Please refer to “Group Exercise #4 : Discrimination” exercise in your

Student Handbook
 Please review Discrimination in SA8000 (5 minutes)
 Complete Group Exercise #4 in your student handbook (15
minutes)
 Class Poll and Discussion (10 minutes)

Discrimination:
• Clearly define anti-discrimination policy in hiring, training, promotion,
compensation
• Establish “risk free” communication channels between workers and
managers
• Provide and verify effectiveness of regular training for workers and
managers
• Provide progressive skills training and promote participation by all groups
• Regularly review worker and manager demographics

Discrimination:
- Site Tour - Workers (migrant & - Discrimination Policy &
- Discriminatory minority workers) Procedures
Images and - Trade Unions - Management Review
photographs seen in - Stakeholders minutes
the workplace - Internal Audit reports
- Anti Discriminatory Interview to cover - Complaints
procedures posted in - Recruitment process - Improvement initiatives
the workplace - Promotion - Payroll
- Compensation - Hiring and Training
- Maternity benefits records
- Complaint policy
- Worker-manager
communication

SA8000 Element 6:
6.1 The organisation shall treat all personnel with dignity and respect.
The organisation shall not engage in or tolerate the use of corporal
punishment, mental or physical coercion or verbal abuse of
personnel. No harsh or inhumane treatment is allowed.
Key points in SA800:
 Cannot be abusive or related to withholding of wages
 Only used in a reasonable way to discipline serious issues –
and as part of a clear process that workers understand

Disciplinary Practices:
Common Problems
No clear policies and  Withholding pay:
procedures for acceptable
 Common if worker tries to
discipline
unionize, employer threatens
Supervisors create their own to dismiss the worker or cut
disciplinary procedures pay
outside of company policy
 “Open-door policy”:
Withholding material on
production line  Not applying a written
grievance procedure because
Change of job assignments to
lower pay rate company has an “open-door
policy”
Intimidation or punishment of
workers for raising workplace
issues to management

Good implementation practices
Information and Internal Regulations
training for workers published in the
on the policy organization
Knowledge of
Knowledge of
workers of their
Progressive Discipline
by Supervisors
procedures
Administrative
Complaints and
corrective actions for
suggestions
repetitive disciplinary
mechanism
cases
Clearly documented policies and procedures on allowable discipline
Conduct and verify effective training for workers, managers & supervisors
Promote employee feedback, for example, surveys seeking employee input to

problems and improvements
Regularly review disciplinary logs and complaints
Monitor employment agencies and contractors to verify acceptable disciplinary

procedures
How to verify compliance
- Site Tour - Workers - Policies & Procedures on
- Complaint box - Managers Disciplinary practices
- Suggestion box - Trade Unions - Training programs and
- Stakeholders logs
- Contracted workers - Complaints
- Supervisor logs,
Interview to cover including written warning
- Daily quotas and disciplinary action
- Fines taken
- Disciplinary actions
and punishment
- Complaints
- Training

SA8000 Element 7: Working Hours
7.1 The organisation shall comply with applicable laws, collective bargaining
agreements (where applicable) and industry standards on working hours, breaks and
public holidays. The normal work week, not including overtime, shall be defined by law
but shall not exceed 48 hours.
7.2 Personnel shall be provided with at least one day off following every six
consecutive days of working. Exceptions to this rule apply only where both of the
following conditions exist: a) National law allows work time exceeding this limit; and b)
A freely negotiated collective bargaining agreement is in force that allows work time
averaging, including adequate rest periods.
7.3 All overtime work shall be voluntary, except as provided in 7.4 below, shall not
exceed 12 hours per week and shall not be requested on a regular basis.
7.4 In cases where overtime work is needed in order to meet short-term business
demand and the organisation is party to a freely negotiated collective bargaining
agreement representing a significant portion of its workforce, the organisation may
require such overtime work in accordance with such agreement. Any such agreement
must comply with the other requirements of this Working Hours element.

Working Hours:
Common Problems
 Overtime not paid at premium
as per contracts or local law
requirements
 Regular, excessive overtime
caused by peak season
deliveries, last-minute orders,
planting or harvest season
 Constant “peak season” –
company consistently exceeds
hour maximum due to poor
planning
 Accepting orders that exceed
the production capacity

Working Hours:
The Overtime Argument
 Workers often demand to work overtime

 Companies are competing for a limited supply of workers
 Companies need to work overtime to meet customer delivery
dates
 Buyers are putting more pressure on shorter delivery dates to
reduce inventory costs
Two ways that companies might approach overtime hours
 1) Banking Hours
 2) Hour Averaging

Working Hours:
‘Banking Hours’/‘Comp Time’
 A system that allows workers to take time off instead of, or in

addition to, receiving overtime pay
 Typically allowed if the following conditions are met:
 Must be legal
 Must be voluntary
 Must be given at the equivalent rate for the overtime hours
worked (i.e. worker given 1.5 hours of paid time off for each
hour of overtime worked)
 Must be in accordance with any prevailing collective
agreements

Working Hours:
Hour Averaging
 A system that allows for hours worked to be averaged over a

certain period of time (week/month/year), whereby overtime is
only recognized if total hours worked in that period exceed the
regular work hour threshold for that period
 Typically allowed if the following conditions are met:
 Must be legal
 Must be voluntary
 Must be in accordance with any prevailing collective
agreements

Group Exercise #5: Element 7:
Working Hours
 Please refer to “Group Exercise #5: Working Hours” in your Student

Handbook
 Review the scenario and complete the exercise (15 minutes)
 Debrief and Class Discussion (15 minutes)

Working Hours:
• Assure basic wage meets worker needs to reduce worker pressure for
overtime
• Add shifts and maintain flexible work schedules
• Negotiate realistic lead-times and production volumes
• Train workers to understand overtime guidelines and payment
requirements
• Train workers to increase productivity
• Outsource to approved sub-contractors
Working Hours:
- Site Tour covering all - Workers Review
processes and all - Managers - Policies &
shifts - Trade Unions procedures
- Stakeholders concerning working
- Contracted workers hours and overtime
- Payroll records
Interview to cover - Pay slips
- Overtime - Wage calculation
- Remuneration - Purchase orders and
- Quotas shipping documents
- Banking Hours & - Timesheets
Hour Averaging - Production capacity
calculations
SA8000 Element 8:Remuneration
• 8.1 Respect the right of personnel to a living wage and ensure that wages not including
overtime, shall always meet at least legal or industry minimum standards, or collective
bargaining agreements (where applicable). Wages shall be sufficient to meet the basic
needs of personnel and to provide some discretionary income.
• 8.2 No deductions from wages for disciplinary purposes. Exception to this rule applies only
when both of the following conditions exist: a) Deductions from wages for disciplinary
purposes are permitted by national law; and b) A freely negotiated collective bargaining
agreement is in force that permits this practice.
• 8.3 The organisation shall ensure that personnel’s wages and benefits composition are
detailed clearly and regularly to them in writing for each pay period. The organisation shall
lawfully render all wages and benefits due in a manner convenient to workers, but in no
circumstances in delayed or restricted forms, such as vouchers, coupons or promissory
notes.
• 8.4 All overtime shall be reimbursed at a premium rate as defined by national law or
established by a collective bargaining agreement. In countries where a premium rate for
overtime is not regulated by law or there is no collective bargaining agreement, personnel
shall be compensated for overtime at the organisation’s premium rate or at a premium
rate equal to prevailing industry standards, whichever is higher.
• 8.5 The organisation shall not use labour-only contracting arrangements, consecutive
short-term contracts and/or false apprenticeship or other schemes to avoid meeting its
obligations to personnel under applicable laws and regulations pertaining to labour and
social security

Remuneration: Types of Wages
 Minimum wage
 set by national law
 Prevailing wage
 prevailing wage in the region for type of sector/work
typically higher than the minimum wage
 Living Wage (LW)
 Living wage is often referred to as a “fair wage, basic needs
wage or survival wage”
 The remuneration received for a standard work week by a
worker in a particular place sufficient to afford a decent
standard of living for the worker and her or his family.
 Elements of a decent standard of living include: food,
water, housing, education, health care, transport, clothing,
and other essential needs including provision for
unexpected events.

Remuneration: Common Problems
Remuneration
• Overtime not paid at premium as

per contracts or local law
requirements
• Workers do not understand how
their wages are calculated
• Excessive deductions for
dormitory and food
• Quotas set too high to be
routinely attainable
• Wages not paid on time
• Double books
Photo courtesy of the International labor Organization: http://bit.ly/2vjrjdo

Minimum Wage vs. Living Wage
• Initially intended to meet a family’s

History of minimum wage basic needs (minimum wage =
• 1604: Act Fixing a Minimum Wage living wage)
by King James I • In many countries, basic needs are
• 1890s: First modern minimum no longer included in criteria for
wage laws passed in New Zealand fixing a living wage
and Australia
• Nowadays, 90% of countries have
a minimum wage legislation

Examples of the Wage Gap
7000
Wage Gaps: minimum wage vs.
6000
living wage
5000
4000 • Dominican Republic (Rural):
3000 100%
2000
• Macedonia: 100%
1000
0 • Shanghai, China: 100%
Legal Minimum Living Wage
Wage Estimate • Brazil (Rural): 67%
• Bulgaria: 60%
• Shenzhen, China: 35%
• Poland: 25%
• Portugal: 25%
What is a Living Wage? Why is it
important?
Remuneration
“The remuneration received for a standard work week by a worker in

a particular place sufficient to afford a decent standard of living for
the worker and her or his family.
Elements of a decent standard of living include food, water, housing,
education, health care, transport, clothing, and other essential needs
including provision for unexpected events.”

Living Wage Components Remuneration

7 Steps to Estimating a Living Wage
Remuneration
1. Key Values
1. Average Family Size
2. Average Number of Wage Earners
2. Food Costs
3. Housing Costs
4. Non-Food Non-Housing Costs
5. Calculate the Net Living Wage
6. Calculate Payroll Deductions
7. Calculate Gross Living Wage

Current Wage & Living Wage Remuneration
Living Wage Current Wage
What the company should be

paying it’s workers to have a What the company is current
decent life paying it’s workers

Current Wage & Living Wage Remuneration

Living Wage
Current Wage

Assessing Current Wage Remuneration

Current
Wage
Base Pay
Bonuses
In-Kind
Benefits

Assessing Current Wage Remuneration
Guiding Principles
1. Receipt Assured
Current
2. Received within one year Wage
3. Earned during standard
working hours at normal Base Pay
pace Bonuses
4. Received in cash (except
IKB and medical insurance) In-Kind
Benefits

Base Pay Remuneration
Common Pay Systems:

• Hourly
• Daily
• Salary
• Piece-rate and Quotas
Note: Piece –rate systems can often lead to exploitation and are one
of the most common causes of excessive overtime. If using a piece
rate system it must be set at such a level that workers do not need to
work beyond the normal work week in order to make a living wage.

Bonuses Remuneration
Common Bonuses: production/incentive bonus, attendance

bonus, annual bonus, allowances (school, travel)
Bonus should be:
• Received by most production workers
• Received regularly
• Received within one year
Do not:
• Include bonuses earned in overtime hours or payment for
overtime work
• Include paid time off for holidays, annual leave, sick leave

Include Exclude
Meals at work Visas or work permits for migrant
workers
Food rations or food commodities Clothing, equipment, and supplies for
given for free or sold at concession work
rates
Housing (including electricity, water, Dormitories or shared housing for
and fuel) seasonal workers
Transport to and from work (and to Drinking water provided to workers at
town on weekends from agricultural work
estates)
Child care Land for kitchen garden
School for children of workers Charitable contributions to the
community that do not go exclusively
to workers
Medical clinic and medical care not Employers’ contributions to Social
required by law and not for work- Security or National Health Service
related required by law
matters
Medical insurance not required by law

Remuneration: Common Problems
• Overtime not paid at premium as
per contracts or local law
requirements
• Workers do not understand how
their wages are calculated
• Excessive deductions for
dormitory and food
• Quotas set too high to be
routinely attainable
• Wages not paid on time
• Double books
Remuneration:
• Provide all workers with contracts in their working language

• Calculate and verify the Living Wage
• Improve production planning
• Utilize credible engineering studies to set production quotas and
performance targets
Remuneration:
- Site Tour - Workers Review
- Cafeteria area - Managers - Policies & Procedures
- Dormitory facilities - Trade Unions concerning
- Stakeholders remuneration
- Contracted workers - Payroll records
- Migrant workers - Bonus system
- Pay slips and
Interview to cover deductions, bonus &
- Payment process overtime records
- In-kind benefits - Social Insurance
payment records
- Wage calculation
Session 11:
Management Systems & Maturity Declaration
(Part 1) Categories 9.1-9.5
Applicable Resources: Time

Procedures: 200, 200A Required:
Maturity Declaration Offline Excel 105 Minutes
Maturity Declaration Guidance
SA8000

MS Maturity Declaration 10
Categories
SA8000: 2014 - SA8000: 2014 - SA8000: 2014 - SA8000: 2014 - SA8000: 2014 -
9.1 9.2 9.3 9.4 9.5
Policies, Social Identification & Monitoring Internal
Procedures & Performance Assessment of Involvement &
Records Team Risks Communication
SA8000: 2014 - SA8000: 2014 - SA8000: 2014 - SA8000: 2014 - SA8000: 2014 -
9.6 9.7 9.8 9.9 9.10
Complaint External Corrective & Training & Management of
Management & Verification & Preventive Capacity Building Suppliers &
Resolution Stakeholder Actions Contractors
Engagement

Maturity Declaration rates management
system maturity on 5 levels
Each of the 10 Categories is Rated on a Scale of 1 to 5, with 5 being the highest
Developed and implemented mature management

5
system with continual improvement of the system
Developed management system, implemented

4
consistently and regularly
Developed management system, but not fully
3
implemented
Partially developed management system, but
2 implementation is reactive, inconsistent and mostly
ineffective
No awareness of SA8000 or any system in place to

1
manage social performance

Category 9.1: Policies Procedures and Records
9.1.1 Senior management : Policy Statement
9.1.2 Policy statement shall include:
a) Organisation’s commitment to conform to all SA8000 Standard requirements,
b) Respect the international instruments as listed in the Normative Elements
c) Compliance with national laws, other applicable laws and other requirements
9.1.3 Prominent & Conspicious display of the Policy & SA8000 Standard
9.1.4 The Organisation shall develop policies & procedures to implement SA8000 Standard.
9.1.5 Effective communication and access to Policies and procedures and clearly shared
with customers, suppliers, sub-contractors and sub-suppliers.
9.1.6 Appropriate records to demonstrate conformance to and implementation of the
SA8000 standard, including the Management System requirements contained in this
element.
9.1.7 Regular conduct of management review of its policy statement, policies, procedures
implementing this Standard and performance results, in order to continually improve.
9.1.8 Policy statement to be publicly available in an effective form and manner to interested
parties, upon request.

9.2: Social Performance Team (SPT)
Content: Important Factors:
• Dedicated, peer-selected team • Balanced representation between workers
of workers and managers with and managers
qualified team leader
• Team training and resources to ensure
• Define team’s roles, effectiveness
responsibilities, and authority
• The SPT is responsible for facilitating the
implementation of SA8000 and reporting
to senior management. Senior
management should routinely meet with
the SPT as compliance accountability for
the Standard solely rests with Senior
Management.

What is the SPT?
It is. It is NOT!
…a group of people who come A replacement for union
together to coordinate social projects representation.
within the company. • It does not negotiate or perform
collective bargaining.
A group that facilitates A replacement for existing worker

communication. committees.
• The focus/intent here is to ensure
A group that helps improve SA8000 implementation, not structure.
efficiency.
A group that coordinates the Required to perform all SA8000
development of goals. activities.
• It simply must ensure that those
A group that helps send a clear
activities are performed and
message. performed well.
A group that improves the work
environment.

Category 9.3: Identification and
Assessment of Risk
9.3.1 The SPT shall conduct periodic written risk assessments to identify and
prioritise the areas of actual or potential non-conformance to this Standard. It
shall also recommend actions to Senior Management that address these risks.
Actions to address these risks shall be prioritised according to their severity or
where a delay in responding would make it impossible to address.
9.3.2 The SPT shall conduct these assessments based on their recommended
data and data collection techniques and in meaningful consultation with
interested parties.
Key Components:
 Dynamic process
 Identify and prioritize key risks
 SPT communicates to senior management and influences the development
of the action plan to address risks

End of Day 2

N/A N/A

Agenda
Day 3
9:00 – 9.30 Day 2: Questions and Review

9.30 – 11.15 Session 11: Management Systems & Maturity Declaration (Part
1) Categories 9.1-9.5
11:30 – 13.15 Session 12: Management Systems & Maturity Declaration (Part
1) Categories 9.6-9.10
13.15 – 13.45 LUNCH

13.45 – 14.30 Session 13: Technical Usage of Maturity Declaration
14.30 – 15.00 Session 14: Supporting documents
15:15 – 16.15 Session 15: Introduction to NCR Writing & Audit report
16.15 – 17.00 Session 16: SA8000 Certification & Audit Cycle
17.00 – 17.30 Session 17: Audit Plan

Category 9.4: Monitoring
9.4.1 The SPT shall effectively monitor workplace activities for:
a) compliance with this Standard;
b) implementation of actions to effectively address the risks identified by
the SPT; and c) for the effectiveness of systems implemented to meet the
organisation’s policies and the requirements of this Standard.
It shall have the authority to collect information from or include interested
parties (stakeholders) in its monitoring activities. It shall also liaise with other
departments to study, define, analyse and/or address any possible non-
conformance(s) to the SA8000 Standard.
9.4.2 The SPT shall also facilitate routine internal audits and produce reports for
senior management on the performance and benefits of actions taken to meet
the SA8000 Standard, including a record of corrective and preventive actions
identified.
9.4.3 The SPT shall also hold periodic meetings to review progress and identify
potential actions to strengthen implementation of the Standard.
Key Components:
 Conducted regularly
 Includes internal audits
 Check progress and lead to improvements

Category 9.5: Internal Involvement
and Communication
9.5.1 The organisation shall demonstrate that personnel effectively

understand the requirements of SA8000, and shall regularly communicate the
requirements of SA8000 through routine communications.
Key Components:
 Regular communication about SA8000
 Make sure that workers are understanding the information communicated

Session 12:
Maturity Declaration (Part 2)
Categories 9.6-9.10

Procedures: 200, 200A Required:
Maturity Declaration Offline Excel 105 Minutes
Maturity Declaration Guidance
SA8000

Category 9.6: Complaint
Management System
9.6.1 The organisation shall establish a written grievance procedure that is

confidential, unbiased, non-retaliatory and accessible and available to
personnel and interested parties to make comments, recommendations,
reports or complaints concerning the workplace and/or non- conformances to
the SA8000 Standard.
9.6.2 The organisation shall have procedures for investigating, following up
on and communicating the outcome of complaints concerning the workplace
and/or non-conformances to this Standard or of its implementing policies and
procedures. These results shall be freely available to all personnel and, upon
request, to interested parties.
9.6.3 The organisation shall not discipline, dismiss or otherwise discriminate
against any personnel or interested party for providing information on
SA8000 compliance or for making other workplace complaints.
Key Components:
 Formal system with clear outcomes
 Confidential and no retaliation
Complaint Management Life Cycle

Category 9.7: External Verification
and Stakeholder Engagement
9.7.1 In the case of announced and unannounced audits for the purpose of
certifying its compliance with the requirements of this Standard, the
organisation shall fully cooperate with external auditors to determine the
severity and frequency of any problems that arise in meeting the SA8000
Standard.
9.7.2 The organisation shall participate in stakeholder engagement in order
to attain sustainable compliance with the SA8000 Standard.
Key Components:
 Allow external auditors to come in and give access to necessary information
 Conduct stakeholder mapping and have a stakeholder engagement strategy

Stakeholder Mapping:
Class Discussion
Considering this scenario create a list of stakeholders that you
believe the auditor should talk with:
A company with 900 employees producing telecom

components in Shenzhen, China is a major supplier for a
dominant mobile brand in the US. It also produces
telecommunication products for the local market in China. The
company is pursuing certification to SA8000 and is currently
being audited by their assigned audit team in Stage Two of the
certification audit cycle.

Category 9.8: Corrective and
Preventive Actions
9.8.1 The organisation shall formulate policies and procedures for the
prompt implementation of corrective and preventive actions and shall provide
adequate resources for them. The SPT shall ensure that these actions are
effectively implemented.
9.8.2 The SPT shall maintain records, including timelines, that list, at
minimum, non-conformances related to SA8000, their root causes, the
corrective and preventive actions taken and implementation results.
Key Components:
 Conduct root cause analysis of noncompliances so corrective actions
address the root cause and can take preventive actions to prevent from
reoccurring
 Clear timelines, records

Root Cause Analysis
 Goal: Identify & eliminate the root cause

to avoid recurrence of problem
 Root cause analysis is critical to resolving
NON-CONFORMANCE
or mitigating issue at hand.
 Company should conduct root cause
analysis for all non-compliances
 The ‘5 Why’s’ is an effective tool for
determining root causes.
 VIDEO: Root cause analysis technique -
THE 5 WHY’s:
 The 5 Why’s

The 5 Why’s Example
 There is a chemical spill in your facility. WHY?
 Because the container holding the chemical leaked. WHY?
 Because there was a hole in the container. WHY?
 Because the container is old and has not been replaced. WHY?
 Because the workers did not know that it had to be replaced. WHY?
Class Discussion: After asking the 5 Why’s, why was their a chemical spill in
the facility?
The 5 Why’s Debrief

Because the worker was not trained in the chemical handling procedures.
Root cause: Gap in Training and Capacity Building

Category 9.9: Training and Capacity
Building
9.9.1 The organisation shall implement a training plan for all personnel to
effectively implement the SA8000 Standard as informed by the results of risk
assessments. The organisation shall periodically measure the effectiveness of
training and record their nature and frequency.
Key Components:
 Ongoing training for all workers
 Measure the effectiveness of training
 Capacity building opportunities to enhance application and implementation
of SA8000
Class discussion:
Name 6 examples of how an SA8000 factory would
demonstrate their implementation of an effective Training
and Capacity Building Program?

Suppliers/Sub-Suppliers/
Subcontractors: Definitions
 Supplier/subcontractor: An entity or individual that provides the

organization with goods or services for the production of the
organizations goods or services
 Sub-supplier: An entity or individual that provides the supplier with
good and/or services for the production of the suppliers or the
organizations goods or services
Class discussion: Name 5 suppliers/subcontractors and 5 sub-suppliers

that you would typically find in the electronic industry supply chain?

Supply Chain Schematic - Textiles
APPAREL BRAND
PO
(SUPPLIER) Company
SUPPLIER:
TEXTILE
Sub-Contractor: Extra Sub-Contractor:
Sub-Supplier:
Capacity Embroidery
Zippers
Sub-Supplier: Sub-Supplier:
Dyes Thread
Dormitory Cleaning
Sub-Supplier:
Yarns
Security Cafeteria
Cotton Cotton Cotton Cotton

Produce Meat Paper Tools Bakery
Cotton Cotton Cotton Cotton

Category 9.10: Management of Suppliers and Contractors
9.10.1 The organisation shall conduct due diligence on its

suppliers/subcontractors, private employment agencies and sub-suppliers’
compliance with the SA8000 Standard. The same due diligence approach shall be
applied when selecting new suppliers/subcontractors, private employment
agencies and sub-suppliers. The minimum activities for the organisation to fulfil
this requirement shall be recorded and shall include:
a) effectively communicating the requirements of this Standard to
senior leadership of suppliers/subcontractors, private employment agencies and
sub-suppliers;
b) assessing significant risks of non-conformance by
suppliers/subcontractors, private employment agencies and sub-suppliers.
[Note: an explanation of “significant risk” is found in the guidance document];
c) making reasonable efforts to ensure that these significant risks are
adequately addressed by suppliers/subcontractors, private employment
agencies and sub-suppliers and by the organisation where and when
appropriate, and prioritised according to the organisation’s ability and resources
to influence these entities; [Note: an explanation of “reasonable effort” is found
in the guidance document]; and

Category 9.10: Management of Suppliers and
Contractors
d) establishing monitoring activities and tracking performance of
suppliers/subcontractors, private employment agencies and sub-suppliers to
ensure that these significant risks are effectively addressed.
9.10.2 Where the organisation receives, handles or promotes goods and/or

services from suppliers /subcontractors or sub-suppliers who are classified as
home workers, the organisation shall take effective actions to ensure that such
home workers are afforded a level of protection substantially equivalent to that
afforded to the organisation’s other workers under the requirements of this
Standard.
• Key Components:
 Clear due diligence process – including supply chain mapping and risk
assessment
 Communicate expectations to key suppliers
 Ensure that homeworkers are protected equally

Subcontractors: Common Problems
 Unauthorized use of second tier
sub-contractors without supplier
awareness
 No monitoring of homeworkers
 Use of non-compliant employment
agencies or service contractors
 Compliance not addressed in
purchase orders or supply
contracts
 Management system not focused
on controlling sub-contractors
 Use of “sub-contractor
commitment” letter as proof of
compliance
 Compliance expectations not clearly
communicated to sub-contractors
Suppliers/Sub Suppliers &
Subcontractors:
• Supply chain and sub-contractor mapping
• Analysis of results of first and second party audits
• Training materials and presentations
• Self evaluations of suppliers
• Risk assessment of suppliers and sub contractors
• Monitoring suppliers and sub contractors
• Establishing incentives
• Premium payment (carrot)
• Preferred vendor list (carrot)
• Implementing contractual agreements to enforce conformance
(stick)
Suppliers/Sub suppliers & Subcontractors:
- n/a - Worker interviews - Policies & Procedures
- Manager interview concerning subcontractors
- Supplier Code of Conduct
Interview to cover - Map of subcontractors
- Payment process - Results of audits of
- Recruitment agency subcontractors
agreement and - Certification
- Training materials and
relationship
presentations to suppliers
- Subcontractor working
- Self evaluation of suppliers
hours - Recruitment agency contract
Session 13:
Technical Usage of Maturity Declaration

N/A Required:
45 Minutes

Company
SAI Contract with CB
SA8000 Self
Assessment
Improve
Management
System Does the company
Is the company ready
(internal capacity No decide to pursue Yes for certification?
building & external
training/consulting
certification?
)
Yes No
Improve
SA8000:2014 Audits Management
(with MS Maturity System
Declaration) (internal capacity
building & external
training/consulting)

The Self-Assessment
Management Systems Self-Assessment: Performed by an organisation seeking
or maintaining SA8000 certification as a reflection of that organisation’s
management system maturity in order to provide benchmarking and insight to
help the organisation identify areas for improvement. Results of self-assessments
remain the property of the organisation performing them. May be abbreviated as
“SA.”
• To be done only after effective implementation of management system
• No need to share the score with CB
Benefits for Organisations
• Tool for capacity building

• Opportunity for self-reflection and learning
• Helps prepare for the audit
• Gives the organization a preview of their level of awareness and
understanding of management system

Management Systems Maturity Declaration
Management Systems Maturity

Declaration (MD) • Easier to track facilities,
track improvements
• Performed by Third party independent • More accountability to
Certification Body Lead Auditor at the end the facilities and
of the audit to communicate the opportunities for capacity
performance level to management building
• Sustainable
• Performed by the CB’s audit team to improvements
independently evaluate and declare the • Evaluation: During Stage
audited maturity of the organisation’s 1, Stage 2, Surveillance
management system. audits, Recertification
and Transfer Audit.
• Completed in the SAI Training Center
online by the Lead Auditor at the audit.
Offline tool available for use in case of
network issues
SAI copyright©SA8000 Basic Auditor Training Course, Q2 2022 Version R 1
• Rating Chart
• Explains the 5 levels of maturity for each category.
• Auditors and organizations can use as guidance. For example,
see below
Policies, Procedures and Records
All components of Level 4 AND: SA8000 policies and procedures
5 regularly reviewed and updated. SA8000 implementation tied to

business strategy and planning. Demonstrated continual
improvement and process review.
Routine implementation of SA8000 policies and procedures, as
4 evidenced by records. Policies and procedures communicated
internally and externally. Management review conducted.
3 Written policies and procedures on labour issues developed and

communicated internally. Records maintained.
2 Some separate policies and procedures related to specific labour

issues. Limited record-keeping.
1 No policies, procedures or records related to labour standards.
SAI copyright©SA8000 Basic Auditor Training Course,Q2 2022 Version R 1

Benefits for Auditors
Benefits for
Benefits for Auditors
Organisations
• Externally-validated evaluation • Provides a clear, consistent

of management system. methodology for assessing
• Helps to get top management management systems
attention as it is performed by • Consolidates information about
external Lead Auditor. the management system
• Identifies strengths and • Provides data for audit findings
weaknesses • Correlation between score and
• Connects performance issues NC raised/no NC raised helps
to management system gaps Auditor

Function of the
The MSMD
The MSMD IS:
Evaluation IS NOT:
• A holistic assessment of a • A replacement for the

management system submission of findings or
• An external independent non-conformances
evaluation of management • Data against which auditors
system maturity can write a non-
• A piece of data that conformance
supports the audit findings • A checklist of the
organisation’s compliance
with SA8000

Session 14:
SA8000 Supporting Documents

Procedures: 200,200A 30 Minutes
The Guidance Document
Performance Indicator Annex (PIA)
Student Handbook
Exclusions List

Procedure 200
Purpose Use Content (set

requirements on)
• Created by SAAS to • Audits: As a tool to

assure consistent plan effective • Audit planning
application of audits • Pre-assessment,
SA8000 certification initial research and
process and audit stage-1 audits
methodology • Stage 2 audits
• Establish consistent • Surveillance audits
SA8000 certification • Re-Certification
procedures and audits
processes for • Audit Days
accredited • Non-Conformity
certification bodies classification and
• Provide transparency audit reporting
required of an • Audit records
international
accreditation body • Multi-site audits

Guidance Document
Purpose Use Content

• Provides tools and
information for
• Assist auditors and • Training: To users of the
organisations in develop techniques Standard, including
interpreting for implementing definitions and
SA8000 and and verifying examples.
verifying SA8000 • Recommends
compliance. • Audits: As a field methods and
• Help interested guide for verifying techniques for
parties understand compliance implementing
how the SA8000 SA8000 and
verification system verification of
works in practice compliance.
(teaching tool). • Does not impose
additional
requirements
beyond those
contained in the
Standard.

Exercise #6:Using the SA8000 Guidance
Document
 Find “Exercise #6 (Individual): Using the SA8000 Guidance Document” of your
Course Handbook. You will have 10 minutes to complete the exercise and 5
minutes for class discussion.
 Context: You are auditors on the second day of an SA8000 audit at a Textile
company in the Dominican Republic. You have met with the Social
Performance Team composed of both workers and managers and they have
not discussed any nonconformity issues.
• When speaking to the management representative about record keeping, you
find that the company has a mix of records maintained in hard copies and
electronic form. When you review the records of their compliance against the
SA8000 Standard requirements, you find that internal audit records, records
of due diligence of suppliers and sub suppliers, and H&S committee risk
assessment records are not available. The MR informs that some of these
records must be at the head office, and since the time they got certified for
ISO 14000 (Environmental Management System) the management decided to
reduce the records which they deemed adequate for compliance.
• Exercise
• Using the SA8000: 2014 Guidance Document w.r.t. specific types of records
required to maintain at a minimum for SA8000 compliance, determine
whether this is a non-conformance.
Exercise #6:Using the SA8000 Guidance
Document
 Find “Exercise #6 (Individual): Using the SA8000 Guidance Document” of your
Course Handbook. You will have 10 minutes to complete the exercise and 5
minutes for class discussion.
 Context: You are auditors on the second day of an SA8000 audit at a Textile
company in the Dominican Republic. You have met with the Social
Performance Team composed of both workers and managers and they have
not discussed any nonconformity issues.
• When speaking to the management representative about record keeping, you
find that the company has a mix of records maintained in hard copies and
electronic form. When you review the records of their compliance against the
SA8000 Standard requirements, you find that internal audit records, records
of due diligence of suppliers and sub suppliers, and H&S committee risk
assessment records are not available. The MR informs that some of these
records must be at the head office, and since the time they got certified for
ISO 14000 (Environmental Management System) the management decided to
reduce the records which they deemed adequate for compliance.
• Exercise
• Using the SA8000: 2014 Guidance Document w.r.t. specific types of records
required to maintain at a minimum for SA8000 compliance, determine
whether this is a non-conformance.
Performance Indicator Annex
Purpose Use Content
Improve • Everyone: Can use • Specialized

transparency of it to evaluate research (freedom
requirements of conformance to of association)
SA8000 SA8000 • Review of
• Improve • Organisations indicators used by
consistency of • Certification Bodies other organisations
interpretations of • Accreditation
requirements of auditors
conformance
• Establish an
SA8000 benchmark
against which other
systems’ criteria
may be cross-
referenced

PIA: Individual Activity
and Class Discussion
Use the Performance Indicator Annex and the SA8000 Standard to

review the following scenario: (5 minutes)
An auditor finds a locked exit door during working hours. Would the
auditor cite this, and if so, what requirement of the Standard would
this be cited against? What part of the PIA relates to this scenario?

Exclusions List
Purpose Use Content
• Assist auditors • Application: To • Excludes the

and ensure that following from
organisations ineligible SA8000
understand the workplaces do Certification
sectors that are not proceed • Maritime
not eligible for through the Activities
certification and certification • Fishing
why. process. Workplaces
• Explains the • Offshore
sectors excluded Workplaces
from SA8000
certification.

Session 17:
Audit Plan

Student Handbook

Audit Team Selection
 Selection of audit team to ensure:

 A team leader is chosen
 There is competence in the team to cover technical aspects
of the audit
 The required language skills are within the team, or a
translator assigned
 Appropriate gender mix as appropriate based upon
workforce demographics
 The Lead Auditor must confirm that the above is represented on
their audit team

Audit Planning
The best thing about not preparing is that failure comes as a complete surprise and it
is not preceded by a period of worry and depression..
Failing to Plan is Planning to Fail.

Audit Planning
Purpose: Important Factors:

 To provide information to  Adapted to the processes and
the audit team, auditee & working environment of the
audit client to enable the organization being assessed
effective scheduling and  Include all requirements of
co-ordination of the audit the management system
activities
 Cover all shifts
 Developed in light of
information gathered from
stakeholders

Planning an Audit
 Procedure 200 sets
expectations for SA8000 Audit
Plans
 In preparation for the audit, you
should:
 Define the audit objectives
 Define the audit scope
 Define the audit criteria
 Determine the feasibility of
the audit
 Establish an audit team
 Identify team
responsibilities
 Prepare a stakeholder map

Group Exercise #8: Introduction to
Vaidu Case Study and Audit Plan
 30 minutes
 Break into groups (you will be in these teams for the remainder of the
course)
 Read through the Vaidu Case Study, Part 1 Audit Planning .
 Based on your experience, Create an audit plan together for Day # 001
only. There is also a template made available to you in your student
handbook

Session 15: Introduction to NCR Writing
and Audit Reports

Student Handbook

Non-Conformance Report (NCR)
 Procedure 200: If fulfillment of specified requirements have not been

demonstrated, a finding of non-conformity SHALL be reported. In the
SAAS-accredited system, identification of NCs initiate a corrective
action request (CAR). A CAR is the initial stage in the corrective action
process. A corrective action SHALL be initiated as a result of a non-
conformity. This process includes containment/correction, root cause
analysis, corrective action and follow-up. NCs SHALL be logged using a
nonconformance report (NCR) to log and track occurrence and
reoccurrence of NCs.
 Important factors:
 States auditor’s finding related to the failures to meet SA8000
requirements
 May be written for one finding or a group of findings in a similar
category, e.g., OHS
 MD Evaluation data used to support audit findings

Types of Non-Conformities (Procedure 200)
CRITICAL non- MA JOR non- MINOR non-conformity: Time-Bound Non-
conformity [CNC]: conformity: Conformity [TB NC]:
• A grievous breach of • The absence or total • A failure or oversight • A Special non-
the SA8000 Standard breakdown of a in some part of the conformity that can
that results in severe system to meet an only be raised as a
organization's social
impact to individual SA8000 requirement. result of audit
rights, life, safety • A MINOR non- management system evidence and
and/or SA8000, SAI or conformity that has relative to SA8000 findings
SAAS’ reputation. not been addressed, or that is not systemic demonstrating that
• A CNC results in the for which no in nature client organization
immediate denial, significant meets the local law
cancellation or improvement has BUT NOT the higher
• A single observed
suspension of the been made by the requirements of
organization’s SA8000 time of a follow-up lapse in following SA8000:2014 or vice
Certificate. audit, in spite the one item of an versa.
organization’s organization's social
commitment to management • TB NC’s can only be
resolve the issue. system. raised for the
• A non-conformity that findings under
poses an imminent Clause 7 and Clause
and immediate but 8 as described in
not life-threatening Table 22 of SAAS Proc
threat to the health 200: 2019
and safety of workers.

Corrective Action – Procedure 200
Corrective action = Action taken to eliminate the cause of a non-conformity
upon undertaking a root cause analysis. It includes the action taken to prevent
recurrence of a non- conformity whereas preventive action is taken to prevent
initial occurrence of a non- conformity. In the SAAS-accredited system,
corrective action is undertaken to impact the entirety of the CB’s accredited
management system for performing SA8000 audits. Note: There is a distinction
between correction and corrective action. Correction is action undertaken
immediately to eliminate the detected non-conformity but not necessarily the
cause.
On site verification of effectiveness shall be required for closure of all critical

and major NC’s

NCR Writing : CIA Approach
Each audit non-conformity finding has three distinct parts:
a) C = Clarity of the non-conformity
statement
what is the non conformity ?
b) I = Integrity of the objective evidence that

supports the non conformity statement
 why is it a non conformity ?
\ c) A = Attribution of SA8000 Standard specific clause;

the applicable law, regulation/normative document?
Which SA8000 standard Clause is violated?

Critical NCR - Example
Non-Conformity Corrective Action Corrective
to be sent to CB Action to be
completed
C = There is no system to ensure
workers health and safety in the
workplace.
I = It was observed that workers are

using the cutting machine (open blade)
with no guard and no protective Within 1 week Within 1 month
equipment
A1 = 3.1: Health and Safety

A2= 9.3 (Risk assessment)*
* Depending on context it may be any of the management system

elements
Class discussion: Rewrite the NC statement (C) ;

Major & Minor NCR – Example
SA8000 Case Corrective Corrective

Elemen Action to be Action to be
t sent to CB completed
No management review in the
past 14 months
There are few cans of

unmarked cleaning supplies
(wrong containers) at the
scrapyard.
Class discussion: Which one is major? Minor? Write the NC following

the CIA approach.

Time-Bound Non-Conformity (TB NC) :
SA8000 Clause Time Bound Non-Conformity Maximum
Corrective
Action
Timeline
The Client organization does not meet

Clause 7
the maximum working hours and/or 24 months
Working Hours
maximum overtime hours per week as
prescribed by SA8000 or the country law
(whichever is the lesser amount)
The client organisation pays workers the

Clause 8.1
legal minimum wage but not a living 24 months
Remuneration
wage
Class discussion: What steps should be the company take to address this
NCR?
NCR Example
Company under Audit: ABC Non-conformity number: 1
Company
Area under review: Management SA8000 Clause Number: 9.5.1
Systems
NCR classification: Critical Major Minor Time-bound OFI
Observation
Non-conformance: The company does not have a system to ensure that
personnel understand the requirements of SA8000
Objective Evidence: Having conducted a site tour it was found that neither
the SA8000 Standard nor the policy statement were displayed . Upon
interviewing 20 workers it was found that no workers had heard of SA8000,
nor the requirements of SA8000.
Audit criteria: The organisation shall demonstrate that personnel

effectively understand the requirements of SA8000, and shall regularly
communicate the requirements of SA8000 through routine
communications.
Class Discussion: What “NCR Classification” is this example?
Individual Exercise #7 : NCR Writing
 Evening Assignment (Home)

 Scenarios found in your Course Handbook under “Individual
Exercise #7: NCR Writing” .
 Participant to write 1 non-conformity per case and send it to
the trainer for review and analysis
 Trainer will send the analysis to the individual participants and
discuss in class the next day (15 minutes)

Closure of NC via Procedure 200
 NCRs cannot be closed during the audit in which they were issued
 Critical and Major NCs require on-site verification of effectiveness of
corrective action for closure
 Critical - addressed within 30 days
 Major - addressed within 90 days
 Minor – addressed within 180 days
 Time bound NC (TBNC) – against Working hours &
Remuneration only- 24 Months
 Expectations of the Auditor and Auditee must be clear at the closing
meeting
 Check for reoccurrence of NCs in same or subsequent certification
cycles.
 TBNC: shall be closed only when corrective action shows sustained
improvement for a period of time.
 Auditor shall not close TBNC in next audit and re-raise TBNC in
subsequent audits. SAAS P200 allows 24 months for companies to
take robust action so that same issues do not reoccur.
Audit Report (via Procedure 200)
 23.1 General Requirements:
 The CB audit team SHALL provide a full report on the client’s audited activities
and operations within 1 month after the last day of each Stage 1, Stage 2,
Surveillance, Transfer, Special and Recertification audit.
 The audit report SHALL clearly show the parts of the system that were audited.
 The report SHALL include evidence of positive reporting showing
conformance to the elements of the Standard. Positive reporting with
supporting details provides value added information to the client and the
CB technical reviewer and decision-makers.
 The context, findings and issues against each part of the audit SHALL be
included and set out a description of the current situation, how specific
requirements are managed, with supporting evidence and information to
substantiate any findings.
 See Procedure 200 Annex (SA8000:2014 Auditor Guidance for Maturity
Declaration ) for the integration of the Maturity Declaration Evaluation in
the audit report.
 Refer Table 24 of SAAS Procedure 200 for Audit Report content
 Context, findings and issues against each part of audit included
 Unconfirmed statements or information from managers, workers and worker
representatives shall not be included in the audit report, but kept as audit
notes
End of Day 3

N/A N/A

Agenda
Day 4
9.00 – 9.45 DAY 4: Review Audit Plan

9.45 – 10.30 Session 18: SA8000 Certification and Audit Cycle (Stage 1 & 2)
10.45 – 11:30 Session 19 : Surveillance Audits & Re-Certification
11:30 – 12:00 Session 20: Vaidu Case Study – The Opening Meeting
12:00 – 12:45 Session 21: Vaidu Case Study – Onsite Walkthrough
LUNCH
13:30 – 15:00 Session 22: Vaidu Case Study – Worker and Manager
Interviews
15:15 – 16:15 Session 23: Vaidu Case Study – Document and Data Review
16:45 – 17:15 Practice Exam

Session 16:
SA8000 Certification and Audit Cycle
Pre-Certification

N/A 45 Minutes

Pre-Audit Questionnaire
Purpose: To understand the organization, interested in applying
for certification
 to be completed by the company and submitted to the CB
 Pre-audit questionnaire assists the auditor in preparing an
appropriate audit plan to ensure the Stage 1 audit is conducted
accurately and effectively
 Includes questions related to:
 Scope & # of sites
 Social Compliance team
 Social Performance Team
 Risk assessment
 Emergency Response team
 Gender ratio/demographic mix
 Industry and production details
 Number of shifts, time of shifts
 Hazardous areas, etc.
 Supplier/sub contractor information
Consideration of Scope
The audit scope defines the extent and boundaries of the
audit, such as:
Physical locations,
Addresses of all sites
Organizational units,
Activities and processes,
Region

Scope
• Specifically, SA8000 certificates SHALL cover the complete
premises and operations, including remote sites and
home workers operating under a common management
system.
• All components of typically continuous (closely related)
processes, and the entities performing them, are
appropriately understood for consideration in scope
• If required, use Google Earth, Google Maps, Site Map of the
organization to understand entire scope and boundaries
• Team Leader to confirm the scope during Stage 1 audit to
avoid surprises in Stage 2 audit process
• Note: Scopes accepted for ISO 9001, ISO 14001, ISO 45001 or
other ISO system certifications may not be appropriate or
acceptable as a Social Accountability Management System
Scope.

SA8000 : Three Year Audit Cycle
Pre-Certification + MD Self-Assessment
Covers all Elements of SA8000
Certification Audit:
Stage 1 Stage 2
Audit (includes MS Audit (includes MS
Maturity Declaration) Maturity Declaration)
Surveillance Audits : Single

Semi Site
Semi Re
Announced
Announced Certification Follow up &
Follow up Audit #2
Follow up Audit Recertificati
Audit #1 (onsite)
Review Every six months Review (Announced) on Review
(onsite) (offsite) (includes
(offsite) (prior to 30 (offsite 33-
(includes MSMD )
months) 35 months)
MSMD ) MD
End of Current Cycle; New Cycle starts

Initial Research & Stakeholder Engagement
(Section 13.2 – SAAS Procedure 200)
Purpose:
 To accept a client based on various risk factors including any
geographical, ethical, country, industry sectors and/or commercial
basis
 CB SHALL check that the applicant does not have a recent or
pervasive history of major unaddressed violations
Methods:
 Web-based research
 Local intelligence from within the CB and from external bodies such as
regulatory agencies, trade unions, local stakeholders and community
members

Initial Research & Stakeholder
Engagement
(Section 13.2 – SAAS Procedure 200)
Minimum Requirements:
 Sufficient wage levels for geographical location of
organization
 Past or present legal actions against organization
 General working conditions at organization
 Languages spoken by personnel at organization
 Current or previous certification status for SA8000
 Status of other social compliance audits
 Grievance, legal proceedings and other complaints
 Identify local stakeholders
 Internal auditors are trained in SAMS and competent

Session 18:
Stage 1 and Stage 2

N/A 45 Minutes

Stage 1 Audit – ‘Readiness Assessment’
(Section 14 – SAAS Procedure 200)
Objective:
 Review accuracy of the pre-audit questionnaire returned by the client
organisation.
 Evaluate client’s location and site specific conditions
 Understand the Client’s SA system and it’s state of development
 Review and assess the client’s SA8000 management system
documentation and confirm organization’s stage 2 readiness
 Review Organisation’s previous labour, ethics and other second and third
party audit reports
 Review Organisation’s Internal Auditors competence
 Evaluate the compliance/effectiveness of the management system
 Examine compliance of key elements
(i.e. critical and high risk conditions)
 Effectively plan for Stage 2 audit
Stage 1 Audit – ‘Readiness Assessment’
Important Factors:
 To be performed at onsite.
 Typically between 1 – 2 days
 Limited interviews
 Category of findings
 Risk of non-conformance
 Observation
 No NCs to be issued
 Includes onsite MSMD

Stage 1: Audit Activities
Audit Activities
Opening Meeting
Company Overview Tour and confirmation of Scope
Management System element review & Record review for compliance
Interviews with worker representatives, management & SPT (limited)
Pre-Closing Meeting (Optional)
Maturity Declaration
Closing Meeting

Stage 2: Audit – ‘Evaluation of effectiveness’
Purpose:
To evaluate the effectiveness of the SA8000 management system and
associated performance elements
Requirements:
CBs SHALL undertake a full and fair evaluation of the client’s management
system
An audit SHALL be terminated, in extreme circumstances, for lack of
proper or adequate system implementation
Processes described in ISO/IEC 17021-1:2015 Clauses 9.4. SHALL be

followed

Stage 2: Audit – ‘Evaluation of effectiveness’
 Important Factors:
 Typically between 3 days to 16 days
duration
 Does include worker interviews, SPT
interviews, Management interviews
 Includes a Health & Safety Working
Conditions tour
 All SA8000 clauses to be audited
 Includes onsite MSMD
 Category of findings - NCs
 Critical
 Major
 Minor
 Time-bound
Stage 2: Audit Activities
Audit Activities
Opening Meeting
Company Overview Tour
Confirmation of records required for review

Worker representative(s) interview
Management Interviews
Company Health & Safety & Working Conditions Tour
Worker Interview including subcontract labour on site
Management System Element Review
Worker Representative and SPT interview
Document & Record Review
Employee Interviews – including staff, junior managers, first aiders, emergency

response team members
Pre-Closing Meeting (Optional)

Maturity Declaration
Closing Meeting

Session 19:
Surveillance Audits & Re-Certification

N/A 30 Minutes

Surveillance Audits : 3 Years Cycle
Surveillance Audit (SA), Follow-up Review (FU) and Recertification (RCA) Cycle
SA Number Month FU Number Month MSMD
1st SA Prior to 6th Month
1st FU Prior to 12th Month
2nd SA Prior to 18th Month
2nd FU Prior to 24th Month
RCA Prior to 30th Month
RCA FU 33 - 35th Month
A contract review Audit types:

SHALL be performed SA – Semi announced
prior to each audit FU – Online
RCA – Announced
Surveillance Audits
 Purpose:
To ensure ongoing compliance and track close-outs
of non-conformances.
 Occurs every 12 months
 First surveillance shall not be more than 6
months from certification or re-certification
date
 Surveillance audits are semi-announced
audits
 Partial coverage of SA8000 elements (Table-10 Suspended
of P200) in case of
 Includes MSMD force
 Under no circumstance SHALL two majeure
surveillance audits be combined in one audit

Re-Certification Audits
 Purpose: To reassess the effectiveness of the clients social management
system and it’s overall effectiveness by taking into consideration internal and
external changes which have affected the social management system
 Important factors: Within 6 months of discontinuation – RCA
 Occurs every 3 years requirements can be applied
 CB shall document the process used and outcome to decide whether a

Stage I may be deemed necessary if :
the certified organization underwent a major change since the last
certification audit such as relocation/addition or deletion of locations
of the organization or the addition of business processes, shifts and/or
number of personnel.
 The audit effort for recertification SHALL be newly calculated based on a
documented review of updated information (provided by the certified
organization
 Includes MSMD
Re-Certification Follow up Review
Purpose: To confirm and records demonstrate that all required
conditions for recertification have been met.
Recertification Follow up review records shall clearly
document:
a) Reconfirmation of SA8000 certification scope
b) Reconfirmation of the number of employees
c) Reconfirmation of Certificate and other certification details
d) Confirmation that any previously raised Critical or Major non
conformities have been adequately addressed and closed
e) Recommendation/Non-Recommendation for continued
certification to SA8000 (subject to which, re certification may be
granted or denied by the CB’s decision making authority)

Transfer Audits (Section 18 – SAAS Procedure 200)
 Purpose: The CB should review the request for certification from any previously
SA8000 certified client, and SHALL formally confer with SAAS to ensure that the
client has a clean certification history
 Organisation may decide to change its CB and to continue certification to SA8000 at
any point. New CB SHALL obtain a copy of, at minimum, the last 2 SA8000 audit
reports produced by the previous CB, Or else to be treated as new certification.
 New CB SHALL be accredited by SAAS for the country (or countries) of the transferee.
Existing client certificate SHALL be valid, with no open critical or major non-
conformities.
 If the client is currently suspended with its existing CB, a transfer may not take place
until a new certification audit (Stage 1 & Stage 2) is performed.
 New CB SHALL formally notify SAAS (and have received an affirmative reply in writing).
 New CB – not allowed to use the auditors who participated in the previous audit cycle.

Special Audits (Section 19 – SAAS Procedure 200)
 Purpose: This is a announced or unannounced audit performed by the CB or
SAAS to ensure credibility of SA8000 certification scheme. Special audits are
performed based on information received / gathered from stakeholders or
as part of regular monitoring.
 Contractual agreement between the CB and their client shall cover the
performance of special audits with the possible need for access to the
CB client’s premises (that may be announced, semi-announced, or
unannounced).
 CB SHALL document in the client file the reason for the Special Audit, the
process used and the outcome of the decision of the Special Audit.

Special Audits
 Types of special audits:

 Extension/expansion of a client organisation’s scope of SA8000
certification.
 To investigate possible auditor bribery.
 To investigate a complaint, whether generated internally, from a
stakeholder, from a client organisation or from SAAS.
 As part of a calibration/duplicate audit process.
 To verify on-site, the effectiveness of a CAP submitted by the Client
Organisation in response to a Critical, Major or Time-Bound
nonconformity.
 As the result of issues raised during a Follow-Up Review.

Part 20:
Case Study Vaidu


The Opening Meeting
 Purpose: To ensure that the company understands the

purpose of the code or standard and the requirements
against which their company is being assessed.
 Attended by:
Senior Trade
Lead Management Union/
Auditors Worker
Rep
Translators Supervisors
Key
Team
Function Workers
Auditors
Managers

The Opening Meeting
 Requirements:  Tips:
 Introduction of team  Be aware of the “policing”
 Sign in sheet used to record mentality
attendance
 Create space for open dialogue
 Review audit scope
to empower the auditee for
 Explain audit process and criteria,
including: continual improvement
 Necessary documents and records  Promote transparency
that will need to be reviewed  Confirm the confidentiality of
 Interviews that will need to take the audit
place
 Confirm permission to take
 Explain non-conformances and the
grading system photos if applicable
 Confirm communication channels
 Provide opportunity to ask questions
 Confirm logistical arrangements
Refer to Section 15.3 in Procedure 200

Group Exercise #9:
Vaidu Case Study: The Opening Meeting
 Please refer to “Group Exercise #9: Vaidu Denim Designs Ltd.

Case Study – The Opening Meeting” in your student handbook
 Please spend 20 minutes in your group preparing for the
Opening Meeting
 One group will be chosen to perform the Opening Meeting Role
play in front of the class
 Debrief

Session 21:
Onsite Walkthrough
Opening Meeting & Factory Tour/Worker Selection

N/A 45 Minutes

The Factory Tour
 Purpose: For the audit team to observe physical conditions
and current practices in all areas of the company to form a
view of how they compare with the applicable standards
 Attended by:
Senior Trade Union/

Lead
Manageme Worker Rep
Auditors
nt
Team Key
Auditors Function Workers
Managers

The Factory Tour
Requirements: Tips:
 Understand the types of  Make every effort to ensure
work and processes production is not disrupted
 Evaluate health & safety during tour
issues
 Observe interaction between
 Identify workers for workers and managers
interviews
 Tour the perimeter of the site
 Assess possible
and the immediate
areas/whether some
surrounding environment
operations may be sub-
contracted  Casual conversations with
 Observe management workers
systems and practices

Onsite Tour
 Students, please feel free to ask questions, and take notes on your
observations (*Remember, not all observations indicate poor
practices)
 Trainer to launch Vaidu Denim Designs Photo Tour 20 Minutes
 Students will note down the issues and potential NC’s/findings
during the factory tour

Session 22:
Vaidu Case Study:
Worker and Manager Interviews


 Purpose: to ensure management understand their role
and responsibility in meeting the requirements of the
code/standard and to assess their implementation of
internal policies and procedures
 Attended by:
Senior Trade
Auditors Worker
Rep
Key
Team
Function Workers
Auditors
Managers

 Discuss company’s  Beware of the “policing”
implementation of relevant mentality
code or standard and laws  Promote root cause analysis
 Discuss company’s policies
and procedures
 Confirm business permits
and licenses
 Confirm production
capacity

Worker Interviews : Selection
 Purpose: To select workers that are representative of
the workforce demographics. Interviewees should never
be selected by management.
 Conducted by:
Senior Trade
Auditors
Worker Rep
Key
Team
Function Workers
Auditors
Managers

Worker Selection
 Considerations:  Tips:
 Gender  Aim for workers samples as per
 Ethnic, national, linguistic, migrant, the SAAS Proc 200 Table
religious groups  In order to minimize the risk of
 Age, especially young workers workers being coached, conduct
 Departments (including security, and the selection of workers as late as
canteen) possible
 Worker representatives  Select workers independently

using: payroll, personnel records,
 H & S committee representatives
time cards, shop floor observation
 New employees
 Workers of different pay grades
 Pregnant women
 Workers from different shifts
 Workers not wearing uniforms, or PPE
 Workers who have taken leave recently

Worker Interviews: Key Points
 Provide data for audit report

 Triangulate data - Information obtained from workers should be
verified, where possible
 Example: If you ask a worker about their salary, you
should verify this information by examining the payroll
records during your document review.
 Provide data which is used for verification and validation
 Are inherently biased
 May yield conflicting information
 Workers can be coached by Management

Worker Interviews:
Class Discussion
SCENARIO:
What if you find that during your worker interviews, it seems
apparent that all the workers have been coached by
management? Should you stop the interview?

Worker Interviews: Techniques
 Explain the situation and purpose of your presence
 Ask permission to take notes
 Create rapport & establish two-way communication
 Ask them about themselves
 Minimize the threat (do not allow management in the vicinity)
 Assure anonymity
 Project interest and concern
 Guarantee that the workers will not be deducted payment for
their time spent in the interview
 Pay attention to body language of the worker

Worker Interviews: Questions
The two tier question
“Is the lighting in the

“Is personal protective
“Does the company production area
equipment issued to
provide hot water?” generating sufficient
workers?”
lumens?”
“Yes.” “Yes.” “Yes.”
“Yes, but does the “Yes, but is it adequate

“Yes, but for how long?” company turn on all the and are workers capable
lights?” of using it?”

Worker Interviews:
Common Mistakes
 Acting superior to the interviewee, sitting in the “power” seat

 Not listening to what is being said (active listening)
 Not allowing the worker to complete their response
 Jumping to conclusions
 Subsequent responses from workers will then be
“filtered” to confirm the auditor’s conclusion
 Using leading questions to obtain the answer that the auditor
wants
 Not looking at the person being interviewed

Worker Interviews:
3 Challenges Facing Auditors
1. Auditors may not get comprehensive or honest answers from

workers because:
 Workers may believe that they will get into trouble for
participating in interviews
 Workers may be coached by management
 Management may intimidate workers
2. Auditors may not consider worker selection
 Vulnerable groups could be overlooked
3. Auditors may not leave enough time for worker interviews
 It is best to do worker interviews early during the audit so
that the auditor has enough time, and can properly
triangulate information that is found during the interview

Group Exercise #10:
Vaidu Case Study: Worker Interviews
 40 minutes (role play and debrief)

 10 minutes preparation
 20 minutes for interview (2 interviews)
 10 minutes debrief
 Trainer will interview worker # 001 and one of the participant
volunteers will interview worker # 002.
 Worker #1: Female Line Worker
 Worker #2: Security Guard

Session 23:
Vaidu Case Study:
Document and Data Review


Document & Data Review
 Purpose: To review and verify necessary policies and procedures, and
cross-check issues that are required in the standard.
 Conducted by:
Trade
Lead Senior Union/
Auditors Management Worker
Rep
Team Supervisors
Translators Worker
Auditors Key
Function
Managers
There is a World of Difference between Truth and Facts. Facts can obscure the Truth
- Maya Angelou

Audit Records
 Important to keep records of all audit activities (including pre &

post activities):
 Opening & Closing meeting attendee list
 Notes/minutes from stakeholder consultations and other pre-
audit research
 Explanation of living wage calculation
 Audit reports
 Audit Plans
 Checklists
 Non-conformities
 Photographs

Document & Data Review Summary
 Payroll  Health and safety records
 Time cards  Business licenses
 Personnel files  Worker contracts

 Management review and corrective  Production planning
actions
 Plan to map and control suppliers
 Policies
 Disciplinary action log
 Waivers from the Labour Department
 Child Remediation procedure
 Supplier/sub supplier monitoring
procedure

Document & Data Review Example
Can you identify the concern with these ‘training records’?

End of Day 4
Review and Questions Exam Briefing

N/A N/A

Agenda
Day 5
9:00 – 9:30 DAY 5: Questions and Review

9:30 – 10.30 Session 24: Vaidu Case Study: NCR’s
10.45 – 11.15 Session 25: Vaidu Case Study: Maturity Declaration
Evaluation
11.00 – 12.15 Session 26: Vaidu Case Study: Closing Meeting
12.15 – 12.45 Course Wrap-up and Exam Review
12.45 – 13.30 LUNCH

13.30 – 16.30 EXAM

Session 24:
Vaidu Case Study:
NCRs


Understanding the Evidence
Reliable
audit
evidence Observation Corroborated
evidence
Document
& Data Interviews
Review
Unsubstantiated
evidence
Grading Non-Conformances
SA8000 BSCI (called SMETA Responsible RBA
‘Findings’) Jewellery
Council
Critical Yes Critical Major (related, Priority

(severe impact to (satisfactory level of (imminent risk to repetitive and (significant
individual’s rights, implementation of workers safety persistent non- failure with
life, safety and/or the requirements) and life) conformance) immediate
SA8000 reputation) impact)
Major No Major Minor Major

(systemic failure) (has not achieved (danger to (isolated non- (significant
satisfactory workers & conformance) failure)
implementation of systematic
requirements) breaking of
code/law)
Minor Partially Minor Not Minor
(one off situation, (has achieved some (occasional or Applicable (isolated or
not systemic failure) progress in the isolated problem, The Provision random
implementation of low risks) cannot be incident)
Time Bound the requirements) implemented
Only for 8.1 & 7.0 due to the
nature of its
business covered
by Certification
Scope
Group Exercise #11:
Vaidu Case Study: Non-Conformances
 Refer to “Group Exercise #11: Vaidu Case Study: Non-

Conformances” in your Course Handbook
 20 minutes to complete the NCR forms in your groups
 Sharing the NC’s with the Audit team conducting the closing
meeting

Session 25:
Vaidu Case Study:
The Maturity Declaration Evaluation


Maturity Declaration Readiness Chart
MSMD
Implications for Possible Types of Non-
Evaluation
Certification Conformances (NCs)
Score
Not ready for certification Significant major NCs
1
Maybe a Critical NC
Likely not ready for Some major NCs, many
2 certification, but may minor NCs
become ready over time
Several minor NCs and
May be ready for
opportunities for
3 certification if make system
improvement, possibly 1-2
improvements
major NCs
Minimal minor NCs and
Ready for certification if
4 opportunities for
meet other requirements
improvement
Unlikely, but possible to
5 None
occur at Stage 2 audit.

Session 26:
Vaidu Case Study:
The Closing Meeting


The Pre-Closing Meeting
 Purpose: to discuss audit findings and identify
inconsistencies, non-compliances and observations in
preparation for the closing meeting.
 Attended by:
Trade
Senior
Lead Union/
Manage-
Auditors Worker
ment
Rep
Key
Team
Function Workers
Auditors
Managers

The Closing Meeting
 Purpose: Inform senior management of the findings of
the audit and verify their confirmation of the findings
and areas for improvements, actions and timeframes.
 Attended by: Everyone who participated in the opening

meeting
Trade
Lead Senior Union/
Auditors Management Worker
Rep
Key
Team
Function Workers
Auditors
Managers

The Closing Meeting
 Review each non-  Begin the meeting by
compliance/non- providing positive feedback
conformance, finding, and  Beware of the “policing
observation mentality”
 Explain any necessary  Promote a solution-based
follow-up audits, approach
procedures and timeline
 Encourage root cause analysis
 Allow time for questions
 Don’t debate what you found
 Distribute any prepared during the audit. Issues
documentation to the should be addressed in
management advance.

Group Exercise #12 :
The Closing Meeting
 Closing Meeting Role Play

 Refer to Group Exercise # 12 in your handbook - 30 minutes
prepare with your groups
 Each Group will role play the closing meeting (15 minutes given
to each group to present)
 Final Debrief and Discussion

Course Wrap-Up and Review
Review expectations and course objectives

Prepare for Exam

N/A N/A

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Introductions & Materials

 Please introduce yourself to your course

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@SA_INTL , #SAI courses

We encourage Social Accountability International (SAI)

Connect, Share, Ask Questions

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 Apply the Attitude, Skills, Knowledge Class Discussion

 Be able to plan and conduct an

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Principles for an effective social responsibility program

Contributes to sustainable Is in compliance with applicable

Takes into account the Is integrated throughout

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• The increasing size of global supply chains

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 Social Accountability International (SAI) – Creator, owner

 Social Accountability Accreditation Services (SAAS) –

 Certification Bodies (CB’s) - Third party auditing firms that

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 Audit requested by applicant company  Typically ordered by brand

 Audit performed by certification body  Audit performed by brand or

 Management system based on  Management system being

 SA8000 Certificate is driver  Purchase order is driver

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• Compliance with all the Code of

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 Based on the UN Declaration of Human

 Spans industry and corporate codes to

 Management systems approach that

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What SA8000 Means What SA8000 Does Not Mean

Protection of workers’ rights

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 Perception that SA8000 is “The Gold

 Social performance indicators &

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 2,135, 430 workers in

 4,865 SA8000® certified

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Applicable Resources: Time Required:

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 A management system is the set of policies, procedures, and

 Management system development: Creation of policies,

 Management system implementation: Trained, committed people

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• Social Risk Management