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Beyond Social Auditing

Numerous reports have found the social audits to be ineffective in capturing human rights abuses. What are the solutions and options for reform?

The growing scale and complexity of global supply chains as well as an increased emphasis on human and labour rights has led large multi-national companies to carry out their own social audits, hire private auditors to monitor the conditions in their supply chains and/or require certificates from production site owners. With the adoption of the UN Guiding Principles on Business and Human Rights and the subsequent positioning of due diligence as the global standard of practice for companies on human rights, social audits are increasingly being used by companies to comply with their due diligence obligations (for more information and guidance on human rights due diligence see this section).

This trend is worrying given that numerous reports have found the practice to be ineffective in capturing human rights abuses in global supply chains, and ultimately in its current form to be failing workers. Incidents such as the Rana Plaza collapse in Bangladesh and the Ali Enterprises fire in Pakistan, both of which were audited shortly before the tragedies happened, have tragically drawn attention to the pitfalls of social auditing in the textile sector.

Research has also drawn attention to the particular impact this has on vulnerable workers including women, children and migrant and refugee workers. Human Rights Watch for example found that audits in the textile industry fail to address gender discrimination and sexual harassment at the workplace. Our own work on Syrian refugees in the Turkish garment industry also highlights this issue. Workers in other sectors such as agriculture, food and electronics have similarly experienced the shortcomings of social audits, thus raising important questions as to whether the current practice of social auditing is fit for purpose.

However there are a number of reform options and (emerging) alternatives including approaches such as auditor liability, the Worker-driven Social Responsibility model, mandatory human rights due diligence and innovations to grievance mechanisms. This portal will feature various perspectives and research on the pitfalls of social auditing, gather and share examples of where audits have failed, as well as materials exploring alternatives to the current practice of social auditing, including by companies.

We welcome input and views from all stakeholders, both on options for fundamentally reforming social auditing and on alternative models which seek to go beyond the practice.

This portal is the result of a collaboration between BHRRC and Clean Clothes Campaign and was made possible thanks to funding from Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).

Featured content

Beyond social auditing: Key considerations for mandating effective due diligence

To realise its potential, the EU Sustainable Corporate Governance Initiative must drive action beyond the mechanical tick-box exercise which has characterised too many companies’ approaches to their duty of care to workers and communities.

Worker-Driven Social Responsibility Network

Building understanding and providing resources for worker-driven social responsibility models.

Rethinking Multi-Stakeholder Initiatives

Report and blog series by MSI Integrity invite readers to think critically about the limitations of voluntary regulation and to envision more effective strategies to protect human rights.

Worker-centric due diligence

KnowTheChain: Addressing forced labour risks in lower tiers of electronics supply chains – examples of company practice

Commentary: It’s time to stop believing corporate fairytales about modern slavery

We need to empower workers to put forward their own solutions, Genevieve LeBaron argues.

Why apparel brands’ efforts to police their supply chains aren’t working

Academic research from Cornell University’s School of Industrial and Labor Relations finds many audits are unreliable and underlines the need for mandatory due diligence & worker participation.

Case studies

Pakistan: Ali Enterprises Factory

NGO coalition files OECD complaint with Italian NCP against auditor RINA for allegedly failing to detect safety & labour abuses at Ali Enterprises factory in Pakistan.

Germany: Need for reform of social audits

German Ministry of Economic Affairs acknowledges need for reform of social audits in textile industry in final statement on OECD complaint against TÜV Rheinland.

Loblaws and Bureau Veritas lawsuit

Canadian courts dismissed lawsuit against Loblaws and social auditing firm Bureau Veritas for alleged liability relating to social audits in the Rana Plaza building.

Explore our blog series

Expert authors discuss and reflect on solutions and fundamental reform options as well as what improved and accountable due diligence beyond social auditing should look like.