elearn chemical initiative module 2 english 2

7/28/2019 Elearn Chemical Initiative Module 2 English 2

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E-Learning Tool: Together for Sustainability The Chemical Initiative for Sustainable Supply Chains Module 2 Audit Process Raising Suppl ier Awareness about Sustainability Requirements and Upcoming Aud its

Learning time: approx. 20 minutes


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Slide Audio Script

Welcome back to the e-learning tool Together for Sustainability The ChemicalInitiative for Sustainable Supply Chains.

While the first module raised your awareness about the objectives of Together forSustainability and the benefits of supplier participation, the second module will provide

answers to questions you may have with respect to the audit.

Please read carefully the following navigation help to provide you with the needed

information regarding functions of this e-learning tool.


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The objective of the member companies of Together for Sustainability is to sharesupplier sustainability assessments, audits, and capacity building efforts. This willreduce double efforts and free resources for effective improvements.

For this purpose, the members agreed on a set of sustainability criteria based on

reference frameworks such as the United Nations Global Compact, the ResponsibleCare Charter, and the Conventions of the International Labor Organization.

There are several benefits of participating in the joint audit program:

You experience less audit efforts and costs by sharing audit information withmultiple customers

Your participation in the auditing will lead to a reduction of double audits

You have the opportunity to engage with your customer on sustainabilityrequirements and challenges

You build up long-term relationships with your customers

You know about your sustainability performance and can start to improve yourperformance.

You lower your risks related to sustainability requirements

Module 2 focuses on the joint audit process.

Once you have completed Module 2, you will know:

what the audit process will look like

how long the audit will take

what the key audit topics will be

what you should prepare for the audit

why it makes sense to share your audit report with the members of Together forSustainability


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Module 2

2. 1 What is the scope of the audit and what should suppliers prepare prior to theaudit?

Lets have a look at some key information about the audit so that you are well

prepared:

The audit will usually involve 2 audit days

The auditors are carefully selected, have the required level of auditingexperience and relevant industry knowledge

A representative of your customer may attend the audit

The auditors speak the local language and English

The auditor will contact you to schedule the audit

Please contact the auditor or team leader if you have any questions related to

the audit.


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On the right-hand side, you see the regulations, laws and industry practices on whichthe audit criteria are based on:

1. First, companies need to be in compliance with national law, in this case withcurrent environmental, health & safety, labor and corporate governance

legislation.2. Second, internationally-accepted standards need to be considered. They

include the principles of the United Nations Global Compact, the Conventionsof the International Labor Organization and relevant standards of theInternational Organization for Standardization.

3. Third, many companies have developed their own supplier codes of conductbased on national law and international standards, asking their suppliers tocomply with these requirements.

Let us now have a closer look at the sustainability topics that are relevant for theupcoming sustainability audits.

The audits will cover Management, Environment, Health & Safety, Labor & HumanRights as well as Governance issues.

Your sustainability performance will be assessed based on a defined set of auditcriteria with regard to these five topics.

Please click on the different topics to see some sample audit questions.

Management

The audit will focus on the existence of company policies and procedures as well asmeasures to raise employee awareness about your company practice.

Environment

The auditor will check if you have a system in place to handle and dispose ofhazardous chemicals, for example.

Health & safety

Some audit questions will refer to the provision of personal protective equipment, the

existence of an emergency plan or your site conducting regular fire drills.


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Labor & human rights

The auditor will assess your companys practice in areas such as working hours andnon-discrimination

Governance

The auditor will for example focus on fair business and anti-corruption practices.

Preparing for the audit is essential to ensure that the audit duration can be kept asplanned.

Prior to the audit you will receive a message with information about the upcomingaudit. Please make use of the Audit Preparation Checklist provided. This slidesummarizes the things to prepare prior to the audit:

Please sign the Data-Sharing Agreement and send it to the audit firm. Thisensures that your audit report can be shared with all members of the initiative.

Fill out and return the document list containing relevant site information andavailable documentation. This is important for the auditor to prepare for theaudit.

Please also confirm the audit date and time-schedule.

Do not forget to inform the auditor about any safety requirements prior to theaudit, such as the need to wear Personal Protective Equipment.

Please ensure that the auditor is given access to all relevant areas of your site,and all requested documents on the day of the audit.

You should brief your managers about the audit topics, the required availabilityof key staff and the documentation to be made available from eachdepartment.

Awareness must also be raised about the necessity to release selected staff

from their duties as well as to allow auditors unrestricted access to all siteareas.

Inform your employees about the key audit topics. Announce that someemployees will be chosen at random for interviews. Do inform employeesabout their right to data privacy & confidentiality.

Inform union or worker representatives about the audit, especially about therelevant labor issues to ensure that they are available and understand thenature of the audit.


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Please provide a room for the auditor or audit team. A further room may beneeded for the interviews.

Module 2

2. 2 What will happen during the audit?


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The audit at your site will consist of five key stages:

Opening meeting Production tour Interviews Document review and Closing meeting

Please note that the audit schedule will be designed to minimize any disruption to yourproduction.

Please click on the different audit stages to find more detailed information.

Opening Meeting

The audit will start with an opening meeting where the auditor will introduce himself orherself. Please invite your management team to attend this first meeting. Participantsfrom your site should include managers responsible for health and safety,environmental protection and production as well as human resources and union orworkers representatives. The aim of the opening meeting is to achieve a mutualunderstanding between the management and the auditor about the audit. The audit

process, schedule and agenda will be presented and discussed. The opening meetingshould take approximately 30 minutes.

Production Tour

The production tour allows the auditor to observe and inspect key production areas.Please ensure that the auditor is granted access to all areas. The auditor will collectinformation and evidence to assess the stated company practice. Given the specifichazards in the chemical sector, the auditor will check your sites plant and processsafety, for instance. On-the-spot interviews with staff members from differentdepartments will complement this review stage. The auditor may take pictures duringthe production tour to provide evidence. The duration of the production tour will dependon your company size.

InterviewsAfter the production tour, interviews will be held with both management and workers.The interview stage aims to cross-check information collected during the initialproduction tour and the later document review. - Please inform the employees aboutthe upcoming interviews. A representative sample will be chosen by the auditor. Therewill be individual and group interviews with health and safety, environmental,engineering, production and maintenance staff as well as union or workerrepresentatives. The individual interviews will take around 15 minutes. Group


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interviews will take no more than 45 minutes.

Document Review

The document review is an important element of the audit. The document review aimsto obtain further evidence and check the availability and status of key documents, such

as guidelines, handbooks, files and certificates. During the document review, pleaseprovide the auditor with key documents as electronic versions or hard copies asdetailed in the document list that was sent to you by email prior to the audit. Theduration of the document review will depend on your preparation and company size.

Closing Meeting

The aim of the closing meeting is to discuss the audit findings with management andreach a mutual understanding. The auditor will therefore present the audit results toyou. You will have the opportunity to identify strengths and weaknesses in yoursustainability performance. The closing meeting also gives you the opportunity todiscuss possible corrective actions with the auditor. The closing meeting should takenot more than 60 minutes.

Module 2

2. 3 How are the audit results documented?


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Every audit report consists of:

A company profile including general information such as the scope of the auditand the size of your company

An overview of positive and negative findings

The completed Audit Guidance And Reporting Template

The agreed findings documented in the signed "Audit Corrective ActionTemplate

The auditor will finalize the audit report within 10 days of the audit. You will obtain theaudit report and may be asked to confirm and specify your corrective action.

As a result of the audits, the auditor will come up with a summary of audit findings. Theauditor will distinguish between minor and major findings:

A minor audit finding is:

An occasional or isolated problem

An issue with a low risk to workers

A policy issue with no evidence of a material breach

A major finding is:

An issue of danger to workers

A material breach or systematic violation of national law

A case of fraud or manipulation

You will be expected to take action if minor findings are detected and immediate actionin case of major findings.

All findings will be documented in the audit report. The sharing of audit reports will takeplace according to the data sharing agreement you signed.


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Module 2

2. 4 What happens after the audit?

What is expected in response to the audit results:

The auditor will explain the audit findings and possible corrective actionsduring the closing meeting

All negative audit findings require corrective action within a defined timeline

You need to develop your corrective action plan within 30 days after auditcompletion

Please send your corrective action plan to the auditor

Your customer may ask you to report on the action you have taken toimplement the corrective action plan. It is essential that you include appropriateevidence to prove the action is completed.

If you have questions regarding the corrective actions, you may contact your customer

or the auditor for further information and support.


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Module 2

2. 5 Data-sharing Why does it make sense to share audit reports within Together forSustainability?

Sharing your audit report is a key success factor for the joint audit program.

The benefits are:

You satisfy customer requirements and expectations

You lower audit costs and time spent on audits since double audits are usuallyavoided

You spend less time on responding to multiple customer requests.

The sharing of audit reports will take place according to the data sharing agreement

you signed.


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Lets jointly review the key content of Module 2:

There is a standardized audit process that covers audit planning, auditexecution, audit reporting and sharing of audit reports, as well as follow-up to

audit findings.

The key audit stages conducted at your site are: Opening meeting, productiontour, interviews, document review and closing meeting

Signing the data-sharing agreement releases you from double audits amongthe members of the initiative and supports Together for Sustainability insharing audit reports

Major findings are high-priority areas of concern. You are asked to take

immediate corrective action and prove the closing of the issue within areasonable time.

Hopefully we have addressed all of your questions about the upcoming audits.

If not, you have the opportunity to contact the auditor or our help-desk for furtherinformation

We are keen to continuously improve this e-learning tool.

Please tell us what you liked best about the e-learning tool and if you have anysuggestions for improvement.

You can insert your comments in English or Chinese.

Thanks for your feedback!

elearn chemical initiative module 2 english 2

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