The significance in SMETA standard benefits

Apart from product-quality ensuring standards such as ISO 9001, FSC, BRC… standards regulating business social responsibilities such as BSCI, CTPAT… are receiving more and more attention. These include commercial and production businesses in many different fields such as education, medical, import and export, packaging, consumer goods, home appliances…
 
Here, Khang Thanh will introduce to you all the SMETA standards along with its benefits to businesses and end users, especially to SMETA certified packaging companies.

What is the SMETA standard?

SMETA is an acronym of Sedex Members Ethical Trade Audit, which indicates that the method of evaluating and reporting on ethical practices and social responsibility has been recognised and widely used.
 
SMETA consists of 3 elements:

• A general guide to conducting an ethical business practice assessment.
• Agree to use a single format for Assessment Report.
• Agree to share a format for an action Plan.

SMETA mission is to:

• Meet customer requirements.
• Reduce the overlap in ethical and social responsibility assessment.

 
See also: Why BSCI participation demonstrates corporate social responsibility?

   

Core values of SMETA standard

A business will be granted with the title SMETA certified packaging company when they meet the following conditions:

• Labour standards (not using underage employees…)
• Health and Safety (occupational health and safety in the production process, and working environment of employees…)
• Environment (issues relating to waste treatment, environmental protection…)
• Business ethics.

Packaging production is also one of many stages in the supply chain so in order to meet this standard, the product packaging must also ensure SMETA standards. Packaging companies are certified with the SMETA label when it meets the SMETA standards as follows.
 

SMETA standards on labor

According to the SMETA standard on labor, companies need to ensure full benefits for employees regarding freedom of choice of employment, unions, regulations on the use of child workers, time and the working environment, as well as the code of conduct between employers and employees.
 

Health and Safety

• To build a safe and hygienic work environment, hazards need to be identified from the outset. At the same time, they need to take measures to prevent accidents and factors adversely affecting workers' health.
• All new or reappointed workers at all stages must receive periodic health and safety training along with complete related documentation.
• Ensure workers have access to clean and hygienic facilities.
• If workers are provided with accommodation, it is necessary to ensure cleanliness and safety regulations according to the labor law.
• Enterprises need to have a senior representative in charge, responsible for this regard.

 

Environment in packaging companies

According to SMETA standards, businesses need to ensure the working environment in accordance with the law on environmental sanitation.

• Companies can prove their legality in relation to environmental matters.
• Using of water source.
• The process of treating water and waste in packaging production…
• A full understanding of environmental standards for their products.
• Building environmental policy.
• Recognising the impact of the environment on product finishing.
• Regularly controlling and fully recording the monitor of the business impacts on the environment (water sources and waste…)
• Regularly improving the quality of the environment with positive measures.
• Having complete certificates of environmental sanitation.
• Designating individuals responsible for coordinating and monitoring work environment sanitation.

 

Business ethics of packaging companies

According to SMETA standards, businesses must not have corruption, bribery or fraudulent in their practice. They must:

• Meet  the laws on anti-corruption, bribery and business fraud.
• Have a legal system in place to prove that the business comply with anti-corruption, bribery and business fraud laws;
• Develop policies on business ethics;
• Appoint individuals responsible for the conduct of business ethics.

 
See also: C-TPAT standard and the application in commodity security
   

Benefits of a certification of SMETA standards

For consumers

Consumers use SMETA-compliant packaging to reduce health risks as well as losses of finance. Besides, they also have a correct indication of quality products from which to make the right choice.

For businesses

Applying SMETA standards to the packaging production process has many benefits for businesses:

• Improving brand position: SMETA includes standards of social responsibility, which also means that it will be easier to earn customer's empathy. It will also enhance the brand's position and increase competitiveness. Adopting SMETA is a foundation of belief in the negotiation with many new partners, bringing about opportunities to expand the market to seek profits.
• Minimising the risk of legal violation: The violations of hygiene for the products are strictly controlled. Especially, the enterprise has enough papers to prove the legality of its products.
• Promoting employee dedication: SMETA aims for the safety and well-being of workers. It is a commitment to act kindly to employees. This is the driving force for workers to dedicate in the direction of business.
• SMETA certified packaging company also means an increased product value, which is a premise to boost sales growth.

 
See also: FSSC standards and applications in the production of goods
 
Above is some information about SMETA standards and its application in packaging production companies. We hope we provided you with basic information to have an overview of this standard.
 
Besides, Khang Thanh was pleased to receive other international certifications such as BSCI, FSC, ISO 9001: 2015, ISO 14001: 2015, Walt Disney ILS. We believe that a business can only achieve sustainability  when they develop with social and community responsibility at the core of their operation.