SEDEX Glossary of Terms

A- level Member    Refers to retailers and brand owners at the top of the supply chain. It is a membership level established for companies to view their supply chain data.

·          Run their supply chain reports.

·          Get a complete picture of the trading relationships within their supply chain.

AB level member    This level of membership is for companies that have employment sites or act as agents and want to have facilities run reports in their supply chain. This type of member is mainly large processing and production companies or agents. AB level members can also fill in

information about the places of employment they own .

Accident Book    The accident book records all accidents or breakdowns that occur in the workplace. Even minor accidents such as scratches should be recorded. For each accident / breakdown, the following should be recorded: date, worker name, nature of the accident, cause of the accident, what measures should be taken to minimize the occurrence of the same accident and who should take such measures. Management, the health and safety committee and the workplace medical staff should use this record to track accidents / breakdowns and ensure that necessary measures are taken to reduce the number of accidents. For example, installing guards on machines, providing appropriate and effective personal protection equipment, training workers in the safe use of machines or chemicals, or why they should use them.

Account start year    It refers to the year when you start supplying consumers.

Agency labor / agency workers    Agency workers are hired by employment service agencies. The agency or labor provider signs a contract with the employer and the employees work for the employer. The agency worker's salary is paid by the agency or labor provider, and the employer pays the labor provider a fee for the use of the worker.

Intermediary / Labor Provider    Agency workers are employed by an agency / labor provider. The agency or labor provider signs a contract with the employer and the employees work for the employer. The agency work salary is paid by the agency or labor provider, and the employer pays the labor provider a fee for the use of the worker .

Agents    A company that buys products made by others and sells them to a retailer or brand. An agent also refers to a purchasing agent that does not produce any product components itself.

Associate Auditor Working Group    The Sedex Associate Auditor Working Group is responsible for promoting the convergence of ethical trade / social audits and promoting the improvement of best practices starting from best practices. The Associate Auditor Working Group is composed of independent commercial audit companies and non-governmental organizations with ethical trade audit business, and there is also active participation from Sedex member companies. The working group asks for all input information and feedback on the behavior of Sedex members, relevant non-governmental organizations and other stakeholders.

audit    It refers to a comprehensive and formal review of the labor practices of a particular workplace or company after obtaining solid evidence. The essence of auditing is the review of evidence and the multi-faceted verification of evidence that constitutes the truth. This refers to verifying whether the various criteria and procedures for collecting and evaluating various types of evidence have been followed.

B -Class Member    B Membership gives access to the Sedex database and inputs data into the system (self-assessment questionnaires and audit results). B Membership is also suitable for companies with one or more employment sites. B Membership is also for companies that act as agents and do not want the facility to run reports on their supplies.

BSCI Business Social Standards Initiative   www.bsci-eu.org/

Temporary Workers    Temporary workers are hired only when there is a job opportunity. They are usually paid on a daily basis. These workers may not have a direct contract with the employer, but their contract arrangement may be handled by an employment service agency.

Code of Conduct    A code of conduct is a set of standards or rules for ethical behavior. This code is adopted by buyers to set the minimum labor standards they expect suppliers to follow. These labor standards cover issues such as health, safety, wages, and child labor.

Collective Bargaining Agreement    A collective bargaining agreement is a contract negotiated between an employer and a union or legal work organization. This agreement sets out the terms of employment and may also include negotiated wage levels or working hours. The employment conditions negotiated in a collective bargaining agreement may never be lower than the legal standards in the country where the business operates.

Company Homepage    When members log in to Sedex , the first page they see is the company homepage. Members can click on buttons on this page to link to customers, add employment site details, and add and delete system users.

Adjustment actions    Corrective actions are changes made in the implementation of the program to address deficiencies / violations found during the ethics audit. Corrective actions are taken in response to any violations found after assessment against the agreed standards.

Adjust your action plan    This is a document that confirms the data obtained and any agreed actions after the audit. A copy of the document is usually left with the factory after the consultation.

Orderer   Refers to a company that buys / procures goods or services.

The supplier number of the orderer    Some companies refer to their suppliers by different numbers / codes. If you know what your code is, enter it here.

Data Output    A and AB members can use the export button to export all the data about their suppliers from Sedex . The data is presented in a large Excel spreadsheet which needs to be processed.

Disciplinary Procedures    The steps or procedures for dealing with employees who violate regulations and should be punished.

Equal Opportunity Policy    An equal opportunity policy should describe how you treat workers based on gender, age, ethnicity, race, status, tribe, or religious beliefs. The policy might state equal pay for equal work, equal opportunity in hiring, training, promotion, and benefits, and describe how this will be implemented.

Ethical Audit    It refers to a comprehensive and formal review of the labor practices of a particular workplace or company after obtaining solid evidence. The essence of auditing is the review of evidence and the multi-faceted verification of evidence that constitutes the truth. This refers to verifying whether the various criteria and procedures for collecting and evaluating various types of evidence have been followed.

Ethical Trade / Social Responsibility    These terms are used to describe the management of supply chains that requires compliance with good labor practices.

Ethical Trading Policy    An ethical trading policy statement is a document (approved at board level) that describes your approach to ethical trading and labour standards issues. It should include your expectations of your suppliers in relation to labour standards issues in their workplaces.

Racial origin     A group of people who share a certain nationality or ethnicity.

Ethical Trading Initiative (ETI)       Ethical Trading Initiative www.ethicaltrade.org

Ethical Trading Initiative Basic Principles    Refers to the code of labour practices that the ETI requires its members to follow, consistent with the key conventions of the International Labour Organization. The content of the code is negotiated by the founding trade unions, NGOs and corporate members of the ETI. There is also a set of general principles to govern its implementation.

Export Processing Zone / Free Trade Zone    A free trade zone (FTZ) or export processing zone (EPZ) refers to one or more areas within a country where tariffs and export quotas are abolished, various complicated approval procedures are reduced to a minimum, and various incentive policies are used to attract companies to invest.

Factory processing    Refers to a factory that produces products or processes other components into finished products.

Finished product supplier    A factory or workshop that assembles finished products from parts purchased from other suppliers.

Fire drill    The fire drill involves sounding the fire alarm without notifying anyone and checking that all workers have mastered the skills to escape the building calmly and quickly. During the fire drill, you should check and make sure that all escape routes are clearly marked, emergency exits are fully open, and there are enough fire escapes for the participants. When all workers have escaped the building and assembled, record the names of all workers present.

Follow-up audit    The main purpose of an audit conducted after the initial assessment is to confirm that the agreed corrective action plan has been implemented.

Freedom of association   Refers to the right of all workers to join or form trade unions of their own accord and to carry out trade union activities without interference from employers or public authorities.

Good role model    When conducting an audit, auditors strive to identify violations, compliance and good examples. When some employment sites implement or set standards above the basic level, they should be recorded as good examples.

Complaint Procedure    A grievance procedure or process for employees who feel they have been treated unfairly.

Planting    Farmers who grow fruits / vegetables. Farmers can pack their own products or go to a packaging factory for packaging and then provide the products to the end customers.

Dangerous work    Hazardous work means working with dangerous machinery / equipment, such as knives, saws, chemicals or dangerous substances; being in a noisy environment; lifting heavy objects; or working in an extremely cold or hot environment.

Health and Safety Committee    The health and safety committee should consist of managers, supervisors and employees / workers. The committee should meet regularly to discuss health and safety risks in the workplace, organize training, analyze accident records, and agree on possible solutions to minimize risks and protect workers.

Health and safety risk assessment    A health and safety risk assessment is a comprehensive inspection of the workplace to identify factors that could harm employees. The risk assessment should first look at all hazards (fire, chemicals, dust, noise, overheating, overcooling, and trip and slip hazards), and then assess the level of risk (is it likely that someone will be harmed by the hazard). The risk assessment should cover all areas of the workplace. Once a risk is identified in an area, a targeted action plan should be developed to minimize the risk and protect the safety of workers. The action plan should state the specific measures to be taken and when they will be implemented.

High-risk areas    Dangerous elements found in risk assessment that are far higher than the usual risk level.

Homeworkers    Refers to employed persons working in the family.

ICTI International Toy Industry Association www.icti-care.org

ILO and ILO regulations    International Labour Organization. The International Labour Organization is a specialized agency of the United Nations that aims to promote social equity and internationally recognized human and labour rights. The International Labour Organization develops international labour standards in the form of conventions and recommendations, which set out minimum standards for fundamental labour rights. The conventions of the International Labour Organization have the force of international law, and countries that have ratified the conventions must implement the principles of the conventions into domestic law and ensure the implementation of such laws. In addition, all member states of the International Labour Organization, whether or not they have ratified the conventions, have the obligation to observe, promote and practice the principles of the core conventions of the International Labour Organization, which cover issues such as freedom of association, collective bargaining, forced labour, child labour, discrimination and equal pay.

Importer   A company that imports goods from foreign countries and then sells them to its customers.

Legal maximum weekly working hours    The statutory maximum weekly working hours are the sum of the statutory standard working hours plus the maximum statutory overtime hours in a week.

Off-season    The time of year when production and the number of employees are at their lowest.

Management Access    You can use this button to set the permissions for different customers to view your data.

Material Safety Data Sheet (MSDS) Material Safety Data Sheet (MSDS) specifies the hazards associated with certain specific chemicals, necessary precautions for safe use and storage, necessary personal protection equipment, and what to do in the event of an accident or spill. The data sheet should also be available in a language that workers understand and placed near the location where the chemicals are stored or used.

Country of Citizenship    Rights of officials belonging to a particular country:

Violations    Any matters found during the investigation that do not meet the standards that should be met.

Non-Governmental Organizations    Non-governmental organization or charity.

obey    An issue identified by the auditor that is not a violation but still has room for improvement.

Peak Season    The time of year when production volumes and the number of employees are at their highest.

Fixed Worker    A full-time paid worker who works year-round.

Main Manufacturer    A supplier that performs multiple roles, such as grower and packer, to provide a product to its customers.

Trial Period   When workers start working in a factory, they are sometimes required to go through a probation period of a certain length. The probation period should be specified in the contract.

Employment Places   It refers to the physical place where products are cultivated, processed or assembled. In the case of services, it refers to the physical place where the main labor is provided.

buyer    Companies to whom you provide services / sell products.

Proposed Adjustment of Action Date    The date the corrective action was completed.

risk assessment    A structured analysis of the potential losses to a company resulting from failure to meet certain standards due to organizational fault

SA8000 SA8000 is a global social responsibility standard for fair working conditions, developed and supervised by Social Accountability International.

Seasonal workers    Workers who are hired for a short period of time because work opportunities arise during a limited time or season. These workers usually do the same job year after year.

Self-Assessment Questionnaire    Is a questionnaire for suppliers to use to answer questions about their labor standards and health and safety.

SMETA Sedex Member Ethical Trade Audit

Subcontractors    A subcontractor is a person or company (in many cases a corporation) who is contracted to perform part or all of the obligations of another contract.

Subcontractor    An enterprise or employment place that signs a contract and performs part or all of the obligations of another contract.

supplier    A company that sells products to a " buying company " . In many cases, the supplier will be involved in the production or processing process. Note: A company that acts as an intermediary, such as a company that imports fresh products from a warehouse in Africa and then sells them to supermarkets, is considered both a " buying company " and a " supplier " .

Supplier Verification    With this button you can approve companies that have established trading relations with your company.

Casual employment - direct employment is a worker who is employed for a specific period of time under a contract. In most cases, when the contract expires, the employer has no obligation to continue to provide employment opportunities.

union    There are two types of trade unions – those whose members are workers and those whose members are trade unions. The term trade union is used to refer to both types of organisations. The first type of union usually represents the interests of workers and its duties include collective bargaining with employers. It is usually a national or industry union. Sometimes, this type of union is based on occupation or enterprise rather than industry.

Another type of union is a federation of multiple unions. When a federation is formed at a national level, it is referred to as a national industry centre (the national union centre in the UK is the Trade Union Congress). Internationally, global union federations are industry or occupational organisations whose members are made up of national unions in different countries representing workers in that industry.

In addition, there are international organisations to which national union centres and global union federations are affiliated. These include the International Confederation of Free Trade Unions ( ICFTU ), the European Trade Union Confederation ( ETUC ) and the Trade Union Advisory Committee of the Organisation for Economic Co-operation and Development ( TUAC ).

Trade relations    With this button you can link your company details to your direct clients.

User Agreement    Through this button, you can add and maintain users who can access the Sedex website.

Username / Login This is how you access the Sedex system. You log in with your username and password.

verify    In the context of the Labor Practices Code, verification refers to the fair examination and verification of a supplier's claim that it has " actually complied with the terms of the Code " or a company's claim that it has " taken action to give effect to the Code " . The essence of verification is to verify the credibility of public statements. Verification is to re-examine evidence to prove the accuracy of previously reported results.

Verification Method    There are different ways auditors can verify issues. One is a follow-up audit , where the auditor returns to the employment site to see if changes have occurred, and another verification is done through a desktop review , where the auditor looks at photos or documents to verify the issue.

Workers' organizations / committees    This refers to a union or worker organization / committee that represents workers in meetings with management to discuss workplace issues.

WRAP WRAP is an independent non-profit organization whose mission is to assess legal, humane and ethical manufacturing issues around the world. http://www.wrapapparel.org/