Social Audit
Social Audit
Social Audit
Submitted By
V.SARANYA
(07PIT27)
JUNE-2008
CONTENT
• Textile Industry
• Lahoti Overseas Limited
• Social Audit
TEXTILE INDUSTRY
HISTORY OF TEXTILE
SEGMENTS:
o Readymade Garments
o Cotton Textiles including Handlooms (Mill made/ Power
Loom/ Handloom)
o Man-made Textiles.
o Silk Textiles
o Woolen Textiles.
o Handicrafts including Carpets.
o Coir.
o Jute.
LAHOTI OVERSEAS LIMITED
Our people are our strength. We plan to achieve the vision of our
Organisation by following corporate social responsibilities with best
management practices, for producing proper qualitative products and thus
making ours is the most preferred factory for our customers to place orders
comfortably with out any hesitations.
ORGANIZATIONAL CHART
Managing director
General Manager
Order Procurement
Costing
In house arrangement trims and other accessories.
Coordinating Buyers till the order placements to shipment stage.
II) Sampling
III) Operations
IV) Quality
Generating Funds
Proper Accounting of Income and Expenditure.
Stores:
EXIM: -
IT
Maintenance:-
Recruitment Policy
Most brands still conduct audit on a pre- announced date and the
factory is aware of the schedule. Very few brands have the policy of making
an unannounced visit for an audit. Even these brands usually indicate a
period within which the audit will take place “unannounced”. A known
schedule helps the factory to be prepared for the audit.
If the brand is sending its own employee auditors, the factory does not
need to pay for the audit. However, if the brand is sending the third party for
the audit, the factory is required to pay a fee to the auditing agency. This is
true in most cases, though there may be expectations. Currently, the audit fee
varies between $800 and $1500 per day. In addition the factory has to pay
for the travel and accommodation if the auditors are located in another city
or country. The factory is asked to pay the entire fee in advance.
Normally the auditor will first meet the factory management and
explain the code of conduct and the audit process. At this stage, the auditor
may remind you of all the documents they would like to see later in the day
so that you can gather all the records required. Meeting with the
management usually lasts an hour.
After meeting the management, the auditor will tour the factory for
making observations. The auditor will go to all parts of the factory and take
notes. He may also pick up some names of workers at random for
confidential interviews.
After touring the factory, the auditor may decide to interview the
workers in a closed room or may wish to see all the documents/records.
Some auditors like to examine the records first and then interview the
workers.
The audit report is usually structured along the code of conduct standards.
There can be four possible audit results:
The audit report states specific violations observed and the corrective
action required. If no violation is found, then the audit report will state that.
The report may also indicate good practices the auditor noticed.
LETTER OF APPROVAL:
When the factory is approved, the brand will issue an approval letter
after which the factory can receive orders or start production. The factory
must not start production until the approval letter is received.
It may be noted that the final approval may be tied up with the
technical approval. It means the final approval is issued only when the
factory passes the technical audit for quality and product safety. Technical
audits are usually conducted by the quality assurance team and are
independent of the code of conduct audit.
ONGOING MONITORING:
COMPLIANCE DECISIONS:
Child Labor
Health & Safety
Working Hours
Discrimination
Disciplinary Practices
Remuneration
Freedom of Association and Right of Collective Bargaining
Forced Labor
Security
Management Systems
The certificates provided are:
PRIMARY OBJECTIVE:
SECONDARY OBJECTIVE:
Social ‘systems’ which survive in the long term only through being
alive to feedback concerning both their internal (sub system) and external
(super system) environments. The Social Audit process helps organizations
achieve that clarity of purpose and efficiency of procedure.
George Clark
Social accounting and auditing are critical processes for improving the
work of social enterprise. It releases the same scale of changes as was
achieved by a combination of the Joint Stock Company and financial audits.
Jeremy Nicholls
Stephen Timms
Graham Boyd
RESEARCH METHODOLOGY
INTRODUCTION:
Research methodology is the way to systematically solve the research
problem. It may be understood as a science of studying how research is done
scientifically. In it we study various steps that are generally adopted by a
researcher in studying this problem. It is necessary for the researcher to
know not only the research methods/ techniques but also the methodology.
DATA COLLECTION:
The data collected for the present study constitutes both primary and
secondary data. The data was collected from the employees with the help of
questionnaire which formed the source of primary data. The various records,
magazines; personal data were the main source of secondary data.
(I) PRIMARY DATA:
The primary data are those which collected afresh
and for the first time, and thus happened to be original character.
Questionnaire method
* Schedule questionnaire
Observation method
(II) SECONDARY DATA:
The secondary data means data that are already available. i.e. they
refer to the data which have already been collected and analyzed by
someone else and which have already been passed through the statistical
process. The information about the company and its type were collected
from the organizations records.
Journal
Books
Websites
RESEARCH DESIGN:
The research designed for the purpose of the study undertaken is of
descriptive type. The major emphasis of the study is to know the current
ongoing compliance audit in the company.
SAMPLING UNIT:
The sampling units selected for the survey were the shop floor
employees of Lahoti Overseas Limited. The over all population of the
employee in the company is 228 and the technique used to collect the data is
the simple random sampling technique.
SAMPLE SIZE:
The size refers to the number of items or the units to be selected from
the population or the universe to constitute a sample. The sample size must
not be too large or too small it should be optimum. An optimum sample is
that meets the respondent’s efficiency, representatives, flexibility and
reliability. The sample size includes 150 respondents of the company.
TOOLS FOR ANALYSIS:
The data analyzed through simple percentage method. The analyzed
data presented through tables and charts. The formula used for simple
percentage method is,
Number of Respondent
Simple Percentage = *100
. Total Number Of Respondent
ANALYSIS AND INTERPRETATION
INTERPRETATION:
From the above table it is revealed that 100% of the employees agree
that there is no child labour in the organisation.
CHART SHOWING THE NUMBER OF CHILD LABOUR WORKING IN
THE ORGANISATION
CHILD LABOUR
0%
YES
NO
100%
TABEL SHOWING THE DOCUMENTATION PROVIDED WITH
REGARD TO AGE VERIFICATION
INTERPRETATION:
From the above table it is revealed that 52% of the employees gave
age proof certificate and 47% of the employees produced birth certificate
and 1% of the employees gave education certificate to prove their age.
CHART SHOWING THE DOCUMENTATION PROVIDED WITH
1%
0%
TABEL SHOWING THE DISCRIMINATION IN THE ORGANISATION
FACTOR NO. OF RESPONDENT PERCENTAGE
RECRUITMENT 4 3%
SALARY 0 0%
RETIREMENT 0 0%
PROMOTION 0 0%
NONE OF THE ABOVE 146 97%
TOTAL 150 100
INTERPRETATION:
INTERPRETATION:
From the above table it is revealed that 88% of the employees say that
they are treated with respect and dignity and 12% of the employees say they
are not treated with respect and dignity.
6%
YES
NO
94%
INTERPRETATION:
From the above table it is revealed that 6% of the employees say there
is a variation in salary between male and female for the same work done and
94% of the employee says that there is no variation in salary between male
and female.
6%
YES
NO
94%
From the above table it is revealed that 100% of the employees say
that there is no problem with regard to sexual harassments or psychological
abuse.
YES
0% 100% NO
TABEL SHOWING THE FREEDOM TO LEAVE THE JOB AFTER GIVING THE
REASONABLE NOTICE
FACTOR NO. OF RESPONDENT PERCENTAGE
YES 144 96%
NO 6 4%
TOTAL 150 100
INTERPRETATION:
From the above table it is revealed that 96% of the employees say
there is a freedom to leave the job after giving reasonable notice and 4% of
the employees say there is no freedom to leave the job after giving
reasonable notice.
CHART SHOWING THE FREEDOM TO LEAVE THE JOB AFTER GIVING THE
REASONABLE NOTICE
FREEDOM TO LEAVE THE JOB
4%
YES
NO
96%
From the above table it is revealed that 91% of the employees say
they are working voluntarily in the organisation and 9% of the employees
say they are not working voluntarily in the organisation.
9%
YES
NO
91%
INTERPRETATION:
From the above table it is revealed that 100% of the employees say
that they did not provide any original documents before joining in this job.
INTERPRETATION:
From the above table it is revealed that 100% of the employees say
that they dint give any deposits to join in this job.
0%
YES
NO
100%
INTERPRETATION:
3%
YES
NO
97%
From the above table it is revealed that 5% of the employees say they
are forced to stay in the organisation and 95% of the employees say they are
not forced to stay in the organisation.
5%
YES
NO
95%
INTERPRETATION:
From the above table it is revealed that 94% of the employees say
they are free to access to use toilets and drinking water at any time and 6%
of the employees say there is no freedom to use toilets and drinking water at
any time.
6%
YES
NO
94%
INTERPRETATION:
From the above table it is revealed that 100% of the employees say
there is no labour union in the organisation. They have the employee
committee and the representative is Mr. Arockya Dass.
0%
YES
NO
100%
TABEL SHOWING THE RIGHT TO GIVE COMPLAINT TO THE SENIOR
MANAGEMENT
INTERPRETATION:
From the above table it is revealed that 89% of the employees have
the right to give compliant to the senior management and 11% of the
employees say there is no right to give compliant to the senior management
11%
YES
NO
89%
INTERPRETATION:
From the above table it is revealed 93% of the employees say that the
management is giving solutions for the complaints made and 7% of the
employees say that the organisation is not giving solutions for the
complaints made.
7%
YES
NO
93%
RARELY 11 7%
NEVER 8 5%
INTERPRETATION:
From the above table it is revealed that 8% of the employees say that
they give opinions and suggestion always and 80% of the employees say that
they give opinions and suggestion sometimes and 7% the employees say that
they give opinions and suggestion rarely and 5% the employees say that they
never give opinions and suggestion with regard to their job.
5% 8%
7%
ALWAYS
SOMETIMES
RARELY
NEVER
80%
NEUTRAL 0 0%
DISSATIAFIED 3 2%
HIGHLY DISSATISFIED 1 1%
INTERPRETATION:
From the above table it is revealed that 91% of the employees are
highly satisfied with their salary and 6% of the employees are satisfied with
their salary and 2% of the employees are dissatisfied and 1% of the
employees are highly dissatisfied with their salary.
BY CHEQUE 0 0%
DIRECT TO BANK 0 0%
INTERPRETATION:
From the above table it is revealed that 100% of the employees agree
that the salary is given by cash.
0%
0%
BY CASH
BY CHEQUE
DIRECT TO BANK
100%
INTERPRETATION:
From the above table it is revealed that 100% of the employees say
that the organisation is giving wage slip.
0%
YES
NO
100%
NEVER 9 6%
INTERPRETATION:
From the above table it is revealed that 7% of the employees say that
they work in overtime always and 77% of the employees say that they work
in overtime sometimes and 12% the employees say that they work in
overtime rarely and 6% the employees say that they never work in overtime.
6% 7%
11%
ALWAYS
SOMETIMES
RARELY
NEVER
76%
INTERPRETATION:
From the above table it is revealed that 93% of the employees say that
they have the right to refuse the overtime work and 7% of the employees say
that they have no right to refuse the overtime work.
7%
YES
NO
93%
TABEL SHOWING THE OPPORTUNITY TO WORK OVERTIME
INTERPRETATION:
From the above table it is revealed that 85% of the employees have
the opportunity to work in overtime and 15% of the employees are not
having the opportunity.
15%
YES
NO
85%
INTERPRETATION:
From the above table it is revealed that 100% of the employees say
that there is no disciplinary action taken recently in the organisation.
0%
YES
NO
100%
INTERPRETATION:
From the above table it is revealed that 100% of the employees say
that there is a representative responsible for health and safety and her name
is Ms. Lavanya.
0%
YES
NO
100%
TABEL SHOWING THE SEPARATE REST ROOMS FOR MALE AND FEMALE
INTERPRETATION:
From the above table it is revealed that 100% of the employees say
that there is a separate rest room for male and female.
CHART SHOWING
SEPA=ERATE THE
REST SEPARATE
ROOM REST
FOR MALE AND ROOMS FOR MALE AND FEMALE
FEMALE
0%
YES
NO
100%
TABEL SHOWING WHETHER THE COMPANY IS PROVIDING CLEAN
DRINKING WATER
INTERPRETATION:
From the above table it is revealed that 95% of the employees say that
the organisation is providing clean drinking water and 5% of the employees
say there in no clean drinking water provided in the organisation.
5%
YES
NO
95%
TABEL SHOWING THE CANTEEN FACILITY
INTERPRETATION:
From the above table it is revealed that 100% of the employees say
that there is no canteen facility in the organisation. Instead of this the
organisation is providing a tea man for the employees.
0%
YES
NO
100%
TABEL SHOWING THE SEPARATE LATRINES AND URINALS FOR MALE AND
FEMALE
INTERPRETATION:
From the above table it is revealed that 100% of the employees say
that there are a separate latrines and urinals for male and female in the
organisation. For male 9 latrines and 1 bathroom and for female 7 latrines
and 1 bathroom provided.
CHART SHOWING THE SEPARATE LATRINES AND URINALS FOR MALE AND
FEMALE
0%
YES
NO
100%
TABEL SHOWING THE FIRST AID BOX FACILITY
INTERPRETATION:
From the above table it is revealed that 100% of the employees say
that there is a first aid box in the organisation and 5 male and 5 female are
trained in that.
CHART SHOWING THE FIRST AID BOX FACILITY
FIRST AID BOX FACILITY
0%
YES
NO
100%
TABEL SHOWING THE FACILITY OF WARNING ALARMS, SMOKE
DETECTORS ETC….
INTERPRETATION:
From the above table it is revealed that 100% of the employees say
that there is a facility of warning alarms, smoke detectors in the
organisation.
CHART SHOWING THE FACILITY OF WARNING ALARMS, SMOKE
DETECTORS ETC…
0%
YES
NO
100%
TABEL SHOWING WHETHER THE EMPLOYEES ARE TRAINED FOR THE FIRE
FIGHTING PROCEDURE
INTERPRETATION:
From the above table it is revealed that 97% of the employees say that
there were trained for the fire fighting procedure and 3% of the employees
say that they are not trained for the fire fighting procedure.
CHART SHOWING WHETHER THE EMPLOYEES ARE TRAINED FOR THE FIRE
FIGHTING PROCEDURE
3%
YES
NO
97%
TABEL SHOWING WHETHER THE ORGANISATION FACES ANY FIRE
ACCIDENT RECENTLY
INTERPRETATION:
From the above table it is revealed that 100% of the employees say
that the organisation did not face any fire accident recently.
CHART SHOWING WHETHER THE ORGANISATION FACES ANY FIRE
ACCIDENT RECENTLY
0%
YES
NO
100%
TABEL SHOWING THE DORMITORY FACILITY IN THE ORGANISATION
INTERPRETATION:
From the above table it is revealed that 100% of the employees say
that there is no dormitory facility in the organisation.
CHART SHOWING THE DORMITORY FACILITY IN THE ORGANISATION
DORMITORY FACILITY
0%
YES
NO
100%
TABEL SHOWING WHETHER THE EMPLOYEES ARE HAVING IDEA TO QUIT
THE JOB
FACTOR NO. OF RESPONDENT PERCENTAGE
YES 3 2%
NO 147 98%
TOTAL 150 100
INTERPRETATION:
From the above table it is revealed that 2% of the employees say that
they are having idea to quit the job and 98% of the employees say that they
don’t have any idea to leave the job.
CHART SHOWING WHETHER THE EMPLOYEES ARE HAVING IDEA TO QUIT
THE JOB
2%
YES
NO
98%
TABEL SHOWING THE SATISFACTION OF THE JOB
SATISFIED 13 9%
NEUTRAL 0 0%
DISSATIAFIED 2 1%
HIGHLY DISSATISFIED 2 1%
INTERPRETATION:
From the above table it is revealed that 89% of the employees are
highly satisfied with their job and 9% of the employees are satisfied with
their job and 2% of the employees are dissatisfied and 1% of the employees
are highly dissatisfied with their job.
CHART SHOWING THE SATISFACTION OF THE JOB
1% SATISFACTION OF JOB
1%
0%
9%
HIGHLY SATISFIED
SATISFIED
NEUTRAL
DISSATISFIED
HIGHLY DISSATISFIED
89%
TABEL SHOWING WHETHER THE EMPLOYEES ARE WORKING WITH FULL
INVOLVEMENT
INTERPRETATION:
From the above table it is revealed that 94% of the employees say that
they working with full involvement and 6% of the employees say that they
are not working with full involvement.
CHART SHOWING WHETHER THE EMPLOYEES ARE WORKING WITH FULL
INVOLVEMENT
FULL INVOLVEMENT
6%
YES
NO
94%
TABEL SHOWING WHETHER THE EMPLOYEE IS MOTIVATED BY THE
ORGANISATION
INCENTIVE 65 51%
PROMOTION 0 0%
INTERPRETATION:
From the above table it is revealed that 85% of the employees are
motivated in the organisation with that 5% are motivated through
appreciation and 51% of the employees are motivated by incentives and 44%
of the employees are motivated by attendance bonus and 15% of the
employees say that they are not motivated in the organisation.
CHART SHOWING WHETHER THE EMPLOYEE IS MOTIVATED BY THE
ORGANISATION
MOTIVATION
15%
YES
NO
85%
MOTIVATION FACTOR
5%
APPRECIATION
45%
INCENTIVE
PROMOTION
50% ATTENDANCE BONUS
0%
FINDINGS
The primary data analyzed and interpreted helps the researcher in
finding the fact from the employees.
Majority of the employees working in the organisation belong to
the age group between 25 and 35.
It is clear that there is no child labor in the organisation.
52% of the employees provides age proof certificate in order to
prove their age.
97% of the employees say there is no discrimination in
recruitment, promotion, salary etc…
88% of the employees say that they are treated with respect and
dignity in the organisation.
94% of the employees agree that there is no variation in the salary
between male and female for the same work done.
100% of the employees say that there are no problems with regard
to sexual harassment or psychological abuse.
96% of the employees say there is a freedom to leave the job after
giving reasonable notice.
91% of employees are working voluntarily in the organisation.
100% of the employees say that they dint provide any original
document before joining in this organisation.
97% of the employees say that they are not forced to do the job in
the organisation.
95% of the employees say that they are not forced to stay in the
organisation.
There is no labour union in the organisation. An employee
committee was represented by Mr. Arockya Dass.
80% of the employees give opinion and suggestions with regard to
their job.
91% of the employees are highly satisfied with their salary.
Wages are given by cash and wage slip is provided to each
employees.
77% of the employees are working in overtime. 85% of the
employees have the opportunity to work in overtime.
93% of the employees have the right to refuse overtime work.
There is a separate rest room for male and female.
Ms.Lavanya is responsible for health and safety measures.
Mostly salary is given in first Saturday of a month. Only ESI and
PF are deducted in the wages.
Overtime wage is double the wage amount.
97% of the employees are trained in fire fighting procedures.
There is no dormitory facility in the organisation.
98% of the employees are not willing to quit the job.
94% of the employees are working in full involvement so that
there is a better productivity in the organisation.
85% of the employees are motivated by attendance bonus.
SUGGESTIONS
Few employees say that they are not treated with respect and dignity
in the organisation. So all the employees should be treated well.
Opinions and suggestions given by the employees should be
welcomed by the employers.
Few employees fell that they are not motivated in the organisation. So
the organisation should motivate each and every one.
Employees will be benefited if the organisation provides dormitory
facility.
Canteen facility can be implemented in the organisation.
CONCLUSION
Their role should not stop at just getting the factory passed on the
audit day. It should include making the factory competitive in terms of code
of conduct compliance.
The research work has attained the results which were aimed for. The
response from the employees helped the researcher to attain the result.
QUESTIONNAIRE (TO THE WORKERS)
Dear worker,
I am conducting a study on social compliance. So kindly spend some minutes to fill this
questionnaire.
PERSONAL IDENTIFICATION:
Name …………………………………
Age ……………..
Qualification……………………….
Department …………………………..
Yes No
Recruitment Salary
Employment Retirement
4) Does the organisation treat all workers with respect and dignity?
Yes No
5) Is there any variation in salary with regard to male and female for the same work
done?
Yes No
If yes, specify……………………………………………….
6) Did you face any problems with regard to sexual harassment or psychological
abuse?
Yes No
Yes No
7) Do you have freedom to leave the job after giving reasonable notice?
Yes No
9) Did you provide any of the following documents before joining in this
organisation?
Passport (original)
Yes No
Yes No
13) Do you have access to use toilets and drinking water at any time?
Yes No
Yes No
15) Do all the workers have the right to give complaints to the senior management?
Yes No
16) Does the management try to give solutions for the complaints you made?
Yes No
17) Do the employees have the right to give opinions and suggestions with regard to the
work?
Tea break………………………..
19) What is your salary…………………….?
By cash
By cheque
Direct to bank
Yes No
Yes No
Yes No
If yes, specify……………………………………………………………………………
31) Is there a representative responsible for health and safety of all personnel in the
organization?
Yes No
32) Do you have separate rest rooms for male and female?
Yes No
Yes No
34) What is the safety measures provided to you with regard to the job?
…………………………………………………………………………………………
Yes No
36) Is there separate latrines and urinals for male and female?
Yes No
Yes No
39) Is there any warning alarms, smoke detectors etc system in case of an emergency?
Yes No
40) Are the employees trained for the fire fighting procedures?
Yes No
Yes No
If yes, when……………………………………………………
Yes No
If yes specify…………………………………………………....
43) Do you have an idea to quit the job?
Yes No
Yes No
46) Are you motivated by the superiors in the organization to improve your standards?
Yes No
Appreciation
Incentive
Promotion
Others (specify)…………..