Understanding the Key Differences Between SMETA and Inditex Audits

Rakesh Dwivedi
Sep 18
4 min read

In today's global marketplace, how businesses operate ethically can significantly impact their reputation and success. Audits have become crucial tools for examining supply chains and ensuring that companies adhere to labor standards and ethical practices. Among the key audit frameworks are SMETA (Sedex Members Ethical Trade Audit) and Inditex Audits. Though both audits strive to promote ethical practices, they differ in methodology and focus. This article explores the key differences between SMETA and Inditex Audits, enabling businesses and stakeholders to determine which audit best meets their needs.

What is SMETA?

SMETA is a widely recognized ethical audit framework developed by Sedex, an organization that promotes responsible business practices globally. The SMETA audit centers on four core areas:

Labor standards
Health and safety
Environmental impact
Business ethics

The flexibility of the SMETA audit allows it to adapt to various industries and supply chains, typically conducted by third-party auditors who evaluate compliance with both the Ethical Trading Initiative (ETI) Base Code and local laws. For instance, if a clothing manufacturer in Bangladesh undergoes a SMETA audit, auditors will review work conditions, safety protocols, and environmental compliance. The goal of SMETA is to provide a comprehensive picture of a company's ethical conduct and pinpoint areas that may need improvement.

What is Inditex Audit?

Inditex, recognized as one of the largest fashion retailers globally, has developed a distinct audit framework to uphold its rigorous ethical standards. The Inditex Audit emphasizes various labor rights concerns, such as:

Working conditions
Wages
Treatment of employees

Unlike SMETA, which serves multiple organizations, the Inditex Audit is tailored specifically to Inditex's supply chain. This means that the audits focus not just on general compliance but also on meeting the unique standards of Inditex's Code of Conduct. The audit often includes on-site inspections and worker interviews to rigorously verify adherence to these standards. For example, a supplier who produces clothes for Zara might undergo a detailed evaluation on labor rights, ensuring they provide fair wages, safe environments, and proper treatment of workers.

Key Differences Between SMETA and Inditex Audits

1. Framework and Standards

One of the most noticeable differences is found in their frameworks and standards.

SMETA is grounded in the ETI Base Code, which outlines fundamental labor rights widely recognized across various sectors.
Inditex Audit follows Inditex's exclusive Code of Conduct, emphasizing requirements specific to Inditex's operations.

This distinction means that while SMETA gives a broader perspective, the Inditex Audit hones in on the standards set by Inditex itself.

2. Scope of the Audit

The scope of these audits varies significantly.

SMETA audits address labor standards, health and safety, environmental impact, and ethical business practices. This all-encompassing approach allows companies to gain valuable insights and identify multiple improvement areas.
Inditex Audit, however, primarily concentrates on labor rights and working conditions. While it may touch upon other issues in the supply chain, its focus is predominantly on aligning with Inditex’s ethical expectations.

3. Audit Process

Differences in the audit process also stand out.

SMETA audits are typically handled by third-party auditors who adopt a standardized procedure, which includes document reviews, interviews with employees, and thorough site inspections. The resulting report offers a comprehensive overview of a company's ethical practices.
In contrast, the Inditex Audit is conducted by Inditex's internal team or approved auditors. This often results in a more detailed evaluation of specific issues identified by Inditex, leading to a tailored audit experience but potentially less transparency than SMETA provides.

4. Recognition and Acceptance

Another key difference is how these audits are recognized within the industry.

SMETA enjoys broad recognition and acceptance. Many organizations utilize SMETA audits as a benchmark for ethical standards across various sectors. For instance, a 2022 study found that over 40% of businesses in the retail sector choose SMETA audits to demonstrate their commitment to ethical practices.
The Inditex Audit, while respected in the fashion industry, may not be as widely recognized outside that realm. Companies working with Inditex must comply with its specific audit requirements, which may not be relevant to businesses outside its supply chain.

5. Focus on Continuous Improvement

Both audit types highlight the importance of ongoing improvements in ethical practices.

SMETA encourages companies to review audit results to identify opportunities for enhancements. It promotes a proactive culture focused on continuous improvement in ethical practices.
Similarly, the Inditex Audit ensures that suppliers are not only compliant but also dedicated to enhancing their practices. Inditex often collaborates with its suppliers—offering guidance and support to help them meet the company’s high ethical standards.

Final Thoughts

In conclusion, while both SMETA and Inditex Audits serve to promote ethical practices and ensure compliance within supply chains, they possess distinct differences in frameworks, scope, and processes. SMETA offers a standardized approach recognized across multiple industries, whereas the Inditex Audit is specifically designed for Inditex's supply chain needs. Understanding these differences is essential for businesses and stakeholders aiming to navigate the complexities of ethical audits and maintain compliance with labor standards.

By selecting the appropriate audit framework, companies can not only improve their ethical practices but also build trust with consumers and stakeholders—thereby contributing to a more sustainable and responsible business environment.