CODE OF CONDUCT AND QUALITY AUDIT REPORT

Company Information
Company Name
Full Address
Company Contact

Telephone and E-mail

Audit date

Products Produced 1.
2.
3.
4.
5.
Auditor

KEY Minor Moderate Major Critical

Grade
issues Issues issues issues
A = Factory is fully compliant
B = Minor issues found Code of
C = Moderate issues found Conduct
D = Major issues found
E = Critical issues found
Quality
(See end of report for notes and audit Systems
methodology)

Executive Summary and Recommendations

CORRECTIVE ACTION PLAN

CODE OF CONDUCT AND ENVIRONMENT Forecasted Actual

Shortcomings Corrective Action Required Completion date

 QUALITY MANAGEMENT SYSTEMS Forecasted Actual

Non-conformity Corrective Action Required Completion date

Factory Profile
1. Factory Name

2. Factory Address

3. Factory Representatives Present

4. Products being produced on site

5. Equipment/ Machines Number

6. Total Number of Employees Total Male Female

7. Total Number of Contract Workers

8. Ethnic background of workers

9. Does the factory provide

accommodation for workers?
10. If so, does the accommodation
belong to factory or is it rented?
11. Accreditation of factory.
12. Compliance practices for
accreditation.
13. Major customers.
14. Production capacity (per year or per
month)
15. Any other significant points?

CODE KEY

D – Documentary Verification
M – Management interview
O – Observation during factory tour
W – Worker interview
1. Forced Labour
No Question A B C D E Remarks / Comments Code

1. Is there any forced or involuntary

prison labour engaged in this
factory?
2. Does the factory have a written
policy regarding forced or prison
labour?
3. Are workers required to lodge
‘deposits’ or their identity papers
with their employer?
4. Are workers free to leave their
employer after giving reasonable
notice?
5. Are off-duty workers free to come
and go?
6. Are their security guards? What are
their duties?
7. Any other significant points.

2. Child Labour
No Question A B C D E Remarks / Comments Code
1. What are the local government
regulations relating to minimum age
of employment?
2. If young workers are permitted by
local law, what are the special
conditions related to this
employment?
3. Does the factory have a documented
policy relating to minimum age of
employment?
4. How is the factory’s policy and local
law communicated to all the
workers?
5. What is the age of the youngest
worker employed in the factory?
6. How does the factory ensure that
workers meet the minimum age
requirements?
7. If any child labour is found, what is
the factory’s explanation or
justification for this?
8. Are any children and young persons
under 18 employed at night or in
hazardous conditions?
9. Is there a register of workers under
18 in the factory?
10. Is there any provision for workers
under 18 to further their studies?
11. Do the company’s policies and
procedures conform to the
provisions of the relevant ILO
standards?
12. Are there any apprenticeship or work
experience schemes in the factory?
What is the duration of these
schemes?
13. Any other significant points
3. Discrimination
No Question A B C D E Remarks / Comments Code
1. Is there is any evidence of
discrimination in hiring,
compensation, access to training,
promotion, termination or retirement
based on race, caste, national origin,
religion, age, disability, gender,
marital status, sexual orientation,
union membership or political
affiliation?
2. Is there a written Equal
Opportunities policy?
3. What is the locally legislated
retirement age for workers?
4. Is there any evidence of
discrimination between people of
similar skills but different
background?
5. Does the factory practice pregnancy
testing prior to employment?
6. Any other significant points

4. Freedom of Association / Right to Collective Bargaining

No Question A B C D E Remarks/Comments Code
1. Workers have the right to join or form
trade unions of their own choosing
and to bargain collectively.
2. The employer adopts an open attitude
towards the activities of trade unions
and their activities.
3. Workers’ representatives are not
discriminated against and have
access to carry out their
representative functions in the
workplace.
4. Where the right to freedom of
association and collective bargaining
is restricted under law, the employer
facilitates, and does not hinder, the
development of parallel means for
independent and free association and
bargaining.
5. Is there a union or workers
association in the factory that
provides the means for collective
bargaining?
6. What other methods exist for the
workers to raise their grievances and
concerns to management?
7. Is there a written grievance procedure
available?
8. By what means is the grievance
procedure communicated to the
workers?
9. Is there any evidence of intimidation
in relation to the right to collective
bargaining?
10. Is there evidence that the factory
management has been responsive to
grievances raised by workers
individually or collectively?
11. Any other significant points?
5. Wages and Conditions of Employment
No Question A B C D E Remarks/Comments Code
1. What are the local government
regulations relating to wages and
benefits? What is the legal minimum
wage?
2. What is the factory’s minimum
wage?
3. What bonus schemes exist?
4. How are the workers paid?
5. Payment is in local national
currency?
6. Are the workers provided with a
clear wage statement?
7. Are workers paid by the hour or by
piecework? Is there evidence that
they can meet the legal minimum
wage?
8. If there are any deductions from
wages permitted by local law, is this
clearly stated on the wage slips and
agreed by the worker?
9. Are workers compensated for
overtime and how is this calculated?
10. What is the local legal requirement
for overtime pay?
11. How is this communicated to the
workers?
12. Are workers provided with written
and understandable information
about their employment conditions
in respect to wages before they
enter employment and about the
particulars of their wages for the
period concerned, each time that
they are paid?
13. Are there deductions from wages as
a disciplinary measure?
14. Are there any deductions from
wages not provided for by national
law or without the express
permission of the worker
concerned?
15. Are all disciplinary measures
recorded?
16. Does local labour law provide for
any annual holidays to workers?
17. What is the factory’s policy for leave
or annual holiday?
18. What sick leave benefit is provided
by the factory?
19. Does local labour law provide for
payment for superannuation?
20. Are employer’s contributions to
superannuation fully paid and up to
date?
21. What other benefits accrue to
workers) either by local law or
factory agreement?
22. How are these administered?
23. What notice periods apply for
termination of the workers’
contracts?
24. How long does a woman need to be
in employment to qualify for
maternity leave?
25. What special rules apply for
pregnant women in the factory?
26. Is there any evidence of termination
of services as a result of becoming
pregnant?
27. Any other significant points?
6. Hours of Work
No Question A B C D E Remark/Comments Code
1. Do working hours comply with
national laws and benchmark
industry standards whichever
affords greater protection? What is
the maximum standard plus
overtime hours permissible under
law per week?
2. What is the local legal requirement
relating to overtime?
3. Does the factory have a written
document detailing their overtime
policy?
4. How much overtime is performed on
average by workers in the factory on
a daily, weekly and monthly basis?
5. If overtime exceeds the local legal
standard, does the factory have a
waiver document from a local
authority?
6. What is the normal working day or
shift for the workers?
7. How many breaks do the workers
have during their working day?
8. Are workers provided with at least
one day off for every 7 day period on
average?
9. Is overtime voluntary?
10. Is overtime required by employer on
a regular basis?
11. Does overtime exceed 12 hours per
week?
12. Is overtime always compensated at a
premium rate?
13. Any other significant points?

7. Job Security / Tenure

No Question A B C D E Remarks/Comments Code
1. Are the workers given a clear,
understandable contract with terms
and conditions and their benefits
outlined?
2. Have obligations to employees
under labour or social security laws
and regulations been avoided
through the use of labour-only
contracting, sub-contracting, or
home-working arrangements or
through apprenticeship schemes
where there is no real intent to
impart skills or provide regular
employment?
3. Have the above obligations been
avoided through the excessive use
of fixed-term contracts of
employment.
4. Are minimum social insurance
requirements covered?
5. Are apprenticeship schemes used?
Describe their terms and conditions?
6. Are sub-contractors/ home workers
used? Describe their terms and
conditions?
7. Any other significant points?
8. Humane Treatment of Workers
No Question A B C D E Remarks/Comments Code
1. Do valid records and reasons justify
recent company dismissals?
2. Are disciplinary rules in a written
form and presented to new
employees?
3. Is there any evidence of abuse
(physical, sexual or other
harassment) by management?
4. Are workers allowed to speak during
working hours?
5. Do workers have reasonable seating
or acceptable pads for standing
work and do they have sufficient
breaks while performing their work?
6. Any other significant points?

9. Occupational Health & Safety

No Question A B C D E Remarks/Comments Code
1. What is the overall approach to
providing a safe and hygienic
environment for workers?
2. To what extent does this satisfy local
OH&S regulations?
3. Is there a senior representative
responsible for OH&S and what
training has this person received?
4. Is there an OH&S committee? Are
there formal / regular meetings.
5. What principles and practices are
actively adopted in the factory to
minimise / prevent workplace
accidents and injury to staff and
visitors?
6. Does the company have written
records of regular risk assessments
for Health & Safety concerns?
7. Do workers receive regular and
recorded health and safety training,
and is such training repeated for
new and reassigned workers?
8. Does the company have an injury or
accident record that is up to date?
9. What the most common injuries
noted in this record?
10. Have there been any breaches of
OH&S regulations over the last 5
years?
11. In general, have the facilities
sufficient ventilation, heating and
lighting?
12. In general, is the housekeeping
adequate?
13. Are electrical installations adequate
and properly maintained and not
present safety hazards?
14. Has the structural integrity of the
building been inspected? Is there
documentation to prove this?
15. Is machinery well maintained? How
often is it inspected and is this
documented?
16. Are machine guards being used
wherever appropriate?
17. Is personal protective equipment
provided and used?
18. Are workers trained in the use of
PPE and are there related records?
19. Are hazardous materials/ chemicals
properly stored in a separate well-
ventilated storage facility and under
lock and key?
20. Are Material Safety Data Sheets
(MSDS) for hazardous chemicals
suitably displayed and in local
language?
21. Are warning posters visible in areas
where hazardous chemicals are
stored or used?
22. Is appropriate First Aid available
near toxic chemicals?
23. Is there any evidence of pollution
from chemicals or paints in the air?
24. Are there records to show which
workers have been trained in First
Aid. Are these workers visibly
identified by some means?
25. Are there sufficient First Aid boxes
on each floor and easily accessible?
26. Are First Aid boxes correctly
stocked with items suitable for the
most common injuries that need
instant attention?
27. What types of warning system is
used for emergency?
28. Are there fire alarms on each floor
and emergency lighting above exits?
29. Are exits clearly marked and is there
an evacuation plan displayed on
each floor?
30. Are all aisles clearly marked and
passable?
31. Are all floors clean and free of
obstruction? Are the floors non-
slippery?
32. Are all emergency exit routes clearly
passable and unlocked during
working hours?
33. Do these exits lead to a place of
safety and is the route easy to follow
even for elderly workers?
34. Are fire escapes and exits available
and accessible on all floors?
35. Are there adequate fire
extinguishers, or other means of
fighting fire, on each floor?
36. Are fire extinguishers thoroughly
inspected on an annual basis?
37. How often does the factory practice
a fire evacuation drill? When was the
last one? Is there evidence to
support this?
38. Is there written documentation
regarding smoking in the factory? Is
there evidence that these rules are
strictly implemented?
39. Is there access to potable water,
and, if appropriate, sanitary facilities
for food storage?
40. What is the ratio of toilets to male
and female workers?
41. Are toilets clean, hygienic, free from
bad smell?
42. Is there sufficient privacy for
workers when using the toilet
facilities?
43. Are toilets and potable water
accessible to all workers and can
they use these facilities at any time?
44. What are the arrangements the
factory makes for providing food to
the workers?
45. Are the kitchens maintained in a
clean manner?
46. Are canteen areas clean and
hygienic, and free from pest
infestation?
47. What provisions does the factory
make for pest control? Is there
documented and visible evidence of
this?
48. Are there any medical facilities on
site?
49. Are there written procedures to
document action to be taken for
medical emergencies?
50. List all issues relating to health and
safety found during the factory tour.

IF WORKER DORMITORIES
PROVIDED.
51. How many workers live in factory
provided accommodation?
52. How many workers will share one
room? Approximate square metre
size of room?
53. Does each worker have a locker for
keeping their private possessions?
54. What furniture is provided by the
factory?
55. What is the condition of the toilet
faculties?
56. Is hot water available for washing?
57. Are dormitories and common areas
safe for both women and men?
58. Is there some form of security that
controls access by unauthorised
people to the accommodation?
59. Are dormitories correctly segregated
between men and women?
60. Are dormitory rules posted in the
local language?
61. Are fire escapes adequate,
accessible, unlocked?
62. Is fire fighting equipment easily at
hand?
63. Are emergency routes posted clearly
in local language?
64. Any other significant points?
10. Environment / Conservation / Sustainability
No Question A B C D E Remarks/Comments Code
1. Is all waste created in the factory
disposed of in accordance with local
laws, or in a way that will not harm
the environment or the local
population?
2. Is there any evidence that the factory
is polluting the waterways or areas
around it?
3. What breaches of environmental
regulations have occurred in the last
5 years?
4. Do management demonstrate
appropriate awareness of local
environmental regulations?
5. Is there a written environmental
policy? On what standard is this
policy based?
6. Is there evidence that it is being
applied?
7. What training of staff or
management is undertaken with
regard to effective management of
environmental issues?
8. What lab testing does the factory
conduct for chemicals on their
product? What evidence is there of
this?
9. Does the factory use formaldehyde
in their production? If not, how does
it ensure that products remain
formaldehyde free and what
evidence of this is there?

10. Has the company introduced any

green initiatives in relation to
recycling, renewable energy or
similar?
11. Any other significant points?
12. Quality Management Systems
Grading Remarks/ Comments Code
No Question A B C D E
1. Does the factory have ISO 9000
accreditation or similar?
2. Is the Quality Management System in
the factory adequate to control the
type of products being
manufactured?
3. Is there a Quality Manager?
4. To whom does the Quality Manager
report?
5. Is there adequate and suitable
storage for incoming materials
(clean and suitable temperature)?
6. Are incoming goods inspected
before being used in production?
(Give outline of the inspection plan)
7. Are rejected incoming materials
clearly segregated and identified?
8. Are there records of incoming goods
inspections?
9. Describe the general flow of
production from incoming material
to packing.
10. Does the factory have approved
samples visible during production?
11. Are in-process inspections carried
out at key points during the
production process? (give brief
details)
12. Where relevant, are safety tests done
at key production points (e.g. popper
security testing for infant garments)
13. Does the Quality Manager have
sufficient authority to stop the
production?
14. Do Quality Management staff report
directly to the Quality Manager
directly?
15. Are Quality Management staff
present on each production line?
16. Are there any records for in-process
inspections?
17. Is there analysis to reduce future
incidence of major faults?
18. When checking finished products,
does the factory use the same
inspection criteria as their
customers?
19. Does the factory use statistical
sampling plan and how is this
undertaken?
20. Does the final inspection include
labeling and packaging checks
against the customers’
requirements?
21. Are inspection records and reports
maintained?
22. Is there analysis to reduce future
incidence of major faults?
23. Are rejected products segregated
from acceptable products?
24. Is there a broken needle control
procedure in place (where relevant)?
25. Is there a tools control policy (where
relevant)?
26. Is metal detection applied to relevant
products before or after packing?
27. Are records kept of the metal
detection results?
28. Is storage area adequate?

29. Any other significant points?

EMPLOYEE INTERVIEW 1
1 Sex
2 Age
3 How long has the factory employed
you?
4 What are your working hours?
5 What is your salary?
6 Do you work on Saturday?
7 Do you work on Sunday?
8 Do you work overtime?
9 Is overtime compulsory?
10 How is your salary paid?
11 Does the factory practice a fire drill?
12 Are you aware of possible
environmental risks?

EMPLOYEE INTERVIEW 2
1 Sex
2 Age
3 How long has the factory employed
you?
4 What are your working hours?
5 What is your salary?
6 Do you work on Saturday?
7 Do you work on Sunday?
8 Do you work overtime?
9 Is overtime compulsory?
10 How is your salary paid?
11 Does the factory practice a fire drill?
12 Are you aware of possible
environmental risks?

EMPLOYEE INTERVIEW 3
1 Sex
2 Age
3 How long has the factory employed
you?
4 What are your working hours?
5 What is your salary?
6 Do you work on Saturday?
7 Do you work on Sunday?
8 Do you work overtime?
9 Is overtime compulsory?
10 How is your salary paid?
11 Does the factory practice a fire drill?
12 Are you aware of possible
environmental risks?
Digital Images

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 AVAILABLE DOCUMENTS LIST
(Detach during opening meeting. Factory to provide 1 copy of each document for verification unless otherwise noted)
No Document Yes No N/A Remarks / Comments
1. Legal Registration document
2. Local Labour Law
3. Employment Contracts (5 copies)
4. Personnel Files (5 copies)
5. Training Records (5 copies)
6. Time Cards (20 copies)
7. Days-Off/ Leave Records (5 copies)
8. Pay-Slips (5 copies)
9. Accident Record
10. Fire Extinguisher Maintenance record
11. Health & Safety Certificates
12. Risk Assessment/ Internal Audit Records
13. Environmental Policy (if appropriate)
14. Local Environmental Law
15. Stock Control Records
16. Sample Checking Records
17. Inspection Records
18. Corrective Action Plans
19. Tools Control Policy
20. Quality Manual
21. Procedure Manual
22. ISO 9000 Certificate (if available)
23. Production Line work instructions
24. Material Safety Data Sheets (MSDS)
25. Equipment calibration/ maintenance record
26. Equipment and machinery list
27. Broken Needle Policy
28. Product Safety Testing Record

Methodology of Audit
This audit provides a summary of the findings and other applicable information gathered during the audit conducted on the
above date only and does not officially confirm or certify compliance with any legal regulations or industry standards. The Audit
process requires that information be gathered and considered from documentary review, worker interviews, management
interviews and visual observation.
The audit process is a sampling exercise only and does not guarantee that the audited facility prior, during or post audit are in
full compliance with relevant standards.

Audit undertaken by: Date:

Signature: ________________________________________________