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What is a Social Compliance System?

A Social Compliance System (SCS) is a management system that helps any company to enforce labor standards established in national legislation, codes of conduct, or certification systems. An SCS helps companies comply with labor standards and continuously work to improve their labor performance.

An effective SCS strengthens business practices throughout the organization and can assist companies in:

  • Preventing and mitigating the risk of non-compliance with labor laws and standards.
  • Meeting the requirements of the current global market (e.g., buyer certifications and codes of conduct).
  • Gaining a reputation as a reliable supplier in the international market.
  • Improving employee engagement and loyalty.
  • Achieving better product quality and process productivity.

The SCS model used by Sustentar is based on the Social Fingerprint models of SAI and the Comply Chain model of the U.S. Department of Labor for social compliance management systems.

Graphic showing the components of Social Compliance Systems. One side lists the categories of Management System Processes: Engaging Stakeholders & Partners; Assessing Risks & Impacts; Developing codes, policy, commitments; Communicating, Training & Grievance Mechanisms; Monitoring & Independent Review; Correcting & Remediating; Reporting for Performance. The other side lists Labor Performance Elements: child labor, forced labor, OHS, Freedom of Association, Discrimination, disciplinary practices, working hours, wages & benefits, regular employment. The two major categories form a loop of "Continual Improvement".