Soical Audit Instrument

Report #:
Factory/Facility #:
Auditor(s):       Date:
Name of Vendor or Source
Name of Factory:
Physical Factory Address:

City :       State/Province:
Country:       Postal code :
Name of Factory Owner:
Factory Contact Person:
Phone Number:
Mobile Number:       Fax Number:
Year Factory Established:       Email Address:
Number of Total Workers:       Number of Shifts:
Number of Production Buildings:       Number of workers per shift:
Does the factory have dormitories for workers?
Yes    No Number of Imported / Contract workers ( e.g. chinese workers in Macao ) :
Language of workers:        Language of Management:
Monthly Capacity in Units:        Major Customers in the last 12 months:
Percentage of Yearly Capacity Devoted to Sears Merchandise: Less than 15%; 15%-40%; More than 40%;   N/A
Percentage of Yearly Capacity Devoted to Vendor/Source: Less than 15%; 15%-40%; More than 40%;   N/A
Number of Years Vendor/Source Has Worked with This Factory: Less than 1 year; 1 to 3 years; 3 plus years: N/A
Merchandise Produced at this Factory (check all that apply):     Men¡¯s;   Women¡¯s (RTW); Children¡¯s;
Accessories;     Intimate Apparel; Footwear;   Home Fashions;   Hardlines; Toys   Lawn/Garden
Christmas Other:
Has This Factory Ever Undergone A Labor Compliance Audit? Yes   No   If so, which Company(ies) Conducted the Compliance Audit :
Key Findings from previous Compliance Audits conducted by other companies. Please be specific and forthright.
Part I ��C Management Interview

1.       Employee Recruitment / Hiring
1.a. How does the factory recruit workers? Agent        Newspaper       Gate       Other
1.b. Once hired, do workers enter into an employment contract?
Yes No
1.c. Does this facility have its own policy regarding minimum working age?
If so, what is it?
Yes No
1.D. What steps are taken to verify the ages of new workers?
1.E. What age records are reviewed and copied to verify the age of employees?        Birth Certificate;    Social Security ID; School ID:
Government ID;   Doctor Evaluation: Other
1.F. Does the factory retain original worker identification documentation
          Such as Passports, Residence Permits, or others?      .
Yes
No
2. Personnel Policies / Worker-Management Relations
2.A. How do workers learn of WORK rules? Orientation         Employee Manual
Posters                 Other
2.B. Is disciplinary information maintained in personnel files?
Yes No

2.C. Are supervisors provided any guidelines OR trained on the factory¡¯s workplace rules?

Yes No
2.D. Do any workers¡¯ organizations exist in the factory?
N/A

Yes
No
2.E. Is there a collective bargaining agreement at this facility?
N/A
Yes
No
2.F. In the past, have workers attempted to collectively organize or associate?
N/A
Yes
No

If so, please describe the outcome.

3. Working Hours/Employee Wages/Benefits
3.a. What is the standard workweek established by law?        40 hours     44 hours      48 hours
Other                  Over        Number of Days
3.b. What is the maximum number of overtime hours legally permitted?       3   9   10 12   20   36    Other
In A Day   Week   Month   Year
3.c. What is the typical workweek for non-peak production (regular & overtime)? 40 hours    44 hours    48 hours
60 hours    Other
3.d. What are the peak production months?
3.e. What is the typical workweek for peak production (regular & overtime)?        48 hours     60 hours    72 hours
90 hours     Other
3.f. How is it determined which employees will or will not work overtime?

3.g. When overtime is performed, the following is provided in addition to the Overtime premium : Meal        Snack      Transportation
Additional Break      Bonus    Other
3.h. Is overtime work voluntary?      . Yes No
3.i. What is the minimum wage required by local law for factory workers?              Per       Hour Day   Month   N/A
3.j. What, if any, is the legally permissible training wage rate?             Per      Hour Day   Month     N/A
3.k. What is the average wage for a typical factory worker during non-peak production?             Per      Hour Day   Month
3.l. What is the average wage for a typical factory worker during peak production?             Per      Hour Day   Month
3.m. Are workers paid on a piece rate system and/or time based system?        Per Hour             Per Day             Per week
Per Month          Piece rate

3.n. What system is used to track working hours? Barcode     Time clock    Manual   Other
3.o. what are the Start and Finish times on each day?
3.p. Are meal and rest breaks paid?          Yes
No
3.q. How often are workers paid?   Weekly Every 2 weeks Monthly Other
3.r. Are pay slips provided?
Yes
No
If so, what information can be found in the pay slip (e.g. hours, overtime hours, take home pay, deductions)?

_______________________________________________________
3.s. Please list what benefits are provided to workers: Medical Insurance    Social Sec./Insurance
Maternity leave         Annual Leave/holiday    On-site Clinic                  On-site Nurse/Doctor   Child Care/Cr��che         Canteen    Transportation          Other :
3.t. How do workers learn of wage calculation and benefits?    Orientation Employee Manual   Posters     Other      _______________________________________________________
4. Environment, Health and Safety
4.a. Is there an individual responsible for managing Health and safety? if so, who ?
Yes No

4.b. Are workers provided any health and safety training?
Yes No
If so, please describe.
4.c. Are their training records maintained?      .
Yes No
4.d. Are there medical facilities on-site?
   Yes No
If not, how far are the nearest facilities?
4.e. Are first-aid supplies available and periodically restocked?
   Yes No
4.f. Are there formal fire, evacuation and other emergency procedures established at the factory?
   Yes No

4.g. When was the last time that a fire drill was conducted for the production building and dormitory? ( if applicable )

4.h. Are records kept of injuries or accidents in the factory?
Yes No
4.i. Is the wearing of personal protective equipment mandatory where there is risk?      .
    N/A
Yes No
4.j. Has the factory implemented any environmental management systems?      .
Yes No
If so, please describe.
Additional Comments:

            PART II - Factory/Dormitory Tour
1. General Overview for workshop and dormitory
(Auditors are encouraged to take relevant photos to help explanation on any issues noted during the audit process. Please always obtain prior consent and approval from factory management before taking photos):
1.a. Is the latest Sears Buying Policy prominently posted in the language of workers and management?
(if not, please inform factory to contact their vendor/their appropriate trading partners to obtain from sears)

Yes

No
1.b. Are floors & aisles clean and kept clear of obstructions?
If no, please describe the nature of obstruction and any management responses

Yes
No
1.c. Do stairs have proper rails and clear of obstructions?
N/A
Yes
No
1.d. Are all spaces properly ventilated for fumes, heat and dust?
Yes
No
1.e. Do All spaces have proper lighting?
Yes
No
1.F. is the special equipment (such as boiler, elevator, motor-driven forklift etc) well maintained, periodic inspected and kept in proper manner

N/A
Yes
No

2. Emergency Exits, EMERGENCY EVACUATION and emergency lights for workshop and dormitory
2.a. Are emergency exits sufficient to allow swift, safe exit of all employees?      .
Yes
No
2.b. Are emergency exit doors more than 28 inches, 71 centimeters or 2.3 feet and have a width adequate for the number of persons it must accommodate?      .
Yes
No

2.c. Do all exit doors open and swing in the direction of exit travel?      .
Yes
No
2.d. Do exit doors open without any special knowledge or hardware such as keys?      .

Yes
No
2.e. Are there at least 2 separate exits on each workshop and dormitory, for every employee to access in case of emergency?      .
Yes
No
2.f. Number of fire exits per floor:      . workshop:      .
dormitory:
2.G. Are emergency exits, fire escapes well marked, lighted, unobstructed and accessible?      .
Yes
No
2.H. Are emergency evacuation diagrams/maps/plan displayed throughout the factory and dormitory illustrating critical information such as ¡��YOU ARE here¡��, evacuation routes, exit doors and fire extinguishers?      .
Yes
No
2.I. are emergency lights properly installed, maintained and functional ?      .
Yes
No
2.J. Are there floor markings that lead to emergency exits?      .
Yes
No
3. Fire Extinguishers and Alarms for workshop and dormitory
3.a. Are fire extinguishers appropriate for the types of possible fires in the facility?      .
Yes
No
3.b. Are the fire extinguishers of an appropriate size so that they can be reasonably lifted and used by female employees?      .
Yes
No
3.c. Are fire extinguishers accessible, properly marked, inspected and in proper working order?      .
Yes
No
3.D. are there ADEQUATE fire extinguishers in the facility ? if not, please state the details of the inadequacies       .
Yes
No
3.E. Does the factory have fire systems in place such as sprinklers, fire hoses, fire brigade?   If so, which one (s):
Yes
No
3.F. Are smoke detectors/alarms throughout factory (INCLUDING WAREHOUSE) and in good working order?        .
Yes
No
4. PPE/MACHINE GUARDS/ELECTRICAL WIRING
4.a. Are workers wearing appropriate personal protective equipment (eg. gloves, masks, goggles) where there is risk?      .
N/A
Yes
No
4.b. Please list what personal protective equipment is available and utilized appropriately by workers. gloves worn while using cutting equipments
4.b. Please list what personal protective equipment is available and utilized appropriately by workers. gloves worn while using cutting equipments
Gloves worn while using chemicals/solvents
Aprons worn while using chemicals/solvents
Respirators/Masks used while using chemicals/solvents
Ear Plugs while using heavy machinery
Eye Protection/Goggles where there is risk
Protective footwear where there is risk
Hard Hats worn during Building Construction
Other       .
N/A
4.c. Does factory have signage educating workers about the Personal protective equipment?      .
N/A
Yes
No
4.d. Do machines have correct safety guards and cutout switches?      .
Yes
No
4.e. Are electrical equipment, wiring and outlets properly set up, run, protected from elements and not overloaded?      .
Yes
No
4.f. Are fuse/breaker boxes labeled, closed at all times, accessible?
Yes
No
4.g. Are electrical cords in good condition, without splices or unsafe taped repairs?      .
Yes
No
5. HAZARDOUS CHEMICALS and MATERIALS
5.a. Are Material Safety Data Sheets (MSDS) on-site for all chemicals, inks and solvents, and posted in native language of workers?      .
N/A
Yes
No

5.b. Are incompatible wastes stored separately & all flammable/ combustible liquids stored away from ignition sources?      .
N/A
Yes
No
5.c. Are workers using hazardous chemicals or combustible materials appropriately?      .
N/A
Yes
No
5.d. Are chemicals labeled appropiately ?      .
N/A
Yes
No
5.e. Is wastewater from washing, dying operations, and/or other hazardous liquid waste streams separated and treated before disposal?      .
N/A
Yes
No
5.f. Does factory have Environment permit?      .
N/A
Yes
No
6. Drinking WATER, TOILETS and wash basins
6.a. Is safe drinking water available in each building?      .
Yes
No
6.b. Do workers use separate cups when drinking water to prevent illness?
Yes
No
6.c. Are toilets separated by gender?      .
Yes
No
6.d. Are toilets and urinals adequate for the number of workers? NUMBER OF TOILETS : FOR MEN :         FOR WOMEN :
Yes
No
6.e. Are all toilets properly ventilated, usable and reasonably clean?      .
Yes
No
6.f. Does the factory provide the followings:   wash basins soap Hand towel
                                                                                                       toilet paper Dryer others :
7. Canteen, kitchen, Food preperation and FIRST-AID/MEDICAL CLINIC
7.a. Are floors, tabletops and food preparation areas reasonably clean and hygienic?      .
N/A
Yes
No
7.b. Is food stored in appropriately temperature-controlled storage areas?      .
N/A
Yes
No
7.c. Are medical, health and/or hygiene inspection certificates from an authorized government agency posted and current?      .
N/A
Yes
No
7.d. Are there adequate number of fully stocked First Aid kits located throughout the factory, and are these first aid kits conveniently accessible by employees ?      .

Yes
No
7.e. Have kitchen/canteen workers undergone any health check?      .
N/A
Yes
No

          additional comments (including any special results obtained from workers¡¯ interview and the management responses, if applicable):
     .
pART iii - Document Review

1. personnel records ��C general
1.a. List the types of documents found in employee personnel files?
     .
1.b. Do the personnel records appear to be complete, accurate and in proper order?
     .
Yes No
1.c. Do ALL of the files contain copies of official identification document verifying the age of employees?      .

Yes No
1.d. Are there copies of employment/labor contracts/appointment letters?        .
N/A
Yes No
1.E. Are copies of employment/labor contracts/appointment letters given to the workers ?      .
N/A
Yes No
1.f. If so, do these contracts/appointment letters comply with the Sears Buying Policy or local applicable laws (whichever is higher) as it relates to wage rates, terms of contract and work rules?      .

N/A
Yes No
1.G. Does the information contained in the personnel records of employees that were interviewed correspond with their responses?      .

N/A
Yes No
1.H. Does the factory maintain complete and accurate signed employment applications?      .

N/A
Yes No
1.I. Does the factory maintain records for short-term/temporary/part-time/casual workers and/or self-employed persons working in the workplace of the factory?      .

N/A
Yes No
2. Personnel records ��C child labor
2.a. Is there any employee below the minimum working age established by law, or below the Sears Buying Policy, whichever is higher?        .
Yes No
2.b. Were any workers hired below the legal or code limits but now are of legal working age (historical child labor)?
Yes No
2.c. Are minors (age 16-18) employed in this factory?       .
Yes No
2.d. If so, does the factory have a system to track the minors and their hours/types of work?
N/A
Yes No
2.e. Is the factory employing minors in accordance with the local laws?
N/A
Yes No
3. payroll and timecard records
3.a. Is the wage rate paid to employees at least the legal minimum wage?
if appliable, please state the local legal minimum wage requirement at the locality of the factory
N/A
Yes No
3.b. Are the wages paid properly calculated?      .
Yes No
3.c. Are all applicable withholdings legal and properly calculated?      .
N/A
Yes No
3.d. Are the numbers of overtime hour properly tracked and in compliance with the law, or the sears buying policy, whichever is lower?      .
N/A
Yes No
3.e. Are the overtime wages properly calculated at the rate that is legally required?
N/A
Yes No
3.f. Have employees received at least one day off in every seven-day period?      .
Yes No
3.g. Do employees, persons recruited through factory¡¯s subcontractors, and self-employed persons working at the workplace of the factory use dated and signed time records each day to track the hours worked?
Yes No
3.h. Are all legally mandated benefits provided?
if no, please state those legally mandated benefits currently not provided or only inadequately provided
Yes No
3.i. Is there evidence to verify that factory pays into social insurance programs ?
N/A
Yes No
3.i. Are there any unusual payments (such as brokerage / agent fees¡¬etc.) deducted from employee pay?        .
If yes, please state the nature of unusual payments, and any factory responses
N/A
Yes No
3.j. Does the payroll register or log include the name and identification number of each worker, gross pay, withholdings, deductions, net pay, and payment dates?
N/A
Yes No
3.k. Does the information contained in the payroll records of employees correspond with the responses interviewed?
N/A
Yes No
additional comments (including any special results obtained from workers¡¯ interview and the management responses, if applicable):