THD Factory Audit

THD FACTORY AUDIT

THD Factory Audit

Brief Introduction

The Home Depot conducts yearly social and environmental liability (SER) audits of facilities that produce copyrighted goods or approved brands, and it mandates that all suppliers abide by the aforementioned rules. After concentrating on factory audit consulting for ten years, Saicert creates a customized solution for THD audits, THD factory audits, and THD audit certificates that include follow-up, on-site counseling, audit accompanying, etc., guaranteeing a positive result.

FAQ

PROJECTS

What are the critical problems of the Home Depot audit?

The critical problems of the Home Depot audit are as follows:

1. Legality of the company: The customer confirms whether the company is legal and safe by checking the company's business license, tax registration certificate, fire escape map and other documents.

2. Child labor and juvenile workers: The company absolutely prohibits the company from employing child laborers under the age of 16 and can accept the employment of underage workers aged 16 and over and under 18 years of age, but must have approval from the government and practical actions to ensure the underage workers. Physical and mental health.

3. Despise: Guests are not allowed to have contempt for gender, race, age, and belief in the recruitment and promotion of employees. The inspection personnel will generally view all the personnel files of the incumbent personnel and the personnel files and labor contracts that have been resigned for the last 6 months.

4. Working hours: The company must ensure the rest time of workers according to local laws and regulations, rest at least one day a week, and work for more than 60 hours per week.

5. Labor remuneration: Overtime work and regular holidays overtime pay the employees' wages according to the rates stipulated by local laws, and the monthly salary cannot be lower than the local minimum wage. Guests will generally check the employee attendance and payroll records for the last 3 months or 12 months.

6. Disciplinary measures: The guests do not accept the company to impose any fines, snoring and other measures on the employees, and do not accept the company's forced labor.

7. Health and Safety: The company must provide a healthy and safe workplace and necessary environmental protection measures and related licenses. For the employees of special occupations, there must be corresponding operation certificates.

8. Anti-terrorism: There must be corresponding procedures for the flow of personnel and the circulation of goods, as well as corresponding operational records. For the company's physical security, needle management must keep records according to customer requirements.

What are the frequently asked questions of the Home Depot audit?

The frequently asked questions of the Home Depot audit are as follows:

General questions

1. Does the worker reflect that there are no workers below the legal minimum age?

2. When they come to the factory, ask them to provide proof of age?

3. Workers reflect that there are no children in the factory at any time?

4. Workers reflect that workers under the age of 18 do not go to work at night?

5. Do workers report that workers under the age of 18 are doing dangerous work?

6. What is the youngest worker in the factory?

7. How many workers under the age of 18 work in the factory?

8. Hasn't a child ever worked in a factory?

9. If so, how does the management deal with this issue?

Pay for living wages

1. Does the worker report that they have received at least one standard work week minimum wage?

2. Did the worker receive the benefits granted by the law?

3. Are pregnant workers getting maternity rights as stipulated by law?

4. Does the worker report that the salary is not paid in the form of payment by payment?

5. Can workers get paid in time? (in accordance with labor contract regulations)

6. After deducting various expenses, the workers report that all workers' wages can meet their minimum needs and provide some discretionary income?

7. Before entering the factory, did the worker provide some written information about the salary and easy-to-understand written information?

8. The workers report whether they received the payroll. Does the payroll specify the specifics of the wages?

9. As a method of training, are workers not fined?

10. Do the workers feel that the deducted wages can meet the food and accommodation needs of local conditions?

11. If these deductions are not prescribed by law, have they been approved by the workers?

12. Does the worker report that all penalties are recorded?

13. How much accommodation does the factory charge for the workers? (What about utility bills?)

14. How much food does the factory charge for the workers?

Operating hours

1. Do workers report that their workers have a record of their time?

2. Workers report that they often work more than 48 hours a month?

3. Workers report that they have a day off every 7 days?

4. Does the worker report that they are on leave, regardless of whether they are deducted or not, are they prescribed by law?

5. Are workers working overtime voluntarily?

6. Workers report that they know how to take time off without working overtime?

7. Do workers report that they do not work more than 12 hours per week?

8. Did the worker get extra overtime pay as required by national law?

9. Do workers work overtime on a rest day and get overtime pay as stipulated by national laws?

10. Overtime on holidays, do workers get overtime pay as required by national law?

11. How many hours does a standard work week work? (not counting overtime)

12. How much time does it work overtime in the past three months?

13. How long does it take for a worker to work over the week?

What is the Home Depot ES Factory Standard?

Home Depot ES Factory Standard

(ES) ethical standards

Home Depot and its affiliates, divisions, and subsidiaries are committed to operating in a responsible manner. As companies set up branch offices overseas and work with suppliers around the world to meet the needs of their customers, a shared commitment to protecting human rights and providing a safe working environment in the workplace is critical.

Home Depot expects all of its suppliers to comply with local laws and regulations in the process of producing and distributing products or servicing Home Depot. We encourage all suppliers to operate above and continue to improve above Home Depot requirements.

The Home Depot audit requires all suppliers to comply with the above requirements and will conduct annual social and environmental liability (SER) audits of factories that manufacture authorized brands or patented products. For suppliers of other products, Home Depot will evaluate the factory's SER or CSR procedures to ensure compliance with Home Depot's requirements. If the factory does not have a SER program or a CSR program, Home Depot will work with the supplier to help them establish an internal oversight mechanism to ensure compliance with this standard. Home Depot reserves the right to review any supplier that manufactures and distributes products or services for us. Home Depot expects the supplier/factory to notify Home Depot in writing when changing the operating address. In addition, the manufacturer may not transfer the product to another location without the consent of the quality assurance department.

This guide provides a brief description of the minimum requirements that suppliers must comply with when doing business with Home Depot as part of all new or renewed commercial contracts for Home Depot.

Social and environmental responsibility compliance requirements inspection rights

Suppliers must allow Home Depot representatives to review production units on the Factory Open Information Form, including access to the factory, interviews with workers, and all other documents related to the review.

Age requirement

Suppliers must not use child labor. Home Depot requires all suppliers to employ workers who are of the lowest working age in the locality and, in any case, do not use workers under the age of 14. If the factory provides an apprenticeship program, it must comply with all local laws and regulations.

Forced labor

Employment must be voluntary. Do not use forced labor, contract or debt labor to produce Home Depot audit consulting or any of its subsidiaries' products.

Deceiving

The supplier must ensure that all records, work cards and other documents of the factory correctly reflect actual production. Suppliers must ensure that all products sold to Home Depot do not violate the requirements of patent law, trademark law or copyright law. Suppliers should provide all necessary certificates if requested by Home Depot.

Wages and working hours

Suppliers must establish an effective mechanism to verify and accurately record employee salaries, deductions, and working hours.

Suppliers must comply with all legal requirements regarding wages and remuneration in their country, including normal working hours, overtime pay, maximum allowable working hours, piece rate, and other laws and regulations related to employee benefits.

No discrimination

Hiring workers should be based on individual abilities rather than on personal characteristics. These include, but are not limited to, employment, wages, benefits, promotion, disciplinary or dismissal. Home Depot requires its suppliers to respect workers and maintain their dignity. Suppliers must ensure that no corporal punishment is used in the workplace.

Environment, health and safety

Home Depot requires suppliers to comply with local laws and regulations to provide employees with a safe and healthy working environment to avoid accidents and accidents at work. If the employer provides staff quarters, you must ensure a safe and healthy accommodation and comply with all local laws and regulations. Suppliers are encouraged to provide personal protective equipment to workers exposed to hazardous working conditions. Suppliers are encouraged to comply with local/national laws and regulations when storing, managing and disposing of waste.

Emergency plan

Emergency exits in the factory and dormitory areas must remain unobstructed.

Freedom of speech and association

The production unit must respect the right of workers to join the legal organization freely and must not interfere with the exercise of this right by the worker. Audit Home Depot Authorized supplier, brand or patented product manufacturer will receive an annual review. To ensure that suppliers continue to meet SER requirements, Home Depot will review the facility without prior notice. The audit fee is borne by the supplier. All SER audits are based on national/local laws or Home Depot standards (not required by local law).

Corrective Action

If the supplier is found to have discrepancies during the audit, the supplier must take appropriate improvement measures to correct the discrepancies within the time required by Home Depot and avoid recurrence.

Environmental requirements

Home Depot seeks to work with suppliers that have the same guaranteed environment as ours. Suppliers are required to comply with the environmental laws of their country. Suppliers purchase wood and wood products that are certified to forest systems wherever practicable and promote the efficient and responsible use of wood and wood products.

Supply chain security

Home Depot is very focused on supply chain security issues. As global terrorism has become increasingly rampant, we have joined the US Customs C-TPAT program and have taken other steps to strengthen existing security measures. Home Depot also requires suppliers to meet minimum safety standards.

Suppliers shall establish procedures and procedures and ensure that unauthorized goods or personnel are not allowed to enter the containers of Home Depot and its subsidiaries. Therefore, suppliers should have written safety procedures for at least the standards set by the following CBP. Home Depot maintains an assessment of the supplier's safety plan and the implementation of its production plant/warehouse. If the supplier's production unit does not take adequate security measures, it will jeopardize the relationship with Home Depot. The following standards set minimum requirements that suppliers must comply with and must be met in order to do business with Home Depot. However, Home Depot recognizes the differences in the business environment of suppliers in different countries, and we expect suppliers to operate at a higher than this minimum. Home

Depot will handle different cases based on actual conditions. Home Depot encourages all suppliers to operate above this minimum and continue to improve.

Container safety

Suppliers must establish a loading procedure to prevent unauthorized goods or personnel from entering the container. All fully loaded containers destined for the United States must be sealed with a high security seal (in accordance with PAS ISO 177712). When the container is in the supplier's production unit, it must be stored in a safe area to avoid unauthorized access and/or manipulation. The material used in the factory/warehouse physical security building must be resistant to illegal intrusion. Physical security includes: adequate locking, adequate lighting, and perimeter security.

What are the rating results of the Home Depot quality audit?

The rating results of the Home Depot quality audit are as follows:

1. The test results are expressed in fractions. There are 4 grades: A: 100-90, B: 89.9-80, C: 79.9-70, D: 70 or less.

2. The two grades A and B indicate that the factory meets the requirements of Home Depot and can accept orders.

3. The C rating indicates that the factory has some requirements, but the corrective action must be taken to get the order. Maybe, until the correction is acceptable, the order will be available.

4. The D grade does not meet the requirements. The company has to accept a new audit. Only when the new audit meets the requirements of Home Depot will the order be placed. A type D plant must wait until it is re-examined, and all costs for re-auditing are at the factory's expense.

Although the factories with A, B, or C are qualified, there will be improvement and preventive tests. After the report of the place where the improvement is needed is sent to the factory, the factory must give a solution within 3 working days. If the correction has not been completed within 60 days, it will be regarded as “standby”.

The Home Depot ethics standard

The Home Depot ethics standard is as follows:

Home Depot requires all suppliers to comply with the above requirements and will conduct annual Social and Environmental Responsibility (SER) audits of factories that manufacture authorized brands or patented products. For suppliers of other products, Home Depot will evaluate the factory's SER or CSR procedures to ensure compliance with Home Depot's requirements. If the factory does not have a SER program or a CSR program, Home Depot will work with the supplier to help them establish an internal oversight mechanism to ensure compliance with this standard. Home Depot reserves the right to review any supplier that manufactures and distributes products or services for us. Home Depot expects the supplier/factory to notify Home Depot in writing when changing the operating address. In addition, the manufacturer may not transfer the product to another location without the consent of the quality assurance department.

Social and environmental responsibility compliance requirements

Inspection right

Age requirement

Suppliers must not use child labor. Home Depot requires all suppliers to employ workers who are of the lowest working age in the locality and, in any case, do not use workers under the age of 14.

If the factory provides an apprenticeship program, it must comply with all local laws and regulations.

Forced labor

Employment must be voluntary. Do not use forced labor, contract or debt labor to produce products from Home Depot or any of its subsidiaries.

No deceiving

The supplier must ensure that all records, work cards and other documents of the factory correctly reflect actual production.

Suppliers must ensure that all products sold to Home Depot do not violate the requirements of patent law, trademark law or copyright law. Suppliers should provide all necessary certificates if requested by Home Depot.

Wages and working hours

Suppliers must establish an effective mechanism to verify and accurately record employee salaries, deductions, and working hours.

No discrimination

Home Depot requires its suppliers to respect workers and maintain their dignity. Suppliers must ensure that no corporal punishment is used in the workplace.

Environment, health and safety

Home Depot requires suppliers to comply with local laws and regulations to provide employees with a safe and healthy working environment to avoid accidents and accidents at work.

If the employer provides staff quarters, you must ensure a safe and healthy accommodation and comply with all local laws and regulations.

Suppliers are encouraged to provide personal protective equipment to workers exposed to hazardous working conditions.

Suppliers are encouraged to comply with local/national laws and regulations when storing, managing and disposing of waste.

Emergency plan

Emergency exits in the factory and dormitory areas must remain unobstructed.

Freedom of speech and association

The production unit must respect the right of workers to join the legal organization freely and must not interfere with the exercise of this right by the worker.

Review

Home Depot authorized suppliers, brands or patented product manufacturers will receive an annual review. To ensure that suppliers continue to meet SER requirements, Home Depot will review the facility without prior notice. The audit fee is borne by the supplier. All SER audits are based on national/local laws or Home Depot standards (not required by local law).

Corrective Action

Environmental requirements

Home Depot seeks to work with suppliers that have the same guaranteed environment as ours.

Suppliers are required to comply with the environmental laws of their country.

Suppliers are expected to purchase wood and wood products that are certified to forest systems wherever practicable and promote the effective and responsible use of wood and wood products.

Supply chain security

Home Depot maintains an assessment of the supplier's safety plan and the implementation of its production plant/warehouse. If the supplier's production unit does not take adequate security measures, it will jeopardize the relationship with Home Depot.

The following standards set minimum requirements that suppliers must comply with and must be met in order to do business with Home Depot. However, Home Depot recognizes the differences in the business environment of suppliers in different countries, and we expect suppliers to operate at a higher than this minimum. Home Depot will handle different cases based on actual conditions. Home Depot encourages all suppliers to operate above this minimum and continue to improve.

Container safety

Suppliers must establish a loading procedure to prevent unauthorized goods or personnel from entering the container.

All fully loaded containers destined for the United States must be sealed with a high security seal (in accordance with PAS ISO 177712).

When the container is in the supplier's production unit, it must be stored in a safe area to avoid unauthorized access and/or manipulation.

Factory/Warehouse physical security

The materials used in the building must be resistant to illegal intrusion.

Physical security includes: adequate locking, adequate lighting, and perimeter security.

Factory/Warehouse Access Control

Suppliers should establish safety procedures to prevent unauthorized personnel from entering all loading/unloading platforms and areas.

Supplier access control includes:

A system that effectively identifies employees, visitors, and suppliers.

There must be procedures for identifying, interrogating, and reporting unauthorized personnel.

Factory/warehouse personnel safety

Within the scope permitted by local law, personnel selection during the recruitment process, including background checks and employee interviews.

Factory/Warehouse Safety Training and Alert Consciousness

Suppliers must have or establish a safety awareness program that primarily trains employees about hazard awareness and supply chain safety issues. All employees of the supplier must receive such training.

information security

All automated systems of the supplier should only be accessible through a separate account and the password must be changed periodically.

Suppliers must establish an information security policy and train all employees.

Third party

In the process of shipment to Home Depot, if a supplier cannot control the production or product transportation, the supplier agrees to ensure that its suppliers and transporters implement the recommendation through reasonable commercial pressure.

On-site assessment

To ensure that the minimum standards of this Code are properly implemented and compliant, Home Depot reserves the right to conduct surprise inspections of the facility at the expense of the supplier.

Corrective Action

Home Depot reserves the right to take appropriate corrective action if it is found that the supplier's factory used to manufacture the product for Home Depot or its subsidiaries violates the requirements of this standard. Home Depot has the sole right to interpret and enforce the standard.

Annual notice

Home Depot requires a C-TPAT-certified supplier to provide a copy of the C-TPAT certificate and the SVI number. Suppliers must also complete a self-assessment questionnaire developed by Home Depot Global Business Services and submit it for filing.

Home Depot requirements for imported goods in high-risk countries

Home Depot uses a range of methods to monitor global security issues and then divides different countries into high, medium and low risks.

In countries that are listed as high risk by Home Depot, we reserve the right to select third-party security agencies to contact suppliers directly.

Home Depot will be responsible for all details, including audits at the factory or port (including but not limited to providing audit checklists to safety agents, scheduling audit dates and times)

Documents that the third party requires the supplier to provide for review must provide a copy to Home Depot for filing.

It is the responsibility of the supplier to ensure that the relevant fees are paid to the third-party auditing agency in a timely manner (45-day payment period).

Home Depot only recognizes contracts signed by third-party agencies and suppliers, and suppliers should provide a copy of the contract to Home Depot Global Business Services Manager. Any violation of the non-compliance with this security standard will result in a “review failed” result.

The Home Depot Audit File List

The Home Depot Audit File List is as follows:

Payroll (last 12 months)

Personnel roster and employee profile

Labor Contract

Social insurance receipts, rosters, and certification documents, etc.

Business license

Fire inspection report or certificate of conformity

Fire drill record, emergency evacuation plan and work injury record, etc.

Environmental certification document

Factory or employee manual

Government related local minimum wage regulations