Sedex Audit Reference: 2018ARZAA405653761 SMETA Corrective Action Plan Report (CAPR) Version 6.

Audit Details
Sedex Company Sedex Site Reference: ZS:1042222
Reference: (only available on Sedex
(only available on Sedex System)
System)

Business name (Company SERVICIOS AGROPECUARIOS SRL

name):
Site name: SERVICIOS AGROPECUARIOS SRL

Site address: RUTA PROVINCIAL Country: Argentina

(Please include full address)
Site contact and job title:
Site phone:
Nº10 S/N - HERNANDO
- CORDOBA
Baltazar Prono – Responsable de Higiene, Seguridad y Medioambiente /
Responsible for Hygiene, Safety and Environment
+54 353 4960348 Site e–mail: servagrop@servagrop.com.ar

SMETA Audit Type Pillars: Labour Health & Environment Business Ethics
Standards Safety
Date of Audit: 5, 6 y 7 Diciembre 2018 / 5, 6 & 7 December 2018

Audit Company Name & Logo:

Report Owner (payee):
(If paid for by the customer of the site
please remove for Sedex upload)

SERVICIOS AGROPECUARIOS SRL

Argentina

Audit Conducted By

Commercial Purchaser Retailer

Brand owner NGO Trade Union

Multi– Combined Audit (select all that apply)

stakeholder

Audit company: SGS Argentina S.A. Report reference. AR/BUE2012650 Date: 5-7/DEC/2018 2
 Sedex Audit Reference: 2018ARZAA405653761 SMETA Corrective Action Plan Report (CAPR) Version 6.0

Audit company: SGS Argentina S.A. Report reference. AR/BUE2012650 Date: 5-7/DEC/2018 3
 Sedex Audit Reference: 2018ARZAA405653761 SMETA Corrective Action Plan Report (CAPR) Version 6.0

SMETA Declaration
I declare that the audit underpinning the following report was conducted in accordance
with SMETA Best Practice Guidance and SMETA Measurement Criteria.

(1) Where appropriate non-compliances were raised against the ETI code / SMETA Additions & local law
and recorded as non-compliances on both the audit report, CAPR and on Sedex.

(2) Any Non-Compliance against customer code alone shall not be uploaded to Sedex. However, in
the CAPR these ‘Variances in compliance between ETI code / SMETA Additions/ local law and
customer code’ shall be noted in the observations section of the CAPR.

Any exceptions to this must be recorded here

(e.g. different sample size): No
Auditor Team (s) (please list all including all
interviewers):
Lead auditor: Fernando Tapia C.
Team auditor: No aplica / Not applicable
Interviewers: Fernando Tapia C.
Report writer: Fernando Tapia C.
Report reviewer: B. Sathiyanarayanan
Audit Company Report Reference: AR/BUE2012650
Date of declaration: 09th Jan 2019

Note: The focus of this ethical audit is on the ETI Base Code and local law. The additional elements will not be audited in
such depth or scope, but the audit process will still highlight any specific issues.

This report provides a summary of the findings and other applicable information found/gathered during the social audit
conducted on the above date only and does not officially confirm or certify compliance with any legal regulations or
industry standards. The social audit process requires that information be gathered and considered from records review,
worker interviews, management interviews and visual observation. More information is gathered during the social audit
process than is provided here. The audit process is a sampling exercise only and does not guarantee that the audited
site prior, during or post–audit, are in full compliance with the Code being audited against. The provisions of this Code
constitute minimum and not maximum standards and this Code should not be used to prevent companies from
exceeding these standards. Companies applying this Code are expected to comply with national and other
applicable laws and where the provisions of law and this Code address the same subject, to apply that provision which
affords the greater protection. The ownership of this report remains with the party who has paid for the audit. Release
permission must be provided by the owner prior to release to any third parties.

Audit company: SGS Argentina S.A. Report reference. AR/BUE2012650 Date: 5-7/DEC/2018 4
 Sedex Audit Reference: 2018ARZAA405653761 SMETA Corrective Action Plan Report (CAPR) Version 6.0

Audit Parameters

Audit Parameters

A: Time in and time out Day 1 Time in: 09:00 Day 2 Time in: 09:00 Day 3 Time in: 09:00
Day 1 Time out: Day 2 Time out: Day 3 Time out:
18:00 18:00 13:00

B: Number of auditor days used: 2.5 MD (1 auditor)

C: Audit type: Full Initial

Periodic
Full Follow–up
Partial Follow–Up
Partial Other
If other, please define:

D: Was the audit announced? Announced

Semi – announced: Window detail: weeks
Unannounced

E: Was the Sedex SAQ available for Yes

review? No
If No, why not

F: Any conflicting information Yes

SAQ/Pre-Audit Info to Audit findings? No
If Yes, please capture detail in appropriate audit by clause

G: Who signed and agreed CAPR Sebastián Barale – Gerente de Administración, Finanzas, RRHH y
(Name and job title) Sistemas / Manager of Administration, Finance, HR and Systems.

H: Is further information available Yes

(if yes, please contact audit company for No
details)

I: Previous audit date: 1 Febrero 2012 / 1 February 2012

J: Previous audit type: Full Inicial / Full Initial

K: Were any previous audits reviewed Yes No

for this audit
N/A

Audit attendance Management Worker Representatives

Senior management Worker Committee Union representatives

representatives

A: Present at the opening meeting? Yes No Yes No Yes No

Audit company: SGS Argentina S.A. Report reference. AR/BUE2012650 Date: 5-7/DEC/2018 5
 Sedex Audit Reference: 2018ARZAA405653761 SMETA Corrective Action Plan Report (CAPR) Version 6.0

B: Present at the audit? Yes No Yes No Yes No

C: Present at the closing meeting? Yes No Yes No Yes No

D: If Worker Representatives were No hay representante de los trabajadores / There is no worker

not present please explain reasons representative
why (only complete if no worker reps
present)

E: If Union Representatives were not No hay representante del sindicato / There is no Union
present please explain reasons why: representative
(only complete if no union reps present)

Guidance:
The Corrective Action Plan Report summarises the site audit findings and a corrective, and preventative
action plan that both the auditor and the site manager believe is reasonable to ensure conformity with the
ETI Base Code, Local Laws and additional audited requirements. After the initial audit, the form is used to re-
record actions taken and to categorise the status of the non-compliances.

N.B. observations and good practice examples should be pointed out at the closing meeting as well as
discussing non-compliances and corrective actions.

To ensure that good practice examples are highlighted to the supplier and to give a more ‘balanced’ audit
a section to record these has been provided on the CAPR document (see following pages) which will
remain with the supplier. They will be further confirmed on receipt of the audit report.
Root cause (see column 4)
Root cause refers to the specific procedure or lack of procedure which caused the issue to arise. Before a
corrective action can sustainably rectify the situation it is important to find out the real cause of the non-
compliance and whether a system change is necessary to ensure the issue will not arise again in the future.
See SMETA BPG Chapter 7 ‘Audit Execution’ for more explanation of “root cause’’.
Next Steps:
1. The site shall request, via Sedex, that the audit body upload the audit report, non-compliances,
observations and good examples. If you have not already received instructions on how to do this
then please visit the web site www.sedexglobal.com.
2. Sites shall action its non-compliances and document its progress via Sedex.
3. Once the site has effectively progressed through its actions then it shall request via Sedex that the
audit body verify its actions. Please visit www.sedexglobal.com web site for information on how to
do this.
4. The audit body shall verify corrective actions taken by the site by either a "Desk-Top” review process
via Sedex or by Follow-up Audit (see point 5).
5. Some non-compliances that cannot be closed off by “Desk-Top” review may need to be closed off
via a “1 Day Follow Up Audit” charged at normal fee rates. If this is the case then the site will be
notified after its submission of documentary evidence relating to that non-compliance. Any follow-
up audit must take place within twelve months of the initial audit and the information from the initial
audit must be available for sign off of corrective action.
6. For changes to wages and hours to be correctly verified it will normally require a follow up site visit.
Auditors will generally require to see a minimum of two months wages and hours records, showing

Audit company: SGS Argentina S.A. Report reference. AR/BUE2012650 Date: 5-7/DEC/2018 6
 Sedex Audit Reference: 2018ARZAA405653761 SMETA Corrective Action Plan Report (CAPR) Version 6.0

new rates in order to confirm changes (note some clients may ask for a longer period, if in doubt
please check with the client).

Audit company: SGS Argentina S.A. Report reference. AR/BUE2012650 Date: 5-7/DEC/2018 7
 Sedex Audit Reference: 2018ARZAA405653761 SMETA Corrective Action Plan Report (CAPR) Version 6.0

Corrective Action Plan

Corrective Action Plan – non-compliances

Non- New or Details of Non- Root cause Preventative and Timescale Verification Agreed by Verification Evidence Status
Compliance Carried Over Compliance (completed by the Corrective Actions (Immediate, Method Management and Open/Closed
Number Is this a new Details of Non-Compliance site) Details of actions to 30, 60, Desktop / and Name of Comments or comment
The reference non- be taken to clear 90,180,365) Follow-Up Responsible Details on corrective action
number of the compliance non-compliance, and [D/F] evidence
Person:
non-compliance identified at the system change to
Note if
from the Audit the follow-up prevent re-
management
Report, or one carried occurrence (agreed
agree to the non-
for example, over (C) that is between site and
compliance, and
Discrimination still auditor)
document name
No.7 outstanding
of responsible
person

NC # 1 New No existe evidencia que Training Asegurarse de 90 días / Follow-Up Si / yes

Principle 0B el sistema de gestión Systems mantener un days Sebastián
Management implementado para el Costs sistema de gestión Barale
systems and cumplimiento del lack of workers que sea efectivo
code código de conducta Other – please para dar
implementation ETI/CLIENTE sea efectivo. give details: cumplimiento del
MAYOR There is no evidence código de
that the management conducta
system implemented to ETI/CLIENTE.
comply with the TSI / Be sure to maintain
CLIENT conduct code is a management
effective. system that is
effective to
comply with the ETI
/ CUSTOMER code
of conduct.

NC # 2 New La organización no ha Training Establecer 30 días / Desktop Si / yes

Principle 0B definido formalmente a Systems formalmente un days Sebastián
Management un representante de la Costs responsable para Barale
systems and alta administración para lack of workers asegurar la
code asegurar la mantención Other – please mantención y
implementation y observancia de los give details: observancia de los
Menor principios del

Audit company: SGS Argentina S.A. Report reference. AR/BUE2012650 Date: 5-7/DEC/2018 8
 Sedex Audit Reference: 2018ARZAA405653761 SMETA Corrective Action Plan Report (CAPR) Version 6.0

principios del Código de Código de

Conducta ETI/CLIENTE. Conducta
The organization has not ETI/CLIENTE.
formally defined a Establish formally a
representative of senior responsible person
management to ensure to ensure the
the maintenance and maintenance and
observance of the observance of the
principles of the ETI / principles of the ETI
CUSTOMER Code of / CUSTOMER Code
Conduct. of Conduct.

NC # 3 New No se ha definido Training Establecer 30 días / Desktop Si / yes

Principle 3 formalmente un Systems formalmente un days Sebastián
Safety and representante de la alta Costs responsable de la Barale
Hygienic administración para lack of workers alta administración
Conditions encargarse de la Salud Other – please para encargarse
MAYOR & Seguridad. give details: de la Salud &
A representative of Seguridad.
senior management has Establish a formally
not been formally responsible senior
defined to take charge management to
of Health & Safety. take charge of
Health & Safety.

NC # 4 New Se observa conexiones Training Revisar las distintas 60 días / Desktop Si / yes
Principle 3 eléctricas sub-estándar. Systems áreas y corregir las days Sebastián
Safety and Sub-standard electrical Costs desviaciones Barale
Hygienic connections are lack of workers detectadas.
Conditions observed. Other – please Review the
MAYOR give details: different areas and
correct the
deviations
detected.

NC # 5 New Se observa cilindros de Training Revisar las distintas 60 días / Desktop Si / yes
Principle 3 gas licuado y gas a Systems áreas y asegurarse days Sebastián
Safety and presión sin sistema de Costs que siempre se Barale
Hygienic sujeción. lack of workers mantengan los
Conditions Cylinders of liquefied Other – please cilindros con
MAYOR gas and pressurized gas give details: sujeción.

Audit company: SGS Argentina S.A. Report reference. AR/BUE2012650 Date: 5-7/DEC/2018 9
 Sedex Audit Reference: 2018ARZAA405653761 SMETA Corrective Action Plan Report (CAPR) Version 6.0

without clamping system Check the

are observed. different areas and
make sure that the
cylinders are
always subjected.

NC # 6 New Se observa manómetro Training Cambiar 30 días / Desktop Si / yes

Principle 3 en mal estado para Systems manómetro por days Sebastián
Safety and cilindros de nitrógeno en Costs uno en buen Barale
Hygienic sector Chiller. lack of workers estado.
Conditions A manometer in poor Other – please Change
MAYOR condition is observed for give details: manometer for
nitrogen cylinders in the one in good
Chiller sector. condition.

NC # 7 New Se observa botiquín que Training Revisar botiquín y 30 días / Desktop Si / yes
Principle 3 tiene algunos insumos Systems reemplazar los days Sebastián
Safety and vencidos. Costs Insumos vencidos. Barale
Hygienic There is a first aid kit that lack of workers Review first aid kit
Conditions has some expired Other – please and replace
MAYOR supplies. give details: expired supplies.

NC # 8 New La señalética de riesgo Training Revisar las distintas 60 días / Desktop Si / yes
Principle 3 es deficiente y/o falta Systems áreas y mejorar days Sebastián
Safety and en algunos puntos de la Costs y/o colocar la Barale
Hygienic planta. (Ej. Combustible, lack of workers señalética
Conditions inflamable, riesgo Other – please faltante.
MAYOR eléctrico, give details: Review the
almacenamiento en different areas and
altura). improve and / or
The signage of risk is place the missing
deficient and / or signage.
missing in some points of
the plant. (Ex. Fuel,
inflammable, electrical
risk, storage at height).

Audit company: SGS Argentina S.A. Report reference. AR/BUE2012650 Date: 5-7/DEC/2018 10
 Sedex Audit Reference: 2018ARZAA405653761 SMETA Corrective Action Plan Report (CAPR) Version 6.0

NC # 9 New Se observa trabajadores Training Asegurarse de que 120 días / Follow-Up Si / yes
Principle 3 (personal externo) Systems todo trabajo en days Sebastián
Safety and realizando actividad Costs altura (sobre 1.8 m) Barale
Hygienic sobre 2 metros altura sin lack of workers se utilice sistema
Conditions sistema de sujeción. Other – please de sujeción
MAYOR It is observed workers give details: pertinente.
(external personnel) Colocar cuerda
doing activity on 2 de vida.
meters height without Capacitar a los
fastening system. trabajadores.
Make sure that all
work at height
(about 1.8 m) is
used relevant
fastening system.
Place rope of life.
Train the workers.

NC # 10 New En sector producto Training Revisar las áreas y 120 días / Desktop Si / yes
Principle 3 elaborado y blancher Systems colocar el rodapié days Sebastián
Safety and no hay rodapié. Costs faltante. Barale
Hygienic In the elaborated lack of workers Check the areas
Conditions product and blancher Other – please and place the
MAYOR sector there is no skirting give details: missing skirting
board. board.

NC # 11 New Se observa dos grúas Training Reparar las balizas 30 días / Desktop Si / yes
Principle 3 horquilla que no tienen Systems en mal estado. days Sebastián
Safety and baliza. Costs Repair the safety Barale
Hygienic There are two fork lack of workers back light in poor
Conditions cranes that do not have Other – please condition.
MAYOR a safety back light. give details:

NC # 12 New La ropa de trabajo no se Training Revisar proceso de 60 días / Desktop Si / yes

Principle 3 entrega con la Systems entrega de ropa days Sebastián
Safety and frecuencia requerida Costs para que ésta sea Barale
Hygienic (cada 6 meses). lack of workers entregada en los
Conditions

Audit company: SGS Argentina S.A. Report reference. AR/BUE2012650 Date: 5-7/DEC/2018 11
 Sedex Audit Reference: 2018ARZAA405653761 SMETA Corrective Action Plan Report (CAPR) Version 6.0

Menor Work clothes are not Other – please plazos

delivered as often as give details: establecidos.
required (every 6 Review the process
months). of delivery of
clothing so that it is
delivered within
the established
deadlines.

NC # 13 New De la revisión Training Revisar proceso de 90 días / Follow-Up Si / yes

Principle 5 documental se observa Systems cálculo de las days Sebastián
Wages and que algunos Costs horas extras para Barale
Benefits trabajadores han lack of workers efecto de su pago,
MAYOR trabajado horas extras Other – please asegurando que
según registro de give details: se paguen todas
asistencia que es siempre.
superior a lo que se les Review the
ha pagado (observado calculation
en registros revisados). process of
From the documentary overtime for
review it is observed that payment, ensuring
some workers have that all are paid at
worked overtime all times.
according to
attendance record that
is higher than what they
have been paid
(observed in revised
records).

NC # 14 New La organización no Training Asegurarse de 120 días / Follow-Up Si / yes

Principle 6 entrega a sus Systems entregar registro days Sebastián
Working Hours trabajadores registro de Costs de asistencia a los Barale
MAYOR asistencia para que lo lack of workers trabajadores para
puedan revisar y Other – please que puedan
confirmar consistencia give details: revisar sus marcas
en las marcas y verificar que
presentadas. están correctas.
The organization does Be sure to provide
not provide its workers a record of

Audit company: SGS Argentina S.A. Report reference. AR/BUE2012650 Date: 5-7/DEC/2018 12
 Sedex Audit Reference: 2018ARZAA405653761 SMETA Corrective Action Plan Report (CAPR) Version 6.0

with attendance records assistance to

so they can review it workers so that
and confirm consistency they can review
in the marks presented. their marks and
verify that they are
correct.

NC # 15 New El proceso de sanción Training Asegurarse de que 120 días / Follow-Up Si / yes
Principle 9 que tiene la Systems el proceso de days Sebastián
Harsh or organización no se está Costs sanción Barale
Inhumane llevando a cabo como lack of workers establecido se siga
Treatment está establecido en el Other – please según está
MAYOR documento give details: establecido. Dejar
“Reglamento Interno”. evidencia de ello.
The sanction process Make sure that the
that the organization established
has is not being carried sanction process is
out as it is established in followed as
the document "Internal established. Leave
Regulation". evidence of it.

NC # 16 New La organización tiene Training Asegurarse de que 60 días / Desktop Si / yes

Principle10B4 una política Systems la política days Sebastián
Environment 4- medioambiental, pero Costs medioambiental, Barale
Pillar no existe evidencia que lack of workers se ha difundido a
Menor se ha difundido a todos Other – please todos los niveles de
los niveles de la give details: la organización.
organización. Dejar registro de
The organization has an ello.
environmental policy, Make sure that the
but there is no evidence environmental
that has been policy has been
disseminated to all levels disseminated to all
of the organization. levels of the
organization.
Leave a record of
it.

NC # 17 New Se observa envase de Training Asegurarse que los 60 días / Desktop Si / yes
Principle10B4 aceite lubricante vacío Systems residuos peligrosos days Sebastián
(residuo peligroso) en Costs se manejen de Barale

Audit company: SGS Argentina S.A. Report reference. AR/BUE2012650 Date: 5-7/DEC/2018 13
 Sedex Audit Reference: 2018ARZAA405653761 SMETA Corrective Action Plan Report (CAPR) Version 6.0

Environment 4- contenedor de basura lack of workers manera

Pillar doméstica. Other – please adecuada.
MAYOR Adicionalmente, se give details: Capacitar a los
observa residuos no trabajadores al
peligrosos depositados respecto.
en envases que indican Ensure that
“residuo peligroso”, hazardous waste is
recipiente para dejar handled properly.
aceite lubricante usado Train workers in this
que tiene etiqueta que regard.
no corresponde y
envase conteniendo
aceite sin sistema de
contención secundario.
An empty lubricating oil
container (hazardous
waste) is observed in a
domestic garbage
container. Additionally,
non-hazardous waste is
deposited in containers
that indicate "hazardous
waste", container to
leave used lubricating oil
that has a label that
does not correspond
and container
containing oil without
secondary containment
system.

NC # 18 New La organización tiene un Training Revisar la página 120 días / Desktop Si / yes
Principle10C sistema transparente Systems web a fin de que days Sebastián
Business Ethics para reportar de Costs el acceso sea de Barale
Menor manera confidencial las lack of workers fácil acceso.
Prácticas Empresariales Other – please Check the web
no éticas sin miedo de give details: page so that
represalias contra el access is easily
informante. Sin accessible.
embargo, el sistema
implementado -página
web- no permite al
usuario un fácil acceso y

Audit company: SGS Argentina S.A. Report reference. AR/BUE2012650 Date: 5-7/DEC/2018 14
 Sedex Audit Reference: 2018ARZAA405653761 SMETA Corrective Action Plan Report (CAPR) Version 6.0

entender la
aplicabilidad de este
link.
The organization has a
transparent system to
confidentially report
unethical Business
Practices without fear of
reprisals against the
informant. However, the
implemented system -
web page - does not
allow the user easy
access and understand
the applicability of this
link.

NC # 19 New La organización no ha Training Establecer 30 días / Desktop Si / yes

Principle10C definido formalmente un Systems formalmente un days Sebastián
Business Ethics responsable para llevar Costs responsable para Barale
MAYOR a cabo las normas lack of workers llevar a cabo las
acerca de las Prácticas Other – please normas acerca de
de Negocio. give details: las Prácticas de
The organization has not Negocio.
formally defined a Establish formally a
responsible person to responsible to
carry out the rules about carry out the rules
the Business Practices. about the Business
Practices.

Audit company: SGS Argentina S.A. Report reference. AR/BUE2012650 Date: 5-7/DEC/2018 15
 Sedex Audit Reference: 2018ARZAA405653761 SMETA Corrective Action Plan Report (CAPR) Version 6.0

NC # 20 New No hay evidencia que la Training Asegurarse de 60 días / Desktop Si / yes

Principle10C organización tiene un Systems implementar un days Sebastián
Business Ethics sistema que asegure Costs sistema que Barale
MAYOR que su personal clave lack of workers asegure que su
relacionado con las Other – please personal clave
prácticas éticas de give details: relacionado con
negocio sepa cómo las prácticas éticas
actuar en caso de de negocio sepa
acontecer algún cómo actuar en
problema en esta caso de
materia. acontecer algún
There is no evidence problema en esta
that the organization materia.
has a system that Be sure to
ensures that its key implement a
personnel related to system that ensures
ethical business that your key
practices know how to personnel related
act in case of any to ethical business
problem in this matter. practices know
how to act in case
of any problem in
this matter.

Corrective Action Plan – Observations

Observation New or Details of Observation Root cause Any improvement actions discussed
Number Carried Over Details of Observation (completed by the site) (Not uploaded on to SEDEX)
The reference Is this a new
number of the observation
observation identified at
from the Audit the follow-up
Report, or one carried
for example, over (C) that is
Discrimination still outstanding
No.7

Audit company: SGS Argentina S.A. Report reference. AR/BUE2012650 Date: 5-7/DEC/2018 16
 Sedex Audit Reference: 2018ARZAA405653761 SMETA Corrective Action Plan Report (CAPR) Version 6.0

OBS-1 New La empresa no ha designado a un responsable de implementar las normas Establecer formalmente un responsable y
0A. Universal relativas a los Derechos Humanos. comunicarlo a los trabajadores.
Rights The company has not appointed a person responsible for implementing the
Covering Establish a formally responsible and
regulations related to Human Rights.
UNGP communicate it to the workers.

OBS-2 New La organización no ha identificado a las partes interesadas, los impactos hacia Asegurarse de identificar a las partes
0A. Universal ellas, y los temas que se evidencian de la evaluación. interesadas, los impactos hacia ellas, y los temas
Rights The organization has not identified the interested parties, the impacts towards que se evidencian de la evaluación.
Covering them, and the issues evidenced by the evaluation.
UNGP Be sure to identify interested parties, the impacts
to them, and the issues that are evident in the
evaluation.

OBS-3 New La organización no ha medido el impacto directo, indirecto y potencial a las Asegurarse de medir el impacto directo,
0A. Universal partes interesadas en relación a los derechos humanos. indirecto y potencial a las partes interesadas en
Rights The organization has not measured the direct, indirect and potential impact to relación a los derechos humanos.
Covering the stakeholders in relation to human rights.
UNGP Be sure to measure the direct, indirect and
potential impact to the stakeholders in relation
to human rights.

OBS-4 New Dado que no se ha medido el impacto en relación a los derechos humanos, la Asegurarse de establecer las acciones
0A. Universal organización no los conoce y por ello no puede establecer alguna acción sobre correctivas para gestionar una remediación
Rights éstos para generar una remediación eficaz. eficaz, de los impactos en relación a los
Covering Since the impact in relation to human rights has not been measured, the derechos humanos.
UNGP organization does not know about them and therefore cannot establish any
Make sure to establish corrective actions to
action on them to generate an effective remediation.
manage an effective remediation of the
impacts in relation to human rights.

OBS-5 New La organización tiene un sistema para presentar denuncias, sin embargo, éste no Asegurarse de informar que el sistema para
0A. Universal se explicita que también aplica a los derechos humanos. presentar denuncias, también aplica a los
Rights The organization has a system for filing complaints, however, it is not explicit that it derechos humanos.
Covering also applies to human rights.
UNGP Be sure to inform that the system for filing
complaints also applies to human rights.

Audit company: SGS Argentina S.A. Report reference. AR/BUE2012650 Date: 5-7/DEC/2018 17
 Sedex Audit Reference: 2018ARZAA405653761 SMETA Corrective Action Plan Report (CAPR) Version 6.0

OBS-5 New Los envases con solución para lavar los ojos en caso de emergencia no tienen Asegurarse de colocar etiqueta que muestre la
Principle 3 fecha de vigencia fecha de caducidad de la solución.
Safety and The containers with solution to wash the eyes in case of emergency have no
Hygienic Be sure to place a label that shows the
effective date.
Conditions expiration date of the solution.

OBS- 6 New No hay evidencia que la organización nominó formalmente a una persona Establecer formalmente un responsable y
Principle responsable de coordinar los esfuerzos del sitio para mejorar su comportamiento comunicarlo a los trabajadores.
10B4 medioambiental.
Environment Establish a formally responsible and
There is no evidence that the organization formally nominated a person
communicate it to the workers.
responsible for coordinating the site's efforts to improve its environmental
performance.

Good examples

Good example Details of good example noted Any relevant Evidence and
Number Comments
The reference
number of the
non-compliance
from the Audit
Report,
for example,
Discrimination No.7

GE – 1 La organización provee a sus trabajadores incentivos monetarios por el uso de bicicleta para ir desde su casa a la empresa o bien Observado durante la entrevista a los
5. Wages and hacerlo caminando. trabajadores y al responsable de la
Benefits The organization provides its workers with monetary incentives for the use of bicycles to go from home to the company or to do it empresa.
walking. Observed during the interview with the
workers and the person in charge of the
company.

Audit company: SGS Argentina S.A. Report reference. AR/BUE2012650 Date: 5-7/DEC/2018 18
 Sedex Audit Reference: 2018ARZAA405653761 SMETA Corrective Action Plan Report (CAPR) Version 6.0

Confirmation
Please sign this document confirming that the above findings have been discussed with and understood by you: (site management)
If actual signatures are not possible in electronic versions, please state the name of the signatory in applicable boxes, as indicating the signature.

A: Site Representative Signature: Title Gerente de Administración, Finanzas, RRHH y Sistemas /

Manager of Administration, Finance, HR and Systems

Sebastián Barale Date 7 Diciembre 2018 / 7 Decembr 2018

B: Auditor Signature: Title Auditor Líder

Fernando Tapia Date 7 Diciembre 2018 / 7 Decembr 2018

C: Please indicate below if you, the site management, dispute any of the findings. No need to complete D-E, if no disputes.

D: I dispute the following numbered non-compliances:

E: Signed: Title
(If any entry in box D, please complete
a signature on this line) Date

F: Any other site Comments:

Audit company: SGS Argentina S.A. Report reference. AR/BUE2012650 Date: 5-7/DEC/2018 19
Guidance on Root Cause

Explanation of the Root Cause Column

If a non-compliance is to be rectified by a corrective action which will also prevent the non-
compliance re-occurring, it is necessary to consider whether a system change is required.

Understanding the root cause of the non-compliance is essential if a site is to prevent the issue re-
occurring.

The root cause refers to the specific activity/ procedure or lack of activity /procedure which
caused the non-compliance to arise. Before a corrective action can rectify the situation it is
important to find out the real cause of the non-compliance and whether a system change is
necessary to ensure the issue will not arise again in the future.

Since this is a new addition, it is not a mandatory requirement to complete this column at this time.
We hope to encourage auditors and sites to think about Root Causes and where they are able to
agree, this column may be used to describe their discussion.

Some examples of finding a “root cause“

Example 1
Where excessive hours have been noted the real reason for these needs to be understood, whether due to
production planning, bottle necks in the operation, insufficient training of operators, delays in receiving
trims, etc.

Example 2
A non-compliance may be found where workers are not using PPE that has been provided to them. This
could be the result of insufficient training for workers to understand the need for its use; a lack of follow-up
by supervisors aligned to a proper set of factory rules or the fact that workers feel their productivity (and thus
potential earnings) is affected by use of items such as metal gloves.

Example 3
A site uses fines to control unacceptable behaviour of workers.

International standards (and often local laws) may require that workers should not be fined for disciplinary
reasons.

It may be difficult to stop fines immediately as the site rules may have been in place for some time, but to
prevent the non-compliance re- occurring it will be necessary to make a system change.

The symptom is fines, but the root cause is a management system which may break the law. To prevent the
problem re-occurring it will be necessary to make a system change for example the site could consider a
system which rewards for good behaviour

Only by understanding the underlying cause can effective corrective actions be taken to ensure
continuous compliance.

The site is encouraged to complete this section so as to indicate their understanding of the issues raised and
the actions to be taken.

Audit company: SGS Argentina S.A. Report reference. AR/BUE2012650 Date: 5-7/DEC/2018 20
 For more information visit: Sedexglobal.com

Your feedback on your experience of the SMETA audit you have observed is extremely
valuable. It will help to make improvements to future versions.

You can leave feedback by following the appropriate link to our questionnaire:

Click here for Buyer (A) & Buyer/Supplier (A/B) members:

http://www.surveymonkey.com/s.aspx?sm=riPsbE0PQ52ehCo3lnq5Iw_3d_3d

Click here for Supplier (B) members:

http://www.surveymonkey.com/s.aspx?sm=d3vYsCe48fre69DRgIY_2brg_3d_3d

Click here for Auditors:

https://www.surveymonkey.co.uk/r/BRTVCKP

Audit company: SGS Argentina S.A. Report reference. AR/BUE2012650 Date: 5-7/DEC/2018 21