Pitfalls of third-party audits | Re-examining the significance and risks of ethical certification
The number of brands obtaining ethical certification is steadily increasing. However, there are many cases where issues and misunderstandings arise during the process. In particular, the reality and limitations of third-party audits are factors that many brands and businesses cannot overlook. This article will explain in detail the structure and issues behind certification, as well as strategies for gaining trust.
What is a "third-party audit"? Its role and current situation
A third-party audit is a system in which an external, independent organization evaluates and verifies whether a company is operating fairly and transparently. In ethical certification (e.g., Fair Trade, GOTS, B Corp, etc.), the existence of this third-party audit is the pillar that supports the reliability of the certification system.
However, audits vary widely in format and quality, from on-site visits to document reviews and remote audits, and their frequency can vary from annual to once every few years.
POINT The reliability of a third-party audit depends largely on the independence of the auditing organization and the rigor of the audit methodology.
Three risks that are often overlooked when obtaining certification
While certification is used as proof of reliability, there are risks that are often overlooked in the process. The most common ones are listed below.
- 1. A hotbed of greenwashing <br> Cases where the fact that a company has passed an external audit is used for PR purposes without any substance to back it up.
- 2. Audit bias and cutting corners <br>On-site visits are often a mere formality, or preparations are made with advance notice, meaning that the actual situation cannot be accurately reflected.
- 3. Lack of transparency in the supply chain <br>Audits are limited to a few suppliers, without ensuring full transparency.
What is "trusted certification"? Indicators for determining the accuracy of third-party audits
When determining whether a certification is trustworthy, it is useful to check the following points:
- Certification body's track record and history
- Openness and detail of audit standards
- Does the company have a complaints system?
- External monitoring system
- Impact on all suppliers
POINTThe reliability of certification is determined by the "attitude of the certification organization" x "visibility of the inspection process."
Lack of preparation on the part of the brand leads to "post-acquisition headwinds"
Even if a company successfully obtains certification, there are cases where it loses credibility if the company does not operate properly after the certification is obtained. For example, the following situations may occur:
- Violation of guidelines for using certification logos
- Misleading product description (e.g. "100% ethical")
- Mistakes made due to lack of employee training
In particular, when working with advertising media such as Google AdSense, advertising may be restricted if the authentication display does not comply with the guidelines.
"Post-certification action strategies" that businesses should take
The following strategies are effective in ensuring that certification is not just a status, but leads to trust and increased sales.
- The background to the audit and the reasons for obtaining the certification are clearly stated in the brand story.
- Establish rules for the use of certification logos (e.g., creating internal manuals)
- Supervision of expressions on social media and in advertisements (taking into account laws and policies)
- Periodic disclosure of summaries of audit reports
- Consumer FAQ pages and video explanations
POINT It's not "the end once you get it" but "the real start is after you get it." The operation system and story design are the keys.
summary
The presence and quality of third-party audits in ethical certification directly impacts brand trust. Understanding the risks before and after certification and establishing a transparent and consistent system will pave the way to becoming a brand that is truly supported.