PROJECT - Social Audit

8/9/2019 PROJECT - Social Audit

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SOCIAL AUDIT(WITHSPECIALREFERENCETOLAHOTIOVERSEASLIMITED)

A Summer Project Report

Submitted ByV.SARANYA

(07PIT27)

IN PARTIAL FULFILLMENT OF THE REQURIEMENT FOR THEDEGREE OF

MASTER OF BUSINESS ADMINISTRATION

UNDER THE GUIDANCE OF

Mrs. P.CHITRAMANI M.B.A, M.Phil, Ph.D.,

DEPARTMENT OF MANAGEMENT STUDIES

AVINASHILINGAM SCHOOL OF MANAGEMENT AND

TECHNOLOGY

COIMBATORE-641 043

JUNE-2008


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CONTENT

CHAPTER NO TITLE PAGE NO

1

2

3

4

5

LIST OF TABELS

LIST OF CHARTS

SYNOPSIS

INTRODUCTION

TEXTILE INDUSTRY

LAHOTI OVERSEAS LIMITED

SOCIAL AUDIT

OBJECTIVE OF THE STUDY

LIMITATIONS OF THE STUDY

REVIEW OF LITERATURE

RESEARCH METHODOLOGY

ANALYSIS AND INTERPRETATION

FINDINGS AND SUGGESTIONSCONCLUSION

BIBLIOGRAPHY

ANNEXURE


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SYNOPSIS

The report is the outcome of the project entitled SOCIAL AUDIT.

It was conducted in the work place of Lahoti Overseas Limited, New

Tirupur. The study was conducted was a period of 45 days. The main

objective of this study is to know about the ongoing compliance audit in the

organisation and study about the job satisfaction, employees turnover and

better productivity.

The respondents were the shop floor employees of the organisation.

The sample consisted of 150 employees out of the total population. The data

for the study was primary and secondary in nature. Primary data was

collected from the respondent by means of a structured questionnaire.

As a result of the study, it was found that the employees were satisfied

with their job and all other facilities in the organisation. So there is a reduced

turnover in the company. All the workers are working with full involvement

so there is a higher productivity. The employees will be benefited if theyprovide canteen to the employees.


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INTRODUCTION

The project titled SOCIAL AUDIT was conducted in Lahothi

Overseas Limited with the objective to study about the ongoing compliance

audit in the organisation. This chapter includes the following topics:

y Textile Industry

y Lahoti Overseas Limited

y Social Audit

TEXTILE INDUSTRY

The textile industry is a group of related industries that uses a variety

of natural (cotton, wool, etc.) and/or synthetic fibres to produce fabric. It is a

significant contributor to many national economies, encompassing both

small and large-scale operations worldwide.

One of the earliest to come into existence in India, it comes for 14%

of the total industrial production, contribution to nearly 30% of the totalexports and is the second largest employment generator after agriculture.

The major sectors forming part of the textile industry includes the

organized cotton/manmade fiber textile mill industry, man-made

fiber/filament yarn industry, wollen textile industry, silk industry, handloom

industry, handicraft industry, jute industry, textile industry.

Its vast potential for creation of employments opportunities in the

agricultural, industrial organized and decentralized sectors and rural and

urban areas, particularly for women and the disadvantage is noteworthy.

Although the development of textile sector was earlier taking place, in

recognitions of the importance of this sector, for the first time a separate


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policy statement was made in 1985 in regard to development of textile

sector. The textile policy of 2000 aims at achieving the target of textile and

apparel exports of US $ 50 billion by 2010 of which the share of garments

will be US $ 25 billion. The main markets for Indian textile and apparels are

USA, UAE, UK, Germany, France, Italy, Russia, Canada, Bangladesh and

Japan.

The major trust areas identified were Enhancement of Productivity,

Quality Consciousness and Integrated Human Resource Development.

Government ensured to play a proactive role in promoting and facilitating

adoption of IT in the textile industry and trade. Export Promotion councils,

silk board and such organisation will be restructured to suit the present status

of industry and exports.

The textile industry holds significant status in India. It provides one of

the most fundamental necessities of the people. It is an independent industry,

from the basic requirement of raw material to the final products, with huge

value- addition at every stage of processing.

The textile industry is undergoing a major reorientation towards non-

clothing applications of textiles, known as technical textiles, which are

growing roughly at twice rate of textiles for clothing applications and now

account for more than half of total textile production. The processes

involved in producing technical textiles require expensive equipments and

skilled workers and are, for the moment, concentrated in developed

countries. Technical textiles have many applications including bed sheets;

filtration and abrasive materials; furniture and healthcare upholstery; thermal

protection and blood-absorbing materials; seatbelts; adhesive tape, and

multiple other specialized products and applications. The Indian Textile

industry has been undergoing a rapid transformation and is in the process of


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integrating with the world textile trade and industry. This change is being

driven by the progressive dismantling of the MFA and the imperative of the

recently signed General Agreement Trade & Tariff. In this bold, new

scenario, India has to move beyond its role of being a mere quota satisfying

country.

HISTORY OF TEXTILE

The history of textile is almost as old as that of human civilization

and as time moves on the history of textile has further enriched itself. In the

6th and 7th century BC, the oldest recorded indication of using fiber comes

with the invention of flax and wool fabric at the excavation of Swiss lake

inhabitants. In India the culture of silk was introduced in 400AD, while

spinning of cotton traces back to 3000BC. In China, the discovery and

consequent development of sericulture and spin silk methods got initiated

at 2640 BC while in Egypt the art of spinning linen and weaving developed

in 3400 BC.

The discovery of machines and their widespread application in

processing natural fibers was a direct outcome of the industrial revolution

of the 18th and 19th centuries. The discoveries of various synthetic fibers

like nylon created a wider market for textile products and gradually led to

the invention of new and improved sources of natural fiber. The

development of transportation and communication facilities facilitated the

path of transaction of localized skills and textile art among various

countries.


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CURRENT POSITION OF TEXTILE INDUSTRY IN INDIA:

Textile constitutes the single largest industry in India. The segment

of the industry during the year 2000-01 has been positive. The production

of cotton declined from 156 lakh bales in 1999-2000 to 1.40 lakh bales

during 2000-01. Production of man-made fibre increased from 835 million

kgs in 1999-2000 to 904 million kgs during the year 2000-01 registering a

growth of 8.26%. The production of spun yarn increased to 3160 million

kgs during 2000-01 from 3046 million kgs during 1999-2000 registering agrowth of 3.7%. The production of man-made filament yarn registered a

growth of 2.91% during the year 1999-2000 increasing from 894 million

kgs to 920 million kgs. The production of fabric registered a growth of

2.7% during the year 1999-2000 increasing from 39,208 million sq mtrs to

40,256 million sq mtrs. The production of mill sector declined by 2.6%

while production of handloom, power loom and hosiery sector increased by

2%, 2.7% and 5.1% respectively.

The exports of textiles and garments increased from Rs. 455048

million to Rs. 552424 million, registering a growth of 21%. Growth in the

textile industry in the year 2003-2004 was Rs. 1609 billion. And during

2004-05 production of fabrics touched a peak of 45,378 million square

meters. In the year 2005-06 up to November, production of fabricsregistered a further growth of 9 percent over the corresponding period of

the previous year.


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NATIONALTEXTILEINDUSTRY:

The national textile industry was incorporated in 1968 to manage the

affaires of nationalized sick private sector textile mills taken over by the

government under the Nationalization Acts(the sick textile undertakings)

1974. The Swedish cotton mills company limited (Acquisition and transfer

of undertakings) act 1986. The textile undertakings act 1995.

SEGMENTS:

Textile industry consists of the following segments:

o Readymade Garments

o Cotton Textiles including Handlooms (Mill made/ Power

Loom/ Handloom)

o Man-made Textiles.

o Silk Textiles

o Woolen Textiles.

o Handicrafts including Carpets.

o Coir.

o Jute.


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LAHOTI OVERSEAS LIMITED

LAHOTI OVERSEAS LIMITED is into manufacturing and

exporting of readymade textile garments to the Buyers of USA, UK and

other Foreign Countries. We are catering to the requirement of Global

Market by offering qualitative product at a competent price. We are

committed to offering the best product to the Global Market. We strongly

believe in practicing unique business strategies by following the laws of the

land. We provide conductive work environment, health, safety and welfare

measures to all the employees of our Organization.

Objectives and basic principles and philosophy of the Company

Hard work is the result of its growth and retention of customers

satisfaction. Transparency is prevalent in its every activity. Technology

updating is taking place without any iota of hesitation. This organisation is

totally dependent on human skills and hence employee development is very

essential. This is achieved through proper Training and Development.

There is no compromise in achieving technology change and client

satisfaction. Our Company will associate with business partners who follow

high standards on business ethics for producing qualitative garments.

Vision Statement

Our Aim is to become one of the most renowned readymade textile

garment manufacturing facility and to possess unique identity for its highest

standards of quality and highest level of productivity in order to sustain in

the global competition.


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Mission Statement

Our people are our strength. We plan to achieve the vision of our

Organisation by following corporate social responsibilities with best

management practices, for producing proper qualitative products and thus

making ours is the most preferred factory for our customers to place orders

comfortably with out any hesitations.

Organizational Chart and Functions of Various Departments.

ORGANIZATIONAL CHART

Merchandising

/ Sampling

Managing director

General Manager

Operations Quality Finishing HR/Administration/accounts/stores/EXIM/IT/maintenance/

MIS


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I) Merchandising

This department functions are as follows:

y Order Procurement

y Costing

y In house arrangement trims and other accessories.

y Coordinating Buyers till the order placements to shipment stage.

II) Sampling

This department prepares proto sample (Design Sample) / pre proto

sample / fit sample.

Once PP is passed factory will do sizes set that means 5 pieces per

size. After that it will be pilot run.

III) Operations

All aspects of manufacturing right, warehouse, line balancing,

execution of orders Cutting, Stitching, washing and all other aspects of

manufacturing.,

IV) Quality

In line Checking, End Line Checking and Final Checking of Garmentsthe Quality Standards are specified by the Buyers.


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V) Finishing

Finishing Department consists of Trimming, Checking, Ironing and

Packing of Garments as per the Buyers specifications.

VI) HR / Administration / Accounts / Stores / EXIM/ Maintenance /

MIS

Human Resources Department

y It deals with Management and Developing people at work.

y Taking care of employee requirement

Accounts Department functions are

y Generating Funds

y Proper Accounting of Income and Expenditure.

Stores:

y Takes care of material management

y Dealing with Logistic Functions

EXIM: -

y Import of required raw materials and machineries

y Export of Garments as per shipment schedule.

IT

y Information Technology will look into possible computerization work

in the Organisation.


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y Administration of Local Area Network

y Maintenance of all Systems provided in our Organisation.

Maintenance:-

y To maintain all type of machineries.

y To take care of all type utilities in the Factory such as Boiler, Genset,

Compressor, and Water Treatment Plant etc.

y To maintain all type electrical installation in the Factory.

y To oversee and to maintain project related civil works.

MIS (Management Information Systems)

It provides all required MIS to the Management such as

FUR - Fabric Utility Report

TUR Trims Utility Report

OCR Order Completion Report.

Recruitment Policy

It is the policy of LAHOTI OVERSEAS LIMITED

to provide equal opportunity for all qualified persons and not to discriminate

against any employee or applicant for employment because of race, color,

religion, age, national origin, disability, or any other protected status.

This policy applies to all employment decisions, including those in

connection with recruitment, promotion, transfer, training, compensation,

benefits, termination and all other details and conditions of employment.


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SOCIAL AUDIT:

Social audit is perhaps the most important component of factorys

business equation. A factorys business depends on it. It can either be a

passport to better business or can be a ticket to doom, depending on the

outcome. Factories can lose their orders if they fail in the audit. Buyers can

terminate business with the factory if grave violations are discovered during

monitoring. Therefore, factories must take compliance audits.

SOCIAL AUDIT CYCLE

Social auditing guides an organization's strategic directions.

It is a cyclical process that sets targets and benchmarks that

become embedded in the planning process.


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SCHEDULING OF AUDIT:

Most brands still conduct audit on a pre- announced date and the

factory is aware of the schedule. Very few brands have the policy of making

an unannounced visit for an audit. Even these brands usually indicate a

period within which the audit will take place unannounced. A known

schedule helps the factory to be prepared for the audit.

PAYMENT FOR AUDITS:

If the brand is sending its own employee auditors, the factory does not

need to pay for the audit. However, if the brand is sending the third party for

the audit, the factory is required to pay a fee to the auditing agency. This is

true in most cases, though there may be expectations. Currently, the audit fee

varies between $800 and $1500 per day. In addition the factory has to pay

for the travel and accommodation if the auditors are located in another city

or country. The factory is asked to pay the entire fee in advance.

THE AUDIT PROCESS:

Normally the auditor will first meet the factory management and

explain the code of conduct and the audit process. At this stage, the auditor

may remind you of all the documents they would like to see later in the day

so that you can gather all the records required. Meeting with the

management usually lasts an hour.


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After meeting the management, the auditor will tour the factory for

making observations. The auditor will go to all parts of the factory and take

notes. He may also pick up some names of workers at random for

confidential interviews.

After touring the factory, the auditor may decide to interview the

workers in a closed room or may wish to see all the documents/records.

Some auditors like to examine the records first and then interview the

workers.

After completing the factory observation, document examination and

workers interview, the auditor would meet the management again to

conclude the audit. In this meeting, the auditor may seek more clarifications

from the factory management. Normally, the auditor will share his/her

findings in the end and give a copy of the audit report. In some cases, the

auditor may give only an interim copy and the final report may follow later

with more details.

THE AUDIT REPORT:

The audit report is usually structured along the code of conduct standards.

There can be four possible audit results:

1)No violation found(It is rare unless the factory has taken professional

help to prepare the audit)

2) Major violation found (The factory will be asked to carry out a

corrective action plan and a re-audit will be conducted).


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3) Minor violation found (The factory will be asked to carry out a

corrective action plan, though the approval may be granted without

waiting for a re-audit).

4) Extreme violation found (The factory is rejected. Will not be

considered further).

The audit report states specific violations observed and the corrective

action required. If no violation is found, then the audit report will state that.

The report may also indicate good practices the auditor noticed.

In case of violations, the factory is usually asked for a correctiveaction plan and a follow-up audit is conducted. A follow-up audit is carried

out when the factory confirms that all corrective actions have been taken.

LETTER OF APPROVAL:

When the factory is approved, the brand will issue an approval letter

after which the factory can receive orders or start production. The factory

must not start production until the approval letter is received.

It may be noted that the final approval may be tied up with the

technical approval. It means the final approval is issued only when the

factory passes the technical audit for quality and product safety. Technical

audits are usually conducted by the quality assurance team and are

independent of the code of conduct audit.


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ONGOING MONITORING:

Once the factory is approved, ongoing monitoring begins. However,

only reputed brands have proper ongoing monitoring programs. Under

ongoing monitoring, the code of conduct monitors from the brand visit the

factory periodically. The frequency of visit varies from brand to brand.

COMPLIANCE DECISIONS:

Based on the outcome of audits, the company needs to make prompt

business decisions, including termination of non-compliant factories,

suspension of orders or issuing warnings. Factories can lose order if they fail

in audit.

Key Focus Areas of compliance audit: Child Labor

Health & Safety

Working Hours

Discrimination

Disciplinary Practices

Remuneration

Freedom of Association and Right of Collective Bargaining

Forced Labor

Security

Management Systems


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The certificates provided are:

WRAP (world wide responsible apparel production)

SA 8000(social accountability 8000)

FLA (Fair labour association)

ETI (ethical training initiative)

ICS (initial clause social)

CT-PAT (custom trade partnership against terrorism)

Approval of one factory does not automatically extend the permission to

produce in the remaining factories even if they belong to the same

companies. Production in an unapproved factory may be rendered illegal

and goods may be rejected.


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OBJECTIVE OF THE STUDY

PRIMARY OBJECTIVE:

y It is to study about the current ongoing compliance audit in the

organization.

SECONDARY OBJECTIVE:

y It is to find the employees job satisfaction, reduced turnover and betterproductivity.


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LIMITATIONS OF THE STUDY

The study is restricted only to Lahothi Overseas Limited.

Due to time constraint only 150 samples was selected for this study.

The opinion given by the respondent has the chance of being biased.


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REVIEW OF LITERATURE

An audit of a specialized welfarerights advocacy service is a part of

social work provision, a large workload including frequentcomplex cases

and achievement of benefits and grants for patients,careers and families

substantially in excess of the cost of theservice.

Jean Levy and Malcolm Payne

Social systems which survive in the long term only through being

alive to feedback concerning both their internal (sub system) and external

(super system) environments. The Social Audit process helps organizations

achieve that clarity of purpose and efficiency of procedure.

George Clark

Social accounting and auditing are critical processes for improving the

work of social enterprise. It releases the same scale of changes as was

achieved by a combination of the Joint Stock Company and financial audits.

Jeremy Nicholls

It will probably already be undertaking activities that demonstrate

their social, environmental and economic responsibility.

John Sabapathy


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The more we trust people, the less we require them to prove they are

trust worthy. It is all about Creating Trust

Andrew Robinson

It is a tool which enables them to measure objectively their social and

economic impacts and demonstrate the depth of their productivity, drive,

dynamism and entrepreneurialism in contributing to the local community

and the wider economy.

Stephen Timms

It represent a less ambitious, but hopefully more productive, attempt

to pose questions and provide answers to reveal the true impact of

organizations on the environment and communities in which they operate.

John Pearce

It has helped us measure our impacts and assess to extend to which

our values have been embraced by our staff.

Alison Ball

The ability of an enterprise to demonstrate its impact and added

value must be the key to winning contracts

Kim Griffiths-Parry


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It is a framework which builds on the existing reporting, compliance

and quality standards organisation. It considers objectives and strategy

engage with stakeholders and account for impacts.

Hetan Shah

Social auditing is a process that enables an organisation to assess and

demonstrate its social, economic, and environmental benefits and

limitations. It is a way of measuring the extent to which an organisation lives

up to the shared values and objectives it has committed itself to. It provides

an assessment of the impact of an organizations non-financial objectives

through systematically and regularly monitoring its performance and the

views of its stakeholders. It requires the involvement of stakeholders. This

may include employees, clients, volunteers, founders, contractors, suppliers

and local residents interested in the organisation. Stakeholders are defined asthose persons or organizations who have an interest in, or who have invested

resources in, the organisation. Social audits are generated by the

organisation themselves and those directly involved. A person or panel of

people external to the organisation undertakes verification of the social

audit's accuracy and objectivity.

Graham Boyd


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RESEARCH METHODOLOGY

INTRODUCTION:

Research methodology is the way to systematically solve the research

problem. It may be understood as a science of studying how research is done

scientifically. In it we study various steps that are generally adopted by a

researcher in studying this problem. It is necessary for the researcher to

know not only the research methods/ techniques but also the methodology.

DATA COLLECTION:

The data collected for the present study constitutes both primary and

secondary data. The data was collected from the employees with the help of

questionnaire which formed the source of primary data. The various records,

magazines; personal data were the main source of secondary data.

(I) PRIMARY DATA:

The primary data are those which collected afresh

and for the first time, and thus happened to be original character.

Questionnaire method

* Schedule questionnaire

Observation method

(II) SECONDARY DATA:

The secondary data means data that are already available. i.e. they

refer to the data which have already been collected and analyzed by

someone else and which have already been passed through the statistical

process. The information about the company and its type were collected

from the organizations records.


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Journal

Books

Websites

RESEARCH DESIGN:

The research designed for the purpose of the study undertaken is of

descriptive type. The major emphasis of the study is to know the current

ongoing compliance audit in the company.

SAMPLING UNIT:

The sampling units selected for the survey were the shop floor

employees of Lahoti Overseas Limited. The over all population of the

employee in the company is 228 and the technique used to collect the data is

the simple random sampling technique.

SAMPLE SIZE:

The size refers to the number of items or the units to be selected from

the population or the universe to constitute a sample. The sample size must

not be too large or too small it should be optimum. An optimum sample is

that meets the respondents efficiency, representatives, flexibility and

reliability. The sample size includes 150 respondents of the company.

TOOLS FOR ANALYSIS:

The data analyzed through simple percentage method. The analyzed

data presented through tables and charts. The formula used for simple

percentage method is,

Number of Respondent

Simple Percentage = *100

. Total Number Of Respondent


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ANALYSIS AND INTERPRETATION

The primary date collected from the employees of

Lahoti Overseas Limited through the structured questionnaire are analyzed

and interpreted as follows.

TABEL SHOWING THE NUMBER OF CHILD LABOUR WORKING IN

THE ORGANISATION

FACTOR NO. OF RESPONDENT PERCENTAGE

YES 0 0%

NO 150 1

TOTAL 150 100

INTERPRETATION:

From the above table it is revealed that 100% of the employees agree

that there is no child labour in the organisation.


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CHART SHOWING THE NUMBER OF CHILD LABOUR WORKING IN

THE ORGANISATION

CHILD LABOUR

0%

100%

YES

NO


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TABEL SHOWING THE DOCUMENTATION PROVIDED WITHREGARD TO AGE VERIFICATION


AGE PROOF CERTIFICATE 78 52%

PASSPORT 0 0%

ELECTION CARD 0 0%

BIRTH CERTIFICATE 70 47%

EDUCATION CERTIFICATE 2 1%

TOTAL 150 100

INTERPRETATION:

From the above table it is revealed that 52% of the employees gave

age proof certificate and 47% of the employees produced birth certificate

and 1% of the employees gave education certificate to prove their age.


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CHART SHOWING THE DOCUMENTATION PROVIDED WITH

REGARD TO AGE VERIFICATION

AGE VERIFICATI N D CUMENTS

52%

0%0%

47%

1%

AGE PR

F CERTIFICATE

PASSP

RT

ELECTI

N CARD

BIRTH CERTIFICATE

EDUCATI

N CERTIFICATE


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TABEL SHOWING THE DISCRIMINATION IN THE ORGANISATION


RECRUITMENT 4 3%

SALARY 0 0%

RETIREMENT 0 0%

PROMOTION 0 0%

NONE OF THE ABOVE 146 97%

TOTAL 150 100

INTERPRETATION:

From the above table it is revealed that 3% of the employees are

discriminated in recruitment and 97% of the employees say that there is no

discrimination in the organisation.


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CHARTSHOWING THE DISCRIMINATION IN THE ORGANISATION

DISCRIMINATION

3%

0%

0%

0%

97%

RECRUITMENT

SALARY

RETIREMENT

PROMOTION

NONE OF THE ABOVE


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TABEL SHOWING THE RESPECT AND DIGNITY OF THE WORKERS


YES 132 88%

NO 8

TOTAL 150 100

INTERPRETATION:

From the above table it is revealed that 88% of the employees say that

they are treated with respect and dignity and 12% of the employees say they

are not treated with respect and dignity.


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CHART SHOWING THE RESPECT AND DIGNITY OF THE WORKERS

RR P C AND DI NI Y

94%

6%YES

NO


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TABEL SHOWING THE VARIATION IN SALARY BETWEEN MALE AND

FEMALE


YES 9 6%

NO 141

TOTAL 150 100

INTERPRETATION:

From the above table it is revealed that 6% of the employees say there

is a variation in salary between male and female for the same work done and

94% of the employee says that there is no variation in salary between male

and female.


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CHART SHOWING THE VARIATION IN SALARY BETWEEN MALE AND

FEMALE

VARIA ION IN ALARY

6%

94%

YES

NO


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TABEL SHOWING THE PROBLEMS WITH REGARD TO SEXUAL

HARASSEMENT OR PSYCOLOGICAL ABUSE


YES 0 0%

NO 150

TOTAL 150 100

INTERPRETATION:

From the above table it is revealed that 100% of the employees say

that there is no problem with regard to sexual harassments or psychological

abuse.


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CHART SHOWING THE PROBLEMS WITH REGARD TO SEXUAL

HARASSEMENT OR PSYCOLOGICAL ABUSE

SEXUAL HARASSEMEN OR PSYCOLO ICAL

ABUSE

0% 100%

YES

NO


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TABEL SHOWING THE FREEDOM TO LEAVE THE JOB AFTER GIVING THE

REASONABLE NOTICE


YES 144 96%

NO 6

TOTAL 150 100

INTERPRETATION:


there is a freedom to leave the job after giving reasonable notice and 4% of

the employees say there is no freedom to leave the job after giving

reasonable notice.


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CHART SHOWING THE FREEDOM TO LEAVE THE JOB AFTER GIVING THE

REASONABLE NOTICE

FREEDOM O LEAVE HE JOB

96%

4%

YES

NO


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TABEL SHOWING THE HOW MANY EMPLOYEES WORKING VOLUNTARILY

IN THE ORGANISATION


YES 137 91%

NO 13

TOTAL 150 100

INTERPRETATION:


they are working voluntarily in the organisation and 9% of the employees

say they are not working voluntarily in the organisation.


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CHART SHOWING THE HOW MANY EMPLOYEES WORKING VOLUNTARILY

IN THE ORGANISATION

WORKING VOLUNTARILY IN THE ORGANISATION

91%

9%

YES

NO


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TABEL SHOWING THE ORIGINAL DOCUMENTS PROVIDED BEFORE JOINING

THE JOB


PASSPORT 0 0%

EDUCATIONALCERTIFICATE 0 0%

BIRTH CERTIFICATE 0 0%

NATIONAL ID CARDS 0 0%

NONE OF THE ABOVE 150 100%

TOTAL 150 100

INTERPRETATION:


that they did not provide any original documents before joining in this job.


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CHART SHOWING THE ORIGINAL DOCUMENTS PROVIDED BEFORE JOINING

THE JOB

O I I O

0%

0%

0%

0%

100%

P PO

A IO ALC RTI ICAT

BIRTHC RTI ICAT

NATIONAL I CARD

NON O TH ABOV


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TABEL SHOWING THE DEPOSITES PROVIDED BY THE EMPLOYEE TO JOIN

THE JOB


YES 0 0%

NO 150

TOTAL 150 100

INTERPRETATION:


that they dint give any deposits to join in this job.


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CHART SHOWING THE DEPOSITES PROVIDED BY THE EMPLOYEE TO JOIN

THE JOB

DEPOSI ES

0%

100%

YES

NO


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TABEL SHOWING THE EMPLOYEES FORCED TO DO THE JOB BY THEEMPLOYER


YES 4 3%

NO 146

TOTAL 150 100

INTERPRETATION:

From the above table it is revealed that 3% of the employees forced to

do the job by the employer and 97% of the employees are not forced to do

the job by the employer.


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CHART SHOWING THE EMPLOYEES FORCED TO DO THE JOB BY THEEMPLOYER

FORCED O DO HE JOB

3%

97%

YES

NO


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TABEL SHOWING THE EMPLOYEE FORCED TO STAY IN THE ORGANISATION

FACTOR NO. OF RESPONDENT PERCENTAGEYES 8 5%

NO 142

TOTAL 150 100

INTERPRETATION:

From the above table it is revealed that 5% of the employees say theyare forced to stay in the organisation and 95% of the employees say they are

not forced to stay in the organisation.


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CHART SHOWING THE EMPLOYEE FORCED TO STAY IN THEORGANISATION

FORCED O STAY IN THE OR ANISATION

5%

95%

YES

NO


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TABEL SHOWING THE ACCESS TO USE TOILETS AND DRINKING WATER AT

ANY TIME


YES 141 94%

NO 9

TOTAL 150 100

INTERPRETATION:


they are free to access to use toilets and drinking water at any time and 6%

of the employees say there is no freedom to use toilets and drinking water at

any time.


52/112

CHART SHOWING THE ACCESS TO USE TOILETS AND DRINKING WATER ATANY TIME

ACCESS O USE OILE S ANDDRINKIN WA ER

94%

6%

YES

N


53/112

TABEL SHOWING THE LABOUR UNION IN THE ORGANISATION


YES 0 0%

NO 150

TOTAL 150 100

INTERPRETATION:


there is no labour union in the organisation. They have the employee

committee and the representative is Mr. Arockya Dass.


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CHART SHOWING THE LABOUR UNION IN THE ORGANISATION

L BOURUNION

0%

100%

YES

N


55/112

TABEL SHOWING THE RIGHT TO GIVE COMPLAINT TO THE SENIORMANAGEMENT


NO 17

TOTAL 150 100

INTERPRETATION:

From the above table it is revealed that 89% of the employees have

the right to give compliant to the senior management and 11% of the

employees say there is no right to give compliant to the senior management


56/112

CHART SHOWING THE RIGHT TO GIVE COMPLAINT TO THE SENIORMANAGEMENT

RI HTTO IVE COMPLIANT

89%

11%

YES

NO


57/112

TABEL SHOWING THE SOLUTIONS GIVEN BY THE MANAGEMENT FOR THECOMPLIANTS MADE


YES 139 93%

NO 11

TOTAL 150 100

INTERPRETATION:

From the above table it is revealed 93% of the employees say that the

management is giving solutions for the complaints made and 7% of the

employees say that the organisation is not giving solutions for the

complaints made.


58/112

CHART SHOWING THE SOLUTIONS GIVEN BY THE MANAGEMENT FOR THE

COMPLIANTS MADE

SOLUTIONS FOR THE COMPLIANTS MADE

93%

7%

YES

NO


59/112

TABEL SHOWING THE RIGHT TO GIVE OPINIONS AND SUGGESTIONS BYTHE EMPLOYEES

FACTOR NO. OF RESPONDENT PERCENTAGEALWAYS 12 8%

SOMETIMES 119 80%

RARELY 11 7%

NEVER 8

TOTAL 150 100

INTERPRETATION:


they give opinions and suggestion always and 80% of the employees say that

they give opinions and suggestion sometimes and 7% the employees say that

they give opinions and suggestion rarely and 5% the employees say that they

never give opinions and suggestion with regard to their job.


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CHART SHOWING THE RIGHT TO GIVE OPINIONS AND SUGGESTIONS BY

THE EMPLOYEES

OPINION AND SU ESTION

8%

80%

7%5%

LW

YS

SOMETIMES

R

RELY

NE

ER


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TABEL SHOWING THE SATISFACTION OF THE SALARY


HIGHLY SATISFIED 137 91%

SATISFIED 9 6%

NEUTRAL 0

DISSATIAFIED 3 2%

HIGHLY DISSATISFIED 1 1%

TOTAL 150 100

INTERPRETATION:


highly satisfied with their salary and 6% of the employees are satisfied with

their salary and 2% of the employees are dissatisfied and 1% of the

employees are highly dissatisfied with their salary.


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CHART SHOWING THE SATISFACTION OF THE SALARY

S ISF C ION OF HE S L R

91%

%

0%

2%

1%

HIGHLYATI

FIED

ATI

FIED

NEUTRAL

DI

ATI

FIED

HIGHLYDI ATI FIED


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TABEL SHOWING THE METHOD OF PAYMENT OF SALARY


BY CASH 150 100%

BY CHEQUE 0 0%

DIRECT TO BANK 0 0%

TOTAL 150 100

INTERPRETATION:

From the above table it is revealed that 100% of the employees agree

that the salary is given by cash.


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CHART SHOWING THE METHOD OF PAYMENT OF SALARY

MODE OF PAYMENT OF WA ES

100%

0%

0%

Y C

SH

Y CHEQUE

DIRECT TO

NK


65/112

TABEL SHOWING WHETHER THE WAGE SLIP IS PROVIDED


NO 0

TOTAL 150 100

INTERPRETATION:


that the organisation is giving wage slip.


66/112

CHART SHOWING WHETHER THE WAGE SLIP IS PROVIDED

WA ESLIP

100%

0%

YES

NO


67/112

TABEL SHOWING THE WORKING OF OVERTIME

FACTOR NO. OF RESPONDENT PERCENTAGEALWAYS 11 7%

SOMETIMES 113 77%

RARELY 17 12%

NEVER 9

TOTAL 150 100

INTERPRETATION:


they work in overtime always and 77% of the employees say that they work

in overtime sometimes and 12% the employees say that they work in

overtime rarely and 6% the employees say that they never work in overtime.


68/112

CHART SHOWING THE WORKING OF OVERTIME

OVERTIME

7%

76%

11%6%

LW

YS

SOMETIMES

R

RELY

NE

ER


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TABEL SHOWING THE RIGHT TO REFUSE THE OVERTIME WORK


YES 139 93%

NO 11

TOTAL 150 100

INTERPRETATION:


they have the right to refuse the overtime work and 7% of the employees say

that they have no right to refuse the overtime work.


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CHART SHOWING THE RIGHT TO REFUSE THE OVERTIME WORK

RI HTTO REFUSETHE OVERTIME

93%

7%

YES

NO


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TABEL SHOWING THE OPPORTUNITY TO WORK OVERTIME


YES 127 85%

NO 23

TOTAL150 100

INTERPRETATION:

From the above table it is revealed that 85% of the employees have

the opportunity to work in overtime and 15% of the employees are not

having the opportunity.


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CHART SHOWING THE OPPORTUNITY TO WORK OVERTIME

OPPORTUNITY FOR OVERTI E

85%

15%

YES

NO


73/112

TABEL SHOWING THE DICIPLINAREY ACTION RECENTLY MADE IN THE

ORGANISATION


YES 0 0%

NO 150

TOTAL 150 100

INTERPRETATION:


that there is no disciplinary action taken recently in the organisation.


74/112

CHART SHOWING THE DICIPLINAREY ACTION RECENTLY MADE IN THEORGANISATION

DISCIPLIN RY CTION

0%

100%

YES

NO


75/112

TABEL SHOWING THE REPRESENTATIVE RESPONSIBLE FOR HEALTH ANDSAFETY


YES 150 100%

NO 0

TOTAL 150 100

INTERPRETATION:


that there is a representative responsible for health and safety and her name

is Ms. Lavanya.


76/112

CHART SHOWING THE REPRESENTATIVE RESPONSIBLE FOR HEALTH ANDSAFETY

REPRESENTATIVE RESPONSIBLE FOR HEALTH AND

SAFETY

100%

0%

YESNO


77/112

TABEL SHOWING THE SEPARATE REST ROOMS FOR MALE AND FEMALE


NO 0

TOTAL 150 100

INTERPRETATION:

From the above table it is revealed that 100% of the employees saythat there is a separate rest room for male and female.


78/112

CHART SHOWING THE SEPARATE REST ROOMS FOR MALE AND FEMALE

SEPA=ERATE REST ROO FOR ALEAND FEMALE

100%

0%

YES

NO


79/112

TABEL SHOWING WHETHER THE COMPANY IS PROVIDING CLEANDRINKING WATER


YES 143 95%

NO 7

TOTAL 150 100

INTERPRETATION:


the organisation is providing clean drinking water and 5% of the employees

say there in no clean drinking water provided in the organisation.


80/112

CHART SHOWING WHETHER THE COMPANY IS PROVIDING CLEANDRINKING WATER

CLEAN DRINKIN WATER

95%

5%

YES

NO


81/112

TABEL SHOWING THE CANTEEN FACILITY


YES 0 0%

NO 150

TOTAL 150 100

INTERPRETATION:


that there is no canteen facility in the organisation. Instead of this the

organisation is providing a tea man for the employees.


82/112

CHART SHOWING THE CANTEEN FACILITY

CANT N ACI ITY

0%

100%

YES

NO


83/112

TABEL SHOWING THE SEPARATE LATRINES AND URINALS FOR MALE ANDFEMALE


NO 0

TOTAL 150 100

INTERPRETATION:


that there are a separate latrines and urinals for male and female in the

organisation. For male 9 latrines and 1 bathroom and for female 7 latrines

and 1 bathroom provided.


84/112

CHART SHOWING THE SEPARATE LATRINES AND URINALS FOR MALE ANDFEMALE

SEPARA E LA RINES ANDURINALS

100%

0%

YES

N!


85/112

TABEL SHOWING THE FIRST AID BOX FACILITY


YES 150 100%

NO 0

TOTAL 150 100

INTERPRETATION:


that there is a first aid box in the organisation and 5 male and 5 female are

trained in that.


86/112

CHARTSHOWING THE FIRST AID BOX FACILITY

FIRSTAID BOX FACILITY

100%

0%

YES

NO


87/112

TABEL SHOWING THE FACILITY OF WARNING ALARMS, SMOKEDETECTORS ETC.


YES 150 100%

NO 0

TOTAL 150 100

INTERPRETATION:


that there is a facility of warning alarms, smoke detectors in the

organisation.


88/112

CHART SHOWING THE FACILITY OF WARNING ALARMS, SMOKEDETECTORS ETC

FACILITY OF SMOKE DETECTOR ETC

100%

0%

YES

NO


89/112

TABEL SHOWING WHETHER THE EMPLOYEES ARE TRAINED FOR THE FIREFIGHTING PROCEDURE


YES 146 97%

NO 4

TOTAL 150 100

INTERPRETATION:

From the above table it is revealed that 97% of the employees say thatthere were trained for the fire fighting procedure and 3% of the employees

say that they are not trained for the fire fighting procedure.


90/112

CHART SHOWING WHETHER THE EMPLOYEES ARE TRAINED FOR THE FIREFIGHTING PROCEDURE

FIRE FIGH ING PROCEDURE

97%

3%

YES

N"


91/112

TABEL SHOWING WHETHER THE ORGANISATION FACES ANY FIREACCIDENT RECENTLY


YES 0 0%

NO 150

TOTAL 150 100

INTERPRETATION:


that the organisation did not face any fire accident recently.


92/112

CHART SHOWING WHETHER THE ORGANISATION FACES ANY FIRE

ACCIDENT RECENTLY

FIREACCIDENT RECENTLY

0%

100%

YES

NO


93/112

TABEL SHOWING THE DORMITORY FACILITY IN THE ORGANISATION


YES 0 0%

NO 150

TOTAL 150 100

INTERPRETATION:


that there is no dormitory facility in the organisation.


94/112

CHART SHOWING THE DORMITORY FACILITY IN THE ORGANISATION

DORMITORY FACILITY

0%

100%

YES

NO


95/112

TABEL SHOWING WHETHER THE EMPLOYEES ARE HAVING IDEA TO QUITTHE JOB


NO 147

TOTAL 150 100

INTERPRETATION:


they are having idea to quit the job and 98% of the employees say that they

dont have any idea to leave the job.


96/112

CHART SHOWING WHETHER THE EMPLOYEES ARE HAVING IDEA TO QUITTHE JOB

IDEATO QUITTHE JOB

2%

98%

YES

NO


97/112

TABEL SHOWING THE SATISFACTION OF THE JOB


HIGHLY SATISFIED 133 89%

SATISFIED 13 9%

NEUTRAL 0

DISSATIAFIED 2 1%

HIGHLY DISSATISFIED 2 1%

TOTAL 150 100

INTERPRETATION:


highly satisfied with their job and 9% of the employees are satisfied with

their job and 2% of the employees are dissatisfied and 1% of the employees

are highly dissatisfied with their job.


98/112

CHART SHOWING THE SATISFACTION OF THE JOB

SATISFACTI N F

89%

9%

0%

1%

1%

HI HLYSATISFIED

SATISFIED

NEUT AL

DISSATISFIED

HI HLYDISSATISFIED


99/112

TABEL SHOWING WHETHER THE EMPLOYEES ARE WORKING WITH FULLINVOLVEMENT


YES 141 94%

NO 9

TOTAL 150 100

INTERPRETATION:


they working with full involvement and 6% of the employees say that they

are not working with full involvement.


100/112

CHART SHOWING WHETHER THE EMPLOYEES ARE WORKING WITH FULLINVOLVEMENT

FULL INVOLVEMENT

94%

6%

YES

NO


101/112

TABEL SHOWING WHETHER THE EMPLOYEE IS MOTIVATED BY THEORGANISATION


YES 128 85%

NO 22

TOTAL 150 100

IF YES, IN WHAT ASPECT


APPRECIATION 6 5%

INCENTIVE 65 51%

PROMOTION 0 0%

ATTENDENCE BONUS 57 44%

TOTAL 150 100

INTERPRETATION:


motivated in the organisation with that 5% are motivated through

appreciation and 51% of the employees are motivated by incentives and 44%

of the employees are motivated by attendance bonus and 15% of the

employees say that they are not motivated in the organisation.


102/112

CHART SHOWING WHETHER THE EMPLOYEE IS MOTIVATED BY THE

ORGANISATION

CHART SHOWING THE MOTIVATION FACTORS IN THE ORGANISATION

MO IVA ION

85%

15%

YES

N#

MOTIVATION FACTOR

5%

50%

0%

45%APPRECIATI

#

N

INCENTI$

E

PR#

M#

TI#

N

ATTENDANCE% #

NUS


103/112

FINDINGS

The primary data analyzed and interpreted helps the researcher in

finding the fact from the employees.

Majority of the employees working in the organisation belong to

the age group between 25 and 35.

It is clear that there is no child labor in the organisation.

52% of the employees provides age proof certificate in order to

prove their age.

97% of the employees say there is no discrimination in

recruitment, promotion, salary etc

88% of the employees say that they are treated with respect and

dignity in the organisation.

94% of the employees agree that there is no variation in the salary

between male and female for the same work done.

100% of the employees say that there are no problems with regard

to sexual harassment or psychological abuse.

96% of the employees say there is a freedom to leave the job after

giving reasonable notice.

91% of employees are working voluntarily in the organisation.

100% of the employees say that they dint provide any original

document before joining in this organisation.

97% of the employees say that they are not forced to do the job in

the organisation.


104/112

95% of the employees say that they are not forced to stay in the

organisation.

There is no labour union in the organisation. An employee

committee was represented by Mr. Arockya Dass.

80% of the employees give opinion and suggestions with regard to

their job.

91% of the employees are highly satisfied with their salary.

Wages are given by cash and wage slip is provided to each

employees.

77% of the employees are working in overtime. 85% of the

employees have the opportunity to work in overtime.

93% of the employees have the right to refuse overtime work.

There is a separate rest room for male and female.

Ms.Lavanya is responsible for health and safety measures.

Mostly salary is given in first Saturday of a month. Only ESI and

PF are deducted in the wages.

Overtime wage is double the wage amount.

97% of the employees are trained in fire fighting procedures.

There is no dormitory facility in the organisation.

98% of the employees are not willing to quit the job.

94% of the employees are working in full involvement so that

there is a better productivity in the organisation.

85% of the employees are motivated by attendance bonus.

SUGGESTIONS


105/112

Few employees say that they are not treated with respect and dignity

in the organisation. So all the employees should be treated well.

Opinions and suggestions given by the employees should be

welcomed by the employers.

Few employees fell that they are not motivated in the organisation. So

the organisation should motivate each and every one.

Employees will be benefited if the organisation provides dormitory

facility.

Canteen facility can be implemented in the organisation.


106/112

CONCLUSION

It has become a common practice to handle the compliance audit

function through the personnel or HR department. Personnel or HR

department is given a direct responsibility for ensuring compliance. Though

the compliance manager needs to work closely with the HR and other

departments, he/she should ideally report directly to the top management.

Their role should not stop at just getting the factory passed on the

audit day. It should include making the factory competitive in terms of code

of conduct compliance.

The research work has attained the results which were aimed for. The

response from the employees helped the researcher to attain the result.


107/112

QUESTIONNAIRE (TO THE WORKERS)

Dear worker,I am conducting a study on social compliance. So kindly spend some minutes to fill this

questionnaire.

PERSONAL IDENTIFICATION:

Name

Age ..

Gender Male Female

Qualification.

Department ..

1) Are there workers in this factory younger than 15 years of age?

Yes No

2) What documentation do you provide with regard to age verification?

Age proof certificate Doctor Certificate

Education certificate Birth Certificate

Passport Election Card

3) Is there any discrimination in

Recruitment Salary

Employment Retirement

Promotion None of the above

4) Does the organisation treat all workers with respect and dignity?

Yes No


108/112

5) Is there any variation in salary with regard to male and female for the same workdone?

Yes No

If yes, specify.

6) Did you face any problems with regard to sexual harassment or psychologicalabuse?

Yes No

If yes, did the organisation take corrective action to that person?

Yes No

7)

Do you have freedom to leave the job after giving reasonable notice?

Yes No

8) Are you working voluntarily in this organisation?Yes No

9) Did you provide any of the following documents before joining in thisorganisation?

Passport (original)

Educational certificate (original)

Birth certificate (original)

National ID cards (original)

None of the above

10) Did u give any deposits for joining the job?

Yes No

11) Are you forced to do the job by the employer?

Yes No

12) Are you forced to stay in his organisation?


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Yes No13) Do you have access to use toilets and drinking water at any time?

Yes No

14) Is there a Labour union in the organisation?

Yes No

If no, what types of committee and name the representative do u have

15) Do all the workers have the right to give complaints to the senior management?

Yes No

16) Does the management try to give solutions for the complaints you made?

Yes No

If yes, what is the recent compliant that you havemade.

17) Do the employees have the right to give opinions and suggestions with regard to thework?

Always Sometimes Rarely Never

18) What is your working time?

..a.m TO p.m

Lunch hours

Tea break..

19) What is your salary.?

20) Are you satisfied with your salary?

Highly Satisfied Not decided

Satisfied Dissatisfied highly dissatisfied

21) Method of payment?


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By cash

By cheque

Direct to bank

22) Are you provided with wage slip?

Yes No

23) When the salary is given?

24) What are the deductions made in your wages?

25) Do you work in overtime?

Always Sometimes Rarely Never

26) What is the overtime hour per week.?

27) What is the overtime wage per week.?

28) Do the workers have the right to refuse overtime?

Yes No

29) Do all employees have the equal opportunity to work overtime?

Always Sometimes Frequently Never

30) Is there any disciplinary action recently made in you organisation?

Yes NoIf yes, specify

31) Is there a representative responsible for health and safety of all personnel in theorganization?

Yes No

If yes, name the person


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32) Do you have separate rest rooms for male and female?

Yes No

33) Are you provided with clean drinking water?

Yes No

34) What is the safety measures provided to you with regard to the job?

35) Do you have canteen facility?

Yes No

If no, do you have any other facility (specify)..

36) Is there separate latrines and urinals for male and female?

Yes No

37) Is there first aid kit in your organisation?

Yes No

38) How many people are trained in first aid?

Male ________ Female__________

39) Is there any warning alarms, smoke detectors etc system in case of an emergency?

Yes No

40) Are the employees trained for the fire fighting procedures?

Yes No

41) Does the organisation face any fire accident recently?

Yes No

If yes, when

42) Do you have dormitories facilities in the organisation?


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Yes No

If yes specify....43) Do you have an idea to quit the job?

Yes No

If yes, specify thereason

44) Are you satisfied with your job?

Highly Satisfied Not decided

Satisfied Dissatisfied highly dissatisfied

45) Are you working with full involvement?

Yes No

46) Are you motivated by the superiors in the organization to improve your standards?

Yes No

If yes, in what aspect

Appreciation

Incentive

PROJECT - Social Audit

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Transcript of PROJECT - Social Audit