Fostering compliance – corrective actions after an IWAY Audit
One of the main goals of an IWAY audit is to support IKEA suppliers in improving their performance and meeting the requirements. After identifying any potential issues during an audit, the steps involve setting a follow up plan with the supplier to implement corrective actions. We met Muzadded Haye, Sustainability Specialist at IKEA and Stefano Bizioli Galli, Sustainability Compliance Auditor at IKEA, to shed light on what happens after an IWAY audit.
Muzadded was born in Bangladesh but spent his childhood in the Middle East because of his family's work. "We lived in three different countries: Egypt, UAE, and Saudi Arabia. In the late 90s, we returned to Bangladesh. I studied marketing and international business, graduating in 2010. Interestingly, this region had no formal education on sustainability or compliance back then. Pursuing jobs in banks or advertising agencies was more common. However, I took a different path. I joined a multinational retailer in Bangladesh as a compliance executive. It was there that I first learned about sustainability and compliance in-depth," says Muzadded.
Supporting implementation of sustainable practices
In his early career, he focused on social sustainability projects. This experience opened his eyes to the various aspects of sustainability beyond conventional career paths. In 2014, he joined IKEA as a sustainability developer in Bangladesh. "At IKEA, my role primarily involved supporting the implementation of sustainable practices at our suppliers in Bangladesh and conducting audits in India and Pakistan. In 2018, alongside my auditor role, I also became a global IWAY trainer, which was a rewarding experience."
Some situations may require additional on-site visits.
Muzadded Haye, Sustainability and Quality Specialist at IKEA
In 2020 he moved to Pakistan, still as a sustainability compliance auditor with a solid background in the environmental and social requirements for a better business that cares for people and the planet. Recently, after completing an IWAY audit with an IKEA supplier in Pakistan to ensure it meets the required ten IWAY principles, the findings revealed a need for proper system for working hours registration. Muzadded promptly shared the results with the supplier, initiating a collaborative effort to correct the identified issues.
"Although it was not a systematic failure, I marked it non-compliant because a functioning system is always necessary. Once I identified the issue and evaluated the deviation as an auditor, I made a decision and informed about it the supplier and the IKEA business team. I shared the audit report with the non-compliances identified and justified. The supplier then submitted a corrective action plan with root cause analysis, which I reviewed and approved," says Muzadded.
The next step was for the supplier to implement the corrective actions and secure that the deviations are addressed. Later we conduct a follow-up audit to ensure the implementation of the corrective actions. During the follow-up, the supplier must demonstrate the implementation of corrective actions through evidence, such as data and documents.
"Some situations may require additional on-site visits, especially if they involve construction checks or specific training requiring worker interaction. In such cases, we conduct the follow-up audit on-site. The approach depends on the particular circumstances involved,” says Muzadded.
Within three months, the supplier implemented the corrective actions and provided evidence of compliance with the ten IWAY principles. This resulted in the IKEA decision to continue the business relationship as usual.
From his side, Stefano finished auditing the IKEA supplier in Italy and approved the corrective action plan that was developed by the suppliers to address the deviations identified. He maintained regular communication with the supplier throughout the process, conducting remote follow-up assessments to monitor progress. His focus is to make sure the supplier corrects deviations that were documented during the audit.
Thorough documentation
Leveraging technology and video calls enabled Stefano to scrutinise the supplier's diligent efforts. He offered expert guidance and unwavering support, ensuring compliance remained at the forefront of the supplier's efforts. Recognising the importance of robust evidence, Stefano emphasised the need for thorough documentation to verify compliance.
Attention to detail is paramount in the pursuit of compliance.
Stefano Bizioli Galli, Sustainability Compliance Auditor at IKEA
Piece by piece, the supplier gathered the necessary evidence. Finally, the long-awaited moment arrived when Stefano received the final batch of compiled evidence. "Attention to detail is paramount in the pursuit of compliance. Even minor deviations can have significant implications, underscoring the importance of a functioning system at all times. We are responsible for carefully assessing each aspect of the supplier's operations, ensuring that every requirement is met and understood."
Muzadded and Stefano, through IWAY audits, supports IKEA suppliers in embracing sustainable practices and meeting compliance standards. With dedication and meticulousness, they guide suppliers, fostering accountability and ethical responsibility. As suppliers implement corrective actions and provide evidence, they take significant steps towards a more sustainable business, prioritising environmental considerations and worker well-being.
IWAY audits are one component of the supplier management process at IKEA. They help to check the supplier’s operations and verify compliance with the sustainability requirements, but the change and development towards more sustainable business practices happen during daily interactions between the supplier and IKEA, in the goal setting, supporting suppliers with implementation and learning and developing together.
"Sustainability goes beyond regular jobs, allowing us to make a big difference and create positive change for future generations. It's a calling that doesn't have limits, asking us to take action as change-makers. By focusing on sustainability and truly integrating it in every business decision, we can contribute to building a fairer and more equal world. Through dialogue, working and developing together, and never giving up, we can motivate others to join us in making a sustainable and prosperous future a reality," says Muzadded.