PROJECT NAME: Conducting a comprehensive audit of Better Cotton partners

CUSTOMER: Better Cotton

PERIOD: 2024

THE PURPOSE OF THE PROJECT:

The purpose of the due diligence is to help Better Cotton partners create reliable management systems that meet international standards and internal requirements (adequate management structures, policies and operating systems). This contributes to compliance with both international and domestic norms and rules. Comprehensive verification is a systematic process aimed at identifying, evaluating and minimizing potential risks and negative impacts associated with the activities of Better Cotton program partners.

DESCRIPTION OF THE SERVICES ACTUALLY PROVIDED:

-An assessment of the organization and its enterprises has been carried out to identify the actual circumstances (reality) in which the business operates; -Actual and potential risks have been identified and assessed by comparing the actual circumstances with recognized standards.

-A detailed analysis of the identified risks has been carried out and individual corrective action plans have been developed for each partner.

-The implementation of corrective actions has been monitored and positive results have been achieved in improving management systems and reducing risks. The confidentiality of all information received during the due diligence is ensured.

Six areas were covered: ethics, management, human resources management, environment and operations, financial stability and management;

-The financial condition was checked using the Better Cotton toolkit;

-A comprehensive audit report has been prepared.

The results of the comprehensive audit are presented and an action plan for risk adjustment is proposed during the final meeting with the program partners.

-Semi - structured interviews with management were conducted.

-Fields and farms have been monitored.