Managing Ethical Procurement and Supply (L5M5)

1.2 Contrast the factors influencing globalisation in supply chains

• 1.2.1Use of STEEPLED analysis to explain the factors driving globalisation
• 1.2.2Competitive advantage through global sourcing
• 1.2.3Low-cost country sourcing
• 1.2.4ESG (Environmental, Social, and Governance) considerations in global sourcing

1.3 Assess the cultural and social factors in securing ethical and sustainable procurement and supply

• 1.3.1Language and culture
• 1.3.2Labour standards and working practices
• 1.3.3Wages and social security arrangements
• 1.3.4Workers' rights
• 1.3.5Health and safety standards

1.4 Contrast the potential conflicts between stakeholders that may arise from using ESG (Environmental, Social, and Governance) considerations in developing ethical and sustainable procurement and supply arrangements

• 1.4.1Profit maximisation and low-cost sourcing
• 1.4.2Demand management and the need for urgent orders
• 1.4.3Short-term commercial gains and long-term availability
• 1.4.4Specifications
• 1.4.5Responsible use of power relationships
• 1.4.6Comprehensive stakeholder consultations and engagement

2.1 Assess methods to achieve ESG (Environmental, Social, and Governance) standards to secure ethical and sustainable supply chains

• 2.1.1Mapping supply chains to achieve supply chain transparency
• 2.1.2Analysis of ESG (Environmental, Social, and Governance) and ethical considerations to secure ethical and sustainable procurement and supply arrangements
• 2.1.3Use of risk mitigation strategies to achieve ESG (Environmental, Social, and Governance) objectives to secure ethical and sustainable procurement and supply arrangements
• 2.1.4Mapping, consulting, and managing all stakeholder requirements to secure ESG (Environmental, Social, and Governance) considerations in ethical and sustainable procurement and supply arrangements

2.2 Evaluate how contractual terms can support the achievement of ESG (Environmental, Social, and Governance) objectives for ethical and sustainable procurement and supply

• 2.2.1Monitoring contract performance
• 2.2.2The importance of data and feedback from stakeholders to achieve compliance
• 2.2.3Methods to correct non-compliance and create and monitor action plans

2.3 Evaluate the use of third-parties to promote compliance with ESG (Environmental, Social, and Governance) considerations in supply chains

• 2.3.1Sourcing third parties for auditing services
• 2.3.2Assessing the competencies of third-parties for the provision of ethical and ESG (Environmental, Social, and Governance) audit services
• 2.3.3Challenges with third-party auditors

2.4 Assess how supplier relationships should be managed in the event of failures in ESG (Environmental, Social, and Governance) considerations in ethical and sustainable procurement and supply arrangements

• 2.4.1Creating awareness of standards and updates to standards with suppliers
• 2.4.2Worker representation, processes, and audit trails
• 2.4.3Creating corrective action plans and supplier development programmes
• 2.4.4Escalating non-compliance and making exit arrangements

3.1 Assess the role of international labour standards and independent external accreditations in achieving ESG (Environmental, Social, and Governance) considerations for procurement and supply

• 3.1.1Standards set by the United Nations (UN) and the International Labour Organization (ILO)
• 3.1.2The role of the UN and ILO in pursuing improved ESG (Environmental, Social, and Governance) and ethical standards
• 3.1.3Labour codes of conduct: Ethical Trading Initiative (ETI) and Social Accountability International’s standard SA8000

3.2 Analyse how external environmental standards frameworks and external accreditations can help to achieve ESG (Environment, Social, and Governance) objectives in ethical and sustainable procurement and supply arrangements

• 3.2.1The benefits and challenges of independent standards in securing ESG (Environmental, Social, and Governance) objectives for ethical and sustainable procurement and supply arrangements
• 3.2.2Role of industry standards and frameworks used by organisations in securing ESG Environmental, Social, and Governance) considerations and ethical standards

3.3 Analyse how standards can help to achieve fair trade in ethical and sustainable procurement and supply arrangements

• 3.3.1Principles of fair trade in procurement and supply
• 3.3.2The World Fair Trade Organisation (WFTO) and its principles and charter of fair trade and implications for procurement and supply
• 3.3.3Fairtrade International (FI), global fair trade organisations and their implications for procurement and supply
• 3.3.4Fairtrade standards that affect the workplace and producers and their implications for procurement and supply
• 3.3.5Importance of updating internal governance standards