This unit of competency describes the skills and knowledge required to monitor ethical practices in supply chains. It includes determining ethical supply chain functions, monitoring ethical practices and reporting on ethical supply chain practices.

Ethical supply chains seek to ensure that sustainable labour, supply and environmental practices are fair. Participating in an ethical supply chain will involve conducting due diligence to confirm the integrity of suppliers, contractors, agents and other intermediaries. Unethical supply chains typically do not comply with legislative obligations, codes of practice or agreed industry standards.

The unit is applicable to those with management or team leadership responsibilities within a supply chain.

No licensing, legislative or certification requirements apply to this unit at the time of publication.

ELEMENTS

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1

Determineethical practices

1.1

Requirements of supply chain legislation, regulations and industry standards are confirmed

1.2

Welfare and sustainability practices for each stage of the supply chain are identified and mapped

1.3

Policies and procedures to support ethical practices in the supply chain are confirmed

1.4

Key Performance Indicators (KPIs) for ethical practices are verified

1.5

Community expectations throughout the supply chain, in relation to ethical practices, are determined

1.6

Responsibility and level of authority for monitoring ethical practice in the supply chain is confirmed

2

Monitor ethical practices

2.1

Integrity of supply chain stakeholders is monitored, in accordance with supply chain procedures, using approved methods and tools

2.2

Product provenance is monitored to ensure ethical relationships and practices are maintained throughout the supply chain

2.3

Stakeholder compliance to legislative obligations and codes of practice is monitored, in accordance with supply chain procedures

2.4

Reports of unethical supply chain practices, including those from anonymous whistle blowers, are assessed and actioned, in accordance with supply chain procedures

2.5

Corrective actions for unethical practices are documented and monitored, in accordance with supply chain procedures

2.6

Continuous improvement activities, including stakeholder training, are reviewed and monitored to ensure ethical practices are maintained

2.7

Community expectations in relation to supply chain ethical environmental and sustainability practices are monitored for change

3

Review and report on ethical practices

3.1

Ethical practices in the supply chain are evaluated against KPIs

3.2

Data on stakeholder ethical practices in the supply chain is reviewed, in accordance with supply chain procedures

3.3

Report on ethical practices, including recommendations, is prepared and disseminated to approved supply chain stakeholders

3.4

Continuous improvement actions that support ethical practices in supply chains are documented

Evidence required to demonstrate competence in this unit must be relevant to and satisfy all requirements of the elements and performance criteria on at least one occasion and includes

collecting data on ethical practices using approved methods and tools

confirming legislative and regulatory obligations and industry standards

determining policies and procedures to support ethical practices in the supply chain

documenting continuous improvement actions

documenting non-compliance and remediation actions related to unethical practices

evaluating ethical practices against Key Performance Indicators (KPIs)

following up on whistle blower reports

identifying and reporting on community expectations for ethical practices

identifying welfare and sustainability practices in the supply chain

monitoring compliance to supply chain codes of practice

monitoring product provenance

monitoring supply chain stakeholders' integrity using approved methods and tools

reviewing data about supply chain ethical practices and preparing reports

verifying KPIs for ethical practice

working with stakeholders to monitor continuous improvement activities and practices.

Evidence required to demonstrate competence in this unit must be relevant to and satisfy all requirements of the elements and performance criteria and includes knowledge of

approved methods and tools for data collection on ethical practices

circular economy principles in relation to addressing ethical sustainability practices in supply chains

community expectations for ethical practices

compliance requirements for ethical practice in supply chains

continuous improvement principles

data collection methods and tools

ethical environmental and sustainability practices

evaluation methods for assessing ethical practices

Key Performance Indicators (KPIs) for ethical practice

legislation and regulatory obligations, industry standards and codes of practice including follow up actions on whistle blower reports

methods for identifying stakeholder integrity

policies and procedures relevant to supply chain ethical practice

product provenance

review and report requirements

supply chain stakeholders

sustainability and welfare practices and issues in supply chains

types of unethical practices in supply chains.

Assessors must hold credentials specified within the Standards for Registered Training Organisations current at the time of assessment.

Assessment must satisfy the Principles of Assessment and Rules of Evidence and all regulatory requirements included within the Standards for Registered Training Organisations current at the time of assessment.

Assessment must occur in workplace operational situations where it is appropriate to do so. Where this is not appropriate, assessment must occur in simulated workplace operational situations that replicate workplace conditions.

Assessment processes and techniques must be appropriate to the language, literacy and numeracy requirements of the work being performed and the needs of the candidate.

Resources for assessment must include access to a range of

exercises, case studies or simulations

materials, tools and digital supply chain equipment used in industry

documentation including organisational policies and procedures, industry standards, legislation, regulations, codes of practice, operational manuals and equipment specifications.

Foundation skills essential to performance are explicit in the performance criteria of this unit of competency.

Range is restricted to essential operating conditions and any other variables essential to the work environment.

Non-essential conditions may be found in the Companion Volume Implementation Guide.

Cross Sector

X - Logistics