"Transparency and Accountability in Global Supply Chains: Mitigating Ethical Risks for Multinational Corporations"

Abstract

Business knows no boundaries. The significance of competitive advantage and economies of scale has led to the development of transnational organisations. Expansion of markets, sourcing of cheaper inputs and attaining collusive markets has become an important competency in oligopoly markets. The business conglomerate are emphasising on the concept of industry 4.0.  Tjahjono (2017) highlighted that the concept of Industry 4.0 was coined to emphasise the fourth industrial revolution.  The fourth industrial revolution emphasised on automation, internet of things (IOT) and use of high smart machines to increase productivity and efficiency across value chain. The productivity and efficiency in value chain will be enhanced by increasing the value of all the steps related with manufacturing of a product or service to its ultimate delivery to end consumer for consumption. The present paper is an attempt to understand the transparency and accountability required in global supply chains of transnational corporations. It explores the ethical risks associated with supply chain operations, highlighting the potential repercussions of negligence. The study proposes practical strategies and best practices for enhancing transparency, including supplier vetting, responsible sourcing, and stakeholder engagement. It also stresses the role of regulations and international cooperation. By integrating ethics into their supply chain management, multinational corporations can foster sustainability and competitiveness in an increasingly scrutinizing global marketplace.