Enhancing ESG practices in supply chain operations through information disclosure: The “ETHICS” Framework

Abstract

Environmental, social, and governance (ESG) practices are essential to modern supply chain operations. Indeed, the legal and ethical requirements for disclosing ESG information are the subject of much debate. However, the literature is scattered and does not provide a consolidated view of “What–to Whom–When” to disclose. This motivates us to conduct a systematic review of the literature to explore the current state-of-the-art literature on sustainable and responsible information disclosure in supply chains. Based on this review, we synthesize effective strategies and propose the ETHICS framework (i.e., Elimination of ESG-washing, Technology-enabled communication, Holistic multi-tier view, Industry collaboration, Customization of standardized frameworks, and Synthesis of ESG metrics). The ETHICS framework helps manage, report, and improve ESG performance in supply chains through ESG information disclosure. We also identify five key directions for future research: (1) assessing and quantifying social information before disclosure, (2) collecting and disclosing social information in real time, (3) optimizing the timing of information flows from indirect suppliers, (4) managing social responsibility in supply chain partnerships, and (5) understanding buyers’ roles as information recipients versus senders. Our paper provides important insights into ESG information disclosure in supply chains for academics and practitioners from an operational perspective.