The transparency of SCM ethics: conceptual framework and empirical illustrations

Purpose – The objective is to describe a conceptual framework and empirical illustrations of the transparency of SCM ethics in supply chains as a whole. Design/methodology/approach – The research is based on two Scandinavian‐based companies in the telecom and fashion clothing industries, namely: Sony Ericsson and H&M. These two companies are of interest due to their recent involvement in ethical dilemmas and ambiguities that arose on account of their links with questionable and inappropriate corporate actions and behaviour, not by the companies themselves, but by other companies within their supply chains. Findings – Companies present in the worldwide marketplace and society, such as Sony Ericsson and H&M, do not always appear to be dedicated to ethical concerns and commitments within their supply chains as a whole. They tend to create some convenient restrictions in their statements and promises of corporate social responsibility (e.g. codes of ethics). Research limitations/implications – The transparency of SCM ethics complements recent additions to ethics in SCM. It opens up a different aspect of the theory generation that may support further research of ethical aspects in supply chains. Practical implications – The paper provides managerial propositions and guidelines regarding the corporate depth of ethical concerns and commitments in corporate actions and behaviour in supply chains. The framework of transparency in SCM ethics highlights those corporate actions and behaviour that may be obscured by the lack of visibility across supply chain levels. In addition, it may reveal potential weaknesses and forthcoming threats in corporate actions and behaviour in ongoing business operations. Originality/value – One contribution is the ethical consideration in corporate actions and behaviour across different levels in supply chains. Another is that the corporate social responsibility in terms of SCM ethics should also comprise indirect business relationships. The transparency of SCM ethics opens up challenging opportunities for further research of great value to the theory generation and best practices of SCM.