Transparency: The Unlikely Steward of Increased Profits through Corporate Accountability and Social Compliance in Global Textile Apparel Sourcing

摘要

After the 2008 economic crisis, Americans advocated transparency in order to dissuade the government and private sector from economic mismanagement and unethical practices. This project examines the impact of transparency on sourcing-driven profits in textiles and apparel through duty reductions and social compliance. By synthesizing a wide range of scholarly sources, the researcher confirms that transparency serves its purpose as intended by the public to encourage ethical behavior. However, the corporate motivation towards improved ethics is not entirely explained by an increased morality and/or attempt to regain public faith. If companies maintain a transparent supply chain, they can take advantage of government programs that eliminate import duties of up to 37%. Transparency also enhances profit by reducing reputational risk through improved corporate accountability, which encourages businesses to monitor their supply chain in order to prevent substantial sourcing losses caused by negative publicity from poor social compliance.