Transparency and accountability essential to ESG performance in the supply chain: A Fuzzy DEMATEL approach

In today’s global landscape, businesses operate under increasingly uncertain conditions due to rising complexity and constant change. Consequently, organizations align their governance strategies to promote ethical business practices and adapt to evolving market dynamics, supporting sustainable economic growth. The heightened focus on sustainable development and ethical conduct in business has led to the incorporation of environmental, social, and governance (ESG) factors into corporate planning. Using mixed-method techniques comprising qualitative (literature review, focus group discussion, and Delphi) and quantitative (Fuzzy DEMATEL approach), this paper identifies the barriers to Transparency and Accountability in ESG Performance within Supply Chains, buttressing the criticality of transparency and accountability. The study identifies 11 significant barriers to ESG performance. The prominent central barriers included the Complexity of global supply chains, the Lack of Top Management/Stakeholder/supplier engagement, and Regulatory or Compliance inconsistencies. Prominent influencing barriers identified include Greenwashing and false reporting, Limited ESG knowledge and awareness, and Short-term business pressures. Furthermore, a sensitivity analysis is presented to test the robustness of the findings; the results hold well across all expert weight scenarios. Finally, the paper offers specific recommendations to help overcome the above barriers, suggesting that leadership should provide long-term incentives and commitment to cultivating volume in mainstream supply chains.