Corporate Governance and Low Carbon Supply Chains: Why Integrity Matters?

  • Norma Mohter Faculty of Industrial Management, Universiti Malaysia Pahang
  • Yudi Fernando Faculty of Industrial Management, Universiti Malaysia Pahang
Keywords: Integrity, Low carbon supply chain, Corporate governance, Board of directors, Firm performance

Abstract

In this study, we aimed to understand the role of integrity in low carbon supply chain and their benefits towards firm performance and corporate governance. This paper also discussed the importance of Board of Director (BoD) in decision making in the supply chain.  As stakeholders continue to increasingly emphasize integrity practices in their supply chains, the firm should understand and practice the integrity especially involved low carbon supply chain (LCSC) by provided accurate carbon disclosure and report carbon verification and etc. This is important to shareholder especially Board of Director to make sure the firm performance meet their expectation. By monitoring the decision making in the low carbon supply chain, the BoD believe can avoid unethical issues such as corruption, manipulation and fraud. Practising integrity in the supply chain, the firm will obtain many advantages in their firm performance.  The firm’s performance will increase other than being more trustable and gain competitive advantages from the competitor. The BoD is concern about the impact of decision making on society.  The BoD believe by being integrity in the firm’s management they will meet the social expectation.

Author Biographies

Norma Mohter, Faculty of Industrial Management, Universiti Malaysia Pahang

Norma Binti Mohter is PhD candidate from Faculty of Manufacturing Engineering, Universiti Malaysia Pahang. She graduated with a Master of Business Administration from University Science Malaysia in2017. Recently, she is doing her doctorate in Supply Chain Management and focusing on low carbon and sustainable Supply Chain. She has been working in Supply chain and Logistics Management many years after she finished her bachelor’s degree. She is very passionate about low carbon supply chain and logistics management and in her journey to publishing more journals in future.

Yudi Fernando, Faculty of Industrial Management, Universiti Malaysia Pahang

Yudi Fernando is an Associate Professor and holds a PhD. He is the Editor-in-Chief Industrial Management: An International Journal and Managing Editor of Journal of Governance and Integrity at the Faculty of Industrial Management, Universiti Malaysia Pahang. He is a Research Committee Chair and founding member of the Malaysian Association of Business and Management Scholars (MABMS). He is also a member of the Society of Logisticians, Malaysia/Pertubuhan Pakar Logistik Malaysia (LogM).

Published
2020-07-28
How to Cite
Mohter, N., & Fernando, Y. (2020). Corporate Governance and Low Carbon Supply Chains: Why Integrity Matters?. Journal of Governance and Integrity, 3(2). https://doi.org/10.15282/jgi.3.2.2020.5308
Section
JGI Vol. 3, Issue 2, July 2020