International Journal of Business and Social Science (IJBSS)
The authors use a behaviorally motivated risk-return optimization framework to shed light on the important link between global supply chain management and investors' risk-return choice. By improving the transparency and sustainability of the global supply chain, firms can reduce the probability of extreme losses, thus increasing investors' expected utility and asset valuations. In order to effectively address the growing risks firms face in their global supply chains, systemic change is required. Managers can facilitate this change by increasing transparency and sustainability of their supply chains, especially in the area of carbon emissions reduction. They outline existing programs and tools that are leading the way in this regard.