Investigation of supply chain transparency practices of healthcare firms from modern slavery reporting

Purpose This study examines how healthcare buying organisations disclose and address modern slavery risks under the Australian Modern Slavery Act 2018. Modern slavery remains a hidden issue in upstream supply chains and continues to challenge supply chain transparency. Given the healthcare sector's reliance on complex, high-risk supply networks for essential medical goods, modern slavery threatens progress towards ensuring supply chain transparency. The research examines how healthcare organisations respond to supply chain transparency by disclosing and operationalising mechanisms to mitigate modern slavery risks. Design/methodology/approach An abductive content analysis was conducted on 78 modern slavery reports published by Australian healthcare organisations. The analysis examined four key dimensions: upstream supply chain information, mechanisms to ensure supply chain transparency, monitoring challenges and ongoing commitments to mitigate modern slavery. Findings Healthcare organisations disclose modern slavery-related information concerning their upstream supply chains, focusing on supplier host-country contexts, the nature of modern slavery practices and supplier due diligence. Their primary mechanisms for enhancing supply chain transparency include supplier governance, risk management, integration and development. However, limited visibility, supply chain complexity and disruptions hinder the effectiveness of these mechanisms. Differing regulations, socio-economic norms and economic pressures cause persistent stakeholder conflicts between Australian healthcare organisations and upstream suppliers, highlighting the need for more genuine stakeholder collaboration and trust-building. Originality/value Drawing on empirical insights from Australian healthcare organisations, the proposed transparency-driven modern slavery reporting framework identifies key disclosure dimensions and core supply chain transparency mechanisms that emphasise stakeholder engagement. It provides a structured approach for healthcare organisations to report and mitigate modern slavery risks and guides smaller entities in improving supply chain transparency and reporting practices.