This chapter critically evaluates the integration of Industry 4.0 technologies within the context of supply chain management (SCM), with a specific focus on examining its ethical and social implications. The research highlights the significant changes in workforce dynamics, the ethical considerations surrounding data-driven operations, and the importance of human-centered designs in the digital age, as they pertain to labor practices, data ethics, governance, and future prospects. This study employs a combination of literature reviews, case studies, and expert opinions to provide a comprehensive understanding of the importance of ethical considerations. These considerations encompass various aspects such as labor fairness, privacy, dilemmas related to artificial intelligence, and the integrity of data. Simultaneously, it brings attention to the societal consequences such as changes in employment patterns, the need for acquiring new skills, and the demand for inclusivity and fairness in the face of technological advancements.
Top1. Introduction
In the current global context, characterized by the imminent onset of the Fourth Industrial Revolution(IR4.0) (Khan, Jhanjhi, & Sujatha, 2022; Sujatha, Prakash, & Jhanjhi, 2022), there is a notable convergence of digital technology (Shah, Sial, Jhanjhi, & Gaur, 2023) with established industries. This phenomenon presents a multitude of prospects and challenges that are of interest to academics, professionals, and decision-makers alike. The phenomenon commonly referred to as 'Industry 4.0' as depicted in Fig 1.0, encompasses not only technological progress but also necessitates a thorough examination of its ethical and societal implications. The intersection between these two areas is particularly evident within the field of SCM (Ashraf et al., 2023).
Supply Chain Management, which has traditionally been perceived as the essential component facilitating the efficient transfer of goods, services, and information in global commerce, is currently undergoing a significant transformation (Park et al., 2023). The advent of technological advancements such as the Internet of Things (IoT) (I. Hussain et al., 2022), artificial intelligence (AI) (Gaur, Jhanjhi, Bakshi, & Gupta, 2022), and machine learning (Adhikari et al., 2023) have pushed supply chain management in the era of Industry 4.0 to become more intelligent, adaptable, and highly responsive to immediate fluctuations. While these characteristics have positive implications for enhancing organizational efficiencies and improving customer satisfaction, they also introduce a range of ethical and societal implications. For example, how do these automated systems incorporate considerations for the ethical treatment of employees? The ethical sourcing, storage, and deployment of data, often referred to as the “oil of the digital era,” necessitates careful consideration to avoid encroaching upon individual privacy rights (Bernal, 2014; Payton & Claypoole, 2023). What are the societal implications that arise from the shifting of job roles, which necessitate the acquisition of new skill sets and potentially render certain roles obsolete?
Figure 1.
Stages of industrial revolution (Phuyal, Bista, & Bista, 2020)
The objective of this chapter, titled “Ethical and Social Implications of Industry 4.0 in Supply Chain Management”, is to address these issues. It seeks to provide an account of the existing landscape while also offering guidance to SCM practitioners, scholars, and students in adopting ethically and socially responsible practices within the context of Industry 4.0 (Humayun, 2021). By subjecting the chapter to thorough academic examination, complemented by the inclusion of practical case studies and expert opinions, the aim is to present a comprehensive analysis that accurately represents the current state of knowledge. Additionally, the chapter seeks to provide guidance by offering a direction that is guided by ethical principles and a forward-thinking perspective on societal implications.
As we commence this endeavor, it is imperative to acknowledge that the ethical and social ramifications of Industry 4.0 in supply chain management are not insignificant or secondary considerations. The objects in question hold a prominent position within the ongoing discussion, requiring a significant amount of focus and consideration, potentially even surpassing the attention given to the impressive technological advancements they are associated with. Therefore, this initial section establishes the context by highlighting the obstacles and possibilities that await, while also underscoring the collective duty of all involved parties to guarantee that advancements in supply chain management are based on ethical principles and contribute to societal well-being.