Revitalising Retail: Unveiling the Transformative Power of Ethical Supply Chain Management in the Indonesian Market

Indonesia’s retail sector has experienced substantial growth in recent years due to economic development and evolving consumer preferences. However, this expansion has underscored significant ethical challenges within supply chains, spanning labour practices to environmental sustainability. This conceptual paper explores the intricate relationship between ethical supply chain management and the revitalisation of retail companies in Indonesia. It seeks to understand how embracing ethical principles can bring transformative change to the Indonesian retail market. Through an extensive literature review and empirical data from the local retail sector, the paper delves into the theoretical foundations and practical application of ethical supply chain management, employing real-world examples and comparative analyses to illustrate its impact on retail operations. The analysis reveals the profound influence of ethical supply chain management on Indonesian retail companies, uncovering both the benefits, such as increased consumer trust and improved brand image, and the challenges and limitations encountered in its pursuit. In a retail landscape marked by rapid expansion and ethical considerations, this paper provides valuable insights into the transformative power of ethical supply chain management, offering guidance for retail businesses to align profit-driven objectives with socially responsible practices, promoting sustainability and reinvigorating the retail sector in Indonesia.