Existing research has underscored that the lack of supplier visibility poses a primary obstacle for multinational corporations (MNCs) to tackle human rights violations within their global supply chains (GSC). To address this challenge, MNCs are increasingly adopting the concept of “smart disclosure” to enhance supplier visibility. However, its conceptualization, operationalization, and efficacy in reducing human rights violations, remain unclear. Filling this gap, we first draw on research about attributes of digital technologies and information disclosure to define and operationalize smart disclosure in the context of GSC. We then draw on insights from institutional theory to theorize that smart disclosure – as a visibility-enhancing mechanism – enables MNCs to fulfill the role of “institutional carriers” and effectively impose institutional pressures on suppliers, fostering an environment where suppliers’ adherence to human rights standards is desired, supported, and rewarded. We further propose that this effect is stronger for suppliers with higher centrality in GSC networks and those in countries with greater civil society development. We found support for our arguments by analyzing 8527 observations at the MNC-supplier-year level in the global apparel industry from 2014 to 2020.

Abstract Research Summary This study examines how immigrant CEOs influence the geography of multinational enterprises' (MNEs) corporate social irresponsibility (CSI) incidents. Building on place attachment theory and social capital theory, we theorize that immigrant CEOs have strong psychological attachment to and social capital in their homeland countries, which could reduce the occurrence and media disclosure of their MNEs' CSI incidents in those countries. Moreover, this effect will be further enhanced if the CEO emigrates as an adult, if the focal firm has a higher sustainability rating, and if the CEO's homeland country has lower press freedom. A difference‐in‐differences analysis using a propensity score‐matched sample of MNEs from the US S&P 500 during the 2007–2020 period supports our arguments. Managerial Summary Why do firms engage in different levels of corporate irresponsibility in different locations? Our study reveals a connection between the appointment of an immigrant CEO and the locations of multinational enterprises (MNEs') irresponsible incidents. Immigrant CEOs can not only reduce their MNEs' harmful acts in their homelands because of their strong psychological attachment but also leverage social relationships in their homelands to mitigate media coverage of their firms' negative incidents there. Such impacts of appointing immigrant CEOs are subject to CEOs' immigration as adults or children, their firms' sustainability ratings, and their homeland countries' press freedom.