Moral Hazard in Closed-Loop Supply Chain Management: Compensation and Punishment

Key Points

• Compensation and punishment significantly influence moral hazard in closed-loop supply chains, changing behaviors directly.
• The analysis reveals that effective compensation can mitigate risks associated with moral hazard in supply management.
• Closed-loop supply chain frameworks demonstrate how balancing incentives enhances sustainability outcomes.
• Understanding moral hazard informs effective management strategies, indicating the need for more focused approaches in supply chain practices.