Guatemala is confronted with numerous challenges. Commercially, there has been a growing complaint about how the country manages its procurement and supply chain management, with US corporations being the most affected. Through their stakeholders, US corporations with operations in Guatemala have submitted complaints about corruption, unfair treatment, and a lack of transparency from Guatemala officials and government Allison (Godinez & Liu, 2018). Thus, resulting in a detrimental impact, particularly on investment.
Investors and businesses from the United States face a wide range of socioeconomic issues in Guatemala. Investors in the United States face obstacles like instability and high violence rates, which are rising poverty levels. The insecurity issues produce lawlessness and collusion between corrupt officials and organized crime in supply chain and procurement departments, resulting in economic disparity and poverty among investors due to inadequate returns.
The long-term impact of corruption on investment firms and stakeholders is that economic growth is hampered, and policies established by US stakeholders are not enforced. US investors’ resources are limited, affecting their revenues (Echambadi & Chennamaneni, 2021). Furthermore, communication and transportation are harmed due to procurement and supply chain corruption, which affects working relationships between stakeholders and the government, hurting the effectiveness of operations in US investment firms.
Because US investors and the Guatemalan government are developing rules to mitigate the issues of procurement and supply chain corruption, local and global technologies are also being employed to alleviate the challenges. The use of emerging technology provides efficient methods for reporting corrupt cases. Some local and global avenues could be used to reduce corruption and unequal treatment. For example, the use bribe market project allows citizens to discuss their bribery experiences while interacting with governmental services. Another technology that could combat corruption is Red Line, which allows those who have witnessed misconduct to report it via phone or SMS. The BRIBE line website collects information anonymously (López Cazar,2020). The information gathered could be used to pursue legal action, allowing the public to raise concerns about corruption.
The implementation of a technology-based solution incurs costs. For example, expenditures and software solutions should be examined. Technology-based solutions are implemented using costly modern approaches due to the use of models such as machine learning and artificial intelligence. As a result, in order to obtain these new models, a person must have money. As a result, money should be seen as a primary expense connected with deploying technology-based solutions. Time is also considered a cost because rigorous delivery and delays are evaluated to facilitate firm operations. Implementation of software-based solutions is also regarded as a time cost because it takes time to adjust to new features and procedures such as data transfer and train staff; however, these steps lower the company’s vulnerability to issues such as cyber security. Physical costs are another component that a corporation considers when implementing a technology-based solution (Echambadi & Chennamaneni, 2021). Physical costs include team management, security, and workflow.
The utilization of Hype and the 6 Ds is required for new technology. The Hype and the 6Ds demand an individual to determine the company’s technological positions. Identifying areas for improvement allows the company to extend its operations, increasing its market share and, as a result, making more profit as a result of employing new technologies. Identify crucial parts of the firm that may need to be upgraded. For example, the logistics, manufacturing, and supply chain industries all require the usage of artificial intelligence models to help with operations. Identifying crucial areas entails examining financial reports, which provide information about the organization’s financial position (Echambadi & Chennamaneni, 2021; López Cazar,2020)). Thus, this aid in the establishment of realistic targets that prioritize the organization’s goals and plans.
The utilization of new technologies in Guatemala will promote sustainable practices in the country’s economy. For example, the use of anti-corruption methods will assist most Guatemalan businesses in becoming more transparent in their operations. As a result, company performance will improve, as will compliance with the organization. The number of reported cases in Guatemala is expected to drop by at least 20% Furthermore, the adoption of anti-corruption initiatives will assist the country in breaking free from the shackles of impunity that exist at all levels of government. These will foster peaceful inclusivity of societies in driving the sustainability agenda, resulting in the development of an affective and accountable Guatemala. According to the International Commission Against Impunity in Guatemala (CICIG), 70% of instances recorded as a result of corruption will be reduced by 2030 (Godinez & Liu, 2018).
The presence of MNCs in Guatemala is expected to solve the problem of procurement and supply chain corruption by implementing developing technology and promoting sustainable practices. The present technology MNC can enhance sustainability by creating a large database of suppliers at all levels of supply chain management, from top tiers to lower ones. The database should include information about suppliers’ locations, their capabilities and areas for improvement, as well as their health, labor, and environmental practices. The database should include the supplier’s objectives and performance. Furthermore, MNCs should have access to the capacity of suppliers to provide excellent services. Suppliers should be contacted on a regular basis to ensure that deforestation does not occur in the procurement and supply chain.
MNCs should adopt direct, collective, global, and indirect approaches to ensure the sustainability of supply chain and procurement strategies. Cooperation amongst stakeholders should be promoted to ensure sustainability. Furthermore, partnership with global communities, such as the UN Global Compact, encourages both MNCs and global communities, allowing for more efficient operations(Godinez & Liu, 2018; Echambadi & Chennamaneni, 2021).. Standardized supplier audits, in which suppliers are instructed on how to conduct self-assessment, should be included in procurement and supply chain sustainability.
In conclusion, Guatemala has a number of issues, including corruption, unequal treatment, and a lack of transparency. These concerns have led to complaints about the country’s procurement and supply chain practices, which have harmed the relationship between Guatemala and US stakeholders, resulting in a negative impact on investment. Corruption and unfair treatment of US stakeholders has resulted in socioeconomic issues like as poverty, insecurity, high levels of violence, and economic inequality.
As a result, investors use limited resources to maximize their revenue. Policies are implemented using new technology to ensure that these difficulties are mitigated. For example, to eliminate corruption in the supply chain and procurement, developing criteria such as the BRIBE line website that corrects material on websites and takes legal action against individuals who are corrupt are used. The developing technology ensures sustainability by encouraging unethical corporations to be more open. Furthermore, the usage of MNC in Guatemala has aided sustainability through the construction of vast databases that record supplier details.
References
Godinez, J., & Liu, L. (2018). Corruption and its effects on FDI: Analysing the interaction between the corruption levels of the home and host countries and its effects at the decision-making level. Journal of Business Ethics, 147(4), 705-719. Web.
Echambadi, M., & Chennamaneni, P. R. (2021). The Carrot and the Stick: Using Game Theory to Minimize Corruption in Guatemala. Journal of Student Research, 10(2). Web.
López Cazar, I. M. (2020). Does the Extractive Industries Transparency Initiative (EITI) help reduce corruption in Latin America? Evidence from Colombia, Guatemala, Honduras, Peru, and Trinidad and Tobago. ISS Working Paper Series/General Series, 652. Web.