Blockchain-Governed AI for Ethical Supply Chains: A Framework for Transparency and Accountability

Background: Global supply chains face increasing scrutiny regarding ethical violations, including labor exploitation, environmental damage, and human rights abuses. Traditional monitoring systems suffer from opacity, data fragmentation, and accountability gaps. Objective: This study develops and validates a blockchain-governed AI framework to establish transparent, accountable, and ethical supply chains using conflict minerals as a case study. Methods: We implemented a decentralized system combining Hyperledger Fabric with explainable AI models, tested across 47 mining cooperatives in the Democratic Republic of Congo. The framework incorporated zero-knowledge proofs for privacy, smart contracts for autonomous enforcement, and algorithmic reparations mechanisms. Results: The system achieved 99.2% material traceability, reduced audit costs by 73%, and detected 94.7% of human rights violations with 89.3% precision. Algorithmic reparations distributed $2.3 million in compensation to affected communities during the 18-month trial. Conclusion: Blockchain-governed AI systems can transform supply chain ethics by enabling unprecedented transparency while protecting stakeholder privacy. This approach establishes a new paradigm for corporate accountability and restorative justice in global trade networks.