Can Blockchain Technology Boost Your Company’s “Corporate Social Responsibility”?
Blockchain technology stands out when considering its impact on social issues. One such cohort may be a company’s take on corporate social responsibility (CSR). This not only builds trust with the respective customers, but also enhances transparency.
The emergence of blockchain has led to changes and implementations across the world in many industries. From cyber security to video gameall have integrated the blockchain in one way or another.
The corporate sector, in particular, has been quite successful in separating the practical uses of blockchain from the hype surrounding cryptocurrency and speculation. Many companies and businesses around the world are beginning to devote more time and energy to using blockchain technology for “corporate social responsibility” (CSR).
At this point, CSR has become more than just a marketing strategy to promote a business. The fight against global warming is probably the greatest example of CSR in recent times. According to a recent global CSR reportaround 86% of respondents expect companies to participate in CSR-focused changes focused on social and environmental issues.
CSR in the Supply Chain
Consumer brands have also invested a significant portion of their total budget in driving CSR initiatives. The global market for CSR activities for the software industry is projected to reach $1.4 billion by 2028. Meanwhile, the global sustainability consulting market is expected to reach nearly $12 billion by 2028.
CSR aims to minimize the environmental impact in all activities of a supply chain. Blockchain provides governance and accountability throughout the supply chain.
Typical supply chain management issues include the need for greater transparency between entities and discrepancies in records. This makes it difficult for the end customer to assess the sustainability or impact of a particular product.
How can blockchain help?
Because it is transparent, permanent, and immutable, blockchain technology establishes accountability and lends legitimacy to all parties in the supply chain. This helps preserve the authenticity of CSR instead of companies simply using it as a marketing gimmick to gain positive PR.
Blockchain can serve several purposes in the field of CSR. First, from, tracing the identity and source of something back to its origin. Examples of this include organic food products, expensive products or even the digital identity of refugees, where identity is difficult to find.
Second, there is the exchange of value, where something passes from one party to another, be it monetary value or something of value to the recipient. Thus, it could have financial value for refugees who are displaced to different parts of the world or the government for citizens on a welfare program.
The blockchain token economy offers potential ways to digitize land rights or land titles and use them to enable small and medium-sized businesses to get better credit, secure crop yields, or obtain a better financing or better insurance. It is estimated that approximately 1.4 billion people worldwide are currently unbanked.
blockchain company Civic register spoke to BeInCrypto about the technology’s adoption rates. Following the conversation via Twitter, the team shared valuable insights regarding blockchain’s role in improving its CSR footprint.
“Blockchain technology enables a much higher level of transparency and visibility, and early adopters will reap the rewards: consumer trust and loyalty, time and cost savings, improved efficiency and security. , as well as, potentially, government support for sustainability initiatives and innovation.
Overall, blockchain has proven itself in several industries. The technology, however, is still in its infancy. Can it reach a higher potential in 2023?
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