How blockchain technology can be improved
Blockchain technology ranks high when considering its impact on social issues. Such a cohort can be a company’s take on social responsibility (CSR). This not only builds trust with the respective customers, but also increases transparency.
The emergence of blockchain has led to changes and implementations worldwide in many sectors. From cybersecurity to gaming, everyone has incorporated blockchain in one way or another.
The corporate sector in particular has been quite successful in separating the practical uses of the blockchain from the cryptocurrency hype and speculation. Many companies and corporations worldwide are beginning to focus more time and energy on using blockchain technology for “corporate social responsibility” (CSR).
At this point, CSR has become more than just a marketing strategy to promote a company. The fight against global warming is probably the biggest example of CSR in recent times. According to a recent global CSR report, around 86% of respondents expected companies to engage in CSR-led changes focusing on social and environmental issues.
CSR in the supply chain
Consumer brands have also invested a significant portion of their total budgets in running CSR initiatives. The global CSR activities market for the software sector is estimated to reach $1.4 billion by 2028. Meanwhile, the global sustainability consulting market is estimated to reach nearly $12 billion by 2028.
CSR aims to minimize the environmental impact across all activities in a supply chain. Blockchain provides governance and accountability throughout the supply chain.
Typical problems with supply chain management include the need for more transparency between entities and discrepancies in records. This makes it difficult for the end customer to measure the sustainability or effect of a particular product.
How can Blockchain help?
Because it is transparent, permanent and immutable, blockchain technology establishes accountability and lends legitimacy to all parts of the supply chain. This helps preserve the genuineness of CSR rather than companies simply using it as a marketing gimmick to gain positive PR.
Blockchain can serve several purposes in CSR. First, in ancestry, tracing the identity and source of something back to its origin. Examples of this include organic foods, expensive goods, or even the digital identity of refugees, where identity is difficult to obtain.
The second is the exchange of value, where something goes from one party to another, whether it is the monetary value or something of value to the recipient. So it can be of economic value to refugees displaced in different parts of the world or the government to residents on a welfare program.
Blockchain’s tokenized economy provides potential ways to digitize land rights or land titles and use it to empower small/medium businesses to get better credit, provide security for their crops, or get better financing or insurance. It is estimated that around 1.4 billion people worldwide are currently unbanked.
Blockchain adoption
Blockchain company Civic Ledger spoke to BeInCrypto on the topic of adoption rates for the technology. Following the conversation via Twitter, the team shared valuable information about blockchain’s play in improving its CSR footprint.
“Blockchain technology enables a much higher level of transparency and visibility, and early adopter companies will reap the rewards – consumer trust and loyalty, cost and time savings, improved efficiency and security, plus, potentially, government support for sustainability initiatives and Innovation.”
Overall, blockchain has proven its worth across multiple sectors. However, the technology is still in its infancy. Can it reach a higher potential in 2023?
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