Blockchain Technology: Its Ability to Transform Corporations' Corporate Social Responsibility Practices

Abstract

The technology of blockchain (‘Blockchain’) realises a more efficient, equitable, and transparent distributed ledger system. An important characteristic of Blockchain is its automated, de-centralized, and neutral ledger system which could be useful to carry out Corporate Social Responsibility (‘CSR’) initiatives. Part I of this paper suggests that the Blockchain will evolve to become a permanent ‘disruptor’ with the potential to transform corporations’ CSR practices. Part II introduces the Blockchain and identifies its significance to CSR, both in the United States (‘U.S.’) and internationally. Part III explains how the Blockchain can help demonstrate that a corporation is a ‘responsible business’ through good corporate governance, effective supply chain management, and exercise of the triple bottom line – people, profit, and planet. Part IV examines how the Blockchain’s disruptive role influences corporate decision-making, especially its implications for corporate investors, financial institutions, and the practice of law as well as its impact on intellectual property and data privacy functions. Part V discusses the U.S. current regulatory landscape and growing trends relating to the Blockchain. Finally, Part VI recommends lawmakers and corporations consider adopting a legislative framework that aligns with the United Nations Sustainable Development Goals (‘UN SDGs’) to demonstrate responsible investment and good corporate governance. Accordingly, the Blockchain can help corporations transform CSR practices and assist lawmakers to regain public trust through effective rulemaking that demands corporate accountability on domestic and international issues.

Keywords: International Regulation, Blockchain Technology, Bitcoin, Financial Market, Corporate Governance, Responsible Investment, Triple Bottom Line, Supply Chain Management, Corporate Social Responsibility