Multinational corporations have a significant impact on social ecosystems. Some even have greater resources at their disposal than entire countries. By practicing Corporate Social Responsibility (CSR), companies have the potential to root out systemic problems in the communities they serve. While this is attractive in theory, it has proven difficult for CSR efforts to deliver on that potential. Blockchain technologies can help to improve corporate accountability to the communities that they serve.
Not only do multinational corporations employ tens of thousands of people, but their operations often have dramatic and lasting effects on the surrounding environment. Corporations recognize this as well, but since such considerations are not central to their operations, they are rarely motivated to improve the social fabric they help to create. Furthermore, the public applauds a company’s well-marketed philanthropic initiatives but is ill-equipped to know whether the company is actually achieving their stated goals.
The way many companies engage in CSR is by giving social issues a symptomatic treatment. Coinsquare reports on how this can play out: “In the food and beverage industry, for example, Oxfam argues that multinational companies tend to focus on training women farmers or addressing water usage while ignoring the root causes of hunger or poverty.” While such practices are undeniably good, focusing on the short term does little to correct the fundamental issues. Using smart contracts as the enforcement mechanism for positive innovation, blockchain technologies are uniquely capable of encouraging multinationals to approach these kinds of problems more comprehensively.
On the macro level, by providing a more transparent system of accountability, smart contracts can allow consumers to track a company’s progress on its social initiatives. There are also benefits that can encourage social responsibility within an organization, of which bitqyck provides an excellent example. Stakeholders who “take action and participate in specific activities throughout the bitqyck network of companies” are rewarded with the bitqy token. This reward system incentivizes socially responsible collaboration between bitqyck affiliates, merchants, consumers, and other parties. Corporations will continue to respond to public pressure for greater accountability, and those that embrace blockchain technologies may find it easier to make a lasting and meaningful change.