The Effects of Blockchain Technology Adoption on Business Ethics and Social Sustainability: Evidence from Chinese FinTech Companies

Wenbo Yu

doi:10.60027/ijsasr.2024.3932

Authors

Wenbo Yu Innovation College, North-Chiangmai University, Thailand https://orcid.org/0009-0004-6869-0519

DOI:

https://doi.org/10.60027/ijsasr.2024.3932

Keywords:

Blockchain; , Business Ethics; , Social Sustainability; , Corporate Social Responsibility

Abstract

Background and Aim: Blockchain is a disruptive technology that significantly improves transactions through enhanced transparency, security, traceability, and smart contracts. Although the technology consumes significant energy to produce, it has positively impacted social sustainability. This study examined the effects of blockchain technology adoption on business ethics and social sustainability.

Materials and Methods: Data was obtained from 247 CEOs and managers of fintech and financial companies. Out of the 300 electronic questionnaires that were sent to the CEOs, a total of 247 were completed and returned. The obtained P-value (<0.05) showed that the hypotheses were accepted at a 95% confidence level.

Results: The results showed that blockchain adoption positively impacts business ethics and social sustainability. The results also showed that business ethics has positive effects on social sustainability. Key managerial implications include policy formulations to enhance blockchain adoption and stakeholder onboarding.

Conclusion: The results indicate that blockchain adoption enhances transparency, security, traceability, and smart contracts in business or financial transactions. The study encourages businesses to adopt blockchain technologies to prevent fraud in financial transactions. Blockchain technology enables businesses to build trust through data sharing and transparency.

References

Bai, C.A., Cordeiro, J., & Sarkis, J. (2020). Blockchain technology: Business, strategy, the environment, and sustainability. Business Strategy and the Environment, 29(1), 321-322.

Chatterjee, S., Chaudhuri, R., Vrontis, D., & VV.A.K. (2023). Adoption of blockchain technology in organizations: from morality, ethics, and sustainability perspectives. Journal of Information, Communication, and Ethics in Society. Doi: 10.1108/JICES-03-2023-0039

Chaudhuri, A., Bhatia, M.S., Kayikci, Y., Fernandes, K.J., & Fosso-Wamba, S. (2021). Improving social sustainability and reducing supply chain risks through blockchain implementation: Role of outcome and behavioral mechanisms. Annals of Operations Research, 327(9),1-33.

Dierksmeier, C., & Seele, P. (2020). Blockchain and business ethics. Business Ethics: A European Review, 29(2), 348-359.

Drobyazko, S., Makedon, V., Zhuravlov, D., Buglak, Y., & Stetsenko, V. (2019). Ethical, technological, and patent aspects of technology blockchain distribution. J. Legal Ethical & Regul. Issues, 22, 1.

Giacalone, M., Santarcangelo, V., Donvito, V., Schiavone, O., & Massa, E. (2021). Big data for corporate social responsibility: blockchain use in Gioia del Colle DOP. Quality & quantity, 55(6), 1945-1971.

Haryanto, S. D., & Sudaryati, E. (2020). The Ethical Perspective of Millennial Accountants in Responding to Opportunities and Challenges of Blockchain 4.0. Journal of Accounting and Investment, 21(3), 452-470.

Liao, C. (2023). An analysis of strategies for adopting blockchain in green supply chains under corporate social responsibility. Environmental Science and Pollution Research, 1-17.

Ltifi, M., & Mesfar, S. (2022). Does the corporate social responsibility of the service based on Blockchain technology affect the real behavior of the consumer? Journal of Air Transport Management, 104, 102256.

Najjar, M., Small, M.H., & Yasin, M. (2020). Social sustainability strategy across the supply chain: A conceptual approach from the organizational perspective. Sustainability, 12(24), 10438.

Pizzi, S., Caputo, A., Venturelli, A., & Caputo, F. (2022). Embedding and managing blockchain in sustainability reporting: A practical framework. Sustainability Accounting, Management and Policy Journal, 13(3), 545-567.

Rainero, C., & Modarelli, G. (2021). Food tracking and blockchain-induced knowledge: A corporate social responsibility tool for sustainable decision-making. British Food Journal, 123(12), 4284-4308.

Ronaghi, M.H., & Mosakhani, M. (2022). The effects of blockchain technology adoption on business ethics and social sustainability: evidence from the Middle East. Environment, Development and Sustainability, 24(5), 6834-6859.

Sousa, A., Calçada, E., Rodrigues, P., & Pinto Borges, A. (2022). Cryptocurrency adoption: a systematic literature review and bibliometric analysis. EuroMed Journal of Business, 17(3), 374-390.

Sreenivasan, A., & Suresh, M. (2023). Start-up sustainability: does blockchain adoption drive sustainability in start-ups? A systematic literature reviews", Management Research Review, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/MRR-07-2022-0519

Sulkowski, A. J. (2019). The Tao of DAO: Hardcoding business ethics on blockchain. Bus. & Fin. L. Rev., 3, 146.

Tan, T.M., & Salo, J. (2023). Ethical marketing in the blockchain-based sharing economy: Theoretical integration and guiding insights. Journal of Business Ethics, 183(4), 1113-1140.

Tang, Y., Xiong, J., Becerril-Arreola, R., & Iyer, L. (2019). Blockchain ethics research: a conceptual model. In Proceedings of the 2019 on Computers and People Research Conference (pp. 43-49).

Tang, Y., Xiong, J., Becerril-Arreola, R., & Iyer, L. (2020). Ethics of blockchain: A framework of technology, applications, impacts, and research directions. Information Technology & People, 33(2), 602-632.

Upadhyay, A., Mukhuty, S., Kumar, V., & Kazancoglu, Y. (2021). Blockchain technology and the circular economy: Implications for sustainability and social responsibility. Journal of Cleaner Production, 293, 126130.

Venkatesh, V.G., Kang, K., Wang, B., Zhong, R.Y., & Zhang, A. (2020). System architecture for blockchain-based transparency of supply chain social sustainability. Robotics and Computer-Integrated Manufacturing, 63, 101896.