The Contribution of Blockchain-based Supply Chain Finance to Sustainability and Social Responsibility

Supply chain finance (SCF) is a crucial component of global trade, as it enables companies to obtain financing and optimize working capital while also enhancing supply chain efficiencies. The rise of blockchain technology has introduced new opportunities to enhance the transparency and sustainability of SCF. Study explores the potential benefits of blockchain-based SCF in promoting sustainability and social responsibility. Specifically, this research study highlights how blockchain can increase transparency, traceability, and accountability in supply chains, which can lead to more ethical sourcing practices, reduced waste, and better management of environmental and social risks. Additionally, Small and medium-sized enterprises may have new chances to receive finance and compete on an even playing field with larger businesses with the help of blockchain-based SCF. Ultimately, this study argues that blockchain-based SCF has the potential to contribute to a more sustainable and socially responsible global trade system.

I. Introduction

Sustainable Supply Chain Finance (SCF) is a critical aspect of global trade, enabling companies to obtain financing and optimize working capital while also enhancing supply chain efficiency. However, as businesses and consumers become increasingly concerned about sustainability and social responsibility, there is growing recognition of the need for more transparent and ethical supply chains. Recently, blockchain technology has come up as a possible solution to these problems, since it can make things more clear and easier to track. Distributed ledger technology, like blockchain, permanently records all business activity and transactions along a supply chain. More ethical sourcing practices, less waste, and improved environmental and social risk management are all possible thanks to the improvements in supply chain transparency and traceability made possible by this technology. Small and medium-sized businesses (SMEs) may find it easier to gain access to funding and compete with larger corporations using blockchain-based SCF. [1]