How Fintech is Making Corporate Social Responsibility a Top Priority
In Nielson's Global Corporate Sustainability Report, 73 percent of Millennials surveyed said they'd spend more money to shop products from a sustainable brand. And if companies intend to capture any part of the $30 trillion Millennials stand to inherent from their parents, they'll have to look at sustainable business practices, or cause-centered missions.
Corporate social responsibility (CSR) is one of the hot topics of the last decade that is driving consumer preferences.
B Corp to the rescue
B Corporations, which exist to generate social and environmentally conscious benefits while churning a profit, are on the rise. The B Corporation designation is for companies that strive to employ waste minimization programs, pay fair wages, and meet rigorous standards for ethical business practices.
Technology—and particularly fintech—is responsible for driving the creation of these business entities. Consumers, equipped with more information than ever before, will benefit from a new tool in supply chain transparency: blockchain.
Blockchain to disrupt traditional supply chains
Blockchain is a game-changer in many ways for corporations, as products that are labeled organic or fair-trade may one day be traceable from point of origin to shopping basket by a consumer scanning a single code. This will keep businesses honest on what they offer to consumers, and how they deliver products.
Fintech has huge potential for unlocking opportunities for the underbanked and providing them with more options and access to use their money than ever before. From representing the underbanked with non-traditional banking apps and credit sources to serving non-profits with apps that help people donate electronically instead of writing checks, it's safe to say that fintech will have a big hand in the charitable sector's next move.
Charitable giving is easier than it ever was
Apps are usually free to download, simple to use, and users can send money 24/7 from anywhere, which is a huge benefit compared to sending a check out and waiting for it to clear the account.
Also, receiving checks for charitable transactions of smaller amounts can be a prohibitive cost due to the money lost in the processing of the check. But mobile apps like Charity Miles, Coin Up, and ShareTheMeal smooth out the process of giving.
Fintech's role in shaping how consumers part with their money through blockchain and financial apps is here to stay. Through corporate social responsibility, companies can play an active role in these changes now, instead of reacting to them later when customer loyalty shifts in another direction.