Blockchain technology as a tool for corporate governance and transparency

Opeyemi E. Aro 1, *, Michael Nweze 2 and Eli Kofi Avickson 3

1 Olin Business School, Washington University in St Louis, USA.
2 Cybersecurity and AI expert, Coventry University, United Kingdom.
3 Department of Economics, Bowling Green State University, USA.
 
Research Article
International Journal of Science and Research Archive, 2024, 13(01), 2479–2493.
Article DOI: 10.30574/ijsra.2024.13.1.1971
Publication history: 
Received on 03 September 2024; revised on 13 October 2024; accepted on 15 October 2024
 
Abstract: 
Blockchain technology presents a transformative opportunity for enhancing corporate governance practices, increasing transparency in financial reporting, and fostering stakeholder trust. This paper investigates the strategic implementation of blockchain as a governance tool, highlighting its potential to create a more transparent, accountable, and efficient corporate environment. By utilizing decentralized ledgers, organizations can ensure that financial transactions and reporting are immutable, verifiable, and accessible in real-time. This enhances the reliability of financial data, mitigating risks associated with fraud and misreporting. The study includes case analyses of organizations that have successfully integrated blockchain into their governance frameworks, illustrating how these implementations have improved operational efficiency and stakeholder confidence. Key areas of focus include the use of smart contracts to automate compliance and reporting processes, the role of blockchain in enhancing shareholder engagement, and the impact of transparent reporting on investor relations. Additionally, the research addresses challenges related to the adoption of blockchain in corporate governance, including regulatory concerns and the need for technological infrastructure. The findings indicate that, when effectively integrated, blockchain can significantly enhance corporate governance, leading to improved decision-making, risk management, and overall organizational performance. Ultimately, this paper argues that blockchain not only serves as a tool for transparency but also as a catalyst for fostering a culture of accountability and ethical governance in the corporate landscape.
 
Keywords: 
Blockchain in corporate governance; Transparency; Financial reporting; Stakeholder trust; Smart contracts
 
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Copyright © 2024 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0