Corporate governance in the fourth industrial revolution: how can blockchain technology be used to solve corporate governance problems?
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Date
2024
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University of the Western Cape
Abstract
Every industrial revolution has brought about drastic change and a quantum leap in human development, however, those who benefit the most from these changes are ones who take the first step in its adoption. Similarly, companies and organisations that adopt these new technologies will be the leaders and will set precedent for the adoption.1 The blockchain can serve three functions which benefit corporate governance: a public register, exchange for assets, as a way to establish complex organisations and governance systems.2 However, block chain protocols are developed to be decentralized, this causes various governance problems, which usually stem from conflicts of interest among the participants.3 With blockchain technology an organisation will be able to enhance its accountability, transparency, and security. This paper explores the applicability of blockchain into corporate governance. First, all the components of blockchain is discussed with particular focus on what it can provide. Then this paper will explore corporate governance frameworks across three jurisdictions. The three jurisdictions were chosen to contrast their levels of corruption. After having identified the root cause to corporate governance failures, this paper will explore the various use cases of blockchain to analyse how blockchain can actually be used in corporate governance. Thereafter, this paper will discuss recommendations for adoption.
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Keywords
Corporate governance, Blockchain, Stakeholder engagement, Data security, Smart contracts