The effects of blockchain technology adoption on business ethics and social sustainability: evidence from the Middle East.

ABSTRACT

Sustainable development is not just possible with regard to the environmental and economic dimensions, and social issues are also important in achieving sustainable development. Social sustainability, as one of the dimensions of sustainable development, has been considered by policy makers and managers. Social sustainability and business ethics in the organization are affected by social and behavioral interactions of individuals. Blockchain technology, as a disruptive technology, leads to a peer-to-peer and decentralized network management using distributed architecture. Blockchain technology can affect the way information is exchanged and creates transparency in the organization. Therefore, the purpose of this study is to evaluate the impact of blockchain technology on business ethics and social sustainability in the organization. In the first part of the research, a conceptual model is extracted using previous studies. In the second part, the relationship between model variables among 411 managers of small and medium enterprises (SMEs) active in the Middle East region is evaluated according to the importance of sustainability in this region. Structural equation model and SmartPLS software have been used for data analysis. The research findings show that the use of blockchain technology has a direct impact on business ethics, corporate governance and social sustainability due to the creation of a decentralized system, information transparency and traceability. Also, business ethics and corporate governance have an impact on achieving social sustainability.