How Fintech is Making Corporate Social Responsibility a Top Priority

December 7, 2017 Lauren Ruef

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.

fintech removes the friction from corporate social responsibility efforts
Fintech is shaping how consumers part with their money. - Nvoicepay

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.

 

 

About the Author

Lauren Ruef

Lauren is a Research Analyst at Nvoicepay. She has six years of experience in the technology and B2B payments industries.

Follow on Twitter Follow on Linkedin More Content by Lauren Ruef
Previous Article
Weekly Ledger 56: Top Stories in Accounting and Finance
Weekly Ledger 56: Top Stories in Accounting and Finance

Weekly Ledger 56 — Trending news & stories in accounting, finance, and fintech for the week of Dec. 11, 201...

Next Article
The Truth Behind Invoice Card Payments
The Truth Behind Invoice Card Payments

Making invoice card payments saves money. Partner with a provider that's incentivized by your continued use...

×

AP & Finance Professionals:
Sign up for
our weekly newsletter

First Name
Last Name
!
Thank you for subscribing!
Error - something went wrong!