CSR is a business model that makes the company socially accountable to all stakeholders and society.
Today, consumers like to work with suppliers that pay attention to environmental and societal issues. Therefore, CSR is becoming a critical element to consider while building a new business model. All the industries, including finance, logistics, and luxury, are now challenged in this specific aspect.
To foster their CSR performance, companies should implement control mechanisms to guarantee that all the supply chain adheres to the rules that contribute to improving their CSR.
Let’s analyze one crucial sector, the financial industry. It is an industry with a prominent role in developing all economies. Banks and other financial institutions can incentivize investors, entrepreneurs, and companies to follow CSR rules. The question is how to make an appropriate follow-up with all the stakeholders. Digital technologies can help answer this question.
As a digital technology provider, we observed a positive trend from different financial institutions trying to put strict controls in place to ensure that all the supply chain follows CSR rules. By combining digital automation capabilities to get the data from all the stakeholders, and artificial intelligence to process the data, it is now possible to attribute a CSR score to an actor in the financial market. Because it is essential for all the actors playing in this market to remain credible, they are taking concrete actions that make their scores better.
One challenge during recent years has been to guarantee that the CSR scores are not subject to biases. The progress in Artificial Intelligence, Big Data, and Digital Transformation are making it more and more challenging to manipulate the CSR score.
With the fast technological innovation and awareness about the global benefits of CSR, we can overcome this challenge that is one of the most important of our era.
