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Original Article | Volume 2 Issue 4 (ACR, 2025) | Pages 1061 - 1068
Integrating Blockchain and Sustainability in Finance and Human Resources: Opportunities and Challenges
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1
Research Scholar, Le Cordon bleu School of Hospitality and Tourism, GD Goenka University, Gurgaon.
2
Visiting Professor, NarseeMonjeeInstitute of Management Studies, Mumbai.
3
Senior Research Analyst, Former Asst. Professor, New Delhi, India.
4
Lecturer in Udhampur Campus,University of Jammu.
Under a Creative Commons license
Open Access
Abstract

The integration of blockchain technology into sustainability-oriented practices in finance and human resources (HR) represents a paradigm shift with transformative implications for organizational transparency, efficiency, and accountability. This conceptual paper investigates how blockchain, a decentralized and immutable ledger system, can be leveraged to enhance sustainability across financial and HR functions. Drawing from an extensive literature review of peer-reviewed sources indexed in Scopus and Web of Science from 2018 to 2024, this study synthesizes existing insights to highlight the critical opportunities and inherent challenges in adopting blockchain technologies in sustainable finance and HR practices.In the financial domain, blockchain facilitates real-time tracking of transactions, supports reliable environmental, social, and governance (ESG) disclosures, and empowers decentralized finance (DeFi) mechanisms that promote financial inclusion and responsible investment. These applications align closely with sustainability goals by ensuring accountability, reducing corruption, and promoting ethical financial practices. In HR management, blockchain offers robust tools for verifying employee credentials, securing personal data, streamlining payroll systems, and enabling transparent recruitment practicescontributing to ethical labor practices and workforce inclusion.Despite its potential, blockchain adoption faces several challenges. Key barriers include high energy consumption associated with certain consensus mechanisms, lack of regulatory frameworks, data standardization issues, and limited technical expertise within organizations. These limitations may hinder scalability, interoperability, and mainstream adoption, especially in developing economies. Furthermore, the transition from traditional systems to blockchain-based models require significant investment in infrastructure, policy development, and capacity building.This paper concludes that while blockchain holds considerable promise for promoting sustainability in finance and HR, realizing its full potential requires a multi-stakeholder approach involving technological innovation, regulatory support, and strategic alignment with sustainability goals. Future research should focus on case-based evaluations, energy-efficient blockchain models, and cross-disciplinary frameworks to deepen understanding and guide successful implementation strategies across industries and sectors.

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