Challenges of Blockchain Implementation in HRM to Improve Transparency of Sustainability Reporting
DOI:
https://doi.org/10.59971/meta-journal.v2i4.321Keywords:
Blockchain HRM, Sustainability Reporting, Decentralized Systems, Ethical Supply Chains, HR ComplianceAbstract
This qualitative study investigates the multifaceted challenges of implementing blockchain technology within Human Resource Management (HRM) to enhance sustainability reporting transparency among Jakarta multinational corporations. As global and local pressure mounts for verifiable ethical practices, blockchain’s promise of immutable data integrity confronts complex socio-technical realities. Through in-depth interviews with 28 HR leaders, technology experts, and sustainability officers, the research identifies five interconnected barriers: (1) profound technical integration difficulties with legacy HR systems, (2) limited efficacy in verifying initial data authenticity across Jakarta’s complex supply chains, (3) tensions between regulatory agility in Indonesia’s evolving compliance landscape and blockchain’s inherent inflexibility, (4) deep-seated stakeholder resistance rooted in transparency anxieties and cultural reluctance, and (5) the sustainability-energy paradox where blockchain’s environmental footprint contradicts ESG goals. Findings reveal that while blockchain strengthens auditability, its successful adoption demands addressing Jakarta-specific infrastructural constraints, fostering cultures of trust, and prioritizing human oversight alongside technological solutions. The study advocates for strategic, context-sensitive approaches to blockchain deployment, positioning it as one tool within a broader ecosystem of ethical governance, not a standalone solution for HR-driven sustainability transparency.
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