The Ethics of Blockchain in Organizations

Blockchain is an open digital ledger technology that has the capability of significantly altering the way that people operations (i.e. human resource management) operate in organizations. This research takes a first step in proposing several ways in which the blockchain technology can be used to improve current organizational practices, while also considering the ethical implications. Specifically, the paper examines the role that blockchain technology plays in three primary areas of people operations: (1) entry to the organization (via recruitment and selection), (2) intraorganizational processes (including compensation via smart contracts, retention and motivation via shared leadership and conflict management via network-based dispute resolution, and performance management), and (3) exit (offboarding). In each section, the paper reviews the ethical implications from the lenses of virtue ethics, utilitarianism, deontology and contractarianism. The paper concludes that in whole the implementation of blockchain technology in people operations processes can create a more ethical work environment. However, careful implementation is necessary and requires extensive examination of ethical implications in advance.