Abstract

This study examines the impact of blockchain adoption on enhancing Environmental, Social, and Governance (ESG) transparency within small business supply chains. It examines how blockchain, digital literacy, and formalized ESG policies collectively impact transparency and ethical practices. The research, based on a survey of 271 small businesses, utilizes descriptive and inferential statistical methods, including Pearson correlation and multiple regression analysis. Findings indicate a significant positive relationship between blockchain adoption, digital literacy, and ESG policies in improving supply chain transparency. The study highlights that digital literacy plays a crucial role in facilitating blockchain adoption, and businesses with formal ESG policies tend to exhibit higher levels of transparency. Small businesses can enhance operational efficiency, build consumer trust, and meet sustainability goals by integrating blockchain with robust ESG frameworks, offering valuable insights for both managerial strategies and policy development.