We have heard that 3 Ds (Decarbonisation, Decentralisation and Digitalisation) are the key to the energy transition in the previous discussion. One of the very important D also leads the audit industry — Digitalisation.
Why be certificated?
After the industrial revolution, society enjoys the benefit of massive production and wealthy. To keep growing in terms of business development, the Giants try to reduce cost by hiring slaves or minor in the global south. Regarding the food supply chain, the farmers are usually the one who gets far underpaid while the massive production damage the natural environment. Thus, customers concerning these issues ask for ingredients which are not genetically modified organism (GMO) or from free trade. Various certificate come out with the need of the market, such as organic food, free trade cocoa, FSC paper. Then, customers can easily distinguish the “good” products or services by looking at the certificate they trust and with the vision which they agree on.
The transitional way of auditing provides a clear analysis for organisations and businesses on certain objects with a range of identified measures aimed at making savings or demonstrate the value of the products or services, helping firms take steps towards the development of the objects. In the past, the audit processes are closed to the auditors and the suppliers. This makes the information inaccessible to the public. The audit companies are in charge of communication with individuals and help suppliers to save time and resource in public relations.
Transformation of the traditional practices
The certificate eco-system have worked well in the previous two decades, but it ended up a day meeting some difficulties. One of the main challenges of the certificate nowadays is how to communicate with customers (end users). The traditional models sound understandable as the society was not very keen in the disclosure of businesses. However, as the environmental consciousness of the public is improved. It is undebatable that the customers today do not just expect the product or service with a certain certificate. Individuals start understanding that even the products with the same certificate may have various impacts from different perspectives. They are more up to look at the exact engagement of the supplier behind the products. Thank the innovation of digitalisation, we now have very reliable technology to disclose information.
While the certificate can only tell the product or service meet certain criteria, individuals are looking for more reliable information. A platform they can access and disclose the information they concern would help to fill this gap. With the blockchain technology, the audit practice can be transparent and open for the public to review, improving the communication and the reputation for industries.
