15min
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Use Case: Ensuring Corporate Social Responsibility (CSR) with Private Data Consortiums
by
Nuklai

Summary:

Reporting on Corporate Social Responsibility (CSR) is becoming increasingly important worldwide, and companies are faced with the tough tasks of not only providing accurate data but also sharing and receiving this data in a way that complies with data privacy regulations. Data consortiums provide an innovative solution to these issues, enabling secure data exchanges that meet CSR disclosure requirements. Companies often work within complex supply chains where monitoring each level of the chain can be challenging, sometimes hiding the practices of the layers beneath the other one. Nuklai gives companies the tools to create trustworthy CSR reports that satisfy both investors and regulators, helping them make CSR a fundamental part of their strategy and promoting a commitment to sustainable, ethical business practices.

Challenge: Navigating the Complex World of CSR Reporting: From Accuracy to Compliance in a Globally Connected Market

The global emphasis on Corporate Social Responsibility (CSR) is growing, with steps being taken by companies and governments alike to promote—or even mandate—CSR reporting. Leading this movement is the European Union, which has enacted the Corporate Social Responsibility Directive (CSRD) as of January 5, 2023. This directive broadens the reporting requirements to encompass a wider array of companies, including small and medium-sized enterprises (SMEs), mandating them to report on various sustainability issues. While the United States has not yet implemented federal mandates for CSR reporting, the Securities and Exchange Commission (SEC) has been proactive in setting guiding principles, signaling an eventual progression towards formalized reporting obligations. Consequently, there is an anticipatory need for companies to scale and modify their approaches to CSR reporting to meet these evolving standards.

Companies encounter several challenges with CSR reporting, one of the primary issues being the need to ensure that their reported data is both accurate and reliable. Data management systems are crucial in this aspect, as they must handle information that is often qualitative and subjective in nature. This complexity is magnified when data is sourced from different departments, or operations across various countries.

Each business unit within a company might follow its unique standards and practices, employing various systems and data sources. Consequently, these differing standards add a layer of complexity to the task of compiling all the data into a single, coherent, and technically consistent data source for comprehensive CSR reporting.

The complexity of CSR reporting is further amplified when it involves partners and supply chain companies or even competition. Achieving clear insight into the CSR practices of suppliers and competitors is a formidable task, made even more challenging when those suppliers or competitors are part of a nested supply chain, each potentially concealing the operations of the next. This difficulty is accentuated for small and medium-sized enterprises that often have less sophisticated reporting systems or are situated in regions with varying standards and regulations, adding another layer of intricacy to obtaining a transparent view of CSR practices.

Larger companies have the leverage to mandate their suppliers to report their CSR practices as a condition of business. However, this requirement can be burdensome and carry financial impacts, particularly for smaller suppliers. The varying levels of technical expertise, infrastructure, and technology among suppliers can influence the quality and regularity of the data they provide. Nonetheless, the demand for supply chain transparency is intensifying. Consumers and investors are progressively holding companies accountable for the CSR performance not just within their immediate operations, but throughout their entire value chain.

Reporting CSR practices also involves navigating a complex network of legal and compliance issues, especially when third parties are involved. Strict data protection regulations, like the General Data Protection Regulation (GDPR) in the European Union, set rigorous standards for handling, sharing, and publishing personal and sensitive data. Companies must carefully manage the collection of CSR data from their suppliers to ensure compliance with these laws and avoid the risk of heavy fines.

Furthermore, confidentiality agreements between companies and their suppliers or partners add another layer of complexity to CSR reporting. These agreements can restrict the flow of information, necessitating delicate negotiations to guarantee that CSR disclosures do not violate any contractual terms. Suppliers may also be hesitant to share certain details that they consider commercially sensitive, making the task of gathering comprehensive CSR data even more challenging.

The mounting pressure from both the market and regulators for robust CSR reporting, coupled with the risk to a company's reputation if CSR is not properly managed, underscores an urgent need for a sustainable solution. A long-term approach that can address and streamline these complexities is not just desirable, it's becoming essential for businesses aiming to maintain their standing and comply with increasing expectations.

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Objective: Facilitating CSR Excellence through Data Consortiums: Balancing Transparency, Security, and Compliance

The case for Corporate Social Responsibility (CSR) underscores the multifaceted challenges that businesses encounter. These range from reporting with accuracy and transparency to embedding sustainable and ethical practices within their core operations and across their supply chains.

We propose data consortiums as a way to address these CRS challenges in several ways.

For companies, securely exchanging sensitive data while maintaining transparency and data protection is paramount. Nuklai addresses this by enabling companies to establish data consortiums. Within this secure environment, companies can selectively share their data, ensuring confidentiality and maintaining the privacy required for CSR disclosures. This selective sharing mechanism not only adheres to transparency mandates but also alleviates the fear of jeopardizing business partner relationships through data compromise.

Additionally, Nuklai plays a crucial role in mitigating risks during data exchanges with third parties. It addresses a common challenge where some suppliers may lack the technical know-how to set up secure data transfers, risking sensitive information. Nuklai simplifies this process, enabling secure connections that don't require extensive technical expertise. Whether the data resides on local servers or in the cloud, these connectors facilitate seamless integration into the private network. It also accommodates smaller vendors by allowing them to upload data in various formats, ensuring a secure data environment for all parties involved.

Nuklai addresses the challenge of disparate data forms and formats with proprietary standardization techniques. Companies can also deeply enrich the metadata of their data, making it easier to find and match the correct data across different data sources from different organisations through their value chain. This streamlines and unifies data, negating the need for businesses to pour resources into their own technology and data infrastructure. Having such a predictable and standardized output, allows organization to quickly adapt to new reporting needs by simply connecting their business intelligence systems. Even small companies can harness the benefits of this shared data infrastructure, leading to a more inclusive business environment that fosters value creation for all stakeholders involved.

The solution is engineered with compliance in mind, incorporating features that align with strict data protection laws like the GDPR. This built-in compliance reduces the need for companies to dedicate extensive resources to complex legal and technical compliance measures. The platform enables anonymization of data, particularly vital for sensitive personal information tied to social aspects of CSR. This upholds ethical data management and responsible handling of data.

Embedded within the data consortiums of Nuklai is a comprehensive audit trail system. This feature is essential for incrasing security and reinforcing accountability, a fundamental tenet of CSR. The audit trails meticulously track data access, creating a transparent and verifiable ledger that demonstrates to auditors the origins of the data and how it is compiled into the CSR report. This level of transparency ensures that all data used is accountable and traceable back to its source.

Data consortiums revolutionize CSR reporting by offering an ecosystem where data transparency and confidentiality are not at odds but rather work in tandem. This technology enables companies to conduct thorough CSR disclosures securely, safeguarding their competitive data while meeting and exceeding regulatory expectations. Thus, companies can elevate their CSR communication, aligning with stringent standards and enhancing their narrative in the eyes of stakeholders.

Result: The Transformative Power of CSR: Elevating Business Performance and Value through Strategic Social Responsibility

Corporate Social Responsibility (CSR) is becoming increasingly recognized as an integral component of corporate strategy, with Deloitte highlighting its significant impact on company performance and stock prices. A report by KPMG further indicates a shift in investor sentiment towards greater societal and environmental awareness, prompting institutions to take complete ownership of their Environmental, Social, and Governance (ESG) profiles.

CSR contributes to enhancing business value across six crucial areas: brand differentiation, talent attraction and retention, innovation, operational efficiency, risk mitigation, and access to capital and market valuation. It's increasingly viewed by CEOs as a leading indicator of annual performance, underscoring its rising significance in creating business value and promoting stakeholder relationships. Enhanced measurement and data analytics for CSR data equip companies with a deeper comprehension of their business impact and social contributions, guiding strategic resource distribution and informed decision-making processes.

Access to precise CSR data enables businesses to make social responsibility part of their core strategy, increasing overall business performance. Within this evolving paradigm, the platform serves as a catalyst for transformative change, propelling the business world toward a more accountable and sustainable future.

Conclusion: Data Consortiums: Pioneering a New Era in CSR Reporting - Enhancing Transparency, Compliance, and Strategic Value Creation

Data Consortiums represent a major leap forward in the field of Corporate Social Responsibility (CSR) reporting. It cuts through the complexities of data accuracy, privacy, and compliance, bringing a new level of clarity and efficiency to member companies. This technology facilitates the secure collection and sharing of CSR data, expertly balancing the need for transparent sustainability practices with the imperative to protect sensitive information. Consequently, Nuklai equips organizations to tackle the nuanced challenges of CSR confidently and effectively.

Nuklai aligns with the shifting business ethos where CSR is becoming a central element of corporate strategy and value creation. By leveraging this technology, companies not only comply with emerging regulatory and market demands but also sharpen their competitive advantage. This enables businesses to produce in-depth CSR reports that engage stakeholders and play a part in shaping a sustainable global marketplace.

Want to know how you can use Nuklai to ensure a high-quality CSR in your business? Talk to our experts here.

About Nuklai

Nuklai is a collaborative data marketplace and the infrastructure provider for data ecosystems. It brings together the power of community-driven data analysis with the datasets of some of the most successful modern businesses.

The marketplace allows both grassroots data enthusiasts and institutional partners to find new ways to put untapped data to use and find new revenue streams. Our vision is to unify the fragmented data landscape by providing a user-friendly, streamlined, and inclusive approach to sharing, requesting, and evaluating data for key insights, better processes, and new business opportunities, empowering next generation Large Language Models and AI.

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Sources:

Deliotte: Measuring the business value of corporate social impact

KPMG: Putting big data at the heart of ESG decision making

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Javascript
Python
PHP
const ApiUrl = "https://api.nukl.ai/api/public/v1/datasets/:datasetId/queries";
const ApiKey = "[API_KEY]";
const DatasetId = "[DATASET_ID]";

const headers = {
  "Content-Type": "application/json",
  'authentication': ApiKey
}

ApiUrl = "https://api.nukl.ai/api/public/v1/datasets/:datasetId/queries"
ApiKey = "[API_KEY]"
DatasetId = "[DATASET_ID]"

headers = {
  "Content-Type": "application/json",
  "authentication": ApiKey
}

$ApiUrl = "https://api.nukl.ai/api/public/v1/datasets/:datasetId/queries";
$ApiKey = "[API_KEY]";
$DatasetId = "[DATASET_ID]";

$headers = [
  "Content-Type: application/json",
  "authentication: $ApiKey"
];
Javascript
Python
PHP
// @dataset represents your dataset rows as a table
const body = {
  sqlQuery: "select * from @dataset limit 5",
}

@dataset represents your dataset rows as a table
body = {
  "sqlQuery": "select * from @dataset limit 5"
}

// @dataset represents your dataset rows as a table
$body = [
  "sqlQuery" => "select * from @dataset limit 5"
];
Javascript
Python
PHP
cURL
const ApiUrl = "https://api.nukl.ai/api/public/v1/datasets/:datasetId/queries";
const ApiKey = "[API_KEY]";
const DatasetId = "[DATASET_ID]";

const headers = {
  "Content-Type": "application/json",
  'authentication': ApiKey
}

// @dataset represents your dataset rows as a table
const body = {
  sqlQuery: "select * from @dataset limit 5",
}

// make request
fetch(ApiUrl.replace(':datasetId', DatasetId), {
  method: "POST",
  headers: headers,
  body: JSON.stringify(body), // convert to json object
})
  .then((response) => response.json())
  .then((data) => {
    console.log(data);
  })
  .catch((error) => {
    console.error(error);
  });

import requests
import json

ApiUrl = "https://api.nukl.ai/api/public/v1/datasets/:datasetId/queries"
ApiKey = "[API_KEY]"
DatasetId = "[DATASET_ID]"

headers = {
  "Content-Type": "application/json",
  "authentication": ApiKey
}

# @dataset represents your dataset rows as a table
body = {
  "sqlQuery": "select * from @dataset limit 5"
}

# make request
url = ApiUrl.replace(':datasetId', DatasetId)
try:
  response = requests.post(url, headers=headers, data=json.dumps(body))
  data = response.json()
  print(data)
except requests.RequestException as error:
  print(f"Error: {error}")

$ApiUrl = "https://api.nukl.ai/api/public/v1/datasets/:datasetId/queries";
$ApiKey = "[API_KEY]";
$DatasetId = "[DATASET_ID]";

$headers = [
  "Content-Type: application/json",
  "authentication: $ApiKey"
];

// @dataset represents your dataset rows as a table
$body = [
  "sqlQuery" => "select * from @dataset limit 5"
];

// make request
$ch = curl_init(str_replace(':datasetId', $DatasetId, $ApiUrl));

curl_setopt($ch, CURLOPT_POSTFIELDS, json_encode($body)); // convert to json object
curl_setopt($ch, CURLOPT_HTTPHEADER, $headers);
curl_setopt($ch, CURLOPT_RETURNTRANSFER, TRUE);

$result = curl_exec($ch);
curl_close($ch);

echo $result;

curl -X POST 'https://api.nukl.ai/api/public/v1/datasets/[DATASET_ID]/queries' \
  -H 'Content-Type: application/json' \
  -H 'authentication: [API_KEY]' \
  -d '{"sqlQuery":"select * from @dataset limit 5"}'
Javascript
Python
PHP
cURL
const ApiUrl = "https://api.nukl.ai/api/public/v1/datasets/:datasetId/queries/:jobId";
const ApiKey = "[API_KEY]";
const DatasetId = "[DATASET_ID]";
const JobId = "[JOB_ID]"; // retrieved from /queries request

const headers = {
  "Content-Type": "application/json",
  'authentication': ApiKey
}

// make request
fetch(ApiUrl.replace(':datasetId', DatasetId).replace(':jobId', JobId), {
  method: "GET",
  headers: headers
})
  .then((response) => response.json())
  .then((data) => {
    console.log(data);
  })
  .catch((error) => {
    console.error(error);
  });

import requests

ApiUrl = "https://api.nukl.ai/api/public/v1/datasets/:datasetId/queries/:jobId"
ApiKey = "[API_KEY]"
DatasetId = "[DATASET_ID]"
JobId = "[JOB_ID]"  # retrieved from /queries request

headers = {
  "Content-Type": "application/json",
  "authentication": ApiKey
}

# make request
url = ApiUrl.replace(':datasetId', DatasetId).replace(':jobId', JobId)
try:
  response = requests.get(url, headers=headers)
  data = response.json()
  print(data)
except requests.RequestException as error:
  print(f"Error: {error}")

$ApiUrl = "https://api.nukl.ai/api/public/v1/datasets/:datasetId/queries/:jobId";
$ApiKey = "[API_KEY]";
$DatasetId = "[DATASET_ID]";
$JobId = "[JOB_ID]"; // retrieved from /queries request

$headers = [
  "Content-Type: application/json",
  "authentication: $ApiKey"
];

// @dataset represents your dataset rows as a table
$body = [
  "sqlQuery" => "select * from @dataset limit 5"
];

// make request
$ch = curl_init(str_replace(array(':datasetId', ':jobId'), array($DatasetId, $JobId), $ApiUrl));

curl_setopt($ch, CURLOPT_HTTPHEADER, $headers);
curl_setopt($ch, CURLOPT_RETURNTRANSFER, TRUE);

$result = curl_exec($ch);
curl_close($ch);

echo $result;

curl 'https://api.nukl.ai/api/public/v1/datasets/[DATASET_ID]/queries/[JOB_ID]' \
  -H 'Content-Type: application/json' \
  -H 'authentication: [API_KEY]'