Essence of Corporate Governance, Sustainability, and Social Responsiveness in the Digital Era

Abstract

The technological development and the continuously growing digital economy have created a different profile of corporations, capital markets, and changed the nature of the global economy at large. This situation has its obvious expected corporate governance impacts and outcomes. The use of digital technology improves regulatory efficiency and enhances disclosure practices, market supervision, and enforcement of corporate governance-related requirements. New platforms based on big data and machine learning enable the systematic application and transparency of environmental, social, and governance (ESG) information for investors and companies. This situation encourages shifting capital from less sustainable to more sustainable companies. Today, it can be predicted that the importance of environmental and natural life protection requirements and institutional responsibilities will be an even more crucial plan at the government, companies, and the individual level.

Equally, global business management and corporate governance trends are also changing and transforming into new structures in the digital era and we observe more attention and efforts of many multinational firms to improve their integrity, diversity, and inclusion strategy. In parallel notes to mention that the digitalization has not only given the access to consumers to have a full visibility of goods and services in the market but also has transformed people to “conscious customers” who are more determined on their needs, preferences, and buying decisions. Therefore, in our digital era, the consumers are expected to be keener in their investment decisions, and these investment decisions can gear toward more ESG-oriented firms.