Technology and Corporate Ethical Standards

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The study indicates that technology and digitalization positively influence the adoption of environmental and social standards among digital-oriented firms, while governance standards are found to be lower [5][14][20] - The findings emphasize the role of country culture, regulatory burdens, and perceptions of the judicial system in shaping the ethical standards adopted by digital-oriented firms [5][16][17] Summary by Sections Introduction - The report highlights the growing global interest in ethics and sustainability in firm management, linking these concepts to the United Nations' Sustainable Development Goals (SDGs) [9] - It discusses the dual nature of technology's impact on sustainability, presenting both opportunities and risks [10] Methodology - The analysis utilizes data from the World Bank Enterprise Surveys, covering 192,132 observations across 158 countries from 2006 to 2023, focusing on environmental, social, and governance (ESG) standards [12][25] - The study defines digital-tech-oriented firms based on their technological and digital presence [30] Findings - Digital-tech-oriented firms are more likely to monitor CO2 emissions and provide employee training, indicating a positive relationship with environmental and social standards [14][58] - However, these firms show a negative correlation with the employment of female top managers, suggesting a widening gender gap in leadership roles [59][74] - Cultural factors significantly influence the hiring of female top managers, particularly in countries with strong masculine preferences [16][63] Regulatory Environment - The report finds that a lower regulatory burden positively impacts the monitoring of CO2 emissions and the provision of training programs, but it also widens the gender gap in management positions [66][67] - Perceptions of courts as obstacles to business affect the hiring of female top managers, with fewer constraints leading to a lower representation of women in leadership [70][78] Conclusion - The relationship between technology and ethical practices is complex, with technology enabling better monitoring and training but also contributing to gender disparities in management [74][81] - The study underscores the importance of considering firm- and country-specific factors in promoting ethical business practices and addressing gender inequality [81]