The Role of Corporate Governance and Ethics in Facing the Challenges of Digital Transformation
DOI:
https://doi.org/10.63985/ttbr.v1i4.89Keywords:
corporate governance, digital transformation, business ethics, digital risk, organizational sustainabilityAbstract
This study aims to analyze the role of corporate governance and ethics in supporting the success of organizational digital transformation, particularly in facing increasingly complex digital risks and challenges. This study uses a qualitative approach with a case study design, in which data is collected through in-depth interviews with key informants and analysis of policy documents related to governance, risk management, and digital ethics. The results show that digital transformation presents major challenges in the form of data security and privacy risks, dependence on digital systems and third parties, unclear oversight responsibilities, and pressure to comply with dynamic digital regulations. The findings also reveal that corporate governance plays an important role as a control mechanism for digital transformation through strategic oversight, accountability, and risk management, while ethics serves as a normative foundation that guides the responsible, fair, and transparent use of technology. The integration of corporate governance and ethics has been proven to strengthen the legitimacy of digital policies, increase stakeholder trust, and serve as an important indicator of the success of sustainable digital transformation. This research has implications for the development of a conceptual model of digital transformation that emphasizes an integrated approach to technological innovation, governance, and ethical values in an organizational context.
References
Alex-Omiogbemi, A. A., Sule, A. K., Omowole, B. M., & Owoade, S. J. (2024). Conceptual framework for advancing regulatory compliance and risk management in emerging markets through digital innovation. World Journal of Advanced Research and Reviews, 24(3), 1155–1162. https://doi.org/10.30574/wjarr.2024.24.3.3752
Alonge, E. O., Dudu, O. F., & Alao, O. B. (2024). The impact of digital transformation on financial reporting and accountability in emerging markets. International Journal of Science and Technology Research Archive, 7(2), 025–049. https://doi.org/10.53771/ijstra.2024.7.2.0061
Creazza, A., Colicchia, C., Spiezia, S., & Dallari, F. (2022). Who cares? Supply chain managers’ perceptions regarding cyber supply chain risk management in the digital transformation era. Supply Chain Management: An International Journal, 27(1), 30–53. https://doi.org/10.1108/SCM-02-2020-0073
Efunniyi, C. P., Abhulimen, A. O., Obiki-Osafiele, A. N., Osundare, O. S., Agu, E. E., & Adeniran, I. A. (2024). Strengthening corporate governance and financial compliance: Enhancing accountability and transparency. Finance & Accounting Research Journal, 6(8), 1597–1616. https://doi.org/10.51594/farj.v6i8.1509
Fayayola, O. A., & Olorunfemi, O. L. (2023). Ethical decision-making in IT governance: A review of models and frameworks. International Journal of Science and Research Archive, 11(2), 130–138. https://doi.org/10.30574/ijsra.2024.11.2.0373
Ghandour, A., Woodford, B. J., & Abusaimeh, H. (2024). Ethical Considerations in the Use of ChatGPT: An Exploration Through the Lens of Five Moral Dimensions. IEEE Access, 12, 60682–60693. https://doi.org/10.1109/ACCESS.2024.3394243
Guerrero-Avendaño, A., Nieto Bernal, W., & Luna Amaya, C. (2023). Governance and Corporate Management System Supported by Innovation, Technology, and Digital Transformation as a Driver of Change. Sustainability, 15(17), 13150. https://doi.org/10.3390/su151713150
Ingale, A. (2024). IT Governance: Navigating the Digital Transformation Era. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.5028361
Joel, O. S., Oyewole, A. T., Odunaiya, O. G., & Soyombo, O. T. (2024). The impact of digital transformation on business development strategies: Trends, challenges, and opportunities analyzed. World Journal of Advanced Research and Reviews, 21(3), 617–624. https://doi.org/10.30574/wjarr.2024.21.3.0706
Kumar, S., Verma, A. K., & Mirza, A. (2024). Digital Revolution, Artificial Intelligence, and Ethical Challenges. In S. Kumar, A. K. Verma, & A. Mirza, Digital Transformation, Artificial Intelligence and Society (pp. 161–177). Springer Nature Singapore. https://doi.org/10.1007/978-981-97-5656-8_11
Oyetunji, S. A. (2024). Investigating Data Protection Compliance Challenges. International Journal of Innovative Science and Research Technology (IJISRT), 2131–2147. https://doi.org/10.38124/ijisrt/IJISRT24AUG1583
Rafiq, F., Awan, M. J., Yasin, A., Nobanee, H., Zain, A. M., & Bahaj, S. A. (2022). Privacy Prevention of Big Data Applications: A Systematic Literature Review. Sage Open, 12(2), 21582440221096445. https://doi.org/10.1177/21582440221096445
Reis, J., & Melão, N. (2023). Digital transformation: A meta-review and guidelines for future research. Heliyon, 9(1), e12834. https://doi.org/10.1016/j.heliyon.2023.e12834
Rosário, A. T., & Cruz, R. N. (2025). Ethical Practices in Digital Transformation Over the Last Half Decade: A Framework for Sustainability and Integrity in Business. In A. D. B. Machado, M. J. Sousa, A. Brambilla, A. Pesqueira, & A. Rocha (Eds.), Environmental, Social, Governance and Digital Transformation in Organizations (Vol. 35, pp. 469–495). Springer Nature Switzerland. https://doi.org/10.1007/978-3-031-86079-9_22
Saeed, S., Altamimi, S. A., Alkayyal, N. A., Alshehri, E., & Alabbad, D. A. (2023). Digital Transformation and Cybersecurity Challenges for Businesses Resilience: Issues and Recommendations. Sensors, 23(15), 6666. https://doi.org/10.3390/s23156666
Tomičić-Pupek, K., Furjan, M. T., Pihir, I., & Vrček, N. (2023). Disruptive Business Model Innovation and Digital Transformation. Business Systems Research Journal, 14(1), 1–25. https://doi.org/10.2478/bsrj-2023-0001
Verma, S., & Garg, N. (2024). New ethical frontier: Exploring the nexus of techno-ethical orientation and corporate ethical values moderated by digital citizenship behaviour. Journal of Organizational Change Management, 37(2), 391–407. https://doi.org/10.1108/JOCM-04-2023-0107
Yaqub, M. Z., & Alsabban, A. (2023). Industry-4.0-Enabled Digital Transformation: Prospects, Instruments, Challenges, and Implications for Business Strategies. Sustainability, 15(11), 8553. https://doi.org/10.3390/su15118553
Zhang, T., Shi, Z.-Z., Shi, Y.-R., & Chen, N.-J. (2022). Enterprise digital transformation and production efficiency: Mechanism analysis and empirical research. Economic Research-Ekonomska Istraživanja, 35(1), 2781–2792. https://doi.org/10.1080/1331677X.2021.1980731
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 TechTalent & Business Review
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
This work is licensed under CC BY-SA 4.0
