Responsible digitalization through digital technologies and green practices

Abstract

Although digital technologies grant documented operational and economic benefits, they can activate unwanted consequences for the environment and society. This research investigates these issues by exploring how firms can create a portfolio of technologies to perform corporate social responsibility (CSR) goals and then achieving responsible digitalization. The latter is defined as the firms' capacity of adopting digital technologies without underperforming in terms of CSR. Accordingly, we investigate the relationships between digital technologies and CSR to discover the firms' capacity to achieve responsible digitalization targets. Furthermore, we explore how the use of some green practices allows firms to increase the chances of achieving responsible digitalization goals.

Digital Transformation and Corporate Social Performance: How Do Board Independence and Institutional Ownership Matter?

“…For example, the use of big data and IoT allows firms to effectively and efficiently source, store, and share information regarding customers, suppliers, distributors, and other business actors ( Kohtamäki et al, 2020 ; Paiola and Gebauer, 2020 ), and thus better responds to their needs and wants ( Hadjielias et al, 2022 ; Schiavone et al, 2022 ). At the same time, the development of new algorithms and AI allows firms to parse, treat, and analyze a vast amount of data, extracting valuable information that helps identify stakeholders’ and societal needs ( Cardinali and De Giovanni, 2022 ). The improved recognition of such needs triggers firms’ CSR engagement ( Brower and Mahajan, 2013 ).…”

“…Moreover, digital transformation may boost knowledge creation by changing a firm’s culture and employees’ mindset, ultimately supporting innovation ( Sousa and Rocha, 2019 ). Second, digital technologies applied to production, transportation, supply chains, and recycling may reduce energy consumption, carbon emission, and industrial waste ( Cardinali and De Giovanni, 2022 ). For example, by adopting automation and big data in shipbuilding, firms may predict faults and find welding solutions in advance, improving production efficiency and energy conservation ( Ramirez-Peña et al, 2020 ).…”

“…For example, by adopting automation and big data in shipbuilding, firms may predict faults and find welding solutions in advance, improving production efficiency and energy conservation ( Ramirez-Peña et al, 2020 ). Cardinali and De Giovanni (2022) also suggest that Industry 4.0 technologies support circular economy systems, generating new opportunities for firms to improve CSR. Finally, digital applications help improve societal security ( Newell and Marabelli, 2015 ; Vial, 2019 ).…”

“…The digital revolution in the private sector, public institutions, and almost all industries has disrupted numerous markets, created new business opportunities, and fundamentally transformed business models ( Bresciani et al, 2021 ; Kraus et al, 2021 ). These phenomena have increased research efforts in various streams of the business literature, such as marketing ( Lamberton and Stephen, 2016 ; Kannan and Li, 2017 ), human resource management ( Blanka et al, 2022 ; Fossen and Sorgner, 2022 ), innovation and entrepreneurship ( Yoo et al, 2012 ; Nambisan et al, 2019 ; Usai et al, 2021 ), and business ethics and sustainability ( Illia et al, 2017 ; Cardinali and De Giovanni, 2022 ; Schiavone et al, 2022 ). However, additional exploration seems needed.…”

“…However, little attention has been devoted to its influence on corporate social performance (CSP), defined as the observable organizational outcomes of programs and policies intended to achieve corporate social responsibility (CSR) goals ( Wood, 1991 ; Barnett, 2007 ; Orlitzky et al, 2017 ). Moreover, recent studies have investigated the use of digital technologies in green practices ( Cardinali and De Giovanni, 2022 ), such as green innovation ( Santoalha et al, 2021 ) and green supply chains ( Ramirez-Peña et al, 2020 ). However, it is unclear whether a firm’s digital transformation enhances its overall CSP.…”