The impact of technology for social good (TSG) on the effectiveness of corporate ESG self-regulation

Abstract

Previous literature has explored the influence of stringent governmental regulations and flexible market mechanisms on encouraging companies to uphold their ESG (Environmental, Social, and Governance) responsibilities. Nonetheless, the internal corporate dynamics that facilitate ESG adherence have not been fully elucidated. Our research delves into the effects of science and technology governance on the self-regulatory practices of companies regarding ESG, with a particular focus on the corporate governance framework. An empirical analysis of a survey conducted with 300 high-tech firms indicates that governance in science and technology substantially enhances the thoroughness of ESG information disclosure by companies, bolsters the sustainability of creating ESG value, and strengthens the reliability of companies' ESG commitment. Moreover, it is evident that environmentally focused innovative practices within corporations markedly boost the efficiency of their ESG self-regulation. The study identifies a mediating effect in the relationship between technology for social good (TSG) and both ESG disclosure completeness and ESG commitment reliability. Conversely, this intermediary role is not pronounced in the nexus between TSG and ESG value creation sustainability. Furthermore, the research underscores the pivotal influence and trajectory of TSG in fortifying the self-regulatory capacity of businesses in ESG matters. These insights are valuable for enhancing the impact of ESG regulatory measures and advancing China's carbon peaking and carbon neutrality goals.