A study on ethical implications of using technology in ESG investing and ensuring unbiased decision making

Abstract

Environmental, Social, and Governance (ESG) influence on stock market investing decisions is becoming more prevalent as a vital aspect of sustainable development. This study aims to investigate the ethical implications surrounding the utilization of technology in the context of Environmental, Social, and Governance - ESG investing and its essential role in fostering unbiased decision-making. In addition, this research also attempted to examine the multifaceted dynamics and challenges that arise when digital tools are leveraged to assess ESG factors in investment strategies. We employ a quantitative research approach and statistical methods, including regression and structural equation modeling to examine the relationships between ESG, Digital Technology adoption, and Sustainable Investment decisions by incorporating the Ethics of AI and the Theory of Planned Behavior (TPB). The result indicated -ESG investing, highlighting the growing importance of ethical considerations in financial decision-making. It then delves into the integration of technology, specifically artificial intelligence, into ESG assessment processes. This technological advancement has the potential to enhance the accuracy and timeliness of ESG evaluations, yet it also introduces complex ethical dilemmas related to data privacy, algorithmic bias, and transparency. This study provides a comprehensive overview of ESG investing, highlighting the growing importance of ethical considerations in financial decision-making. The results of the study have implications for investors, policymakers, regulators, and society in general. The study helps investors make wise decisions and penetrate new markets. The research contributes to the literature on ESG investing. It then delves into the integration of technology, specifically artificial intelligence, into ESG assessment processes.