Evaluating the influence of ESG performance on corporate digital responsibility in the Gulf Cooperation Council countries

This study investigates whether and how environmental, social, and governance performance influences corporate digital responsibility among firms in the Gulf Cooperation Council region. It specifically examines the effect of overall ESG performance, as well as the separate environmental, social, and governance dimensions, on firms’ engagement in responsible digital practices. The analysis draws on panel data from 537 firms across GCC countries over the period 2017 to 2023. ESG performance and its three dimensions are treated as the main explanatory variables, while a range of firm-level and country-level controls is included. The results show that ESG performance is positively associated with corporate digital responsibility, although the economic magnitude of this relationship is modest. Among the three ESG pillars, governance emerges as the strongest and most consistent driver, suggesting that internal governance structures are particularly important in translating sustainability commitments into responsible digital conduct. These findings extend the ESG literature into the digital domain and offer new evidence from the GCC context, where digital transformation is advancing rapidly. The study contributes to ongoing debates on ethical digital behavior, corporate legitimacy, and governance quality, while also offering practical insights for managers and policymakers seeking to strengthen responsible digital practices in emerging economies.