Corporate Governance and Emerging Technologies: Legal and Ethical Dimensions

Abstract

Emerging technologies including artificial intelligence (AI), blockchain, and big data analytics are transforming corporate operations and posing new challenges for corporate governance. This article examines how legal frameworks and ethical duties in key jurisdictions (the U.S., EU, India, etc.) are responding to technological disruption. Adopting a doctrinal approach, it analyzes statutes and regulations such as the U.S. Sarbanes Oxley Act, India’s Companies Act 2013, the EU’s Corporate Sustainability Reporting Directive (CSRD), and the General Data Protection Regulation (GDPR), alongside leading cases (e.g. SEC v. SolarWinds, the Facebook–Cambridge Analytica scandal, and the Uber data breach settlement). Author discuss how fiduciary duties of directors – the duty of care, loyalty, and oversight are being reinterpreted in the face of cybersecurity threats, AI decision making, and data privacy risks. The analysis finds significant gaps in current governance regimes: laws often lag behind fast evolving technologies, leaving ethical issues (like algorithmic bias or cybersecurity preparedness) to be managed within existing corporate governance structures that were not designed for them. We argue for a global, harmonized approach including clearer legal mandates for tech oversight, integration of ethics and technology expertise at the board level, and cross border cooperation to ensure that corporate governance keeps pace with innovation.