The Effect Of Digital Transformation On Company’s Sustainable Development

This study investigates the relationship between digital transformation of companies and sustainable business development.Currently,there is great penetration of digitalization in all areas of social and economic life.Therefore,an assessment of the effect is of great importance to the interests of both business and society.Incorporating international best practices to study digital transformation degree in companies,the factors influencing sustainable development of those,and experts’ judgement of leading business managers,this study demonstrates an objective assessment of the effect of digital technologies as part of the sustainability strategy in companies.Developed methodology to assess the impact of digitalization on a company’s sustainable development proposes a set of indicators.These are used to assess the extent to which digital technologies are being used to achieve progress in three areas of sustainable development.Subsequently,economic stability and management efficiency are ensured,the negative impact on the environment is reduced,and mutually beneficial relationships with stakeholders are built.The core element of the methodology is an index of the impact of digitalization on the company’s sustainable development,consisting of sub-indices for each group in the areas of sustainable development.Based on data from international companies over a three-year period,the results show a strong correlation between digitalization and sustainable development of the companies,confirming our hypothesis.The simplicity of the calculations and the use of weighting coefficients made it possible to create a flexible and dynamic indicator in line with modern requirements.The proposed set of indicators may be supplemented and adjusted in the future development,without changing the algorithm of the calculation of the resulting indicator.