Beyond the buzz: uncovering the true impact of digital technologies on environmental and social accountability

Purpose This paper aims to examine the real impact of digitalization on the effectiveness of environmental and social accountability in terms of greenwashing (GW), comprehensiveness of disclosure, readability, disclosure tone and environmental, social and governance (ESG) assurance. Design/methodology/approach The paper was applied to 51 listed banks in emerging countries in the Middle East (Egypt, KSA, UAE, Kuwait and Qatar) during the period 2020–2024. Generalized linear mixed model was used to test hypotheses in both fundamental and additional analyses, and the weighted least squares method was used to assess robustness. Findings The findings support the proposed hypotheses, revealing the dual role of digital technologies in enhancing environmental and social accountability. They improve transparency by reducing GW, increasing the comprehensiveness and readability of disclosures and enhancing ESG assurance. At the same time, it can be used as an impression management tool by enabling management to frame disclosures in a very positive tone, especially in the early stages of digitalization. Research limitations/implications This study deepens the theoretical understanding of the impact of digitalization on environmental and social accountability in light of resource-based theory, legitimacy and impression management theories, while expanding the boundaries of these theories in the context of digitalization. The findings also provide practical insights for policymakers, regulators, practitioners and banks to adopt regulatory and disclosure policies relevant to the digital age. Originality/value This study is one of the first to examine the real impact of digitalization on the effectiveness of environmental and social accountability from a multidimensional perspective in the emerging market banking sector in the Middle East, by integrating resource-based theory, legitimacy theory and impression management theory.