Exploring the Role of Environmental, Social, and Governance (ESG) Audits in Corporate Accountability

Abstract

The contemporary corporate landscape faces unprecedented scrutiny regarding environmental stewardship, social responsibility, and governance transparency. Traditional financial
auditing, while essential for verifying financial statements, increasingly proves insufficient
for addressing the multifaceted accountability demands of modern stakeholders. Environmental, Social, and Governance (ESG) audits emerge as a critical innovation in corporate
oversight, bridging the gap between financial performance and broader societal impact. This
research explores the transformative potential of ESG audits through a novel computational
framework that integrates artificial intelligence with established auditing principles.
Corporate accountability has evolved beyond mere financial compliance to encompass
environmental impact, social equity, and ethical governance. The limitations of conventional auditing methodologies become apparent when confronting complex sustainability
challenges, supply chain transparency issues, and stakeholder engagement metrics. ESG
audits represent a paradigm shift in how organizations measure and report their comprehensive performance, yet the methodological rigor and computational sophistication required
for effective ESG auditing remain underdeveloped.