Driving Business Sustainability Through Digital Transformation, Ethics, Responsibility and Sustainable Innovation

Abstract. The aim of this study is to investigate the influence of corporate ethics, corporate social responsibility (CSR), and sustainable innovation on corporate sustainability and to analyze the role of digital transformation as a moderating variable. This study is based on the need for companies to balance ethical values, social responsibility, and innovation in light of the increasingly complex challenges of the digital economy. The research method used a quantitative approach with a survey method among 200 respondents, including middle- to senior-level managers from various industrial sectors in the Jakarta region of Indonesia. Data analysis was conducted using the partial least squares structural equation modeling technique (PLS-SEM) and SmartPLS version 4 software. The study results show that corporate ethics and CSR have a positive and significant influence on corporate sustainability. However, sustainable innovation and digital transformation do not show any significant direct effects. Furthermore, digital transformation also does not play a significant role as a moderating variable in the relationship between the three independent variables of business sustainability. The role of digital transformation falls into the category of predictor moderation, with its function being that of a supportive context rather than a strengthening relationship. These findings suggest that ethical and social values remain the most important foundation for a company's sustainability, while digital transformation requires a more structured approach to achieve a real impact on corporate sustainability. Keywords: Business ethics, corporate social responsibility, sustainable innovation, digital transformation, business sustainability