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From Compliance to Consciousness: Ethical Governance of LLMs in Business Applications Practices
Rismawati R.
Leveraging Llms for Business Innovation Practical Solutions and Future Trends
Abstract
This chapter explores the transformation of AI governance from reactive regulatory compliance to proactive ethical stewardship in the deployment of Large Language Models (LLMs) across business environments. It examines the limitations of traditional legal frameworks and advocates for embedding ethical values such as transparency, fairness, and accountability throughout the LLM lifecycle. The text outlines how organizations can align LLM governance with ESG principles, organizational culture, and stakeholder trust through internal governance tools, ethical literacy programs, and interdisciplinary collaboration. Furthermore, it highlights the need for inclusive cross-sector cooperation in shaping global standards that are adaptable, anticipatory, and socially responsive. By integrating ethics into corporate strategies, this chapter offers a pathway toward responsible innovation—where LLMs are not only efficient but also aligned with human dignity, institutional integrity, and sustainable development.