The Impact of Ethical, Legal, and Social Implications of Gene Editing in Financial Institutions

Abstract

Advances in gene editing technologies, particularly CRISPR-Cas9, have raised profound ethical, legal, and social concerns (ELSI), which extend beyond biomedical applications into broader societal domains. Financial institutions, as custodians of capital, insurance, and investment decisions, are increasingly confronted with the implications of gene editing for risk assessment, insurance underwriting, investment ethics, and corporate governance. This study explores the impact of ethical, legal, and social considerations of gene editing on financial institutions’ operational, strategic, and regulatory decisions. A quantitative survey was conducted among 360 professionals in banking, insurance, and investment sectors, assessing perceptions of ethical risk, legal compliance, social responsibility, and organizational response to emerging gene editing technologies. SmartPLS Structural Equation Modeling was applied to examine relationships between awareness of ethical, legal, and social implications, organizational policies, risk mitigation strategies, and stakeholder trust. Results indicate that ethical awareness and perceived social impact significantly influence institutional policies, while legal compliance mediates the relationship between perceived risks and stakeholder trust. Financial institutions that proactively integrate ELSI considerations into governance frameworks are more likely to maintain regulatory compliance, stakeholder confidence, and reputational resilience. This research contributes to interdisciplinary literature bridging bioethics, finance, and corporate governance. Findings highlight the need for institutional frameworks that address the societal and ethical ramifications of gene editing technologies, while mitigating regulatory and reputational risks. Limitations include reliance on self-reported data and cross-sectional design; future research should incorporate longitudinal studies and scenario-based simulations to evaluate institutional responses under diverse regulatory and social contexts.