SUSTAINABILITY AND INTERNAL CONTROL IN PUBLIC CULTURAL INSTITUTIONS: PROBLEMS AND CHANCES IN THE LIGHT OF DIGITIZATION AND NEW LAWS IN THE EU AND ROMANIA

This paper examines the European and national legislative frameworks regarding sustainability, highlighting their influence on internal control practices within public cultural institutions. This analysis examines key European regulations, particularly the Corporate Sustainability Reporting Directive (CSRD) and the Green Deal initiatives, which set rigorous standards for transparency and financial accountability. This analysis includes an examination of Romanian legislative provisions, particularly the Romanian Sustainability Code designed for the cultural public sector, and its impact on promoting sustainable governance. This study employs a comparative methodology to analyse the alignment and adaptation of these frameworks in relation to the increasing digitalization of internal control processes. Also, in this study emphasizes the role of digital tools in improving financial integrity and operational efficiency, thereby aiding compliance with changing legislative requirements. The findings indicate legislative and practical challenges encountered during this transition, alongside new opportunities presented by digital innovation for enhancing competitiveness and sustainability in cultural institutions. This study provides a significant theoretical and practical basis for the formulation of policies and procedures that address the sector's present and future sustainability needs.