International Journal of Recent Technology and Engineering (IJRTE) ISSN: 2277-3878, Volume-8 Issue-3S2, October 2019 605 Published By: Blue Eyes Intelligence Engineering & Sciences Publication Retrieval Number: C11301083S219/2019©BEIESP DOI:10.35940/ijrte.C1130.1083S219 Abstract: Purpose of study: Several studies are made on innovation, marketing orientation, social media and decision made in the black-box. However, countries such as England, Singapore and quite recently Malaysia legislated company law for a proper governance of the company and laws passed now make directors are more accountable of their fiduciary functions toward the company. Such law legislated is due to numerous court cases tried on breach of fiduciary and there are circumstances where corporation were liquidated. To date there is an inadequate study on the fiduciary accountability of directors or the Board of Directors (BOD) towards innovation and sustainable business growth. Despite innovation and sustainable business growth, directors are accountable for their actions such as approving expenditure on innovation, which result in low profit. However, there are studies on the “black box” in which decisions are made and. The aforesaid study lacks in one particular area, that is, fiduciary accountability of directors, which go beyond the decision-making process and its implementation. Since Malaysia Parliament passed the Companies Act 2016, which comes into effect in 2017, fiduciary duty is included in the Act. This study will look into the innovation and sustainable business growth and how the fiduciary accountability of directors moots innovation technologically, encouraging innovative knowledge through social-media among the employees, product innovation to meet customers’ needs and, of course, business sustainable growth. Methodology: In order to have more reliability of the aforesaid a comparative study is made between one of public listed companies and SMEs. Result: A final note, the present study on would trigger academic vigor in future because new concept of “fiduciary accountability” which is introduced in this literature. Index Terms: Fiduciary Accountability, Innovation, Sustainable. I. INTRODUCTION In an era of the digital world, the fiduciary accountability of directors cannot be denied their role in ensuring the sustainable business growth. This, of course, could be achieved through innovating or reinventing new products in the market to capture the customers‟ choice. The dispute of trade imbalance at the world stage among the developed countries, US and China could possibly affect the developing countries. Having in mind of such political and economic issues, entrepreneurs or directors need to produce innovative products by using latest technological machines and cutting Revised Manuscript Received on October 15, 2019. S. Lakshmi Gandhan, School of Management Universiti Sains Malaysia, Pulau Piinang, Malaysia. gandhanpillai@gmail.com Daisy Mui Hung Kee, School of Management Universiti Sains Malaysia, Pulau Piinang, Malaysia. dasy@gmail.com. the cost of production so that products sold at the market either locally or globally would be priced competitively low and with quality assurance. It is supported recently that new products were innovated to cater for customers and products sold internationally (Jacob & Peters, 2015). If one reads the newspaper and Enron matter, one think strikes the mind is the lack of accountability of directors discharging fiduciary functions. Not surprisingly, corporation with good credential would be go into liquidation because of inability to settle the debts. When the court lifts the veil of the corporation, it is found, to some extent, directors have breached the fiduciary duties putting the corporation into financial crisis. Contrarily, directors have driven the company to another competitive level by innovating new products, branding and seeking new markets.Since there is lack of academy contribution in this particular subject any study on fiduciary accountability of direcors, predictor, contributing to sustainable business growth would trigger future study of the aforesaid academically. Notwithstanding the fiduciary encompasses in wide application in social, political and business, to date there is no correct definition and their application. Seeking to define fiduciary accountability is „one of unfinished task of modern legal scholarship‟(Harding, 2013), and the „holy grail‟ of fiduciary jurisprudence that continue (Waters, 1986) to be a blot on our law‟ (Weinrib, 1975). The word „fiduciary‟ is originated from the Latin so-called Fiduccia which means trust or confidence. The fiduciary accountability of directors is an area where not much is contributed academically. Most studies encompass on the area of entrepreneurial orientation, decision making of managers, market orientation and innovation but the specific area of fiduciary accountability is not explored. In the actual business scenario, fiduciary accountability of a director is predominately important in contributing to innovation which is essential to the sustainable growth. Undoubtedly, decision making is one of components in the fiduciary accountability but fiduciary accountability has a wider legal and business implications if it is breached. If fiduciary accountability is expounded it will give arise to spectrum of responsibilities such as the stakeholders, market orientation, branded orientation, management expenditure and innovation. Fiduciary accountability is more pronounced in the listed and transnational corporations but study on how directors owe fiduciary accountability in SMEs is not explored. The Fiduciary Accountability of Directors Ensuring Sustainable Business Growth in Public Listed Companies and SMES S. Lakshmi Gandhan, Daisy Mui Hung Kee