Abstract

This literature review investigates the rapid expansion of the gig economy and its multifaceted impact on the psychological well-being of platform workers, juxtaposed with the ethical responsibilities of platform companies. Grounded in Self-Determination Theory (SDT), the Job Demands-Resources (JD-R) model, and Carroll’s Pyramid of Corporate Social Responsibility (CSR), the study systematically categorizes the determinants of worker well-being. The findings reveal a significant duality: while gig work offers flexibility and autonomy, it simultaneously introduces profound threats such as income instability, social isolation, algorithmic control, and identity crises. These structural challenges frequently frustrate essential psychological needs, leading to burnout and precariousness. The review further identifies a critical vacuum in platform ethics, where companies often prioritize economic survival and shareholder value over legal, ethical, and philanthropic duties. Consequently, this research proposes an integrated Platform Wellbeing Governance framework that emphasizes algorithmic transparency, fair distributive justice, and institutional support systems. By transitioning toward a governance model that internalizes worker welfare, platform companies can mitigate the psychological costs of precarious labor. This study provides a robust theoretical foundation for future empirical inquiry and offers actionable insights for policymakers, corporate managers, and platform designers aiming to ensure that the promise of labor flexibility translates into sustainable well-being and long-term dignity.