His family, a Swedish noble family of Scottish origin, was introduced in the 17th century at Riddarhuset under number 19 among families of comital status. Gustaf Douglas has later served on the board of Riddarhuset.

After an M.B.A. from Harvard Business School in 1964, he worked in Sweden and was CEO of the newspapers Dagens Nyheter and Expressen between 1973 and 1980. After that he worked with his company Investment AB Latour, through which he now controls security firm Securitas AB (with 12.1% of the capital) and the world-leading lock producer Assa Abloy. His business has made him one of Sweden's richest people.

In 2001 Gustaf Douglas was elected to the board of the Moderate Party, of which he had been a life-long member. He is known as a rather Conservative Moderate with a big interest in education policy.

He is married to Elisabeth, née von Essen, of another noble family. Gustaf and Elisabeth Douglas have two children. Both serve at different positions within the family group of companies. The Douglas family live at their mansion outside Åkersberga.