Can a Narcissistic CEO Drive ESG Performance? A Case Study of Indonesia
Shienly Angela Jie, Elaine Stacey Halim, Tessa Vanina Soetanto*

School of Business and Management, Petra Christian University
*tessa[at]petra.ac.id

Abstract

The growing awareness of environmental and social issues has led to an increased demand for corporate accountability and transparency. Amidst the growing global emphasis on sustainability, understanding how CEO characteristics influence ESG initiatives is crucial. Existing research suggests that CEO personality traits, including narcissism, can significantly impact a firms strategic decisions and performance. While studies have examined this relationship in other countries, very limited have been done in Indonesia. This study aims to bridge this gap by investigating the direct impact of CEO narcissism on ESG performance in Indonesia. This study will rely on secondary data from CEOs LinkedIn profiles, as previous studies on CEO narcissism have primarily used self-assessments that can be biased by participants who desire a positive image. This method adds novelty to the research as it is relatively newly developed. The sample consists of 136 CEO data from Indonesian-listed companies on the Indonesian Stock Exchange from 2017 to 2022, which will be analyzed using multiple regression. However, preliminary findings indicate a positive relationship between a narcissistic CEO and the ESG performance of a firm. These initial results suggest that CEOs with narcissistic tendencies may perform better in ESG initiatives compared to those without such traits. Therefore, the expected conclusion is that a narcissistic CEO performs significantly in a firm that has a higher Bloomberg ESG score. This finding could have significant implications for corporate governance and sustainability practices in Indonesia. By examining the impact of CEO narcissism on ESG performance, this research contributes to a deeper understanding of how CEO characteristics influence corporate responsibility and sustainability.

Keywords: Corporate Governance, CEO Narcissism, ESG Performance, LinkedIn Analysis

Topic: Corporate governance