Shaping ESG commitment through organizational psychological capital: the role of CEO power
Shaping ESG commitment through organizational psychological capital: the role of CEO power
This study investigates the influence of organizational psychological capital (OPC) on corporate environmental, social, and governance (ESG) practices, highlighting a relatively overlooked aspect in existing studies, and examines the moderating effect of chief executive officer (CEO) power on this relationship. Using a dataset of 1659 firm-year observations from FTSE 350 firms across the years 2012–2021 and applying natural language processing (NLP) techniques, our findings reveal that higher levels of OPC are linked to a stronger commitment to ESG initiatives. However, this positive association is tempered by CEO power, which negatively moderates the relationship. Furthermore, our analysis shows that OPC not only enhances ESG performance but also positively influences financial performance and the core ESG pillars. These results, validated through rigorous robustness checks, offer significant insights for stakeholders and policymakers in the realm of corporate governance.
CEO power, ESG, organizational psychological capital, resource-based view (RBV), textual analysis, upper echelons theory
Mahran, Karim
62741cdd-a5ef-40f0-9f98-4b1408f947e5
Elamer, Ahmed A.
41f0a000-ef97-4e6b-b741-d755def01823
Mahran, Karim
62741cdd-a5ef-40f0-9f98-4b1408f947e5
Elamer, Ahmed A.
41f0a000-ef97-4e6b-b741-d755def01823
Mahran, Karim and Elamer, Ahmed A.
(2024)
Shaping ESG commitment through organizational psychological capital: the role of CEO power.
Business Strategy and the Environment.
(doi:10.1002/bse.4007).
Abstract
This study investigates the influence of organizational psychological capital (OPC) on corporate environmental, social, and governance (ESG) practices, highlighting a relatively overlooked aspect in existing studies, and examines the moderating effect of chief executive officer (CEO) power on this relationship. Using a dataset of 1659 firm-year observations from FTSE 350 firms across the years 2012–2021 and applying natural language processing (NLP) techniques, our findings reveal that higher levels of OPC are linked to a stronger commitment to ESG initiatives. However, this positive association is tempered by CEO power, which negatively moderates the relationship. Furthermore, our analysis shows that OPC not only enhances ESG performance but also positively influences financial performance and the core ESG pillars. These results, validated through rigorous robustness checks, offer significant insights for stakeholders and policymakers in the realm of corporate governance.
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Bus Strat Env - 2024 - Mahran - Shaping ESG commitment through organizational psychological capital The role of CEO power
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Accepted/In Press date: 3 October 2024
e-pub ahead of print date: 20 October 2024
Additional Information:
Publisher Copyright:
© 2024 The Author(s). Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd.
Keywords:
CEO power, ESG, organizational psychological capital, resource-based view (RBV), textual analysis, upper echelons theory
Identifiers
Local EPrints ID: 495511
URI: http://eprints.soton.ac.uk/id/eprint/495511
ISSN: 0964-4733
PURE UUID: fa25703d-e192-4644-983b-22f2ecbd0b64
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Date deposited: 15 Nov 2024 17:34
Last modified: 16 Nov 2024 03:11
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Contributors
Author:
Karim Mahran
Author:
Ahmed A. Elamer
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