CEO Power and Environmental, Social, Governance (ESG): A Systematic Review

Abstract

Objectives: Researchers have increasingly underlined the importance of environmental, social, and governance (ESG) performance in corporate sustainability. This article explores trends and findings in the academic literature on CEO power as a driver of ESG performance based on the publication period and research standpoint. This paper reviews and summarizes 120 pieces of literature on the relationship between CEO power and ESG performance, and it presents research suggestions. Research Design and Methods:The research approach was built on a comprehensive review of the literature. In three processes, relevant articles are discovered and categorized. These samples are then reviewed and interpreted in order to illustrate the concepts of CEO and ESG performance and ESG disclosure, and recommendations for more research are made as a consequence. Findings: Many contemporary businesses do poorly in terms of ESG. CEOs must handle these concerns while maintaining corporate objectives and stakeholder trust. CEOs are essential to corporate governance because they safeguard shareholders while also improving performance. A chief executive officer may serve as both chairman and CEO at the same time. On this subject, the literature is split. More women and foreign CEOs increase ESG performance and disclosures, but their numbers may not be enough. The majority of academics agree. Some studies say that a CEO's dual function raises institutional frictions and impedes ESG transformation, while others believe that expediting board decision implementation reduces the CEO's power and aids ESG transition. CEO training and competencies prepare for this. Finally, CEOs are acquiring authority, which might help to build environmental and social policies. Contribution and added value: By exploring the effect of key CEO power on organizations' ESG performance and disclosure quality, this paper contributes to the ESG performance literature and broadens the subject of future research. Furthermore, the report outlines some unresolved research challenges for further investigation.