Sustainable by Ideology? The Influence of CEO Political Ideology and Ivy League Education on ESG (Environmental, Social, and Governance) Performance

Title data

Heubeck, Tim ; Ahrens, Annina:
Sustainable by Ideology? The Influence of CEO Political Ideology and Ivy League Education on ESG (Environmental, Social, and Governance) Performance.
In: Business Strategy and the Environment. (2025) . - pp. 1-26.
ISSN 0964-4733
DOI: https://doi.org/10.1002/bse.4212

Official URL:

Abstract in another language

Building on upper echelons theory, this study posits that political ideology serves as a foundational factor influencing whether CEOs prioritize environmental, social, and governance (ESG) outcomes, whereas Ivy League education acts as a contextual factor that moderates this relationship. Analyzing data from S&P 900 manufacturing firms, the findings reveal that liberal CEOs enhance ESG performance—particularly in the social and governance pillars—in contrast to their conservative counterparts. CEO political ideology's effect on ESG performance does not depend on whether CEOs graduated from an Ivy League institution. Instead, Ivy League–educated CEOs directly deter ESG performance, possibly due to specific values, perspectives, and social connections shaped by their elite educational background. This study contributes to upper echelons theory by illuminating two critical microlevel factors—CEO political ideology and elite education—that shape firms' ESG strategy, offering valuable implications for boards and stakeholders when selecting and evaluating corporate leadership.

Further data

Item Type:	Article in a journal
Refereed:	Yes
Institutions of the University:	Faculties > Faculty of Law, Business and Economics > Department of Business Administration > Chair Business Administration IX - International Management > Chair Business Administration IX - International Management - Univ.-Prof. Dr. Reinhard Meckl Faculties Faculties > Faculty of Law, Business and Economics Faculties > Faculty of Law, Business and Economics > Department of Business Administration Faculties > Faculty of Law, Business and Economics > Department of Business Administration > Chair Business Administration IX - International Management
Result of work at the UBT:	Yes
DDC Subjects:	300 Social sciences > 330 Economics
Date Deposited:	05 Mar 2025 09:33
Last Modified:	05 Mar 2025 09:33
URI:	https://eref.uni-bayreuth.de/id/eprint/92615