CEO Personality and Corporate Performance Dynamics

Chief executive officers (CEOs) bring a spectrum of personality traits that shape strategic decision-making and ultimately determine corporate outcomes. Research in this field examines how characteristics such as narcissism, extraversion, openness and conscientiousness influence risk-taking, innovation, governance and sustainability performance. Drawing upon upper-echelons theory, scholars have shown that CEO overconfidence and self-esteem can drive bolder financial and strategic choices but may also undermine resilience during crises. Conversely, traits such as agreeableness and conscientiousness can foster stability and governance quality, moderating the impact of incentive structures on corporate strategy. Recent work extends this perspective to environmental, social and governance arenas, illuminating the role of CEO personality in shaping green innovation, supply-chain efficiency and broader societal responsibilities. By integrating insights from applied psychology, behavioural agency theory and stakeholder theory, the literature highlights how individual dispositions interact with governance mechanisms to affect value creation and long-term sustainability.

Research from Nature Portfolio

A recent study explores the interplay between corporate social responsibility (CSR) and green supply-chain efficiency, revealing the moderating influence of CEO narcissism. Analysing CSR outcomes across manufacturing firms, the research finds that internal CSR activities significantly bolster green supply-chain performance, an effect amplified by higher levels of CEO narcissistic traits. By contrast, external CSR initiatives appear to hinder supply-chain efficiency, a relationship also intensified under narcissistic leadership. These findings underscore the complexity of CSR strategies, showing that CEO personality can both enhance and detract from sustainability outcomes depending on the nature of corporate initiatives. The study offers practical guidance for boards seeking to align CSR programmes with executive selection and governance frameworks to optimise green performance.

CEO Personality and Corporate Performance Dynamics publication trend

The graph below shows the total number of articles in ceo personality and corporate performance dynamics across all publications each year (not limited to Nature Index journals).

Technical terms

Narcissism: A personality trait marked by grandiosity, entitlement and a strong need for admiration, affecting decision-making and risk-taking at the executive level.

Extraversion: A Big Five personality dimension characterised by sociability, assertiveness and positive affect, which can influence leadership style and strategic outreach.

Corporate social responsibility (CSR): Corporate initiatives designed to assess and take responsibility for a company’s impact on environmental and social well-being.

Environmental, social and governance (ESG) reporting: Disclosure practices that communicate a firm’s performance on sustainability metrics to stakeholders.

Upper-echelons theory: A framework positing that organisational outcomes reflect the values and cognitive bases of top executives.

References

1. The impact of chief executive officer narcissism on environmental, social, and governance reporting. Business Strategy and the Environment (2023).
2. CEO Narcissism, Risk-Taking, and Resilience: An Empirical Analysis in U.S. Commercial Banks. Journal of Management (2017).
3. CEO equity risk bearing and strategic risk taking: The moderating effect of CEO personality. Strategic Management Journal (2018).
4. Corporate social responsibility and green supply chain efficiency: conditioning effects based on CEO narcissism. Humanities and Social Sciences Communications (2024).
5. Moderating Effect of Chief Executive Officer Narcissism in the Relationship Between Corporate Social Responsibility and Green Technology Innovation. Frontiers in Psychology (2021).