Does CEOs’ Educational Background Influence Firms’ ESG Performance?

Abstract

Purpose: This paper explores the relationship between CEO educational background and corporate social responsibility (CSR) performance in FTSE100 companies in the UK. Design/methodology/approach: The study uses ESG scores to measure CSR performance, and examines the impact of CEO's university ranking, educational attainment, professional background, MBA background, and participation in advanced management programmes on firms’ ESG performance. Findings: CEO educational background is considered to be an indicator of intelligence, as better-educated CEOs are thought to have greater management skills, experience, and innovation. However, we provide evidence that there is no significant association between CEO educational background and CSR performance in FTSE100 companies. Research limitations/implications: Overall, we add new evidence to a growing body of literature studying the association between personal characteristics of corporate executives and corporate social responsibility. Originality/value: This paper differs from previous articles that focus on the relationship between chief executive officer (CEO) characteristics and corporate social responsibility but instead attempts to answer the question of whether CEO educational background affects corporate social responsibility performance. Most of the literature examining CEO educational background links it to firm performance.