Top management personality and proactive sustainability strategy as panaceas to ESG performance

Purpose This study investigates the impact of CEO personality on ESG performance within the context of developing economies, where weak regulatory frameworks and limited access to resources pose unique challenges for sustainable business practices. The study further examines the mediating role of proactive sustainability strategy and the moderating effect of stakeholder salience. Design/methodology/approach Data were collected through questionnaires from 305 SMEs and analysed using structural equation modelling (SEM) in Amos to test the proposed hypotheses. Findings The results reveal that top management personality significantly influences ESG performance through proactive sustainability strategy. Stakeholder salience makes this effect stronger by shaping the strategic focus on sustainability. Practical implications The findings suggest that firms should actively integrate proactive sustainability practices and strategically engage stakeholders to enhance ESG performance and contribute to the Sustainable Development Goals. Originality/value This study contributes to the literature by linking CEO personality to ESG performance through proactive sustainability strategies, providing new insights into ESG implementation in resource-constrained and regulatory grey environments.