The Dual Narcissists: Disentangling the Distinct Impacts of CEO and Board Chair Narcissism on Corporate ESG Performance

ABSTRACT Top executive narcissism is a crucial yet often overlooked concept in ESG performance. Current research primarily focuses on CEO narcissism, offering an incomplete view by largely ignoring the Board Chair's key role in shaping ESG outcomes. Furthermore, there is a notable lack of a comprehensive narcissism index, which would surpass the limitations of single‐ or limited‐indicator measures typically used in previous studies. To deepen understanding, this study empirically examines the distinct effects of narcissism exhibited by both the CEO and the Board Chair on a firm's environmental, social, and governance (ESG) pillars. By analyzing executive narcissism states in integrated report narratives alongside ESG data for 255 publicly listed companies from 2018 to 2023, measured via Refinitiv Eikon scores, this study shows that Board Chair narcissism is positively related to environmental and social performance but negatively related to governance performance. Conversely, CEO narcissism is positively associated with both environmental and governance performance but negatively associated with social performance. The varying effects across ESG dimensions indicate that narcissistic leadership depends on the executive's role and the stakeholder domain involved. This study advances upper echelons theory, the concept of narcissistic personality, and stakeholder theory by revealing the complex interactions among various executive narcissistic states and emphasizing the need to recognize these dynamics. Additionally, the findings offer practical insights into board composition and executive hiring to support sustainable business strategies.