CEO career variety and ESG disclosure: evidence from Indonesia

Purpose This study aims to investigate the influence of CEO career variation as one of the internal factors influencing the decision-making in environmental, social and governance (ESG) disclosure. Design/methodology/approach Using data from Indonesian nonfinancial companies publicly listed on the Indonesia Stock Exchange from 2018 to 2021, this study uses a quantitative analysis approach to explore the relationship between CEO career variation and ESG reporting decisions. Findings This study reveals that CEOs who have greater career variety exhibit reduced involvement in ESG disclosure, in which a relationship is particularly pronounced in young firms but reversed in older ones where CEO career variety correlates positively with ESG disclosure. Research limitations/implications This study is limited to nonfinancial companies in Indonesia, and the voluntary nature of ESG reporting during the chosen period may impact the generalizability of findings. Future research could explore other contextual factors and extend the investigation to different industries or regions. Practical implications This study finds that CEOs with diverse career backgrounds tend to disclose less ESG information, implying that shareholders should consider candidates’ backgrounds and experiences when selecting future CEOs. This highlights the importance of choosing CEOs with relevant experience to ensure a strong commitment to sustainable business practices and social and environmental goals. Originality/value This study applies the upper echelon theory to investigate the previously unexplored relationship between ESG disclosure and CEO careers in a variety of industries, employers, functions and countries.