CEO Communications and ESG Performance: Deciphering the Impact of Corporate Narratives

In the realm of corporate economics, this study explores the influence of CEO communications within Corporate Social Responsibility (CSR) reports on a firm's Environmental, Social, and Governance (ESG) performance. It specifically examines the content, tone, and strategies of CEO messages in CSR reports of companies with top ESG scores from S&P Global Indices. The research aims to study the correlation between the linguistic characteristics of the CEO communications and the company's ESG performance. By analyzing key themes and content strategies in CEO communications, the study assesses their effectiveness in enhancing ESG practices within organizations. Our methodology includes analyzing qualitative aspects of CEO communications in CSR reports, and correlating them to the ESG performance. The findings indicate a significant connection between the qualitative aspects of CEO letters and ESG performance. CEOs emphasizing wellness, environmental impact, and business responsibility are perceived more favorably, suggesting a need for more readable and less polarized CEO communications to engage stakeholders and investors effectively. The study contributes both theoretically and managerially, offering insights into the impact of CEO communication on corporate sustainability and providing guidance for advancing a company's commitment to sustainable economic growth and ethical business practices.