1364: The Direct Effects of Authentic and Ethical Leadership Approaches on Perceptions of ESG Reporting (15644)

Winner of the Management Consulting Division Best Doctoral Paper

Designated as a “Best Paper” by MC
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In response to mounting pressure on organizations to integrate environmental, social, and governance (ESG) considerations into their operations, this study explores the direct effects of Authentic and Ethical Leadership approaches on the perceptions of ESG among 302 managers and executives. While existing research suggests a link between leadership and sustainable performance, the specific mechanisms shaping perceptions of ESG among internal stakeholders are underexplored. This study addresses this gap by examining the impact of ethical and authentic leadership approaches on the three components of ESG. Results indicate that authentic leadership is associated with the perception on Environmental elements of ESG, whereas, both ethical and authentic leadership have significant direct effects on the perception on Social elements of ESG. Lastly, the study found that authentic leadership has significant direct effects on the perception on Governance elements of ESG. These findings have crucial implications for leadership development and their role in fostering organizational sustainability and responsible practices. It provides valuable insights for the consulting community while deepening the understanding of their clients as they operationalize the lessons learned from implementing ESG principles in their organizations. Keywords: Ethical leadership, authentic leadership, perceptions of environmental, social, and governance (ESG).

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