CTO Characteristics and ESG Performance of Corporation: Evidence from Korea

Abstract

While there has been a steady stream of research on chief technology officers (CTOs), studies specifically examining the expanding role of CTOs, particularly in the areas of environmental, social, and governance (ESG), remain scarce. Despite extensive research on boards of directors (BODs), chief executive officers (CEOs), and corporate social responsibility (CSR) committees, there is a significant lack of research on the role of CTOs in integrating ESG considerations into technology development and operations. To fill this gap, this study investigated the impact of CTO characteristics (personal, positional, and career-related) on corporate ESG performance. Based on previous studies, we created a conceptual model and proposed 12 hypotheses. A sample of 218 publicly traded corporations in Korea was selected, and a structural equation model was used to test the fit of the research model and hypotheses. The results indicate that the positional characteristics of the CTO positively affect a corporation's ESG performance, whereas the career-related characteristics of the CTO negatively affect it. However, personal characteristics did not exhibit significant effects. Therefore, this study underscores the need for corporations to empower technology leaders, such as the CTO, and enable them to play an important role in strategic decision-making. By doing so, organizations can enhance their social responsibility, improve environmental sustainability, and maintain competitiveness.