The role of the psychological and behavioral profile of the CEO in assessing the dimensions of the corporate social responsibility

This present research aims to highlight how the CEO behavioral biases affect the CSR and its dimensions. It also delves into determining the CSR dimensions having different moderating effects on the relationship between the CEO behavioral biases and overall CSR. This research measures the Corporate Social Responsibility (CSR) of 362 European firms listed on the STOXX 600 index, observed over the period ranging from 2018 to 2022 using the Thomson Reuters-ASSET4, while financial information has been gathered from the Datastream database and behavioral biais of Chief Executive Officer’s(CEO), they have been collected manually by reviewing the Bloomberg website. This study estimates panel regressions to validate the relationship between the CEO overconfidence and narcissism in various activities of Corporate Social Responsibility. The results show that psychological biases, in particular narcissism and overconfidence of the CEO, have a positive and significant effect on the CSR at the level of the product and employee dimensions. Moreover, we give proof of a positive and significant moderating impact of both CSR components, namely environment and governance, on the relationship between the overconfidence and overall CSR. Furthermore, we come to the inference that the community, product and employee positively and significantly moderate the relationship between the CEO narcissism and overall CSR. The present research contributes to the literature through investigating the multidimensional CSR, and via highlighting the relationship between CEO behavior on CSR and its dimensions.