Corporate Sustainability Through an Ideological Lens: How CEO Beliefs in Liberalism, Neoliberalism, and Neorealism Affect ESG Goals

ABSTRACT Research Question/Issue This study investigates how CEO ideological orientation shapes corporate environmental, social, and governance (ESG) performance in European listed firms. Using a text‐based classification of CEO beliefs into liberalism, neoliberalism, and neorealism, the analysis examines how ideology maps onto sustainability outcomes for 637 firms from 2014 to 2022. Research Findings/Insights CEO ideology is systematically associated with ESG performance, but the direction and breadth of engagement differ across ideological profiles. Liberal‐oriented CEOs are positively related to overall ESG performance, with particularly strong associations for social and environmental dimensions, consistent with broader stakeholder‐oriented engagement. Neoliberal‐oriented CEOs exhibit a negative relationship with ESG performance, reflecting an emphasis on market efficiency, shareholder primacy, and economically “instrumental” sustainability initiatives that are pursued mainly when they generate direct financial benefits. Neorealist‐oriented CEOs show a more selective pattern, with positive associations concentrated in governance‐related practices linked to control, risk management, and organizational stability, whereas environmental and social initiatives are comparatively deprioritized unless aligned with core strategic objectives. Theoretical/Academic Implications This study extends upper echelons theory and stakeholder theory by illustrating how CEO ideology operates as both a cognitive filter and a stakeholder prioritization mechanism, shaping ESG outcomes. It explains how leaders' belief systems influence which stakeholder groups and sustainability dimensions receive emphasis, deepening understanding of executive heterogeneity in corporate sustainability. Methodologically, the use of natural language processing to quantify CEO ideology provides a novel, data‐driven approach that strengthens future research on leadership values and strategic decision‐making. Practitioner/Policy Implications For stakeholders, including investors and board members, understanding the CEO's ideological orientation provides critical insights into expected ESG commitment levels. This knowledge enhances leadership assessment, aiding in alignment with organizational sustainability goals and long‐term corporate responsibility.