Emerging Country CEOs' Cognitively Deep State and Environmentalism: Experiment Setting in Precariat Behaviours to Finance ESG (Environmental, Social and Governance) Investments

This study investigates whether CEOs occupying top positions in emerging countries have a responsibility to allocate ESG (Environmental, Social, and Governance) investments, taking into account their cognitively deep state and environmentalism. It deepens our understanding of CEOs’ behaviours, driven by ecosystem characteristics, and how they are likely to uphold genuine moralities and environmental missions. It employs an experimental setting to examine CEOs’ precariat characteristics when they should spend the firms’ funds to invest in ESG programs without receiving bonuses or compensation. It measures CEOs’ cognitive deep state and environmentalism, which affect their bonding motivations toward financing ESG investments. Contradictorily, they may shirk disbursing funds for ESG investments, such as precariat behaviours. This study finds that emerging country CEOs exhibit high levels of cognitively deep state and environmentalism, which profoundly affect their willingness to finance ESG investments. Moreover, despite CEOs not receiving bonuses or compensation, they spend the firm’s funds on ESG programs. They undertake ESG programs as unremunerated activities, thereby reducing their material welfare. Finally, this study finds that kinetic-active learning for the cognitively deep state and environmentalism can eliminate precariat beliefs and behaviours. It argues that CEOs’ mindsets in the cognitively deep state and environmentalism are primary determinants of their willingness to finance ESG investments. It also demonstrates that emerging country CEOs with deep-state and environmentalist mindsets discard precariat behaviours without considering the bonuses and compensation they will receive. Thus, most CEOs in emerging countries have low precariatism, advancing ESGs’ mission with high multidimensional commitment.