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Received: 7 July 2021 | Revised: 6 September 2021 | Accepted: 25 September 2021

DOI: 10.1111/beer.12398

ORIGINAL ARTICLE

The dark triad and corporate sustainability: An empirical


analysis of personality traits of sustainability managers

Matthias Pelster1 | Stefan Schaltegger2

1
Department for Taxation, Accounting, and
Finance, Paderborn University, Paderborn, Abstract
Germany Middle managers responsible for sustainability operationalize top management deci-
2
Centre for Sustainability Management
sions on the organization's social and environmental activities. With their focus on
(CSM), Leuphana University Lüneburg,
Lüneburg, Germany sustainability, they could be expected to consider ethical issues particularly well in
their decisions and to possess ethical personality traits. While earlier research has
Correspondence
Stefan Schaltegger, Centre for Sustainability focused on top management this paper examines the influence of personality traits
Management (CSM), Leuphana University
of middle managers on their corporate sustainability preferences. Based on a primary
Lüneburg, Universitätsallee 1, D-­21335
Lüneburg, Germany. survey sample of 204 professionals responsible for sustainability in their company,
Email: schaltegger@uni.leuphana.de
we study the relationship between dark triad personality traits (Machiavellianism,
narcissism, and psychopathy) of sustainability managers and their environmental and
social responsibility preferences. The analysis shows that managers who score higher
on the dark triad personality scale are less concerned about environmental and so-
cial responsibility issues. The business environment, analyzed in a cross-­cultural
comparison between the United States and Europe, and the organizational context
function as a moderator of the influence of personality traits on sustainability prefer-
ences. The results suggest that dark triad personality traits should be considered in
recruitment and assessment processes of middle managers responsible for corporate
sustainability.

KEYWORDS

corporate sustainability, environmental and social responsibility, individuals, managers,


personality traits, sustainability preferences

1 | I NTRO D U C TI O N corporate sustainability (Alonso-­Almeida et al., 2017; Mazutis, 2013;


Mudrack, 2007).
Individuals play a key role for corporate sustainability (e.g., Aragón-­ With their upper echelons theory, Hambrick and Mason (1984)
Correa et al., 2004; Broman et al., 2017). It is therefore unsurpris- established a general link between characteristics of (senior) manag-
ing that in addition to studying corporate sustainability approaches ers and firm outcomes (Hambrick, 2007; Hambrick & Mason, 1984).
and practices from different theoretical and empirical perspectives Management not only directly influences a firm's outcomes through
(e.g., Benn et al., 2014; Montiel, 2008), various researchers have strategic decision-­making, the choice and design of sustainability ac-
highlighted links between the characteristics of individuals and tivities, their funding and timelines, but also indirectly by defining

This is an open access article under the terms of the Creative Commons Attribution-­NonCommercial-­NoDerivs License, which permits use and distribution in
any medium, provided the original work is properly cited, the use is non-­commercial and no modifications or adaptations are made.
© 2021 The Authors. Business Ethics, the Environment & Responsibility published by John Wiley & Sons Ltd.

Business Ethics, Env & Resp. 2021;00:1–20.  wileyonlinelibrary.com/journal/beer | 1


2 | PELSTER and SCHALTEGGER

responsibilities for implementation and providing guiding examples ethically compared to other managers and individuals. As noted by
for other members of the company (Schroeder, 2002; Schwartz Hunoldt et al. (2020), the responsibilities of CSR managers include
et al., 2005). Members of an organization look toward top managers establishing formal structures and/or changing existing ones, devel-
for guidance and are influenced by those managers’ values and be- oping an understanding of the logic of corporate sustainability and
havior (Berson et al., 2008). strengthening executives’ commitment to this logic. The values of
Importantly, not only senior management, but also mid-­
level individual managers play an important role in this process of formally
managers play an important role in shaping strategic decisions and adopting and implementing corporate sustainability (Hemingway &
firm outcomes (e.g., Balogun & Johnson, 2004; Huy, 2002; Patel & Maclagan, 2004). In line with these findings, Ketola (2006) describes
Holm, 2018; Wooldridge et al., 2008). The implementation of a sus- how a corporation that is run by managers with psychopathic traits
tainability policy is, for example, mostly carried out by the middle may engage in environmentally damaging production practices, cre-
managers responsible for sustainability (Benn et al., 2014; Broman ate dangerous working conditions, disregard employment law, and
et al., 2017). With their focus on sustainability, mid-­level managers violate human rights conventions. It is thus surprising that no empir-
are expected to pay considerable attention to ethical issues in their ical research so far has examined the prevalence of dark personality
decision-­making and to possess ethical personality traits (Wright & traits among mid-­level sustainability managers.
Nyberg, 2012). We also study whether such personality traits have an influence
The relationship between manager-­
specific personality traits, on the preferences of mid-­level sustainability managers for environ-
particularly at the top executive level, and economic firm-­level out- mental and social aspects of sustainability. In particular, we propose
comes has been studied in detail (e.g., Bertrand & Schoar, 2003; Van two measures that allow us to quantify a manager's preferences
Scotter & de Déa Roglio, 2020), and there are initial studies on the for different aspects of environmental and social sustainability,
influence of top management personality traits on sustainability de- such as policies, supply chains, action plans, management systems,
cisions (Petrenko et al., 2016). However, the influence of personal- training, and monitoring. Specifically, our measure of environmen-
ity traits of middle managers on their sustainability preferences has tal sustainability captures a manager's support and positiveness for
not been analyzed in depth so far. This is somewhat surprising given the company's corporate environmental sustainability policy, their
the potential and actual influence mid-­level sustainability manag- use of measurable targets and action plans to implement the pol-
ers have, the increasing pressure of organizations to meaningfully icy, and their use of measures to monitor and report the company's
advance their sustainability agenda and the importance of sustain- sustainability performance. Our measure of social sustainability
ability to the well-­being of society; in particular, since “intangible aspects captures a manager's support for the company's diversity
decisions like involvement in Corporate Social Responsibility (CSR) and equal opportunity policy, their support for employee health im-
present a considerable opportunity for … decisions to be affected provement programs and work-­life balance within the company, the
by executive's characteristics because such actions rarely present a implementation of action plans to implement the policy, measures to
situation where probabilities can be easily calculated or outcomes be monitor performance, and internal communication tools to ensure
certain” (Petrenko et al., 2016). effective implementation. We analyze how sustainability managers
We fill this gap by investigating, first, the prevalence of so-­called in our sample score on these measures for their sustainability pref-
“dark” personality traits among mid-­level sustainability managers. erences. We also investigate whether or not mid-­level sustainabil-
Second, we propose measures to quantify their preferences for ity managers with pronounced dark personality traits exhibit lower
aspects of environmental and social sustainability and analyze the environmental and social preferences. Given that managers do not
distribution of such preferences in a sample of sustainability manag- act in isolation but are embedded in and influenced by the business
ers. Third, we quantify the influence of dark personality traits among environment, we furthermore investigate whether the explicit and
mid-­level sustainability managers on their environmental and social more socially oriented environment in the United States, compared
preferences. to Europe, will mitigate the impact of dark personality traits on sus-
Our study is informed by the “dark triad of personality” (Paulhus tainability preferences.
& Williams, 2002), an established psychological theory that mea- By analyzing the influence of dark personality traits on corporate
sures Machiavellianism, narcissism, and psychopathy as the most sustainability, we extend existing knowledge of the motivations and
prominent negative personality traits (Paulhus & Jones, 2015). drivers of individual sustainability engagement at the organizational
Existing research has highlighted the problems that may arise when level. Finally, we analyze whether the business environment and the
people with dark personality traits are at the top management level organizational context function as moderators of the influence of
(Babiak & Hare, 2006; Petrenko et al., 2016). Dark triad personality personality traits on sustainability preferences.
traits have been connected with unethical decision-­making, lack of Our research contributes to the existing literature as follows.
guilt and remorse, and a sense of superiority (Babiak & Hare, 2006; First, we challenge studies of corporate sustainability that explic-
Boddy, 2006; Furnham et al., 2013; Hauser et al., 2021; Paulhus & itly or implicitly relate sustainability management to a specific ethi-
Williams, 2002; Stevens et al., 2012). cal mindset (e.g., Burnes & By, 2012) by showing that sustainability
Considering their area of responsibility, mid-­level sustainability managers can possess surprisingly low sustainability preferences.
managers should show weak dark personality traits and act more Second, we extend research on the personality characteristics of
PELSTER and SCHALTEGGER | 3

top managers by providing the first study of whether dark person- Malmendier & Tate, 2008 on corporate investment; de Colle &
ality traits are distributed among middle sustainability managers to Freeman, 2020 on ethical behavior within organizations). However,
a similar degree as among C-­level managers. Third, we provide the even though the congruence of managerial and employee values
first analysis of the influence of dark triad personality traits among with organizational values is important for the effective implemen-
mid-­level sustainability managers on their environmental and social tation of sustainability measures (e.g., Fryxell & Lo, 2003), far less
preferences. Fourth, our cross-­cultural analysis between the United attention has been paid to the impact of middle managers’ per-
States and Europe finds evidence that the business environment sonality traits on corporate sustainability. Several studies note the
mitigates the influence of dark personality traits on sustainability importance of studying the role of managers in corporate sustain-
preferences. ability (e.g., Aguinis & Glavas, 2012) and analyzing the impact of the
The remainder of the paper is organized as follows. Section 2 dis- personal backgrounds and experiences of senior executives on cor-
cusses the related literature and develops our hypotheses. Section 3 porate sustainability decisions (e.g., Mazutis, 2013). The literature
explains our methodology and sample. The empirical results are pre- provides evidence that CEO gender or field of study (Manner, 2010),
sented in Section 4. Section 5 discusses the findings and concludes. political affiliation (Di Giuli & Kostovetsky, 2014), international as-
signment experience (Slater & Dixon-­Fowler, 2009), and intellectual
stimulation (Waldman et al., 2006) have an effect on the sustainabil-
2 | R E L ATE D LITE R AT U R E A N D ity activities of firms.
H Y P OTH E S I S D E V E LO PM E NT Focusing on senior executives’ personality traits and sustainabil-
ity decisions, Tang et al. (2015) investigate how CEO hubris affects
A review of the sustainability literature reveals that previous re- the social engagement of firms. The authors show that CEO hubris is
search on personal sustainability attitudes and behavior has focused negatively related to a firm's CSR activities, as overconfident manag-
on consumers (e.g., Moser, 2015), and mostly on specific pro-­social ers perceive themselves to be less dependent on external stakehold-
or pro-­
environmental attitudes, intentions, and actions. These ers and so are less motivated to pursue practices that will benefit
consumer-­related studies, however, do not necessarily tell us any- their stakeholders and less likely to take strategic decisions to im-
thing about the sustainability preferences of managers, who are ex- prove their company's environmental performance.
pected to pursue corporate goals beyond their personal preferences. Middle managers play a key role in organizations as interfaces
between otherwise disconnected top and operating-­level managers
(Wooldridge et al., 2008). They are in contact with employees on a
2.1 | The relevance and concepts of personality regular basis and act as important motivators (Patel & Holm, 2018)
traits of managers for organizations and can act as important agents of change (Huy, 2002). They are
active interpreters, mediators, and intermediaries in implementing
Corporate executives play an important role in strategic decision-­ strategic change (Balogun, 2003; Balogun & Johnson, 2004). As mid-
making. Hambrick and Mason (1984), and a large body of literature dle managers decide which ideas are allocated resources, they have
building on their upper echelons theory, argue that the personality a large impact on the implementation of strategic decisions, includ-
traits and personal values of senior executive decision makers influ- ing the actual design and implementation of corporate sustainability
ence how complex situations are analyzed and interpreted, which projects. Ultimately, it is middle managers who decide which ideas
consequently affects their strategic choices in response to environ- are translated into actions (Mollick, 2012). Thus, middle managers
mental stimuli (Chatterjee & Hambrick, 2007). Based on this theo- with particular personality traits and positions inside the organiza-
retical framework, senior executives’ personality traits, and personal tion play an important role in selecting projects (Burgelman, 1991).
values are an important determinant of managerial decision-­making Thus, it is not surprising that research has studied the influence of
(Finkelstein & Hambrick, 1996). middle managers on corporate entrepreneurship, innovation and or-
Parks and Guay (2009) note that personal values and personal- ganizational learning, strategy implementation, and strategy-­making
ity traits are distinct constructs, as values represent a psycholog- processes (Wooldridge et al., 2008). According to Wooldridge
ically embedded construct within the motivational complex, while et al. (2008, p. 1191), “this work shares the premise that middle man-
personality traits are innate or dispositional patterns exhibited by agers are central to explaining key organizational outcomes.”
individuals. Therefore, while personal background and experience
shape personal values, personality traits are to a large degree given
from birth and considered stable over a person's lifetime (McCrae & 2.2 | Dark personality traits of (middle)
Costa, 1994). Importantly, personality traits pertain to an individu- managers and corporate sustainability
al's natural tendencies (Parks-­Leduc et al., 2015) and have general
effects on behavior across various contexts and therefore help to Personality traits play a fundamental role in the personal values
explain an extensive range of behaviors (Parks & Guay, 2009). and preferences of individuals (Parks-­Leduc et al., 2015). Extant
Research on the impact of managers’ personality traits on or- research has emphasized the importance of a good match of fa-
ganizations is vast (e.g., Tang et al., 2015 on corporate innovation; vorable personal values with organizational sustainability values for
4 | PELSTER and SCHALTEGGER

sustainability to be effectively considered and, in particular, for cor- empathy with a tendency toward callousness (LeBreton et al., 2018)
porate sustainability to be implemented (Berson et al., 2008). On the and are known for exploitative behaviors (LeBreton et al., 2018) and
other hand, dark personality traits are expected to conflict with high for not feeling regret nor remorse (Vogel, 2006).
organizational sustainability ambitions. Lastly, similar to narcissists, (subclinical) psychopaths are said to
Machiavellianism, narcissism, and psychopathy are the most lack conscientiousness and feelings for others. They experience low
prominent negative personality traits discussed in the psychologi- levels of empathy and remorse (Babiak & Hare, 2006), tend to make
cal and management literature (Paulhus & Jones, 2015; Paulhus & unethical decisions (Stevens et al., 2012) and to use other people
Williams, 2002). These dark triad personality traits are associated (Boddy, 2006). As a result, they do as they please without any feel-
with a tendency to self-­promotion, emotional coldness, unethical ing of guilt (Hare, 1999). Psychopathic individuals are characterized
decision-­making, a socially evil character, a lack of guilt and re- as reckless, selfish, and aggressive (Patrick, 2007). Research shows
morse, and a sense of superiority (Babiak & Hare, 2006; Furnham psychopaths more likely to pursue an irresponsible lifestyle and anti-
et al., 2013; Paulhus & Williams, 2002). In the organizational con- social or counterproductive behavior (Williams et al., 2007).
text, they are linked to job performance, team processes, citizen- Harrison et al. (2018) argue that Machiavellianism, narcissism,
ship behavior, leadership, counterproductive workplace behaviors, and psychopathy impact different parts of the unethical decision-­
job attitudes, and negotiations (Cohen, 2016; LeBreton et al., 2018; making process. Machiavellianism motivates individuals to act un-
O'Boyle Jr. et al., 2012; Smith et al., 2016; Spain et al., 2014; Volmer ethically and alter their perceptions about opportunities to deceive
et al., 2016). Current personality and leadership literature suggest others. Narcissism induces individuals to focus on their personal
that, due to their high need for power and their social dominance ori- benefit, while psychopathy helps individuals to rationalize their un-
entation, dark triad personalities (i.e., Machiavellians, narcissists, and ethical behaviors. The authors conclude that the three personality
psychopaths) are found relatively frequently in leadership positions traits “act in concert” (p. 53) as antecedents to unethical behavior. In
(Furtner et al., 2017). line with this finding, the literature notes several similarities among
Several typical characteristics of individuals with pronounced the dark personality traits, such as unethical decision-­making, emo-
dark personality traits are interpreted as important traits of an tional coldness, a lack of guilt and remorse and a sense of superiority
effective leader (Babiak et al., 2010; Lubit, 2002; Mahaffey & (Babiak & Hare, 2006; Boddy, 2006; Furnham et al., 2013; Paulhus &
Marcus, 2006). For example, based on their trait as charming and Williams, 2002; Stevens et al., 2012).
skilled manipulators, they tend to demonstrate good influence and In terms of organizational outcomes, Chatterjee and Hambrick
persuasion skills (Boddy, 2006; Neo et al., 2018). Individuals with (2007) show that narcissistic CEOs favor actions that attract at-
psychopathic traits are positively associated with charisma, effec- tention. These bold actions result in extreme firm outcomes, both
tive presentation styles, strategic thinking, and creativity (Babiak positive and negative, thereby increasing the volatility of firm per-
et al., 2010). Babiak and colleagues also note that a lack of em- formance. Narcissism has also been associated with CEO risk tak-
pathy and emotional poverty can easily be interpreted as being ing (Chatterjee & Hambrick, 2011), firms’ reporting quality (Ham
“cool under fire,” which further opens the way to the top. In the et al., 2017), counterproductive work behaviors (Braun et al., 2018)
following, we take a closer look at the three components of the and fraud (e.g., Rijsenbilt & Commandeur, 2013). Machiavellianism
dark triad personality trait to clarify their relevance for corporate on the other hand has been associated with reduced support for
sustainability. social and environmental reporting (Shafer & Lucianetti, 2018) and
Christie and Geis (1970, p. 285) define Machiavellianism as “a the acceptance of corrupt behavior (Hauser et al., 2021). Mudrack
strategy of social conduct that involves manipulating others for per- (2007) notes that persons who believe in a narrow view of corpo-
sonal gain.” Individuals with a pronounced Machiavellian trait are, rate social responsibility—­that is, persons who believe that firms
on average, more self-­interested and opportunistic (Gunnthorsdottir should only contribute to society by maximizing profits—­often show
et al., 2002), and exhibit less guilt (Murphy, 2012). They are also more Machiavellian personality traits. Boddy (2011) argues that psycho-
likely to cheat, manipulate others for their own gain and believe that paths working in leading positions in financial corporations signifi-
manipulation is an important key to success (Paulhus & Jones, 2015). cantly contributed to causing the Global Financial Crisis.
Machiavellianism is often accompanied by a lack of empathy, a focus Our knowledge of the link between environmental and social re-
on pursuing one's own goals at the expense of others, and a view of sponsibility and dark personality traits of managers is limited to a few
morality that offers a greater acceptance of behaviors that would recent pioneering contributions to the field. Petrenko et al. (2016)
normally be described as immoral or unethical, such as exploiting study the impact of CEO narcissism on organizational sustainability
others (LeBreton et al., 2018). issues, hypothesizing that CEOs generate attention for themselves
Similar to individuals with pronounced Machiavellianism, by participating in charitable events and sustainability activities (see
narcissists are associated with unethical behavior (Buss & also Chatterjee & Hambrick, 2007). They show that CEOs are often
Shackelford, 1997; Menon & Sharland, 2011). Other key features of personally positioned at the center of praise or criticism when it
narcissists include a sense of entitlement, dominance, and superior- comes to the social behaviors of their organizations. Thus, narcis-
ity (Corry et al., 2008). They are more likely to have a propensity for sistic CEOs, who have an increased need for excessive attention and
engaging in exploitative acts or behaviors and at the same time lack admiration, are more likely to engage in representative corporate
PELSTER and SCHALTEGGER | 5

social responsibility actions and communication. The increasing among them. Furthermore, given their responsibilities, sustainability
awareness for sustainability among the general public (Galbreth & managers with dark personality traits might still carefully consider
Ghosh, 2013) may thus shape C-­level managers decision-­making ethical issues in their decisions regarding sustainability. However,
process and bring about more responsible decisions. as personality traits are considered stable over a person's lifetime
In contrast to C-­level managers who enjoy a much greater visi- (McCrae & Costa, 1994) and to have general effects on behavior
bility to outsiders and the general public, the audience of mid-­level (Parks & Guay, 2009), we expect mid-­level managers who score high
managers is largely restricted to company and industry insiders. on the dark triad scale to express lower environmental and social
Given that the position of mid-­level managers does not promise preferences. Therefore, we hypothesize:
much external representation or media attention, this raises the
question how those with dark personality traits position themselves H 1a Mid-­level sustainability managers with pronounced dark triad
on sustainability issues. personality traits display low environmental preferences.
With regard to narcissism, we argue that mid-­level sustainabil- H 1b Mid-­level sustainability managers with pronounced dark triad
ity managers with narcissistic personality traits can be expected to personality traits display low social preferences.
engage in exploitative behaviors coupled with their lack of empathy
and a reduced interest in behaving in an environmentally and socially
responsible way (due to less media attention than C-­level managers 2.3 | Business environment, personality traits, and
experience). corporate sustainability
Shafer and Lucianetti (2018) focus on Machiavellianism and
support for sustainability reporting. They show that managers’ fun- To complete the picture, we analyze the influence of moderating
damental personality traits are important determinants of support factors of the business environment and the organizational con-
for social and environmental disclosures. Our study builds on their text on the relationship between personality traits and sustain-
findings and studies the importance of the dark triad, which includes ability preferences. The influence of managerial personality traits
Machiavellianism, on social and environmental preferences, such as on firm decisions has been documented to increase with mana-
for sustainability policy, the use of measurable targets and action gerial discretion (Li & Tang, 2010). Several empirical studies in-
plans, and measures to monitor and report sustainability performance. formed by the upper echelons theory (Hambrick, 2007; Hambrick
Marcus and Roy (2019) assess the role of core values and per- & Finkelstein, 1987) provide evidence that the impact managers
sonality traits in relation to beneficial and harmful sustainability ac- have on firm outcomes increases with their discretionary latitude
tions for a student sample and a national sample of English-­speaking (Crossland & Hambrick, 2007; Finkelstein & Boyd, 1988; Finkelstein
Canadians. They argue that altruistic orientation rooted in a prin- & Hambrick, 1990). Managerial discretion is also influenced by the
ciple of fair treatment (measured with the personality factor business environment (e.g., Carpenter & Golden, 1997). In line with
honesty–­humility of the HEXACO model) is deeply entwined with these findings, we hypothesize that the business environment will
sustainable behavior. They find that the personality dimension of moderate the impact of middle managers’ dark personality traits on
honesty–­
humility is a strong negative predictor of harmful sus- their sustainability preferences.
tainability actions. We extend their work, as the dark triad “taps a The business environments in the United States and Europe
range of personality traits” beyond the HEXACO model (Jonason & are thought to be considerably different with regard to corporate
McCain, 2012, p. 935). sustainability. In their seminal work on the influence of the busi-
Extant literature largely focuses on the narcissism of board mem- ness environment on social responsibility, Matten and Moon (2008,
bers, particularly CEOs. This can mainly be explained by the visibil- p. 409) identify two distinct elements, the “explicit” and the
ity of board members and the ready availability of proxies for this “implicit” consideration of social responsibility. In a more strictly
personality trait, such as signature size (Ham et al., 2018), the use regulated environment, as in Europe, the consideration of social and
of first-­person pronouns (Raskin & Shaw, 1988) or the size of pho- environmental issues by companies is strongly driven by regulations
tos in annual reports (Chatterjee & Hambrick, 2007). However, the and is therefore implicitly integrated into the business. In the less
validity of these proxies for narcissism are being questioned (Carey strictly regulated business environment in the United States, societal
et al., 2015; Koch & Biemann, 2014). Also, readily available proxies expectations are that a company only considers sustainability if it
for the other two dark triad traits, Machiavellianism and psychopa- explicitly discloses its activities. The authors conclude that national
thy, have yet to be discovered. For these reasons, we measure the or regional differences may explain the choice for a more implicit or
manifestation of the three dark personality traits using an estab- explicit expression of corporate social responsibility. Maignan and
lished scale in a questionnaire survey. Ralston (2002) furthermore find that CSR strategies in the United
The influence of dark personality traits of mid-­level sustainability States are more socially oriented than in Europe. Given that manag-
managers has not so far been studied. Since sustainability managers ers do not act in isolation but are embedded in and influenced by the
design and implement social and environmental projects, and activi- business environment, we argue that the explicit and more socially
ties, which are associated with a strong ethical and normative dimen- oriented environment in the United States will mitigate the impact of
sion, dark personality traits might not be expected to be prominent dark personality traits on sustainability preferences.
6 | PELSTER and SCHALTEGGER

Based on Matten and Moon's differentiation of implicit and ex- been possible. In this section, we describe the data collection, meas-
plicit corporate social responsibility, Hypothesis 2 therefore states urement assessment, variables, and methods used for data analysis.
that the business environment will function as a moderator on the
relationship between personality traits and sustainability prefer-
ences as socially unfavorable dark triad personality traits are likely 3.1 | Data collection
to be moderated by the explicit U.S. strategies. In the U.S. business
environment, which expects sustainability managers to be more ex- We collected information about personality traits of managers and
plicit about their social and environmental decisions and activities, their environmental and social preferences with an online survey. As
the personality traits of sustainability managers can therefore be the purpose of the study is to investigate the relationship between
expected to influence preferences and decisions less than in Europe. managerial personality traits and corporate sustainability, we spe-
The business environment functions as a moderator of the influence cifically targeted professionals who work for or report to the mid-­
of middle managers’ dark personality traits on sustainability prefer- level sustainability manager of their organization. We commissioned
ences. Therefore, we hypothesize: Atheneum Partners to carry out the actual questioning of respond-
ents. Atheneum has an extensive database with over 400,000 indus-
H 2a The influence of middle managers’ dark personality traits on try professionals, which allowed us to obtain a high-­quality sample.
their environmental preferences is larger for European than The survey was executed with a self-­implemented online form in
for U.S. companies. English.
H 2b The influence of middle managers’ dark personality traits on In order to be included in our survey, respondents had to report
their social preferences is larger for European than for U.S. to a supervisory manager who was responsible for sustainability is-
companies. sues of the company (e.g., to the head of the CSR or sustainability
department). The restriction was included in the announcement of
the survey and determined with the first question of the question-
2.4 | Managerial discretion, personality traits, and naire. Only participants answering “Yes” to the question whether
corporate sustainability they work for or report to a supervisory sustainability manager were
allowed to continue the survey. We specifically targeted profession-
Hemingway and Maclagan (2004) observe that the personal values als from the United States and Europe. The invitation to the survey
of individual managers may influence how they design implementa- was sent to 1000 professionals from Atheneum's database based on
tion to the extent those managers are able to exercise discretion. the target group of the survey. The initial response rate was 56%,
Managerial discretion is influenced by various factors, including or- 53.2% of which were disqualified because they did not answer “Yes”
ganizational context. And organizational context has been shown to the qualifying question; 10.6% of respondents did not complete
to matter for managerial interpretations of environmental issues all questions of the survey; 204 questionnaires were completed and
(Sharma, 2000). We conclude that, in addition to the influence of used for the analysis. As an incentive to take part in the survey, a
the business environment, organizational factors that influence the small payment was made to 10% of the respondents.
discretionary freedom of actors may moderate the impact of mid- The units of analysis are the sustainability preferences of middle
dle managers’ personality traits on their sustainability preferences. managers with decision-­making authority. Importantly, we did not
Therefore, we hypothesize: directly ask the managers about their preferences and personality
traits, but their subordinates (e.g., Mutschmann et al., 2020). Thus,
H 3a The influence of middle managers’ dark personality traits on we surveyed employees whose immediate superiors were middle
their environmental preferences increases with their oppor- managers with decision-­making authority regarding sustainability
tunity to exercise discretion. issues. We recognize that the relationship between managers and
H 3b The influence of middle managers’ dark personality traits on their subordinates (i.e., whether this relationship is positive and
their social preferences increases with their opportunity to productive or influenced by conflict and miscommunication) may
exercise discretion. affect how a subordinate perceives their manager's preferences and
personality. However, a wide array of psychology research under-
lines the value and accuracy of third-­party ratings (e.g., Connelly &
3 | M E TH O D O LO G Y A N D DATA S E T Ones, 2010; Oh et al., 2011), as personality traits are readily observ-
able (Rokeach, 1985) and dark personality traits are typically noticed
The hypotheses in this study were derived from the review of extant first by subordinates (Hogan & Hogan, 2001). Moreover, the use of
literature in Section 2. We adopted a quantitative survey method to an informant-­scale approach with guaranteed anonymity reduces the
empirically investigate the relationship between managerial person- risk of the results being affected by a social desirability bias (Crowne
ality traits and corporate sustainability. Using a survey allowed us & Marlowe, 1964) and response distortion (Kerin & Peterson, 1977).
to gather data both on the ratings of personality traits and on per- Lastly, under the assumption that some respondents’ relation-
ceived sustainability preferences, which would otherwise not have ships to their supervisors are positive and others are negative,
PELSTER and SCHALTEGGER | 7

misperceptions about manager's preferences would increase stan- manager's social preferences using a set of nine questions on the
dard errors, but not bias our results (Atanasov & Black, 2016), while same 5-­item Likert scale. Questions referred to the manager's sup-
misperceptions about the manager's personality would bias coeffi- port for diversity and equal opportunity policy, employee health
cient estimates toward zero (Atanasov & Black, 2016). improvement programs and work-­life balance within the company,
This study was reviewed and approved by the institutional ethics the implementation of policy action plans, measures to monitor per-
review board of a participating institution. formance, and internal communication tools to ensure effective im-
plementation (see the Appendix for the list of questions). For each
participant, we aggregated the answers to a single variable, which
3.2 | Measurement assessment measures social responsibility with excellent internal consistency
(Cronbach's alpha = .92).
The questionnaire for sustainability preferences of managers was
based on items used by Refinitiv (formerly Thomson Reuters) to
create its ESG scores (available in Eikon Datastream). As the da- 3.3.3 | Dark triad personality
tabase has been extensively used in research (e.g., Semenova &
Hassel, 2015), we decided to create our questionnaire based on We asked the participants to judge their superior middle manager's
these items. We do not claim, however, that our questionnaire repli- personality using the dirty dozen scale (Jonason & Webster, 2010).
cates the ESG scores of companies involved in the survey. The dirty The scale comprises three 4-­item subscales for Machiavellianism,
dozen scale (Jonason & Webster, 2010), a 12-­item personality inven- narcissism, and (subclinical) psychopathy. The dirty dozen scale is
tory, was used for assessing the dark triad personality traits. The used and validated to measure dark triad personality scales (Miller
questionnaire contained a total of 64 items (see Appendix). et al., 2012; Webster & Jonason, 2013). We chose the dirty dozen
Reliability as the internal consistency of the items within each scale instead of the short dark triad scale proposed by Jones and
construct of this study was assessed by observing Cronbach's alpha. Paulhus (2014), as the latter includes questions that are inappropri-
Face and content validities of the social and environmental respon- ate in a professional setting (i.e., ‘I get angry if someone turns down
sibility items were assessed in a pre-­test with 19 professionals from having sex with me’.). We disguised the dirty dozen scale by includ-
the field. Construct validity comprising convergent and discriminant ing a number of positively loaded items assessing general leadership
validities of the measurements for sustainability preferences and behavior and other personality traits and randomizing the question
personality trait constructs was evaluated by exploratory factor order to alleviate a possible bias of negatively framed questions.
analysis using a principal components analysis. With a value of Cronbach's alpha of .92, the internal consistency of
the dark triad measure is excellent.
Harman's single-­factor test shows that three factors are nec-
3.3 | Variables essary to account for the variance in the variables, with one factor
capturing environmental responsibility, one factor social responsi-
3.3.1 | Environmental responsibility bility and one factor dark triad personality. The social responsibil-
ity questions regarding fair trade labels and certification with social
We asked the participants to judge their superior manager's envi- management systems loaded more on the environmental than on
ronmental preferences using a set of 16 questions on a 5-­item Likert the social responsibility factor. The three factors allow 60% of the
scale ranging from “Yes, very much” to “No, not at all.” To acquire cumulative variance to be explained. We did not observe any item
information about the strength of preferences (lower or higher pref- from the dark triad personality scale loading on the environmental
erences), the questions targeted the manager's support and posi- or social responsibility factor, mitigating concerns about common
tiveness for the company's corporate environmental sustainability method variance (Podsakoff et al., 2003). Overall, concurrent and
policy, the manager's use of measurable targets and action plans to convergent validity was at an adequate level.
implement the policy, and the use of measures to monitor and report
the sustainability performance of the company (see the Appendix
for the list of questions). For each participant, we aggregated the 3.3.4 | Firm size
answers to a single variable using the arithmetic average. The factor
analysis shows that the 16 questions provide excellent internal reli- We followed Hambrick and Finkelstein (1987), who argue that firm
ability and consistency (Cronbach's alpha = .97). size is a major determinant of managerial discretion. Specifically,
large organizations are more likely to have established formal
routines and structures (Nelson & Winter, 1982), which leave less
3.3.2 | Social responsibility scope for managerial discretion (see also Li & Tang, 2010). We thus
asked participants about the amount of sales (annual revenue) and
We elicited a manager's social preferences in the same way as for the number of employees at the company they work for based on
environmental preferences. We asked the participants to rate their two eight-­level categorical variables. With this information, we
8 | PELSTER and SCHALTEGGER

created two dummy variables “medium-­sized” and “large”, indi- TA B L E 1 Observations per country
cating that a firm is below or above median size in our sample.
Country N
Medium-­sized firms have up to 5000 employees and less than
France 8
$100 million in sales.
Germany 27
Italy 23

3.3.5 | Managers’ age Spain 26


United Kingdom 21
Along similar lines of reasoning, we argue that a manager's age is United States 99
a valid proxy measure for the discretionary leeway of a manager.
Specifically, we argue that older managers enjoy more managerial
TA B L E 2 Observations per industry
discretion because of their seniority and because they are less driven
by career development concerns. Thus, we asked participants about Industry N
their age on a 6-­item scale indicating various age groups. Based on
Agriculture, forestry, fishing 5
this information, we create two dummy variables “age ≤ 45” and “age
Finance, insurance, real estate 13
> 45”, indicating that a supervisor is below or above median age in
Manufacturing 50
our sample.
Mining 1
Public administration 9

3.4 | Data analysis Retail trade 24


Services 57

We estimated the following main model using a standard ordinary Transportation & public utilities 10
least squares (OLS) model with robust standard errors to account for Wholesale trade 5
heteroscedasticity: Unclassified industry 30

J

responsibilityi = a + b dark personalityi + cj controlsij + ei
j=1 a function exists in small firms, our sample does not contain small
firms.
Control variables included demographic controls of the manager
(a dummy for male managers and a full set of age category dummies)
and firm controls (such as a full set of firm country dummies, a full 4 | R E S U LT S
set of firm industry dummies, a full set of dummies for the number of
employees, and also for firm sales). Table 4 displays descriptive statistics for the main variables used in
In addition, we estimated several models with interactions to in- this study, and Table 5 shows correlations between the main vari-
vestigate hypotheses 2 and 3. To simplify the interpretation of our ables. Given that we collected information on mid-­level managers
additional analyses, we included the relevant dummy (i.e., United who are responsible for sustainability, it is notable that our sample
States, Europe, medium-­sized, large, age ≤ 45, and age > 45) of the of sustainability managers reveals that approximately 10% of the
interaction, and the dark triad variable for both values of the dummy. sample (21 managers) score low on the environmental responsibil-
This approach simplifies readability of the effect sizes and captures ity variable with scores lower than 2 on a 5-­point scale (see also
the entire domains of both the dark triad and the relevant dummy. Figure 1). While our sample also includes managers who score values
lower than 2 on the social responsibility scale (7 managers, or 3.4%
of the sample), the number of managers with low scores on this scale
3.5 | Sample composition is significantly lower compared to the environmental responsibility
variable. Nonetheless, our first finding indicates that mid-­level sus-
The sample of this study comprises a total of 204 professionals tainability managers do not invariably possess strong sustainability
from the United States and Europe. Table 1 shows the distribution preferences. On the contrary, a remarkable number of mid-­level sus-
of respondents across countries. Table 2 depicts the distribution of tainability managers show low sustainability preferences.
respondents across different industries. Respondents are well dis- The correlation between the environmental and the social re-
tributed across industries. The largest number of respondents are sponsibility measures is high (r = .72), which indicates that many man-
from services and from manufacturing industries. Table 3 shows the agers are seen to have a certain level of sustainability preferences in
sales (measured in USD across all participants) and number of em- general. We do not observe significant differences in environmental
ployees of the companies in our sample. As we specifically targeted and social preferences between middle managers from the United
firms with a sustainability manager and we cannot assume that such States and Europe. Social responsibility exhibits a slightly higher
PELSTER and SCHALTEGGER | 9

TA B L E 3 Observations per firm size mean in the US sample; however, according to a Mann–­Whitney U
test, we cannot reject the null hypothesis that the distributions of
Panel A: Sales
our variables are from the same population.
Sales N The distribution of the dark triad measure (see Figure 2) and
$0–­$999,999 29 its components is comparable to previous studies (e.g., Jones &
$1,000,000–­$ 4,999,999 20 Paulhus, 2014). We find that 5.4% of the managers in our sample
$5,000,000–­$ 9,999,999 8 exhibit pronounced dark personality traits with a score on the dirty
$10,000,000–­$ 99,999,999 30 dozen scale larger than 4, which is in line with the average prev-

$100,000,000–­$999,999,999 30 alence of dark personality traits found in other managerial sam-


ples (e.g., Babiak et al., 2010; Boddy, 2011; Chiaburu et al., 2013;
$1,000,000,000–­$ 4,999,999,999 27
Lubit, 2002). While the distribution of narcissism is fairly symmetric
$5,000,000,000–­$9,999,999,999 18
(see Figure 2, Panel c), the distributions of Machiavellianism and psy-
$10,000,000,000 or above 42
chopathy (see Figure 2, Panels b and d) show a larger number with
Panel B: Employees low scores of 1 and 2, compared to high scores of 4 and 5. These dis-
Employees N tributions are comparable to distributions of the dark triad measure
and components previously reported in the literature (e.g., Jones &
51–­250 29
Paulhus, 2014). Our second finding therefore reveals that mid-­level
251–­500 14
sustainability managers do not necessarily possess more ethical per-
501–­1000 17
sonality traits than managers in general.
1001–­5000 27
Bivariate correlations provide initial support for our hypotheses,
5001–­10,000 53 showing statistically significant negative correlations between the
10,001–­25,000 17 dark triad personality scale and both the environmental responsi-
25,001 or more 47 bility measure and the social responsibility measure, respectively.

TA B L E 4 Summary statistics

Variable N Mean SD Min q25 Median q75 Max

Panel A: All data


Environmental responsibility 204 3.392 1.086 1.000 2.609 3.562 4.250 5.000
Social responsibility 204 3.803 0.916 1.000 3.194 4.000 4.556 5.000
Dark triad 204 2.642 0.869 1.000 2.000 2.667 3.167 5.000
Machiavellianism 204 2.485 1.012 1.000 1.500 2.500 3.200 5.000
Narcissism 204 3.001 0.868 1.000 2.500 3.000 3.500 5.000
Psychopathy 204 2.439 0.973 1.000 1.500 2.500 3.000 5.000
Panel B: United States
Environmental responsibility 99 3.422 1.083 1.000 2.750 3.562 4.250 5.000
Social responsibility 99 3.914 0.827 1.000 3.333 4.000 4.556 5.000
Dark triad 99 2.584 0.897 1.000 1.833 2.667 3.167 4.583
Machiavellianism 99 2.465 1.024 1.000 1.500 2.500 3.200 5.000
Narcissism 99 2.957 0.884 1.000 2.500 3.000 3.750 5.000
Psychopathy 99 2.331 0.998 1.000 1.500 2.500 3.000 4.750
Panel C: Europe
Environmental responsibility 105 3.362 1.094 1.000 2.500 3.500 4.250 5.000
Social responsibility 105 3.699 0.985 1.000 3.000 4.000 4.444 5.000
Dark triad 105 2.696 0.842 1.083 2.083 2.667 3.167 5.000
Machiavellianism 105 2.505 1.004 1.000 1.800 2.500 3.000 5.000
Narcissism 105 3.043 0.854 1.000 2.500 3.000 3.500 5.000
Psychopathy 105 2.540 0.942 1.000 1.800 2.500 3.000 5.000
10 | PELSTER and SCHALTEGGER

TA B L E 5 Pearson's correlation table

Environmental Social Dark


responsibility responsibility triad Machiavellianism Narcissism Psychopathy Employees

Social 0.72**
responsibility
Dark triad −0.18* −0.32**
Machiavellianism −0.13 −0.25** 0.93**
Narcissism −0.19** −0.29** 0.88** 0.73**
Psychopathy −0.18* −0.35** 0.92** 0.81** 0.71**
Employees 0.10 0.08 −0.06 −0.08 −0.03 −0.04
Sales 0.16* 0.15* −0.09 −0.07 −0.06 −0.12 0.77**

Note: ** and * denote significance at the 1% and 5% levels, respectively.

Hypothesis 1a. The coefficient on male is statistically not different


from zero (t-­statistic .33), indicating that female and male sustain-
ability managers do not have systematically different environmental
preferences.
Next, we turn to Hypothesis 1b and the relationship between
managers’ dark triad personality characteristics and their social pref-
erences. Table 7 reports the results of our OLS estimations using
Equation 1. Model 1 focuses solely on the relationship between dark
triad and social responsibility and displays a negative coefficient of
−.34. The coefficient is statistically significant with a t-­statistic of
4.31.
Considering the distribution of the social responsibility variable,
this effect accounts for approximately 9% of the mean and is there-
fore highly significant. The model thus provides strong support for
our Hypothesis 1b that managers who score high on the dark triad
personality scale are less concerned with social responsibility issues.
Model 2 of Table 7 adds control variables to the regression
model. The coefficient of dark triad remains virtually unchanged.
Additionally, the model provides evidence that gender does not sys-
F I G U R E 1 Distribution of the environmental and social
responsibility variables tematically influence managers’ social preferences, as the male coef-
ficient is not statistically different from zero (t-­statistic: .72).
Next, we turn to the moderating function of specific environ-
Significant negative correlations exist between our responsibility mental and organizational factors. We begin with Hypothesis 2a and
measures and the dark triad components (except between environ- determine whether the business environment functions as a mod-
mental responsibility and Machiavellianism). erator of the influence of middle managers’ dark personality traits
To formally test the hypotheses, we turn to the multivariate anal- on sustainability preferences. We interact dark triad with a dummy
ysis and estimate Equation 1 using OLS. With regard to Hypotheses variable for firms located in the United States. To simplify interpret-
1a, Table 6 presents our regression results of the dark triad person- ability of the results, we report the coefficients for dark triad in U.S.
ality measure on managers’ environmental responsibility. Model 1 firms (dark triad * US) and for dark triad in European firms (dark triad
omits control variables and reports a negative coefficient of −.22 * Europe) separately. Results of the analysis are presented in Table 8.
on the dark triad. With a t-­statistic of 2.38 the null hypothesis that Model 1 focuses on environmental responsibility and shows a neg-
the coefficient is equal to zero is rejected. Thus, the model provides ative coefficient (−.36; t-­statistic 3.09) only for European firms. For
support for Hypothesis 1a that managers who score high on the dark the United States, the coefficient is −0.09, which is not statistically
triad personality scale exhibit lower environmental responsibility. different from zero. Model 2 analyzes social responsibility. Here, a
In Model 2 of Table 6, we add additional control variables for the similar picture emerges. While we observe a statistically significant
firms’ country, industry, annual sales, and number of employees as negative coefficient for European firms (−0.57, t-­statistic of 5.71),
well as for the managers’ gender and age. The coefficient on dark the coefficient for U.S. firms is again not statistically different from
triad remains robust (−.20, t-­statistic 2.08), providing support for zero. This indicates that the relationship between the dark triad
PELSTER and SCHALTEGGER | 11

FIGURE 2 Distribution of the dark triad personality measure and its composites

personality measure and environmental responsibility is significantly that, on average, managers with a pronounced dark triad person-
less pronounced in the United States. These findings yield support ality in medium-­sized firms are significantly less concerned with
for Hypothesis 2: The business environment functions as a moder- social responsibility issues.
ator of the influence of middle managers’ dark personality traits on In Panel B of Table 9, we turn to the manager's age as a proxy
sustainability preferences. for managerial discretion. Again, Model 1 studies environmental
Lastly, we study the moderating impact of organizational fac- responsibility and Model 2 social responsibility. While we observe
tors. Table 9 summarizes the analyses on Hypothesis 3a and 3b. significantly negative coefficients for dark triad * age > 45 (−.4986
In Panel A, we interact dark triad with the dummy variables for and −.5818, with t-­statistics of 4.31 and 5.76, respectively), coef-
medium-­sized and large firms and again estimate Equation 1, hold- ficients for dark triad * age ≤45 are not statistically different from
ing the managerial position constant. This allows us to compare zero (t-­statistics: .46 and 1.08, respectively). Taken together with the
executives of different ages at the same level of organizational re- results using the firm size proxy, these findings yield strong support
sponsibility. Model 1 analyzes environmental responsibility. Here, for Hypothesis 3: Managerial discretion functions as a moderator of
we find a negative coefficient on dark triad only for mid-­sized firms the influence of middle managers’ dark personality traits on sustain-
(−0.25, t-­s tatistic of 2.03), whereas the coefficient for large firms ability preferences.
is statistically not different from zero (t-­s tatistic of 1.50). Model 2 Additional (untabulated) analyses reveal a highly consistent re-
analyzes social preferences. We observe a negative coefficient for lationship between dark personality traits and all types of corpo-
dark triad for mid-­sized firms (−0.43, t-­s tatistic 3.88) and for large rate sustainability aspects included in our measures, that is, policies,
firms (−0.26, t-­statistic 2.44), with the effect being significantly supply chains, action plans, management systems, training, and
larger for medium-­sized firms (t-­test, p-­value <.01). This indicates monitoring.
12 | PELSTER and SCHALTEGGER

TA B L E 6 The effect of managerial dark triad personality on TA B L E 8 Dark personality traits and the business environment
environmental responsibility
US vs. Europe
Model 1 Model 2
Model 1 Model 2
Environmental Environmental
responsibility responsibility Environmental Social
responsibility responsibility
(Intercept) 3.9762** 2.5765**
(Intercept) 4.3405** 5.2480**
(15.8576) (2.9804)
(13.2145) (20.7782)
Dark triad −0.2213* −0.1978*
Dark triad * US −0.0866 −0.1033
(−2.3826) (−2.0802)
(−0.6212) (−1.0457)
Male 0.0795
Dark triad * Europe −0.3628** −0.5744**
(0.3333)
(−3.0902) (−5.7110)
Firm controls No Yes
US −0.6944 −1.0675**
Age dummies No Yes
(−1.4072) (−2.9799)
Estimation OLS OLS
2
Adj. R 0.0294 0.1490
R2 0.0313 0.2171
Num. obs. 204 204
Num. obs. 204 204
Note: Standard errors are robust (MacKinnon & White, 1985);
Note: Firm controls include dummy variables for country, industry,
t-­statistics are in parentheses. ** and * denote significance at the 1%
annual sales, and number of employees. Standard errors are robust
and 5% levels, respectively.
(MacKinnon & White, 1985); t-­statistics are in parentheses. ** and *
denote significance at the 1% and 5% levels, respectively.
be found among mid-­level managers responsible for sustainability,
as for leadership positions in general (e.g., Furtner et al., 2017). Thus,
TA B L E 7 The effect of managerial dark triad personality on
social responsibility neither the mid-­level position nor the responsibility for sustainabil-
ity influence the distribution of dark triad personality traits. Second,
Model 1 Model 2
contrary to expectations, sustainability managers do not always
Social Social show strong environmental and social preferences. Third, sustain-
responsibility responsibility ability managers with pronounced dark personality traits are less
(Intercept) 4.6948** 4.2231** concerned about both environmental and social issues than manag-
(24.0310) (5.5654) ers with less pronounced dark personality traits. While dark person-
Dark triad −0.3374** −0.3159** ality traits influence the level of sustainability concern, they do not,

(−4.3080) (−3.7840)
however, influence the type of sustainability preferences (social or
environmental) of decision makers.
Male −0.1466
The high levels of consistency found for mid-­level managerial
(−0.7232)
sustainability preferences show that dark triad personality traits do
Firm controls No Yes
not influence sustainability management with regard to support for
Age dummies No Yes
specific types of activities. The detailed analysis of the relationships
Estimation OLS OLS
between dark personality traits and the individual components of
R2 0.1025 0.2378 our sustainability measures (policy preferences, supply chains, ac-
Num. obs. 204 204 tion plans, management systems, training, and monitoring) show
Note: Firm controls include dummy variables for country, industry, a highly consistent relationship for all measures. Our analyses re-
annual sales, and number of employees. Standard errors are robust veal that dark personality traits have a similar influence on each of
(MacKinnon & White, 1985); t-­statistics are in parentheses. ** and * these sustainability preferences. This indicates that while more pro-
denote significance at the 1% and 5% levels, respectively.
nounced dark personality traits are related to an overall lower level
of sustainability preference they do not lead to different types of
Table 10 summarizes the findings of our hypotheses to facilitate sustainability preferences.
the following discussion. The empirical findings furthermore indicate the potential for
tension between board members and middle management with re-
gard to the level of sustainability preferences. The expression of low
5 | D I S CU S S I O N sustainability preferences by our group of middle managers with
strong dark triad personality traits may indicate potential tension in
Our study provides several important findings. First, dark triad per- a firm's organizational hierarchy. More ambitious board members or
sonalities (Machiavellianism, narcissism, and psychopathy) can also those with narcissistic CEOs may favor sustainability activities, as
PELSTER and SCHALTEGGER | 13

they attract media attention, as opposed to middle managers with and sustainability preferences is less pronounced for the United
comparable personality traits who have less strong sustainability States than for Europe, corresponding to the thesis of Matten and
preferences in general. Moon (2008) that corporate social responsibility is exercised more
Third, the societal business environment plays an important mod- explicitly in the United States and more implicitly in Europe. Our
erating function. The relationship between dark personality traits finding could thus be explained by the smaller discretionary space
allowed sustainability managers—­which would restrict the effects
TA B L E 9 Dark personality traits and managerial discretion
of managers with dark personality traits—­in a societal environment
Model 1 Model 2 requiring businesses to be more explicit about their sustainability
activities. This finding is in line with analyses based on institutional
Environmental Social
Responsibility responsibility theory suggesting that institutional pressure influences the sustain-
ability engagement of companies (Delmas & Toffel, 2004) and that
Panel A: Medium-­sized vs. large firms
isomorphism affects the choice of sustainability management meth-
(Intercept) 4.0776** 4.5946**
ods (Windolph et al., 2014).
(10.3425) (17.0491)
Fourth, our analysis indicates that personal discretionary latitude
Dark triad * medium-­sized −0.2497* −0.4292**
may influence how strongly dark personality traits influence sustain-
(−2.0303) (−3.8806) ability preferences among managers. Using company size and age as
Dark triad * large −0.2123 −0.2572* proxies reveals that sustainability managers with pronounced dark
(−1.5035) (−2.4402) triad personalities in medium-­sized companies are less concerned
Medium-­sized −0.1238 0.2469 about sustainability than their counterparts in larger companies. As
(−0.2426) (0.6442) large companies often face strong public pressure (e.g., Wolf, 2014),
Adj. R 2
0.0275 0.1088 dark personality traits of sustainability managers face more socie-

Num. obs. 204 204 tal restrictions in larger than in medium-­sized companies. In turn,
fewer restrictions in medium-­sized companies allows sustainability
Panel B: Age
managers with dark triad personalities to be less concerned about
(Intercept) 3.4479** 4.2233**
environmental and social issues. Also, more established routines and
(7.7875) (13.0304)
structures in larger companies (e.g., Nelson & Winter, 1982) place
Dark triad * Age > 45 −0.4989** −0.5823**
greater restrictions on the personality traits of managers.
(−4.3269) (−5.7668)
Our analysis furthermore shows that older managers with pro-
Dark triad * Age ≤ 45 0.0381 −0.1008 nounced dark triad personality traits are less concerned about sus-
(0.3103) (−1.1518) tainability. Younger managers may face more restrictions as they
Age > 45 1.1720** 1.00329** still have to prove themselves to be accepted and promoted in the
(2.4649) (2.9614) organization. Dark personality traits therefore show more effect
Managerial position Yes Yes among older sustainability managers who enjoy larger discretionary
Adj. R 2
0.0788 0.1767 latitude.
Num. obs. 204 204 Our analysis complements earlier studies on the personality
traits of CEOs. Middle managers serve as important interfaces be-
Note: Standard errors are robust (MacKinnon & White, 1985); t-­
statistics are in parentheses. ** and * denote significance at the 1% and
tween otherwise disconnected top and operating-­level managers,
5% levels, respectively. and they act as important agents of change. Corporate sustainability

TA B L E 1 0 Summary of hypotheses

Hypothesis Empirical evidence

H1a: Mid-­level sustainability managers with pronounced dark triad personality traits display low environmental Support of hypothesis
preferences
H1b: Mid-­level sustainability managers with pronounced dark triad personality traits display low social preferences Support of hypothesis
H2a: The influence of middle managers’ dark personality traits on their environmental preferences is larger for European Support of hypothesis
than for U.S. companies
H2b: The influence of middle managers’ dark personality traits on their social preferences is larger for European than for Support of hypothesis
U.S. companies
H3a: The influence of middle managers’ dark personality traits on their environmental preferences increases with their Support of hypothesis
opportunity to exercise discretion
H3b: The influence of middle managers’ dark personality traits on their social preferences increases with their Support of hypothesis
opportunity to exercise discretion
14 | PELSTER and SCHALTEGGER

can only be effective if mid-­level sustainability managers act in an and Europe. The empirical results indicate that the explicit and more
engaged and constructive manner as interpreters, mediators, and socially oriented environment in the United States mitigates the im-
intermediaries in implementing strategic change. As middle manag- pact of dark personality traits on sustainability preferences.
ers decide which ideas actually receive resources, they have a large For corporate practice, our analysis suggests that candidates ap-
impact on the implementation of strategic decisions, including how plying for sustainability management positions may also score high on
corporate sustainability projects and activities are actually designed dark triad personality traits. The human resources department could
and implemented. A company pursuing sustainability goals beyond make a key contribution to responsible leadership by explicitly assess-
symbolic action therefore needs to explicitly consider the person- ing personality traits when hiring. Management assessment tests, par-
ality traits of its mid-­level sustainability managers to create a good ticularly for young high potentials (Lindgreen et al., 2011), should take
match with organizational values, culture, and goals. personality traits explicitly into account. Organizations that are able to
The personality of sustainability managers is not alone in de- identify, recruit, retain, and promote employees with stronger sustain-
termining their environmental and social preferences. Several ability preferences and work to improve social and environmental out-
non-­psychological factors such as the regulatory environment, the comes are more likely to achieve their sustainability goals (e.g., Marcus
(institutional) culture, education and training, and professional sus- & Roy, 2019). Furthermore, a strong organizational culture where
tainability management practices are likewise important influences sustainability is emphasized with clear sustainability performance-­
on how corporate sustainability is designed and implemented (e.g., oriented incentives can moderate how strongly dark personality traits
Anku-­Tsede & Deffor, 2014; Waddock & Smith, 2000; Wang & influence the sustainability preferences of managers.
Juslin, 2009). Importantly, such nonpsychological factors may act as Furthermore, as dark personality traits were found for 5.4% of
crucial factors that (at least partially) reinforce or mitigate the influ- the mid-­level sustainability managers, they would be expected to
ence of personality traits on environmental and social preferences. collaborate with managers without dark personality traits. Future
Investigating such interactions in future research could provide im- research could analyze how such collaboration influences the sus-
portant insights into the design of future regulatory interventions to tainability preferences and activities of mid-­
level managers with
promote sustainability. dark personality traits.
From a research perspective, our study provides evidence that
the role and the development of mid-­level sustainability manage-
6 | CO N C LU S I O N S ment needs more attention. However, this is the case for managers
at all levels and in all departments dealing with sustainability and
A number of conclusions for public policy and corporate governance, sustainability information (Schaltegger et al., 2015). Future research
for corporate sustainability research and education as well as for on educating managers for sustainability could investigate how
theory testing can be drawn from this empirical analysis. personality traits relate to sustainability management competen-
Concerning public and corporate policies, requiring explicit cor- cies (e.g., Hesselbarth & Schaltegger, 2014), in particular, the inter-
porate sustainability performance—­that is, companies articulating, play between personality traits and management competencies in
measuring, and reporting their sustainability contributions explicitly change agents for sustainability.
and clearly—­can be expected to mitigate the impact of dark person- For educational and training programs for sustainability manag-
ality traits of managers on corporate sustainability. Currently, many ers, our study raises a number of questions. How should personality
requirements for sustainability reporting are relatively formal and fo- traits be considered in the assessment of candidates for sustain-
cused on processes, completeness of indicators communicated, etc. ability management positions? What role should personality traits
This opens options for middle managers to act as gatekeepers and beneficial to sustainability engagement play when training change
to select how relevant information is passed on to top management agents for sustainability? Can educational programs help students to
(Schaltegger & Zvezdov, 2015). While a policy focus on processes identify their own personality traits and guide their career choices,
and information completeness may support the establishment of steering them away from work that may be problematic for them and
environmental and social management systems in organizations, it their employer?
leaves greater discretionary leeway with regard to how sustainabil-
ity is implemented in a company. Thus, public policies and accounting AC K N OW L E D G M E N T S
standards requiring the explicit disclosure, review and verification The authors are grateful for the helpful comments and suggestions
of actual performance with regard to acknowledged societal goals from Dima Jamali (the editor), Marco Bellucci (the associate editor),
(such as the United Nations Sustainable Development Goals or plan- two anonymous referees, Jacob Hörisch, and Ilka Weissbrod. Open
etary boundaries, see, e.g., Schaltegger, 2018) could channel dark access funding enabled and organized by ProjektDEAL.
personality traits and lead to more substantial sustainability per-
formance improvements. The conclusion that explicit sustainability DATA AVA I L A B I L I T Y S TAT E M E N T
performance requirements can help to mitigate dark personality The data that support the findings of this study are openly avail-
traits of middle managers responsible for sustainability can also be able in Mendeley Data, V1 at https://data.mende​ley.com/resea​
drawn from the cross-­cultural analysis between the United States rch-­d ata/?searc​ h =Raw%20dat​a%3A%20Dar​k %20tri​a d%20and​
PELSTER and SCHALTEGGER | 15

%20cor​porat​e%20sus​t aina​bility, reference number https://doi. Organization Science, 2(3), 239–­262. https://doi.org/10.1287/orsc.​
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ity. Journal of Management Studies, 43(8), 1703–­1725. https://doi.
org/10.1111/j.1467-­6 486.2006.00642.x
Wang, L., & Juslin, H. (2009). The impact of Chinese culture on corporate APPENDIX A
social responsibility: The harmony approach. Journal of Business QUESTIONNAIRE
Ethics, 88, 433–­451. https://doi.org/10.1007/s1055​1-­0 09-­0306-­7
You are about to participate in an academic study where you will be
Webster, G. D., & Jonason, P. K. (2013). Putting the “IRT” in “dirty”: Item
response theory analyses of the dark triad dirty dozen—­An effi- asked questions about the organization that you work for. Your par-
cient measure of narcissism, psychopathy, and machiavellianism. ticipation is completely anonymous, and your identity is not known.
Personality and Individual Differences, 54(2), 302–­3 06. https://doi. There are no right or wrong answers. We would, therefore, kindly
org/10.1016/j.paid.2012.08.027
ask you to be as truthful as possible.
Williams, K. M., Paulhus, D. L., & Hare, R. D. (2007). Capturing the four-­
factor structure of psychopathy in college students via self-­report. Do you work for or report to a supervisory sustainability manager?
Journal of Personality Assessment, 88(2), 205–­221. https://doi.
org/10.1080/00223​89070​1268074 • Yes
Windolph, S. E., Schaltegger, S., & Herzig, C. (2014). Implementing corporate
• No
sustainability. Sustainability Accounting, Management and Policy Journal,
5(4), 378–­404. https://doi.org/10.1108/SAMPJ​-­01-­2014-­0002 • No, I am the highest sustainability officer in the organization
Wolf, J. (2014). The relationship between sustainable supply chain man- • I don't know
agement, stakeholder pressure and corporate sustainability per-
formance. Journal of Business Ethics, 119(3), 317–­328. https://doi.
What is your professional position in the organization you work for?
org/10.1007/s1055​1-­012-­1603-­0
Wooldridge, B., Schmid, T., & Floyd, S. W. (2008). The middle manage-
ment perspective on strategy process: Contributions, synthesis, • Manager CSR/corporate sustainability/EHS
and future research. Journal of Management, 34(6), 1190–­1221. • Other employee with decision-­making power
https://doi.org/10.1177/01492​06308​324326
• Not a managing position
Wright, C., & Nyberg, D. (2012). Working with passion: Emotionology,
corporate environmentalism and climate change. Human Relations,
65(12), 1561–­1587. https://doi.org/10.1177/00187​26712​457698 In which industry are you employed?

AU T H O R B I O G R A P H I E S • Agriculture, Forestry, Fishing (01–­09)


• Mining (10–­14)
Matthias Pelster is Full Professor for Finance at Paderborn • Construction (15–­17)
University, Germany. He earned his doctoral degree in Finance • Manufacturing (20–­39)
at TU Dortmund University in June 2013 and was awarded the • Transportation & Public Utilities (40–­49)
prize for the best dissertation of the Department of Business and • Wholesale Trade (50–­51)
Economics at TU Dortmund University. He has been a visiting • Retail Trade (52–­59)
researcher at the Stern School of Business, New York University, • Finance, Insurance, Real Estate (60–­67)
and the Deutsche Bundesbank, among others. His research fo- • Services (70–­89)
cuses on behavioral finance and financial risk management. • Public Administration (91–­99)
• Unclassified industry
Stefan Schaltegger, PhD, is Full Professor for Sustainability
Management and head of the Centre for Sustainability How many employees work in the organization you work for?
Management (CSM) at Leuphana University Lüneburg, Germany.
In 2003 he founded the worldwide first MBA in Sustainability • 1–­50
Management. His research focuses on corporate sustainability, • 51–­250
stakeholder theory, sustainable entrepreneurship, measuring • 251–­500
sustainability performance (sustainability accounting, man- • 501–­1000
agement control), and practices of sustainability management. • 1001–­5000
According to the Stanford ranking of scientists 2020, Stefan is • 5001–­10,000
among the two percent most cited researchers in the environ- • 10,001–­25,000
mental and management field. • 25,001 or more
PELSTER and SCHALTEGGER | 19

What is the annual sales revenue of the organization you work ◦ S/he actively supports that your company has or should have a
for? publicly reported sustainability commitment from a senior man-
agement or board member.
• $0–­$999,999 ◦ S/he actively supports that your company reports or should re-
• $1,000,000–­$ 4,999,999 port on its environmental expenditures and investments to re-
• $5,000,000–­$9,999,999 duce future risks or to increase future opportunities
• $10,000,000–­$99,999,999 ◦ S/he actively supports that your company has or should have a
• $100,000,000–­999,999,999 sustainability report, and that it is or should be either externally
• $1,000,000,000–­4,999,999,999 audited, produced on the basis of the GRI guideline or that it re-
• $5,000,000,000–­$9,999,999,999 ceives an award.
• $10,000,000,000 or above ◦ S/he actively supports that the company reports or should report
on partnerships or initiatives with specialized NGOs, industry
Please rate the following statements regarding the preferences organizations, governmental, or supra-­national organizations, fo-
of your sustainability supervisor (“your boss”) concerning the fol- cused on improving environmental issues.
lowing practices and approaches. Your responses are completely ◦ S/he actively tries to prevent that your company gets confronted
anonymous. with media controversies about environmental impacts of your
On a scale from: company.
◦ S/he actively supports that your company has a diversity and
Yes, very much. equal opportunity policy
Yes, partially. ◦ S/he actively supports that your company has a policy to improve
Neither yes nor no. employee health & safety and/or work-­
life balance within the
No, not to some extent. company.
No, not at all. ◦ S/he actively supports that your company has or should have a
policy to consider social issues (incl. exclusion of child, forced, or
◦ S/he is convinced of your company's corporate environmental compulsory labor) in its supply chains.
sustainability policy and likes to refer to it. ◦ S/he actively supports that your company has or should have an
◦ S/he actively supports that your company has an environmental annual action plan with projects and measures to implement its
product innovation policy (e.g., dealing with eco-­design, life cycle social policy?
assessment, and dematerialization) and likes to refer to it or use it. ◦ S/he actively supports that your company uses social criteria (fair
◦ S/he actively supports and works with measurable targets and trade labels, etc.) in the selection process of its suppliers or sourc-
an action program to secure implementation of an environmental ing partners.
product innovation policy. ◦ S/he actively supports that your company is certified with one or
◦ S/he actively supports and works with an annual action plan with several social management systems (e.g., SA 8000, family friendly
projects and measures to implement an environmental policy. employer, etc.).
◦ S/he actively supports and uses environmental criteria (energy ◦ S/he actively supports that your company has skills training or ca-
consumption, sustainability labels, etc.) in the selection or evalua- reer development of its employees.
tion process of suppliers or sourcing partners. ◦ S/he actively supports that your company explicitly measures and
◦ S/he actively supports and uses measures and management ap- manages the economic business risks and opportunities of social
proaches to deal with economic business risks and opportunities issues.
of the company's greenhouse gas emissions. ◦ S/he actively supports that your company has internal communi-
◦ S/he actively supports the company to have or maintain a struc- cation tools (whistle blower, ombudsman, suggestion box, hotline,
tured training program on environmental issues for employees. newsletter, intranet, etc.) to ensure effective implementation of
◦ S/he actively supports and works with one or several certified en- the social management program.
vironmental management systems (e.g., ISO 14001, EMAS, etc.).
◦ S/he actively supports and works with one or several environ- To what degree do you agree with the following statements about
mental product certification systems (e.g., organic product label). your sustainability supervisor (“your boss”).
◦ S/he actively supports that your company stops partnerships with Scale:
suppliers or establishes intense supplier development programs,
if environmental criteria are not met. • Disagree strongly
◦ S/he actively supports and works with company internal commu- • Disagree moderately
nication tools (whistle blower, ombudsman, suggestion box, hot- • Neither agree nor disagree
line, newsletter, intranet, etc.) to ensure effective implementation • Agree moderately
of the environmental management program. • Agree strongly
20 | PELSTER and SCHALTEGGER

◦He/she is dependable or self-­disciplined ◦ He/she is conventional or uncreative


◦ He/she lets group members know what is expected of them ◦ He/she tends to seek prestige and status
◦ He/she tends to manipulate others to get his/her way ◦ He/she tends to be cynical
◦ He/she is anxious or easily upset ◦ He/she tends to exploit others towards his/her own end
◦ He/she maintains definite standards of performance ◦ Before making decisions, he/she gives serious consideration
◦ He/she is disorganized or careless to what his/her subordinates have to say
◦ He/she has a desire to be admired ◦ He/she tends to expect special favors from others
◦ He/she tends to lack remorse ◦ He/she asks subordinates for suggestions on what assign-
◦ He/she asks that the group members follow standard rules ments should be made
and regulations ◦ He/she wants others to pay attention to him/her
◦ He/she is extraverted or enthusiastic ◦He/she is calm or emotionally stable
◦ He/she is friendly and polite What is the gender of your supervisor?
◦ He/she tends to be unconcerned with the morality of his/her
actions • Male
◦ He/she uses deceit or lies to get his/her way • Female
◦ He/she puts suggestions made by the group into operation • X
◦ He/she is sympathetic or warm
◦ He/she is open to new experiences What is the age of your supervisor?
◦ He/she gives advance notice of changes
◦ He/she tends to be callous or insensitive • 18 to 24
◦ He/she uses flattery to get his/her way • 25 to 34
◦ He/she is reserved or quiet • 35 to 44
◦ He/she keeps to himself • 45 to 54
◦ He/she tends to be critical or quarrelsome • 55 to 64
◦ He/she looks out for the personal welfare of group members • 65 or over
◦ He/she is willing to make changes

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