Effects of CEO Tenure and Education on Corporate Social and Environmental Performance: Evidence from Listed Firms on Namibia Stock Exchange

Abstract

Given the increasing focus on sustainability and corporate responsibility, it is essential to comprehend the influence of CEO characteristics on the accomplishment of a company. The main objective of this research is to investigate the correlation between the length of time a CEO serves in their position, their level of education, company corporate social performance, and environmental performance. The study utilized a descriptive research design, employing a quantitative method by conducting a cross-sectional survey. The study sample comprised Chief Executive Officers (CEOs) from 52 publicly traded businesses, and the analysis was based on 39 collected responses. With the help of SPSS, a multiple regression analysis was performed to evaluate the influence of CEO term of office and education on business social performance and environmental performance. The results indicate that CEO tenure has a favorable and substantial influence on environmental performance, whereas CEO education substantially influences corporate social performance. The results offer useful insights into the complex correlation between CEO characteristics and sustainability success. We propose policymakers to implement restrictions or recommendations for the length of time a CEO can hold their position and their educational qualifications. This will help ensure the efficient management of social and environmental responsibilities. Moreover, providing incentives for CEOs and high-level executives to participate in continuous education and training programs could boost their comprehension of social and environmental matters, ultimately leading to the implementation of enhanced sustainability practices within organizations.