Social, Environmental, and Economic Balance: The Role of CEO Masculinity in Presenting Quality Sustainability Reports

Important company decisions, including in preparing sustainability reports, can be influenced by the personal traits of the managing director. This study intends to ascertain whether the v of sustainability reports in enterprise companies listed on the Indonesia Stock Exchange in 2022-2023 is impacted by the CEO’s degree of masculinity. The GRI 2021 standard is used to evaluate report quality, while the facial width to height ratio (fWHR) is used to quantify masculinity by facial form. Using 64 data from 32 companies and linear regression analysis, the results indicate that the more masculine a CEO is, the lower the quality of the sustainability report. Masculine CEOs tend to focus on short-term economic achievements and pay less attention to environmental and social aspects. The research also proven that a larger board of directors positively influences report quality, whereas the company’s debt ratio shows no significant impact. These findings support Upper Echelon Theory and emphasize the importance of considering leader character in sustainability reporting. A balanced organizational structure can help reduce the negative influence of masculine characters in decision-making.