Chief Executive Officers (CEOs) from minority ethnicities are often treated homogeneously in existing literature, masking how their unique challenges influence strategic decisions in the social domain, particularly regarding corporate social irresponsibility (CSIR). Our study takes a finer-grain approach by focusing on East Asian CEOs, who face significant leadership-related stereotype threat in multiethnic environments. Drawing on stereotype threat literature, we hypothesize that East Asian CEOs experience stereotype threat, which further leads to higher risk aversion, resulting in less CSIR. This relationship is amplified when East Asian CEOs concurrently serve as Corporate Sustainability Officers (CSOs) and is attenuated when their firms operate in culpable industries. Empirical analyses of 754 U.S. firms from 1994 to 2013 support our hypotheses. Overall, our study provides nuanced insights into how ethnicity-based stereotype-driven challenges in CEOs shape strategic decision-making and influence corporate social outcomes.
