This study explores the causal complexity underlying high ESG performance by integrating managerial sentiment into a configurational framework. Drawing on the Resource-Based View (RBV), Upper Echelon Theory, Slack Resources Theory, and Signaling Theory, we investigate how combinations of organizational resources, leadership behavior, and firm characteristics contribute to sustainability outcomes. We examine the role of managerial sentiment—captured through executive tone during earnings calls—as a behavioral signal that reflects strategic intent.
We apply fuzzy-set Qualitative Comparative Analysis (fsQCA) to a sample of 660 U.S. listed firms in 2023 across 10 different industries, identifying 24 distinct configurations leading to high ESG performance. The results confirm that ESG success does not follow a single universal path but emerges from diverse condition sets, consistent with the assumptions of causal complexity and equifinality. Managerial sentiment appears in 18 of these configurations, indicating its relevance as a frequent, though not systematically necessary, condition. Moreover, theoretical patterns differ across industries: while Communication Services and Consumer Discretionary firms rely on ESG for strategic signaling, sectors such as Energy and Consumer Staples emphasize governance and leadership quality, and knowledge-intensive sectors (e.g., Healthcare, IT) highlight the role of intangible resources and financial slack.
These findings contribute to the ESG literature by highlighting the behavioral dimension of sustainability strategies and demonstrating the value of configurational methods in capturing non-linear, context-dependent pathways leading to ESG performance.

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