Addressing the Sustainable Development Goals Through Outside-In and Inside-Out Corporate Purposes

Abstract

The growing severity of societal issues, addressed by the sustainable development goals (SDGs), has raised questions about companies' purpose and their roles in solving these issues. While scholars conceptualize two perspectives (outside-in and inside-out) on corporate purpose, it is unclear how they influence companies' actions on the SDGs. To address this knowledge gap, this article poses the research question: How do outside-in and inside-out corporate purposes shape companies' actions on the SDGs? Drawing upon interviews with 28 managers from 16 large companies in Australia and Japan, the article reveals that companies adopting both perspectives of corporate purpose are more advanced in implementing the SDGs than those who adopt only one perspective. The article's main contributions are the development of an “ideal type” of corporate purpose and implementation pathways to more comprehensively understand how companies can integrate the SDGs into their purpose.