The relationship between corporate purpose and the sustainable development goals in large Japanese companies

Abstract

Society increasingly expects large companies to broaden their corporate purpose beyond profit maximization, and play a greater role in addressing the United Nations sustainable development goals (SDGs). This article poses the research question: What is the relationship between corporate purpose and the SDGs?, and develops a model to explain this relationship drawing upon semistructured interviews with managers of Fortune Global 500 companies in Japan. The findings suggest two perspectives of corporate purpose, goal‐based and duty‐based, influence the relationship. Two‐thirds of the companies implemented both perspectives and integrated the SDGs at multiple levels in their organizations whereas one‐third only implemented duty‐based purpose and integrated the SDGs at the operational level. The paper contributes to theorizing the relationship between corporate purpose and corporate engagement with the SDGs drawing upon empirical evidence. The model provides guidance to managers on how to use the purpose to help drive their contributions to the SDGs.

Policy Model of Thematic Village Development Based Pentahelix in Realizing Sustainable Development Goals

“…Aligning corporate purposes with a duty-based approach that respects the dignity of employees and empowers individuals can enhance companies' contributions to the SDGs (Sasaki et al, 2023). Overall, the synthesis of these references underscores the importance of community engagement, sustainable practices, and corporate responsibility in driving progress towards the SDGs through initiatives like thematic villages and localized development programs.…”

The influence of the sustainable development goals on large companies’ adoption and implementation of a broader corporate purpose

“…The Business Roundtable (2019) acknowledged that each company has its own corporate purpose, but they share “a fundamental commitment” to all stakeholders. According to Harrison et al (2020, p.1225), the statement is “an important signal that the tide has shifted, replacing shareholder primacy with a multi-stakeholder purpose for corporations.” Although the societal challenges represented by the SDGs appear to underlie large companies’ declaration of broader corporate purpose, the relationship is unclear (Almandoz, 2023; Sasaki et al , 2023). This paper aims to address this gap in knowledge by clarifying the relationship between large companies’ implementation of the SDGs and their adoption and implementation of broader corporate purposes.…”

“…In Australia, an Anglo-American country whose socioeconomic and cultural systems reflect British and North American models (Black, 2010; Van der Waal and Thijssens, 2020), shareholder and investor expectations underlie companies’ reporting on the SDGs. On the other hand, in Japan, where social purposes are rooted in companies’ philosophy (Ellsworth, 2002; Puchniak, 2022), the SDGs have less influence on companies’ purposes when companies do not recognize a “sense of urgency” about their survival and growth (Sasaki et al , 2023, p.10). These findings illustrate that the influence of the SDGs on corporate purposes varies across these two institutional contexts.…”

Corporate sustainability, organizational resilience and corporate purpose: a triple concept for achieving long-term prosperity

“…Commitment to sustainable development helps manage and build a reputation with external stakeholders, helping to attract the best people to join the company (Azapagic, 2003). This is because the world understands the role of business in meeting societal challenges and acknowledges that the sustainable development agenda, including the sustainable development goals, cannot be achieved without business (Sasaki et al, 2023). Sustainable development methods also lead to cost savings such as, for example, when organizations introduce new efficient processes and products (e.g.…”