Inside-out and outside-in perspectives on corporate purpose

Corporate purpose is receiving an extraordinary amount of attention from both scholars and practitioners. But do existing theories of management help us to understand this unexpected development? This study represents an effort to understand purpose better. I characterize inside-out and outside-in p...

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Detalles Bibliográficos
Autor: Almandoz, J. (Juan)|||/items/1337638f-1225-4da2-844f-3d7c5a69122b
Tipo de recurso: artículo
Fecha de publicación:2023
País:España
Institución:Universidad de Navarra
Repositorio:Dadun. Depósito Académico Digital de la Universidad de Navarra
Idioma:inglés
OAI Identifier:oai:dadun.unav.edu:10171/118738
Acceso en línea:https://hdl.handle.net/10171/118738
Access Level:acceso abierto
Palabra clave:Corporate purpose
Corporate governance
Corporate social responsibility
Non-market strategies
Organization and management theory
Sustainability
Governance and control
Institutional theory
Organizational identity
Descripción
Sumario:Corporate purpose is receiving an extraordinary amount of attention from both scholars and practitioners. But do existing theories of management help us to understand this unexpected development? This study represents an effort to understand purpose better. I characterize inside-out and outside-in perspectives on purpose as distinct but connected phenomena related to different research traditions. Inside-out purpose is a channeling of the passion and commitment employees feel toward fulfilling stakeholder needs; outside-in purpose is society and external stakeholders urgently calling on the organization to live up to its responsibilities. I devote special attention to theories that best explain the present moment’s unique awareness of corporate purpose. Among them is the work of Philip Selznick, emphasizing values, and the literature on the new institutionalism and institutional logics. I conclude with a section on how leaders can leverage the benefits of both perspectives while mitigating their risks. I also make recommendations for future research.