Micro-Foundations of Corporate Purpose and Performance Management

This article is a research paper that examines the micro-foundations of corporate purpose, specifically focusing on performance management systems (PMS) in dynamic environments. It addresses the challenge of how managers can enact corporate purpose at the operational level while responding to external societal demands. The study utilizes a field study of a leading Italian food industry group to explore how the PMS serves as a tool for managers to mobilize corporate purpose in practical situations. The paper outlines the dual role of the PMS in recognizing situations for enacting corporate purpose and ensuring its connection to broader societal needs. It emphasizes the importance of understanding how corporate purpose acquires meaning in practice and inspires management actions, particularly in light of pressing global challenges. The research contributes to the literature on corporate purpose and performance management by illustrating the interplay between managerial practices and societal pressures for sustainable development.