An SDG-based tool for corporate governance: managing sustainability pressures in the steel industry

Frame of the research: This study is positioned within the governance and sustainability debate, and uses an integrated perspective drawing on institutional theory to explore how firms respond to institutional pressures. Purpose of the paper: The paper aims to identify a process capable of managing sustainability pressures and supporting long-term strategic decision-making. Methodology: The study employs a constructive research approach, a form of interventionist research intended to develop new management tools or solutions for real-world organisational challenges. The approach was applied in a large Italian steel company, allowing for the practical testing and refinement of the proposed tool within a complex industrial environment. Results: The paper proposes, refines, and tests an SDG-based assessment tool that enables the benchmarked evaluation of sustainability performance and highlights opportunities for managerial innovation, thereby guiding future decision-making and initiatives. Research limitations: Despite its significant contributions, the study has some limitations, particularly concerning the need for cross-sector validation and longitudinal assessment. Practical implications: The study offers practical and managerial insights by providing a process that supports corporate governance through the making of more informed and targeted strategic decisions. These decisions are aligned with the priority pressures that must be addressed by the firm, thereby ensuring legitimacy and operational continuity. Originality of the study: Drawing inspiration from the 17 SDGs, the study presents a tool that, when embedded within a broader process, can manage sustainability-related pressures and interpret the actions required within a sustainability strategy. This approach enables the complexity and intrinsic value of the social, economic, and environmental dimensions to be considered.