The United Nations' Sustainable Development Goals (SDGs) provide a comprehensive framework for global sustainability, adopted by both UN member states and multinational enterprises (MNEs). However, aligning the efforts of the private and public sectors remains challenging. This study examines how MNEs engage with the SDGs, focusing on the impact of their home countries' SDG performance. Using institutional theory, we test two mechanisms—mimetic isomorphism and liability of origin—by analyzing sustainability reports from 150 MNEs across 23 countries. Our results suggest that MNEs based in home countries with lower SDG progress engage more with the SDGs, indicating a liability of origin effect. However, at the individual SDG level, the picture is more complex, hence showing different patterns. This study contributes to understanding MNE SDG engagement and provides guidance for businesses and policymakers.
