["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis paper investigates whether firms' sustainability actions aimed at serving multiple stakeholders lead to similar or differing sustainability outcomes depending on the manager's stakeholder focus. It proposes a conceptual framework distinguishing between primary and secondary stakeholders, wherein managers can face conflicts of interest when aligning their actions with the preferences of these different stakeholder groups. Findings indicate that firms whose managers prioritize secondary stakeholder preferences experience better sustainability outcomes but worse financial performance, while the opposite is true for primary stakeholders. Supporting our theory, these findings shed new light on the often‐debated question of why sustainability efforts do not consistently lead to improved financial performance. They also align with policy efforts to improve transparency on non‐financial sustainability outcomes and highlight an ethical dilemma for managers when they have to trade off different outcomes.\n"]