Why do some privileged insiders take action to transform institutions for broader societal benefit, while others do not? Privileged insiders are those who, because of their education, socio-economic background, formal position, citizenship, gender, and/or race, derive advantages from existing institutional arrangements. While their relative privilege places them in a better position to influence institutions, prior research would suggest that they are unlikely to do so without the prospect of personal gain. We find that privileged insiders feel compelled to engage in prosocial institutional transformation when they situate the problem not with others but with themselves, acknowledging their own complicity in structural injustice. They can navigate the emotional discomfort triggered by moral emotions by taking small pragmatic actions that lower their emotional distress and initiate a cycle of experimentation with change. Finally, we show that the practical evaluative dimension of agency plays a central role in shaping institutional change agency. Foregrounding the role of emotions in practical evaluation, we reveal how transformative templates for action emerge from a deliberative engagement with the self.