Multinational Enterprise Strategies for Addressing Sustainability: the Need for Consolidation

Abstract

This paper examines the growing number of publications on multinational enterprise management of sustainability issues. Based on an integrative literature review and thematic analysis the paper analyses and synthesises the current state of knowledge about main issues arising. Key issues identified include: choice of sustainability strategies; management of the views of headquarters towards sustainability; local cultural sustainability perspectives in developed and developing host countries; MNEs with home in developing/emerging countries; and resource availability for implementing sustainability initiatives. Findings indicate that although the literature is tending towards growing acceptance about sustainability and its challenges most researchers have focused on corporate social responsibility and investigate their own niche problem, industry, and country, using their own chosen theory and do not consider the need for consolidation and integration of social, environmental and economic performance. Avenues for future research are identified which will provide a means for the ethical foundations of theory and practice to be improved.

From the editor: The social side of international business policy – mapping social entrepreneurship in South Africa

“…The body of literature on Corporate Social Responsibility (CSR) in international business is growing, and focuses on benefits to both the multinational corporation (MNC) and society (e.g., Bondy & Starkey, 2014;Enderwick, 2018;Filatotchev & Stahl, 2015;Marano, Tashman & Kostova, 2017). There is also a growing body of work on MNCs' sustainability initiatives (e.g., Burritt, Christ, Rammal & Schaltegger, 2018;Kaur & Sharma, 2018;Kourula, Pisani & Kolk, 2017), although most of that work is still published in journals focused on sustainability, rather than in international business publications.…”

Managerial Perceptions of Firms’ Corporate Sustainability Strategies: Insights from Croatia

“…The main premise of the legitimacy-based view is the need for firms to engage and comply with stakeholder pressure and manage any conflicting stakeholder pressure to gain approval [2,5]. The legitimacy of an organization's activities in the eyes of stakeholders would arguably translate to lower risk, survival, long-term sustainability, and continuous operation [1]. This perspective is underpinned by the institutional theory, which emphasizes the importance of institutions and institutional structures in the organizations' operations and structures [5].…”

“…The increasing social and ecological challenges confronting the global community have been attributed to the lack of attention on sustainability practices in the business environment by both academics and managers alike [1,2]. Business organizations are often accused of being the primary contributors to unsustainability in terms of environmental and social impact [3].…”

“…Business organizations are often accused of being the primary contributors to unsustainability in terms of environmental and social impact [3]. This has contributed to various stakeholders demanding for organizations to pay more attention to sustainability activities rather than to their short-term economic returns [1]. Academic research has thrived at the same time, and whilst most of the theoretical, and empirical work has yielded important insights, there is little understanding of the role of managerial perception of sustainability activities in shaping corporate sustainability practices [1,4,5].…”

“…This has contributed to various stakeholders demanding for organizations to pay more attention to sustainability activities rather than to their short-term economic returns [1]. Academic research has thrived at the same time, and whilst most of the theoretical, and empirical work has yielded important insights, there is little understanding of the role of managerial perception of sustainability activities in shaping corporate sustainability practices [1,4,5]. Accordingly, managers' perception of the nature and impact of sustainability in organizations can differ in the business world [6].…”