Environmentally responsible management of MNE subsidiaries: stakeholder perspective

Abstract

Purpose

The aim of this paper is to empirically analyze the extent of the impact stakeholders' pressure has as a determinant of multinational enterprises' MNEs' local environmentally responsible management (ERM), aiming to contribute to the interlocution with stakeholders and ERM strategy establishment of MNE subsidiaries.

Design/methodology/approach

To identify key stakeholders, ordinary least squares (OLS) regression analysis was used. The data were collected from 300 foreign subsidiaries established by Korean MNEs from August to December 2012.

Findings

The results show the parent company (as a major internal stakeholder) and government, NGOs and media (as external stakeholders) are major factors that promote ERM by subsidiaries. Stakeholder theory provides a comprehensive understanding about stakeholders' pressure as a force to engage overseas subsidiaries with environmental responsibility.

Originality/value

The research contributes to environmental and international business literature by investigating antecedents of ERM of overseas subsidiaries. A stakeholder perspective is used as an overarching theory in order to develop an ERM framework.

Citation

Choi, J. and Il Park, B. (2014), "Environmentally responsible management of MNE subsidiaries: stakeholder perspective", Multinational Business Review, Vol. 22 No. 1, pp. 59-77. https://doi.org/10.1108/MBR-06-2013-0034