Do multinational enterprises contribute to sustainable development by engaging in lobbying? The automotive industry and environmental regulations

Abstract

Purpose

This chapter addresses the research question of whether multinational enterprise (MNE) lobbying can contribute to sustainable development.

Methodology/approach

It presents the results of two case studies, from different perspectives, whose results strengthen and complement each other. Both studies use interviews as their main source of data within triangulation, and both adopt iterative processes for their analyses: one uses data coding, the other takes a narrative approach.

Findings

The findings suggest that whilst companies see both costs and opportunities in environmental regulations, this is not perceived by their policy-making counterparts. Furthermore, company-internal communication suggests that lobbying and corporate social responsibility (CSR) are not joined up, which leads to mixed (external) messages sent from the company to policy-makers and the public.

Research limitations

The chapter focuses on one industry (automobiles) in one host country setting (EU).

Practical implications

Policy-makers, as well as companies that want to contribute to sustainability, could usefully adopt the concept of internalising external costs as a minimum proxy for sustainability. Companies that wish to promote sustainable development, or even wish to act in a consistent manner, might usefully examine their assumptions about the political process. This is particularly the case with MNEs as they operate in numerous jurisdictions.

Originality/value

The chapter integrates the MNE literature and the literature on international business (IB)–government interactions. The findings underline the importance of addressing both environmental issues and the relationships between policy-makers and MNEs, an area that can be further developed by extending the scope of the study to other industries in further research.

Citation

Wagner, S.M. and Anastasiadis, S. (2014), "Do multinational enterprises contribute to sustainable development by engaging in lobbying? The automotive industry and environmental regulations", International Business and Sustainable Development (Progress in International Business Research, Vol. 8), Emerald Group Publishing Limited, Leeds, pp. 173-202. https://doi.org/10.1108/S1745-8862(2013)0000008013