How Multinational Companies Align with UN Sustainability Goals: A Study of 150 Firms' Reports

What is it about?

This study examines how multinational enterprises (MNEs) engage with the United Nations' Sustainable Development Goals (SDGs) based on their home countries' SDG profiles. Utilizing institutional theory, the study analyzes sustainability reports from 150 MNEs across 23 countries to test competing mechanisms of engagement. The findings indicate that MNEs from countries with weaker SDG progress show higher engagement with the SDGs in their reporting, supporting the "liability of origin" explanation. The study highlights that engagement is not uniform across the 17 SDGs, with varying patterns observed depending on the specific goals. Notably, the study finds that goals traditionally seen as governmental domains experience different engagement levels compared to those more aligned with corporate interests. The research underscores the importance of considering individual and clusters of SDGs separately to better understand the influences on MNEs' sustainability practices.

Featured Image

Photo by Priscila Oliveira on Unsplash

Photo by Priscila Oliveira on Unsplash

Why is it important?

This study investigates the engagement of multinational enterprises (MNEs) with the United Nations' Sustainable Development Goals (SDGs) and examines how these engagements are influenced by the SDG profiles of the MNEs' home countries. The research is significant because it explores the complexities of aligning corporate actions with global sustainable development frameworks, revealing the variability in MNEs' approach to the SDGs. Understanding these dynamics is crucial for enhancing the effectiveness of the SDG framework in coordinating stakeholder efforts across both public and private sectors. Key Takeaways: 1. The research demonstrates that MNEs' engagement with the SDGs is not uniform, even among firms ranked highly on sustainability indices, indicating varying patterns of engagement with specific goals. 2. Findings reveal that MNEs from countries with weaker SDG profiles show higher engagement in their sustainability reporting, aligning with the "liability of origin" explanation, where firms focus on areas of their home country's sustainable development weaknesses. 3. The study identifies that engagement is not consistent across all 17 SDGs, with significant differences in alignment and emphasis, particularly noting that goals traditionally seen within the public sector domain show different patterns compared to those aligned with corporate interests, like SDG12 on sustainable consumption and production.