Sustainability Strategies

Abstract

Sustainability strategies are choices available to managers to align environmental and social investments with the general strategy of the multinational enterprise (MNE). Opportunities to profit from sustainability strategies are available to MNEs of different sizes, in different sectors and stages of the internationalization process. Return on social and environmental investments depends on internal and external circumstances, which can either facilitate or hinder potential opportunities. This chapter discusses sustainability strategies that MNEs implement in both home countries and foreign host markets. Such strategies are based on the analysis of internal capabilities and of the external environment. More than complying with regulations or responding to stakeholder pressures, firms may proactively develop eco-efficiency strategies that reduce costs and environmental impacts, differentiate products and services based on ecological prerogatives, or develop new value propositions through innovative business models and market development. The chapter proposes a set of future research opportunities sitting at the interface between sustainability strategies and the international business decisions of the MNE.