How Standard is Standardized MNC Global Environmental Communication? |
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Authors: | Trevor Hunter Pratima Bansal |
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Institution: | (1) Department of Business, King’s University College, 266 Epworth Avenue, London, Ont., N6A 2M3, Canada;(2) Richard Ivey School of Business, University of Western Ontario, N6A 3K7, London, Ont., Canada |
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Abstract: | In this paper, we develop an argument to show why we expect that multinational companies will ensure that they communicate
credibly about their environmental responsibility, across all their subsidiaries. Credible environmental communication helps to increase the firm’s legitimacy and reduce its liability
of foreignness on an issue that is globally relevant. We develop a measure to test if there is a standardized level of environmental
communication credibility on the country-specific web sites of MNC subsidiaries around the world and find, in fact, that there
is considerable variation across countries, among subsidiaries of different firms and among subsidiaries of the same multinational.
We discuss the reasons for this and the implications for firm legitimacy.
Trevor Hunter is an assistant professor of business and coordinator of the Management and Organizational Studies program at
King’s University College. He received his Ph.D. from the Richard Ivey School of Business. His research interests include
the environmental management practices of MNCs and corporate governance.
Pratima Bansal is an associate professor and the Shurniak Professor in International Business at the Richard Ivey School of
Business. She received her doctorate from the University of Oxford. Her research interests are primarily in the areas of sustainable
development and international business. |
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Keywords: | credibility environmental communication legitimacy multinationals subsidiaries |
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