 Impact of Firm‐Based Environmental Standards on Subsidiaries and Their Suppliers: Evidence from Motorola‐PenangMichael T. Rock, Pao Li Lim and David P. Angel Journal of Industrial Ecology, 2006, vol. 10, issue 1‐2, 257-278 Abstract: How successful are multinational corporations in extending their firm‐based environmental standards to their subsidiaries and those subsidiaries' local suppliers in their global production networks in developing countries? We address this question through an in‐depth case study of how Motorola, a prominent multinational electronics firm with an extensive global production network, is using a set of firm‐based standards to meet several new stringent European Union environmental directives. The case study demonstrates that these firm‐based standards appear to be enabling a major subsidiary and its suppliers in one developing economy to reduce the environmental intensities of their production activities. This finding suggests that the firm‐based environmental standards of multinationals with extensive global production networks might contribute to a leveling up of environmental standards in subsidiaries and their local suppliers, rather than a “race to the bottom”, thus reinforcing the technique or intensity effects associated with open trade, investment, and technology policies. Date: 2006 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:inecol:v:10:y:2006:i:1-2:p:257-278 Ordering information: This journal article can be ordered from Access Statistics for this article Journal of Industrial Ecology is currently edited by Reid Lifset More articles in Journal of Industrial Ecology from Yale University |
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