Informal Institutions and Multinationals' Drive Towards Sustainable Development Goals (SDGs): A Dark‐Side Perspective

Ugbede Umoru, Oyedele Martins Ogundana, Musa Mangena and Victor Udeozor

Business Ethics, the Environment & Responsibility, 2026, vol. 35, issue 1, 75-98

Abstract: This study explores the influence of informal institutions (including its dark side) on multinational enterprises (MNEs) in promoting sustainable development goals (SDGs) in a developing nation. Using qualitative interviews, we find that informal institutions, including “crime” and “corruption,” increase telecommunication MNEs' support of SDGs. Our findings underscore the critical role of understanding and harnessing informal institutions, showcasing their significant impact on shaping the actions and contributions of MNEs. This research not only contributes to institutional theory but also provides empirical evidence of MNEs positively influencing local communities for sustainable development including socially embedded projects, knowledge externalities, and rural infrastructure. The study advocates for a collaborative approach involving government, local communities, and MNEs to ensure the effective implementation of SDGs. Consequently, the study offers valuable insights for policymakers, academics, and practitioners navigating the complex dynamics of MNEs' involvement in SDGs within developing countries.

Date: 2026
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https://doi.org/10.1111/beer.12773

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Persistent link: https://EconPapers.repec.org/RePEc:wly:buseth:v:35:y:2026:i:1:p:75-98

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