Sustainable Development Goals and multinational corporations: an institutional perspective

Nikhila Raghavan and Maxim Grib

Chapter 8 in The Elgar Companion to International Business and the Sustainable Development Goals, 2026, pp 175-185 from Edward Elgar Publishing

Abstract: This chapter explores the influence of institutions on multinational corporations’ (MNCs) contribution to the environmental Sustainable Development Goals (SDGs) based on neo-institutional theory. The regulative pillar involves coercive pressures from stringent environmental laws and regulations that compel MNCs to contribute to SDGs to maintain compliance and legitimacy. The normative pillar highlights how societal expectations and industry standards drive MNCs to engage in SDG initiatives to enhance their reputation and meet stakeholder demands. The culture-cognitive pillar shows that MNCs often imitate successful peers’ sustainability practices due to uncertainty around SDG outcomes, leading to widespread adoption of best practices. Policymakers can use these insights to design more effective regulations and incentives that align corporate behavior with the SDGs, while MNCs can better navigate diverse institutional pressures to enhance their sustainability impact and global legitimacy.

Keywords: Sustainable development goals; MNC strategies; Neo-institutional theory; Policy implications; Environmental sustainability; SDG; MNC (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035348473
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