Multinationals and public policy - How to cope with environmental standards

This paper is aimed to shed light on the different attempts of multinational enterprises (MNEs) to cope with environmental regulations which therefore develop strategies. In addition, it is focused on the driving forces and levels of international and country-specific environmental policies. The roots of environmental policy are pointed out. In this context, the different levels of environmental regulations are identified therewith deducing implications for the compliance-behaviour of firms. This paper also explicates the environmental implications of different economic theories. It is exemplified how different stakeholders might influence the strategic orientation of enterprises towards environmental performance and the various environmental strategies on firm-level are explicated. It is especially focused on different approaches being developed in order to test the empirical evidence predictions of the “pollution haven hypothesis”. Therefore four studies are reviewed and commented on.