Driving sustainability in emerging markets: The leading role of multinationals

This paper focuses on the different activities that multinational enterprises (MNEs) can develop to promote sustainability through a market-driving process that shapes market conditions and influences critical stakeholders. Our focus is on interactions with external and internal stakeholders that drive sustainability. Empirically, this study is based on qualitative case studies of two Swedish MNEs that have a relatively long history of assuming responsibility for different sustainability aspects. We have studied how they drive sustainability internally as well as in their relationships with business, social, and political actors in emerging markets. The empirical material consists of interviews and secondary data, such as sustainability reports. We contribute to the literature by discussing how a market-driving sustainability process can be implemented - each step involving a set of critical, supporting activities. For managers, it is crucial to understand and continuously manage these steps. A conceptual model is presented that suggests four critical steps. We also make an important empirical contribution to the literature by providing unique insights from the activities and sustainability strategies of two well-known MNEs.