Environmental regulation and international sourcing policies of multinational firms

This paper explores the role of environmental factors in the contract-allocation decisions of European and North American multinational corporations (MNCs). Particular attention is given to the motivations and experiences of selected MNCs that have recently adopted environmental policies to guide specific aspects of their international purchasing procedures. The results of a pilot survey of 12 MNCs suggest that environmental issues are beginning to enter into the strategic decision-making fields of corporate planners, notably with regard to supplier selection and evaluation. The paper concludes with a brief discussion of possible directions for future empirical research.