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Globalization increases concerns about national governments’ ability to regulate firms’ environmental conduct because firms can avoid complying with stringent environmental regulations by locating polluting operations in countries with low regulations. Business self-regulation is increasingly seen as a force that can counterbalance the decreasing power of governments in the global economy. Previous research identified external stakeholder pressures as an important determinant of business self-regulation. In this chapter we explore how firm capabilities affect the likelihood that firms self-regulate their environmental conduct by adopting ISO 14000 environmental standards. Our findings show that firm capabilities are indeed an important determinant of self-regulation in the global economy. We discuss implications of this finding for governments, other stakeholders, and business decision makers.

The central debate on pollution havens concerns whether the level of environmental regulation in developing countries influences foreign investment location decisions. Most empirical studies are based on aggregate data, while micro-level evidence is relatively lacking in the literature. To fill this research gap, this paper tests for the existence of intracountry pollution havens in China by estimating the determinants of foreign investment flows based on a large firm-level panel dataset. Evidence from this study supports the existence of pollution havens within China in certain industries. However, the sensitivity of foreign investment to environmental regulation varies significantly across industries with different pollution characteristics. Furthermore, when the impact of government subsidies on foreign investment is accounted for, the results show that subsidies can compensate for pollution treatment costs in provinces with stricter environmental regulation.

The issue of environmental regulation and productivity has received increasing attention among academics, but little research has focused on Chinese firms despite the serious state of pollution in China. This study aimed to fill that gap. Analyzing a sample of firms from 12 Chinese cities, we found that environmental regulation could improve firm productivity, but the responses to environmental regulation differed across industry sectors, firm sizes, and locations. In this paper, we discuss the implications of these responses toward the environmental policy in China.

This study explores the extent of environmental management and reporting regulations in Nigeria, highlighting areas of inadequacies in regulatory enforcement and companies’ compliance. We approach the review within the context of the UN 2030 Sustainable Development Agenda (SDA).

This chapter is based on a systematic review of extant environmental regulations and academic literature.

The results show several inadequacies with respect to Nigeria’s environmental management and reporting regulations. We specifically note the changing environmental management and reporting landscape in Nigeria birthing several emerging mandatory reporting codes. We find that fragmented reporting regulations and inappropriate sanctions are responsible for the unsatisfactory compliance and disclosure level noted among firms in the country. Additionally, weak enforcement, funding limitations, unrealistic financial penalties, and general implementation deficits remain factors impeding effective environmental management practice in Nigeria.

This research provides insight into environmental management and reporting inadequacies in Nigeria, and the actions regulators and firm managers need to take on board to help the country actualize the UN 2030 SDA.

This chapter addresses the research question of whether multinational enterprise (MNE) lobbying can contribute to sustainable development.

It presents the results of two case studies, from different perspectives, whose results strengthen and complement each other. Both studies use interviews as their main source of data within triangulation, and both adopt iterative processes for their analyses: one uses data coding, the other takes a narrative approach.

The findings suggest that whilst companies see both costs and opportunities in environmental regulations, this is not perceived by their policy-making counterparts. Furthermore, company-internal communication suggests that lobbying and corporate social responsibility (CSR) are not joined up, which leads to mixed (external) messages sent from the company to policy-makers and the public.

The chapter focuses on one industry (automobiles) in one host country setting (EU).

Policy-makers, as well as companies that want to contribute to sustainability, could usefully adopt the concept of internalising external costs as a minimum proxy for sustainability. Companies that wish to promote sustainable development, or even wish to act in a consistent manner, might usefully examine their assumptions about the political process. This is particularly the case with MNEs as they operate in numerous jurisdictions.

The chapter integrates the MNE literature and the literature on international business (IB)–government interactions. The findings underline the importance of addressing both environmental issues and the relationships between policy-makers and MNEs, an area that can be further developed by extending the scope of the study to other industries in further research.

This chapter examines the UK and the Nigerian approach to reducing emission of greenhouse gases (GHGs) into the environment as a result of gas flaring utilising the market-based regulation. Determining how different jurisdictions fare in the quest to reduce GHG emissions associated with the oil and gas industry is essential because: policy makers have realised the advantages of market-based regulation over the command-and-control regulation; and in the light of various pledges different countries have made in different forum to reduce the emission of GHGs, particularly in the wake of the recently held Paris climate change conference.

Library-based approach is used, providing conceptual and theoretical understanding of climate change, GHG emissions and various market-based regulatory tools utilised in the United Kingdom and Nigeria in regulating emission associated with operations in the oil and gas industry.

The study reveals the significance of environmental regulations that encourage region integration and flexibility in the implementation of environmental policies. Moreover, it finds that the Paris Agreement re-affirms the utilisation of market-based regulations and indicates a future for investment in the oil and gas industry.

The study revealed that there are lacunas in regulations and strategies for the implementation of environmental regulations which need to be addressed in order to achieve zero or a significant decrease in gas flaring.

This study provided an ample opportunity to theoretically examine market-based regulatory tools utilised in the oil and gas industry in a developed country in relation to a developing country.

Strong versions of the Precautionary Principle (PP) require regulators to prohibit or impose technology controls on activities that pose uncertain risks of possibly significant environmental harm. This decision rule is conceptually unsound and would diminish social welfare. Uncertainty as such does not justify regulatory precaution. While they should reject PP, regulators should take appropriate account of societal aversion to risks of large harm and the value of obtaining additional information before allowing environmentally risky activities to proceed.

The economic growth of any country depends largely on the entrance to international capital inflows, that is, external investment and its optimum allotment to components of different economic sectors. In several ways, foreign direct investment (FDI) helps by creating employment opportunities and rapid economic growth in emerging countries through capital flows in the developed countries and under developed countries. Many factors are affecting the FDI inflows in emerging countries among such determinants environmental issues are play a crucial role. Pollution control, air cleaner, water cleanness, etc., are the part of the environmental regulation in any country. Carbon dioxide (CO₂) emission and sulphur dioxide (SO₂) emission are major components of air pollution that have been widely used in empirical studies. The study intends to explore the impact of environmental regulations on FDI inflows in emerging countries along with governance factors and the macroeconomic fundamentals like per capita power consumption, trade openness, per capita GDP, etc. Based on the statistical data of 15 emerging countries from 2000 to 2015, the study follows the static panel data approach to empirically find the impact of environmental issues on FDI inflows. The results reveal that significant bonding realise between environmental regulations and FDI inflows in emerging countries. Based on the statistical evaluation however best our knowledge FDI is more attractive where lower regulations are established. For sake of simplicity environmental regulations are crucial to the multinational corporations (MNCs) for investment.

This chapter presents a conceptual framework to understand the role of multinational enterprises in the process of environmental standard setting in the global economy. Inside the multinational, we discuss the impact of path-dependency and irreversibility on environmental investment, and the importance of the integrated network structure of the multinational in enabling the transfer of standards within the firm. Outside the firm, we discuss the impact of regulation and market forces, and particularly the role of NGOs, in triggering change in firm behavior both at home and abroad. We conclude by considering the impact of supranational institutions on the environmental behavior of multinationals.

The objective of this chapter is to analyse the impact of France’s ‘Grenelle 2’ law of 2010, which applies to environmental accounting disclosures (EADs). More specifically, it seeks to observe whether the ‘Anglo-Saxon’ ‘comply or explain’ model, transposed into the French regulatory framework, influences the disclosure strategies of firms that are listed on a regulated market.

Drawing on the theoretical framework of legitimacy and the concept of normativity, an empirical study is conducted on a sample of 96 French firms listed on the SBF index between 2009 and 2014. The effect of regulation is assessed by a content analysis of EAD in annual reports, examining changes in disclosure practices and the contents of disclosures.

The main results show that explanations for the absence of EAD showed a significant increase after the introduction of the law. We also observe that the new rules had no effect on the number of firms making EADs, although the quality of the disclosures declined. Finally, the results also concern practices of non-disclosure without any accompanying explanation.

The limitations of this study relate to the choices underlying the classifications and observations made during the content analysis.

This study has social relevance in that it supplies information for assessing the transposition of European directives into French law.

This study extends research concerning environmental disclosures by examining a recent accounting object. It also continues the debate on normativity, with its analysis of disclosures subject to a changing regulatory framework.