Impact analysis in the assessment of corporate sustainability by foreign multinationals operating in emerging markets: Evidence from manufacturing in Indonesia

• Published in: Journal of cleaner production Vol. 260; p. 120714
• Main Authors: Borgert, Thomas, Donovan, Jerome D., Topple, Cheree, Masli, Eryadi K.
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 01.07.2020
• Subjects: Corporate sustainability; Impact analysis; Impact definition; Multinational enterprises; Sustainability assessment; Sustainable development; Impact definition; Corporate sustainability; Multinational enterprises; Sustainable development; Sustainability assessment; Impact analysis
• ISSN: 0959-6526; 1879-1786
• DOI: 10.1016/j.jclepro.2020.120714

The private sectors’ role in pursuing sustainability and supporting the global agenda towards sustainable development is broadly acknowledged. In recent years, corporate sustainability assessment has emerged as key for supporting business to address sustainability in their operations. However, there remains a lack of consensus on what sustainability assessment is and how to implement it. With a focus on impact analysis within the broader assessment of corporate sustainability, this study seeks to provide further insight into the current practices of multinational enterprises in subsidiary-level operations. The study focuses on nine foreign multinational enterprises operating in the manufacturing sector of Indonesia, with insights from thirty-two respondents and documentary analysis. Findings reaffirm the status quo of a core reliance on regulations as the basis for sustainability considerations, although, highlight that external guidelines, standards and principles are pushing practices beyond seeking to satisfy mere base requirements. Broadly, organisations also appear to be embedding sustainability as a fundamental aspect of operational processes, and there are formal structures, processes and personnel being placed to support this. At the same time, however, there is still a significant gap between ideals promoted in existing literature and actual practice. •Empirical study of impact analysis in assessment of corporate sustainability.•Multiple study of nine multinational enterprises, with thirty-two respondents.•Increasing role of voluntary measures in guiding practices for cleaner production.•Host country regulations maintain central role in driving impact analysis.