“Walking the talk?” ESG goals in multinational corporations: A qualitative study shared service centers’ roles within organizational ESG goal-setting and performance.
Keywords
Loading...
Authors
Issue Date
2023-06-29
Language
en
Document type
Journal Title
Journal ISSN
Volume Title
Publisher
Title
ISSN
Volume
Issue
Startpage
Endpage
DOI
Abstract
Multinational corporations (MNCs) have substantial influence on sustainable development worldwide. Accordingly, many MNCs embraced environmental, social, and governance (ESG) goals additionally to financial goals in their strategic agendas. However, how strategic business units responsible for managing integrated support activities within MNCs, also shared service centers (SSCs), participate in organizational ESG goal-setting and goal-relevant activities that contribute to the overall ESG firm performance remains relatively understudied. Therefore, this study aims to explore the SSCs’ role within organizational ESG goal-setting, goal-relevant activities that contribute to the overall ESG firm performance, and which factors influence SSCs’ motivation and ability to execute these activities. This study employs the Behavioral Theory of the Firm as its research lens, and selects SSCs of European (non)listed MNCs to explore the impact of (non)compliance with the ESG legislation ‘Directive 2014/95/EU’ on their ESG practices. Findings reveal that SSCs are not involved in the top-down organizational ESG goal-setting, but contribute to ESG firm performance through (in)direct goal-relevant activities, mainly within social and governance pillars. Besides, factors influencing SSCs’ motivation to execute these activities appeared more important than ability factors. Notably, no particular differences in abovementioned findings emerged between SSCs of European (non)listed MNCs.
Description
Citation
Supervisor
Faculty
Faculteit der Managementwetenschappen