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By Terence Tsai (auth.)

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Since, by default, MNCs tend to engage in the manufacturing of a wide range of product lines and are responsible for a broad spectrum of hazardous and pollution-intensive activities, host developing countries often exhibit a love–hate attitude towards their presence. The keen suspicion by the host country governments manifested by the closer scrutiny directed towards compliance with environmental standards than towards their local counterparts, is an example of such a para- 20 Background and Research Framework doxical relationship (Warhurst 1994).

Second, the need to include co-operation as a further strategic response. II. 6 Application to MNCs The credibility of Oliver’s (1991) model has been established through comparison with other green strategic models. e. the greening of international businesses, which is in need of further theorising. Gladwin (1993) advocated an institutional theory-based model to answer why MNCs go green at different rates and in different forms within different countries. The observation is interpreted as a form of ‘structural isomorphism between structures of states and organisations operating under their jurisdiction’ (Carroll et al.

E. policy formation. It is to be expected that if a corporation is profitable and has satisfied the needs of its primary stakeholder to an acceptable degree, as determined by the majority, it is in a position to evaluate its social obligation. The expectation of the society is usually higher than the corporation’s willingness to meet that expectation. Hence, there exists a gap of social legitimacy. Environmental laws and Towards an Analytical Framework 33 policies, together with institutions, are external, but powerful, forces responsible for narrowing the gap.

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