Enhancing Global Competitiveness through Sustainable Environmental Stewardship

Enhancing Global Competitiveness through Sustainable Environmental Stewardship

New Horizons in International Business series

Edited by Subhash C. Jain and Ben L. Kedia

It is apparent that environmental issues affect the livelihoods and well being of individuals, communities and businesses the world over. In that vein, this book examines the impact that climate change and other environmental factors have on business. The effect of climate change, while a significant factor, will influence business slowly, but inexorably. Executives should manage environmental risk at three levels: regulatory compliance, potential liability from industrial accidents, and pollutant release mitigation.

Chapter 1: Climate Change and Global Business: Challenges, Opportunities and Research Guidelines

Subhash C. Jain

Subjects: business and management, international business, environment, corporate social responsibility


Subhash C. Jain Kogut (2003) has identified ‘context’ as the key component of international business (IB) inquiry and research. Although the twenty-first century is still young, recently a variety of events and concerns have surfaced that suggest re-defining the context of international business to accommodate them. Buckley and Ghauri (2004) and Peng (2004) suggest broadening the context in response to the emerging globalization of national economies, since it affects the strategy, structure and performance of multinational corporations (MNCs). After the debacle of the WTO meeting in Seattle in 1999, non-government organizations (NGOs) assumed a significant role in influencing the global perspectives of nation states and MNCs. According to Teegen, Doh and Vachani (2004), the IB field should be redrawn to include NGOs, since they impact MNCs in their endeavors to create value through resource transformation and exchange. In the aftermath of 9/11, terrorism has become a substantial phenomenon, presenting a new type of risk for companies that conduct business internationally. Jain and Grosse (2007) propose adding post-9/11 security measures as another core element in examining the field of IB for theory development and research. In recent years, climate change has developed from being a fringe concern within the corporate world, addressed primarily through a company’s corporate and social responsibility (CSR), to an increasingly central topic for strategic deliberation and decision-making by executives and investors around the globe. The driving force behind this change in corporate outlook is an emerging consensus on three broad points: that Earth is warming; that this...

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