Multinational corporations and grand challenges: part of the problem, part of the solution?

Abstract

PurposeThe purpose of this study is to address the relationship between multinational corporations (MNCs) and grand challenges. Stressing the moderating impact of stakeholders and governments, it frames and introduces the six contributions of the special issue, equally divided into those illustrating how MNCs contribute to the existence of grand challenges and those exploring how MNCs contribute to addressing grand challenges.Design/methodology/approachBased on a review of the existing literature on the relationship between MNCs and grand challenges and recent developments in mainstream international business, the viewpoint emphasizes the need to move beyond a one-sided focus on the positive contributions of MNCs to grand challenges.FindingsThe special issue contributions reveal that even established MNCs are actively engaged in strategic efforts to perpetuate unsustainable practices and minimize the impact of societal rules and stakeholders. The contributions also highlight the complications when MNCs aim to tackle grand challenges.Practical implicationsDisplaying positive practices of how MNCs contribute to the solution of grand challenges should not be considered a functional substitute for regulatory action, contrary to the frequent assertion of MNCs and their political representatives.Originality/valueThis special issue is the first one in IB to address the relationship between MNCs and grand challenges from an empirical vantage point.