Environmental management of transnational corporations in India. Are TNCs creating islands of environmental excellence in a sea of dirt?.

ABSTRACT: The aim of this paper is to seek further understanding of the environmental role of transnational corporations (TNCs) in India. The focus is set on foreign direct investment (FDI) which constitutes the mere existence of TNCs and enables the transfer of not only finance, but also technological, organizational, managerial and human resources to strengthen local practices of affiliated units in India. The overall question of the paper is to discuss to what extent and how local environmental practices at affiliated units are influenced by TNC headquarters (HQ). The study finds significant evidence that environmental management at TNC-affiliated units in India are strongly influenced by their parent's polices and standards. However, it is also found that there are often significant deviations from intentions and policy commitments stated at HQ for the actual implementation at the affiliate level in India. Thus, the main conclusion is that institutional factors related to the intra-firm dynamics are significant, but that local contextual factors still count in regard to the content and nature of environmental management at TNC affiliates in India, and that local practice is not necessarily a replicate of HQ practices.