Chapter 5 On Nudging MNE Toward SDG1: A Policy Perspective

Governments worldwide have adopted the Sustainable Development Goals (SDGs) and are committed to attain them by 2030. Moreover, they recognize that they cannot mobilize the necessary resources and capabilities for this purpose alone. Hence, they have called for cooperation from all stakeholders including multinational enterprises (MNEs) to assume responsibility and strive to contribute to the SDGs. However, since co-partnering with the state for inclusive development is outside the traditional mandate of MNEs, this chapter explores the ways in which policy can nudge MNEs to contribute to the first pillar of sustainable development, namely SDG1—to end poverty in all its forms everywhere. A two-stage methodology is applied to address the research queries. First, a conceptual framework on impact of MNE interventions on SDG1 is developed. Second, the framework is validated through a meta-analysis of the abstracts of articles selected via a scoping review of the economics and management literature. This leads to an in-depth understanding of policy design features that can nudge MNEs to make positive contributions toward poverty alleviation. Four distinct pathways foreign direct investment (FDI), public–private partnerships (PPP), corporate social responsibility (CSR), and knowledge transfer are identified for nudging MNEs toward SDG1. Nevertheless, the potential impact may not be realized due to the inappropriate strategies of the MNE, the drawbacks of the policies of the host government, and/or systemic challenges of the host country context. This chapter further explores the positive and negative impact on these pathways as a step toward exploring how MNEs can contribute to all the SDGs.