Corporate Responsiveness and Sustainability Transition: Insights from a Danish–Malaysian Palm Oil Multinational*

Abstract

This chapter explores the strategic responsiveness of commodity multinationals operating in developing countries to the uncertainties raised by the emergent European Union (EU) sustainability regulation. The study applies deductive theory triangulation to derive five response propositions, subsequently contrasted with inductive insights from an exploratory single-case study. The research involves in-depth interviews with a mix of senior and middle management and numerous external stakeholders. Empirical findings are discussed through storytelling and retrospective sensemaking and cross-checked against corporate documents, archive material, and online articles for added validation. This chapter concludes that an authentic commitment to corporate social responsibility and creating shared value can enhance the multinational enterprise (MNE)’s resilience and responsiveness to regulatory uncertainty, especially when combined with early signal scanning and real options reasoning. Through varied, first-hand insights, the case study demonstrates the role of reputation, core values, and ethical leadership in support of effective stakeholder engagement capabilities and the MNE’s ability to develop viable collaborative solutions to uncertainties implied by evolving sustainability regulation and stakeholder expectations. Taking an evolutionary view, this chapter introduces a process perspective on sustainability transition, relevant to firms seeking a shift in focus from mere compliance toward strategic responsiveness founded on adaptability and renewal.

Citation

Vagtborg, F.H. (2024), "Corporate Responsiveness and Sustainability Transition: Insights from a Danish–Malaysian Palm Oil Multinational*", Andersen, T.J. (Ed.) Sustainable and Resilient Global Practices: Advances in Responsiveness and Adaptation (Emerald Studies in Global Strategic Responsiveness), Emerald Publishing Limited, Leeds, pp. 149-191. https://doi.org/10.1108/978-1-83797-611-920241007