Putting it to Work in Developing Countries - Nathan Associates

Overall, multinational corporations in developing
countries seem to act no better or worse
than domestic firms in environmental matters. 37
To maximize the likelihood that FDI does not
harm or even improves the environment, developing
countries should consider (1) building
regulatory capacity; (2) incorporating regulations
and sustainability requirements into their
economic growth strategies and specific policies
for business and industry, both foreign and
domestic; and (3) pressing parent firms and foreign
affiliates to regard good environmental
practice as a spillover effect expected of FDI. On
their side, multinational corporations should
shape day-to-day operations and business strategies
according to the provisions of the
Environmental Chapter of the OECD
Guidelines for Multinational Enterprises. The
OECD has formulated tools and corporate
approaches (e.g., environment management systems,
stakeholder consultation, environmental
assessments, contingency planning, training) in
connection with this Chapter. 38
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