Multinationals’ Political Activities on Climate Change

This article explores the international dimensions of multinationals’ corporate
political activities, focusing on an international issue—climate change—being
implemented differently in a range of countries. Analyzing data from Financial
Times Global 500 firms, it examines the influence on types and process of
multinationals’ political strategies, reckoning with institutional contexts and issue
saliency. Findings show that the type of political activities can be characterized
as an information strategy to influence policy makers toward market-based
solutions, not so much withholding action on emission reduction. Moreover,
multinationals pursue self-regulation, targeting a broad range of political actors.
The process of political strategy is mostly one of collective action. International
differences particularly surface in the type of political actors aimed at, with U.S.
and Australian firms focusing more on nongovernment actors (voluntary
programs) than European and Japanese firms. Influencing home-country (not
host-country) governments is the main component of international political
strategy on climate change.
Keywords: corporate political activity; climate change; multinationals;
institutional differences