MNEs’ Contribution to Sustainable Development: Examining the Role of Environmental, Social Performance, and SDGs’ Alignment

Abstract

Aims: The current global business landscape demands an acute commitment of international businesses’ sustainable practices to attain a global sustainability agenda. This paper examines the intricate nexus of Multinational Enterprises' (MNEs) Corporate Social Responsibility (CSR) practices, particularly environmental innovation, business ethics, CSR reporting and their environmental performance, social performance, as well as the influence of their alignment with the United Nations Sustainable Development Goals (SDGs). Study Design: This quantitative study employed a Partial Least Squares Structural Equation Modeling (PLS-SEM). Place and Duration of Study: The study used data from Refinitiv Eikon workspace for 91 MNEs from the Middle East and North Africa (MENA) in year 2023. Methodology: The study used secondary data from Refinitiv Eikon workspace for 91 MNEs from MENA region using the Partial Least Squares Structural Equation Modeling (PLS-SEM). Results and Conclusion: The PLS-SEM’s results underline the potential and significant involvement of international businesses in shaping sustainable development, especially in developing and emerging countries. The findings further show that MNEs’ CSR practices particularly environmental and social performance and their adoption or alignment with the United Nations’ SDGs emerges as a pivotal approach to enhance MNEs’ contribution to MENA countries’ sustainable development and global sustainability agenda.