Abstract:
In recent years, companies have started to include environmental, social and governance (ESG) factors in their business practices. This thesis looks at how MNEs adopt and make ESG principles part of their corporate strategies, regulatory compliance processes and stakeholder engagement, together with deeper looks at each ESG domain, showing how they affect the sustainability strategies of MNEs. It shows how important labour law is in the social part and how it links to corporate social responsibility and global business operations, also looking at the challenges that MNEs face in putting ESG goals into practice at a regional level.
The thesis looks at how multinationals are regulated, especially in the EU, by examining how the different Directives and Regulations affect how MNEs implement ESG components. The thesis also looks at whether EU laws can improve labour standards and how theoretical tools can indirectly advance labour conditions: a particular focus is put into those existing regulations that are working to promote workers' rights and sustainability commitments.
In the last part of the thesis, there is a deeper analysis dedicated to a case study of Pirelli S.p.A., the italian tyre manufacturing corporation, in order to show how ESG integration affects a global leader in a competitive sector like the one this company is operating in. The case looks at how Pirelli uses ESG principles in its business strategy, especially in response to globalization, with some space dedicated to a look at how the company communicates about ESG issues with partners and the public.
Overall it is possible to say that this thesis provides an extensive outlook at all the Directives and Regulations that shape the multinational enterprises adoption of ESG Principles. Of course there exist tensions between corporate strategy and all the regulatory pressures, and by giving a deeper look at the different factors through a labour law oriented view, this research puts emphasis on the fact that ESG factors are fundamental for an international corporation that is aiming at delivering value in the long term, not just for itself, but also for the society as a whole.
