Government policies for MNEs’ sustainable linkages

This chapter’s aim is to present a critical perspective on past, present, and future policies towards multinational enterprises’ (MNEs) sustainable linkages in host economies. It discusses how governments can and do guide multinationals towards developing sustainable linkages - with targeted MNE linkages and related FDI policies, actions, and initiatives - and engage in a critical discussion on the challenges policymakers face in doing so. As such, this chapter positions itself within the ongoing debates around policies adopted by governments towards achievement of the UN Sustainable Development Goals (SDGs), e.g., policies that guide MNEs towards increasing their contribution to the achievement of these goals through responsible and sustainable business practices. The authors suggest that to promote sustainable linkages, policymakers should not only adopt traditional means to support MNE linkages, but also promote sustainable linkages and devise (a) linkages policies and measures in SDG-related sectors, (b) linkages policies and measures that have a sustainability impact focus, and (c) linkages and measures with a focus on inclusiveness on vulnerable groups.