On The Impact of Host Country Regulations on Multinational Corporations’ Fulfillment of Environmental Responsibilities

Abstract

In the context of economic globalization, the global operations of multinational corporations (MNCs) exert a profound impact on the environment. As a core standard governing corporate environmental conduct, host country regulations play a dual role in shaping MNCs’ fulfillment of environmental responsibilities. This paper first analyzes the composition of host country regulations, which collectively form the institutional framework constraining the environmental behavior of MNCs. The study finds that such regulations can promote MNCs’ environmental responsibility performance by clarifying responsibility boundaries, providing oversight mechanisms, and driving technological innovation. At the same time, they may impose constraints due to shortcomings in regulatory design, weak enforcement, and excessively high compliance costs. Based on these findings, the paper proposes strategies for MNCs, including establishing robust environmental management systems, actively providing feedback on regulatory implementation issues, and drawing on international compliance experience. Through this analysis, the paper aims to offer theoretical references for host countries to improve their environmental regulatory systems and enhance MNCs’ performance in fulfilling environmental responsibilities, thereby promoting the coordinated development of cross-border business operations and ecological protection, and contributing to the achievement of global sustainable development goals.