Profitability of multi-national corporations in the context of sustainable development: Scania business practices

Abstract

In this article, I explore the relationship between sustainable development and commercial success by using the example of the multi-national corporation (MNC), Scania. Despite broad discussion of necessity for businesses to be actively engaged in the sustainable development goals at global and national level, only a small number of MNCs are actually taking concrete action towards reaching any of them. In reality, corporations’ commitment to these goals often remains of a declaratory nature. Actions by organizations to emphasise social responsibility and environmental obligations have rarely been connected to generating income. This work attempts to investigate sustainable development as a source of new business opportunities to bring MNCs additional income. By looking at concrete business practices from Scania, I illustrate how corporations may adjust their strategic behavior, approaches, and positioning in the global market within the context of the sustainable development paradigm. The analysis is based on the public account records and official documents of Scania, as well as the company’s official website and open sources of information.