Multinationals operate in a setting where the rules of the game are ambiguous, contradictory, and subject to rapid change. The consequences of such conflict for the firm can be serious, ranging from nationalization and expropriation to increased operating costs and losses of market share,...

An earlier version of this paper was presented by Dr Gladwin at the First Annual Senior Executives' Seminar on 'Sustainability and Profitability: Conflict or Convergence' sponsored by the HRH the Prince of Wales's Business & the Environment Programme and developed by the University of Cambridge...