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Abstract This paper discusses how and to what extent local environmental practices at affiliated units of transnational corporations (TNCs) are influenced by TNC headquarters (HQ). The study focuses on intra‐firm dynamics of what is termed ‘cross‐border environmental management’ of TNCs. The study documents that the environmental management of TNC‐affiliated units in India are strongly influenced by HQ's environmental policies and standards. However, it is found that there are deviations in local practices from intentions and policy commitments stated at HQ. This can be particularly attributed to local economic and political factors. Cross‐border environmental management is making a difference. However it is limited to affiliated TNC units and few additional external environmental impacts are documented. Copyright © 2002 John Wiley & Sons, Ltd. and ERP Environment
Audun Ruud (Fri,) studied this question.