HomeDLSU Business & Economics Reviewvol. 21 no. 2 (2011)

The Japanese Multinational Enterprise Influence on Sustainability Reporting Practices of Philippine Subsidiaries: A Theoretical Review

Michael Angelo A. Cortez



Sustainability reporting has been standardized in Japanese non-financial reporting, taking into consideration its business environment, legal framework, and cultural values. Particular to environmental management, Japanese manufacturers have institutionalized sustainability reporting in their mode of governance in the past decade. On the other hand, there are no reporting guidelines yet on sustainability reporting in the Philippines, not withstanding the current greening of global economies.


This study aims to describe how Japanese multinational companies influence sustainability reporting practices of their Philippine subsidiaires by: (1) annotating significant theories and literature on organizations, institutions and networks; (2) deriving the most relevant theory; (3) and developing propositions on how environmental reporting practices are trickled down the multinational enterprise subsidiary networks. Toyota Motors Corporation and Toshiba Corporation were considered in this study as Japanese companies engaging in sustainability practices, with their Philippine subsidiaries taking part in the consolidation of their global environmental activities.