The increased attention to multinational companies¡¦ (MNC) sustainability in both academic and practitioner realms has raised an important question of why more and more firms behave in a socially responsible manner, especially in today¡¦s global economy. Drawing upon RBV and institutional theory incorporating theoretical insights from international business and stakeholder or CSR-related theories, this research was conducted in an attempt to offer a systematic analysis on antecedents and consequences of MNC subsidiaries¡¦ sustainability conducts. Combining the results of preliminary qualitative and empirical quantitative studies, this research identified the internal factors within MNC and external institutional factors outside of MNC that influence subsidiary¡¦ resources and capabilities developments for sustainable developments, and that in turn collectively contribute to MNC¡¦s sustainability in modern complex, dynamic global economy. With the sample of 114 MNCs¡¦ subsidiaries, this research used SEM (structural equation modeling) technique to test an integrated framework addressing how the diverse stakeholder demands and institutional pressures facing MNCs can be managed through internal mechanisms and processes to gain sustainable competitive advantages. Findings of this research offered better explanation for the widely debated relationships between CSR and firm performance from CSR theorists. Furthermore, by integrating RBV and institutional theory, this research theoretically and empirically demonstrated the way MNCs develop firm-specific advantages and country-specific advantages through their proactive CSR management conducted by subsidiaries, and hence provided theoretical and practical insights in international management.