Sustainability in SMEs: Business Excellence, SDGs Silence?

Given the aggregated potential impact of Small and Medium-sized Enterprises (SMEs), this study analyzes the disclosure of the Sustainable Development Goals (SDGs) among companies located in the municipality in Portugal, awarded the ‘SMEs Excellence’ certification by the Institute for the Support of Small and Medium Enterprises (IAPMEI) in 2022. Given the limited empirical evidence on SDG disclosure among high-performing, non-listed SMEs in Portugal, the study adopts a hybrid exploratory–descriptive research design to provide new empirical insights on the sustainability disclosure practices of firms holding this certification. Data were collected through a structured questionnaire administered to 51 ‘SMEs Excellence’ located in the municipality of Águeda, district of Aveiro, yielding 24 responses. The findings are interpreted through the lenses of stakeholder, legitimacy, and signaling theories. Results indicate that only 42% of the companies recognize the importance of the SDGs, prioritizing decent work, innovation, and responsible consumption (SDGs 8, 9, and 12). However, only 12.5% formally disclose their SDG engagement. The main barriers to disclosure include limited institutional support, time constraints, and insufficient knowledge. Among firms that do disclose SDG-related initiatives, the primary motivations are image enhancement and stakeholder recognition. Respondents also highlight the importance of financial incentives, examples of best practices from other companies, and targeted training as key factors in supporting and expanding SDG disclosure among SMEs. This study contributes to the literature by providing one of the first empirical analyses of SDG disclosure among financially robust SMEs in Portugal, highlighting how stakeholder pressure, legitimacy concerns, and signaling incentives shape disclosure behavior.