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Environmental Impacts of SMEs and the Effects of Formal Management Tools: Evidence from EU's Largest Survey

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  • Johan Graafland
  • Hugo Smid

Abstract

Much literature on corporate social responsibility suggests that formal management tools to manage environmental impacts, such as environmental reporting or ISO14001 certification, are not suitable for small and medium‐sized enterprises (SMEs). Other studies, however, argue that using some form of formalization helps SMEs to improve environmental management. This paper empirically studies the hypothesis that relatively simple formal management tools in the form of using targets improve the environmental impacts of SMEs. Based on a unique dataset with environmental performance data of 5205 SMEs in 12 European countries, we find ample support for this hypothesis. Since only 25% of SMEs use targets, there is room for substantial improvement in environmental impacts if all SMEs were to implement this relatively simple process step. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

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  • Johan Graafland & Hugo Smid, 2016. "Environmental Impacts of SMEs and the Effects of Formal Management Tools: Evidence from EU's Largest Survey," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 23(5), pages 297-307, September.
    • Handle: RePEc:wly:corsem:v:23:y:2016:i:5:p:297-307
    DOI: 10.1002/csr.1376
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    1. Leanne Johnstone, 2021. "Facilitating sustainability control in SMEs through the implementation of an environmental management system," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 32(4), pages 559-605, December.
    2. Guo‐Ciang Wu, 2017. "Effects of Socially Responsible Supplier Development and Sustainability‐Oriented Innovation on Sustainable Development: Empirical Evidence from SMEs," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(6), pages 661-675, November.
    3. Chamila H. Dasanayaka & Nuwan Gunarathne & David F. Murphy & Padmi Nagirikandalage, 2022. "Triggers for and barriers to the adoption of environmental management practices by small and medium‐sized enterprises: A critical review," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(4), pages 749-764, July.
    4. Lorenzo Ardito & Rosa Maria Dangelico, 2018. "Firm Environmental Performance under Scrutiny: The Role of Strategic and Organizational Orientations," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(4), pages 426-440, July.
    5. Johan Graafland, 2018. "Does Corporate Social Responsibility Put Reputation at Risk by Inviting Activist Targeting? An Empirical Test among European SMEs," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(1), pages 1-13, January.
    6. Michele Molin & Lisa Pizzol & Marco Pesce & Alessandro Maura & Matteo Civiero & Elisa Gritti & Simone Giotto & Alberto Ferri & Lorenzo Liguoro & Carlo Bagnoli & Elena Semenzin, 2023. "An integrated decision‐making framework for corporate sustainability," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(3), pages 1145-1160, May.
    7. Andrea Cantú & Eduardo Aguiñaga & Carlos Scheel, 2021. "Learning from Failure and Success: The Challenges for Circular Economy Implementation in SMEs in an Emerging Economy," Sustainability, MDPI, vol. 13(3), pages 1-35, February.
    8. Anirut Pipatprapa & Hsiang‐Hsi Huang & Ching‐Hsu Huang, 2017. "The Role of Quality Management & Innovativeness on Green Performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(3), pages 249-260, May.
    9. Leanne Johnstone, 2018. "Environmental management decisions in CSR‐based accounting research," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(6), pages 1212-1222, November.
    10. Johan Graafland, 2020. "Women in management and sustainable development of SMEs: Do relational environmental management instruments matter?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(5), pages 2320-2328, September.
    11. Claudia Patricia Maldonado-Erazo & José Álvarez-García & María de la Cruz del Río-Rama & Ronny Correa-Quezada, 2020. "Corporate Social Responsibility and Performance in SMEs: Scientific Coverage," Sustainability, MDPI, vol. 12(6), pages 1-26, March.
    12. Iñaki Heras‐Saizarbitoria & Olivier Boiral & Alberto Díaz de Junguitu, 2020. "Environmental management certification and environmental performance: Greening or greenwashing?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2829-2841, September.

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