Waste minimisation in small and medium-sized enterprises—do environmental management systems help?

The main research question of our study was as follows: What opportunities for upgrading material efficiency and waste minimisation can be found in small and medium-sized enterprises (SMEs)? The empirical material consisted of 41 theme interviews in Finnish industrial SMEs. In the article, the SMEs are assigned to four different categories according to their attitudes towards environmental protection. This analysis also explains why SMEs build up environmental management systems (EMSs). The EMSs do not appear to provide much impetus for SMEs to implement waste minimisation. The reduction of wastes in SMEs is driven more by the costs of raw materials than by waste costs. From the standpoint of environmental authorities, it is therefore crucial to find procedures to support SMEs in increasing their efficient use of materials.     

CSR codes and the principal-agent problem in supply chains: four case studies

The benefits of corporate social responsibility (CSR) affect the entire supply chains a firm participates in. However, not every firm is in a position to force the implementation of CSR in its supply chains as some, especially small and medium-sized enterprises (SMEs), lack the necessary power. Chain directors can implement it acting as a principal, whereas the other chain members can act as agents.In the principal-agent framework, two main problems occur due to information asymmetry: adverse selection and moral hazard. This paper examines how a code of conduct (i.e. Social Accountability 8000) can help address the principal-agent problem, for SMEs, between chain directors and partners. The research method involves four case studies on CSR practices as implemented by Italian and Dutch SMEs within their supply chains.     

Drivers and barriers to engage enterprises in environmental management initiatives in Suzhou Industrial Park, China

Small- and medium-sized enterprises (SMEs) play an important role in sustainable development not only for their significant contribution to China’s economy, but also for their large share of total discharged pollutants. Therefore, this research takes the enterprises in Suzhou Industrial Park, China as the case study to investigate the environmental management practices of SMEs, and identify drivers and barriers to engaging businesses in environmental management initiatives. It is shown that, as in other countries, SMEs are less active in adopting environmental management initiatives than larger companies. Legislation remains the key driver to engage SMEs in environmental management initiatives. Based on the analysis, policy recommendations are also presented.     

Strategy development in small and medium sized enterprises for sustainability and increased value creation

Sustainability strategies create many synergistic effects for SMEs working collaboratively, as well as systemic benefits for the commons. After setting forth the business case for sustainable SMEs, and considering SME sustainability advantages in contrast to MNEs, this paper discusses several different incentives for SMEs to optimize sustainability: (1) becoming valuable sustainable investment targets for larger firms; (2) creating highly competitive networks of sustainable SMEs in market spaces where large enterprises are less successful; (3) becoming highly efficient suppliers in global supply chains through sustainable practices.While several successful models of the sustainable SME are evolving, it may be that networks of SMEs will become essential for addressing the systemic problems that underlie industrial ecology, enterprise resilience, and global supply chain sustainability. SMEs represent the majority of all enterprises, and rapidly evolving communication technologies allow for various routes of network formation.     

中山市金属回收企业绿色供应链绩效评价研究

废旧金属资源的回收是循环经济的重要组成部分,进一步加强废旧金属回收行业的管理,对于保证资源永续、减少环境污染、节省能源、提高经济效益具有重要的意义。当前的竞争环境使金属回收企业和政府主管部门急需通过金属回收企业绿色供应链绩效评价,了解企业的绿色供应链管理状况,以适应越来越激烈的市场竞争。因而建立一个金属回收企业绿色供应链绩效评价模型不仅对绿色供应链的实践具有指导意义,而且还能对金属回收企业绿色供应链的绩效作出评价,改善其绿色供应链管理。     

The Awareness,Action and Advancement (AAA) Environmental Management and Reporting System: moving from the household to small and medium-size enterprises

Households have many similarities to small and medium-sized enterprises. They have inputs and outputs, produce services and wastes, have cash flows and related budgeting issues and incorporate a range of management functions. Households also cover the full suite of Triple Bottom Line aspects, i.e., social, environmental and economic. For tertiary education purposes the household has been a focus at Lincoln University for environmental management students to study environmental management systems and sustainability reporting. This paper outlines the educational aims and context for the course of study and demonstrates, through the examination of one student's course work, how there are similarities between SMEs and households and the sort of initiative designed for a household that also might work in SMEs. As part of this demonstration the paper introduces the Awareness, Action and Advancement (AAA) Environmental Management and Reporting System. The AAA system is cyclic, straightforward, marketable and appears to work. As such the principles from this educational exercise might have relevance in SMEs.     

Corporate environmental responsibility in the supply chain

A continuing trend in outsourcing increases the complexity of supply chains. Global supply chains extend over numerous echelons of countless companies. In parallel, the company-internal view on corporate environmental responsibility is being challenged as customers and legislation alike broaden a company's environmental responsibility to include organisations' upstream as well as downstream in the supply chain. Therefore, the aim of this study was to examine corporate environmental responsibility beyond corporate boundaries, i.e. in the supply chain. A cross-industrial study based on 16 case studies in Finnish trans-national corporations sheds light on various dimensions of corporate environmental responsibility upstream and downstream of product and process supply chains. Conclusions were drawn for corporate environmental responsibility as well as for the role of supply chain management in extending environmental demand over several echelons and diverse industries.     

Making resources work more efficiently – the importance of supply chain partnerships

State and federal governments in Australia have implemented a range of assistance programs for manufacturing industries to become more resource efficient and reduce waste. While many of these programs focus on Cleaner Production at single sites, an increasing number of assistance programs are offered across supply chains. Sustainability Victoria, a Victorian government authority, supports projects that focus on resource efficiencies across supply chains in key industry sectors.In this study, tools were adapted and utilised to identify efficiency potentials and losses across supply chains in the timber furniture manufacturing and the food industry sector. In this respect, waste generation and value loss due to inefficient use of critical materials within the processes were estimated from purchase and waste handling data. Primary companies were chosen to undertake efficiency trials that could demonstrate value gain across the supply chain.This study describes the realisation of greater efficiencies in material usage when engaging proactively with supply chain partners immediately adjacent to the primary company. Demonstration trials confirmed that through a more integrated approach among supply chain partners the potential in using materials more efficiently and design processes can lead to enhanced productivity without compromising environmental burden. Hence, the study describes targeted resource efficiency, recycling and process optimisation opportunities as identified in the supply chain trials on timber furniture manufacturing and food industries.     

Sustainability and supply chain management – An introduction to the special issue

This paper introduces the special issue of the Journal of Cleaner Production on “Sustainability and Supply Chain Management”. This special issue mirrors the increasing relevance of this topic for both practitioners in companies, and academics. The purpose of this special issue is to serve as a catalyst to this important topic. Environmental and social problems and challenges do not stop at the gates of single companies, but have to be considered along the supply chains as the entities across which related material and information flows are organized. The aims of the paper are to introduce current research topics and provide an overview of the single papers. The papers cover supply chain strength of regions and regional activities as well as actions taken by small- and medium-sized manufacturing and public organizations. The papers in this issue also take a look at performance indicators and closed-loop supply chain aspects. Amongst these topics, four papers incorporate social aspects, which have been relatively and significantly less researched than environmental issues.     

Why do firms engage in environmental management? An empirical study in China

There are increasing pressures being put on firms, from a number of different sources, such as governmental regulation, community participation and market demand, to engage firms in environmental initiatives. These factors play different roles at various development periods. Government regulation was the major pressure, initially. However, community participation and market demand have become more and more important. Thus a better understanding of the determinant factors that play a role in engaging firms to take environmental management initiatives may help policy makers develop more effective environmental policies. Using data collected from 89 firms in Wujin county of Jiangsu Province, China, this paper developed an index system to evaluate the corporate environmental management performance. Furthermore, we used econometric methodology to identify the main factors that probably shape corporate environmental management performance, including both external pressures and firm characteristics. The results showed that pressures from supply chain, customers, and communities played positive roles in engaging firms to improve environmental management performance. However, the pressure from the regulatory system did not implicate positive effect on environmental management performance when basic compliance is not an issue in the region anymore. The results also showed that firms with larger scale will be more active in engaging in environmental management initiatives. Finally, our results suggest that: (a) regulation's stimulation may be reduced as long as firms have complied with requirements of local environmental standards and other environmental laws; (b) policy makers should pay more attention to market and information instruments; (c) more financial and technical support should be provided to encourage small- and medium-sized enterprises (SMEs) to improve environmental performance.     

Certification and integration of management systems: the experience of Portuguese small and medium enterprises

The purpose of this study was to characterize the situation of Portuguese Small and Medium Enterprises (SMEs) concerning the certification of their Quality Management Systems (QMS), Environmental Management Systems (EMS) and Occupational Health and Safety Management Systems (OHSMS), in their individually form, to identify benefits, drawbacks and difficulties associated with the certification process and to characterize the level of integration that has been achieved. This research was based on a survey carried out by the research team; it was administered to 46 Portuguese SMEs. Our sample comprised 20 firms (43%) from the Trade/Services activity sector, 17 (37%) from the Industrial sector, 5 (11%) from the Electricity/Telecommunications sector and 4 (9%) from the Construction area. All SMEs surveyed were certified according to the ISO 9001 (100%), a quarter of firms were certified according to the ISO 14001 (26.1%) and a few certified by OHSAS 18001 (15.2%). We undertook a multivariate cluster analysis, which enabled grouping variables into homogeneous groups or one or more common characteristics of the SMEs participating in the study. Results show that the main benefits that Portuguese SMEs have gained from the referred certifications have been, among others, an improvement of both their internal organization and external image. We also present the main difficulties in achieving certification. Overall, 7 of the Portuguese SMEs examined indicated that the main benefits of the IMS implementation management included costs reduction, increased employee training and easier compliance of legislation. The respective drawbacks and difficulties are also presented. Finally, we presented the main integrated items in the certified Portuguese SMEs we examined.     

Fostering sustainability through sourcing from small businesses: public sector perspectives

This article examines the opportunities for fostering sustainable development through public sector sourcing from small- and medium-sized enterprises (SMEs). Buying from small businesses can make such contributions in a variety of forms, ranging from a contribution to local economic development through providing innovative green products and services, particularly in the food sector, to helping the public sector organisation to better align its operations with its community. Sourcing from small businesses also has implications for the governance of sourcing processes and can benefit from a partnership approach. Barriers to public sector sourcing from small businesses are discussed and suggestions made on how these can be overcome.     

Bio-energy supply chains and stakeholders

What are the management challenges and opportunities of bio-energy chains for both running their business efficiently and effectively and fostering the relationships with most relevant external stakeholders? This question is approached by systematically reviewing papers at the interface of bio-energy and supply chain or logistics issues. The review conducted as content analysis is based on an analytic framework that conceives bio-energy chains between challenges and benefits of bio-energy production with simultaneous internal supply chain management and external stakeholder management needs. Smartly designed and operated bio-energy projects hold promising potentials of contributing to sustainable development by both mitigating climate change and strengthening adaptation capabilities. Our analysis distils specific strategies and success factors for tapping this potential on two levels: On a supply chain level, individually adapted and designed supply chain systems relying on trustful information exchange, cooperation and relational governance safeguard profitability while holding adverse ecological and social impacts of operation down; they allow, for instance, minimising costs and emissions, implementing new technologies, and coping with environmental uncertainties such as crop failures and volatile prices. On a stakeholder level, governments as key actors for designing the future legal framework of bio-energy are primary targets for lobbying activities of bio-energy representatives. Respective arguments may focus on economic development and job generation. By minimising its adverse impacts on society and eco-systems and by communicating these efforts credibly, bio-energy warrants its superiority over fossil energy systems. Involving NGOs and residents in early stages of bio-energy projects via transparent two-way communication considerably increase societal acceptance.     

Environmental supply chain dynamics

This paper investigates the circumstances under which “environmental supply chain dynamics” (ESCD) emerge. ESCD are a phenomenon where environmental innovations diffuse from a customer firm to a supplier firm. Its relevance is based on the argument that systemic approaches are needed to understand the environmental implications of industrial systems, of which supply chains are a key component. Furthermore, buyer–supplier relationships play a critical role in the decision-making processes of most suppliers, which in turn has the potential to stimulate environmental change within the supply chain. Based on case studies in the British and Japanese food retail sector and the British aerospace industry, it will be shown that ESCD emerge if there is a channel leader with sufficient channel power over their suppliers, technical competencies, and are themselves under specific environmental pressure.     

Implementation of cleaner production in small and medium-sized enterprises

The aim of this article is to analyse whether it is possible for an external group to act as a catalyst when trying to make small and medium-sized enterprises (SMEs) adopt a cleaner production concept. At Linköping University, Sweden, nine SMEs cooperated in a cleaner production project that uses the University and the County Administration as catalysts. This article is based on a survey that evaluated the project. The survey shows that the SMEs did modify their products and processes after taking part in the project. They were especially successful in changing their products. Why products were changed to a larger extent than processes is not fully understood. Maybe this was done as a part of introducing a preventive environmental care system. Most SMEs did, as a part of introducing an environmental care system, introduce an environmental policy and an educational programme. The SMEs also experienced lower costs and better cooperation with the authorities. A reason for this is the good cooperation between the three participants of the project. In general, the SMEs did not think that they had gained marketing benefits. This attitude could have been different if more SMEs from the same value chain (supplier-producer-wholesalers-customer) had been involved.     

How environmental management driving forces affect environmental and economic performance of SMEs: a study in the Northern China district

Small- and medium-sized enterprises (SMEs) form the core of societal and economic development. However, most people query on the implementation and performance of environmental management. In this paper, the manufacturing SMEs in Northern China with different pollution levels are studied to explore the main forces (e.g., government, society, market, and enterprise itself) driving SMEs for promoting environmental management. It focuses on the correlation between environmental management and economic performance for SMEs at different pollution levels. The results show that SMEs of different pollution levels have significant differences in the relationship of driving forces and performance. First, for SMEs with high-pollution levels, social and market driving forces and government incentives are revealed having a significant effect on their environmental performance. Driving forces from within the enterprise itself and the market provide a positive effect on the economic performance, while social forces have a negative effect. Second, for SMEs with light pollution, social and market driving forces, and government assistance play a supporting role on corporate environmental performance improvement. It is also found that the driving force of the enterprise itself does not have a significant effect on the environmental performance for SMEs with different pollution levels. In addition, the environmental performance and economic performance for SMEs with high or light-pollution levels are positively correlated. Further, it shows that the environmental performance is moderately correlated with financial indices, but not significantly with the non-financial indices.     

欧美绿色供应链发展经验及启示

随着工业化、城市化的飞速发展,我国经济社会面临的资源环境瓶颈约束日益突出,实现经济发展和环境保护的同步推进是当前工作的重要内容,环境保护将扮演更为重要的角色。实施绿色供应链管理有利于改善高能耗高污染问题,提高企业生产效率,增强核心竞争力,促进企业和社会的可持续发展。欧盟和美国在推行绿色供应链管理方面成果显著,汲取其先进的政策和实践经验,对中国推进绿色供应链具有重要的借鉴意义。     

Using structural equation modeling to test environmental performance in small and medium-sized manufacturers: can SEM help SMEs?

Small and medium-sized enterprises (SMEs), defined as manufacturers employing 500 or fewer people, represent an estimated 70–98% of the manufacturing population globally and together have the potential to significantly impact the environment. Many of these small manufacturers throughout the world are not in compliance with environmental regulations, and even fewer see the need to focus on pollution prevention, implement environmental management systems, or to use life-cycle management or other proactive environmental management practices. A validated environmental performance model for SMEs holds the promise of providing a roadmap to more productive environmental results. This paper discusses structural equation modeling as a useful methodology to validate environmental performance models.The paper shares some insights from the use of structural equation modeling, which was used to evaluate the development of an environmental performance model for SMEs. The model was based on the Malcolm Baldrige Criteria. We review SEM methodology and share results from a population of SMEs in the plastics manufacturing sector. Fit statistics confirmed the overall model fit, but not all of the paths in the model were statistically significant. An assessment of the non-significant paths (from leadership and from the system components of the model to environmental results) led the authors to conclude that an improved definition of environmental results is critical. Education of SMEs on the benefits of improved environmental performance is also warranted.     

Investigating corporate social responsibility in supply chains: a SME perspective

This paper analyzes the practices adopted and difficulties experienced by Small and Medium-sized Enterprises (SMEs) to transfer socially responsible behaviors to suppliers that operate in developing countries. In particular, a multiple case study was conducted on five Italian socially responsible SMEs. It was found that companies use different strategies as well as diverse management systems and tools to address Corporate Social Responsibility (CSR) issues along their supply chains (SCs). The paper is innovative mainly since few are the existing studies that investigate the CSR practices adopted by SMEs in the SC. Furthermore, it is argued that our research can be helpful to SME managers willing to deal with CSR issues along their SCs, especially when developing countries are involved.     

A life-cycle framework to analyse business risk in process industry projects

The chemical and related process industries are particularly exposed to high environmentally related costs arising from normal operation and accidents, not only of their own processes but also other processes in their supply chains. A methodology (Process environmental risk assessment—PERA) is presented for the assessment of all such risks during the design of new processes. This can be seen as a project-centred risk assessment that seeks potential problems along the whole supply chain. Each activity, resource use or waste source along the supply chain represents a potential interaction between the supply chain and the environment. These potential interactions are identified systematically using a life-cycle based assessment. To assess the risk to the project or process supply chain arising from those interactions the relevant stakeholders must be identified. Their likely response can then be considered and ranked according to the risk it poses. The methodology facilitates the management and communication of risk, and is illustrated by application to some aspects of the manufacture of PVC. The method could equally be applied to the assessment of existing processes.