The authors use empirical research into the environmental practices of 31 manufacturing small and medium-sized enterprises (SMEs) to show that ‚business performance’ and ‚regulation’ considerations drive behaviour. They suggest that this is inevitable, given the market-based decision-making frames that permeate and dominate the industry in which manufacturing SMEs operate. Since the environment is a pillar of corporate social responsibility (CSR), the findings have important implications for CSR policy, which promotes voluntary actions predicated on a business case. It is argued that this approach will not alter the behaviour of manufacturing SMEs significantly because CSR practice will be regarded as an optional and costly ‚extra’ affecting core business activity. Consequently, the use and development of existing regulatory structures, providing minimum standards for many activities covered by CSR, remains the most effective means through which the behaviour of manufacturing SMEs will be changed in the short to medium-term. Another feature of the paper is the distinction made between ‚business performance’ and the ‚business case’ argument. Business performance emphasises cost reductions and efficiency whereas the business case accentuates the benefits to shareholders of good practices as their firms become more attractive to stakeholders and society. Manufacturing SMEsâ\x90£try to improve business performance because of the pressures placed on them by market-dominated decision-making frames. These frames do not encourage manufacturing SMEs to undertake voluntary actions for the benefit of wider stakeholders and society. Copyright Springer Science+Business Media, Inc. 2006CSR, decision-making frames, environment, policy, regulation, SMEs,

Presents the findings of a UK‐based study into the environmental practices of SMEs (i.e. small and medium‐sized enterprises employing up to 250 people). The firms were found to be environmentally “reactive”, and this is explained by reference to a system of interconnected and negatively reinforcing practices. This is corroborated by organisational self‐assessments, with firms accepting that they have a low commitment to environmental issues. It was apparent that the firms would like to improve their environmental performance, but the authors argue that meaningful progress will be achieved only if there is a shift to a more proactive model of environmental practices.

Traditional forms of regulation have been criticized for not adequately protecting the environment. Indeed, there is evidence and growing support for the view that societal pressure can act as a social licence which induces ‘beyond compliance’ behaviour. In exploring this view, the paper (a) outlines the characteristics of the social licence; (b) assesses how these characteristics can influence the environmental behaviour of small and medium enterprises; (c) presents a model which shows that social licence pressures depend on the interplay of a range of factors; and (d) applies the model to explain why societal pressures rarely induce beyond compliance environmental behaviour among small and medium enterprises.

Striving to survive in the ever changing world, the ability to innovate has become increasingly crucial. But are all organisations convinced? Based on data collected from a recent survey and a telephone interview, this article examines the general understanding of issues concerning innovation among managers and their ability to translate this understanding into practice. The study reveals that while most organisations have realised the importance of innovation and are prepared to mobilise their managers to be involved in innovation projects, many of them have not yet been able to create an innovation culture and devise suitable policies to encourage innovation positively within the wider context of their organisations. It is also discovered that there is a surprisingly low level of understanding of the most commonly known innovation techniques, yet most people dismiss the value of creativity training programmes conducted in their organisations, raising serious concerns over the effectiveness of these programmes.

The view that CSR performance can be improved most effectively through external pressures is shown to be invalid for most firms. In exploring why this is the case, the authors demonstrate that most small and medium enterprises are not exposed to the same pressures as large firms, and that this undermines many of the assumptions that underpin the externally driven business case (EDBC) for voluntary CSR practices. The analysis does this by looking at the external drivers of one of the components of CSR; namely, the environmental behaviour of firms. This shows that the strength of the EDBC is largely determined by five factors. Importantly, the analysis provides the basis for the claim that -and helps to explain why -the EDBC for voluntary environmental behaviour is likely to remain a weak form of pressure for many small firms.