A metric for corporate environmental indicators … for small and medium enterprises in the Philippines

Abstract

This paper is an outcome of the empirical research, funded by UNDP Philippines and National Economic Development Authority (NEDA), done to establish and implement a metric of corporate environmental indicators for SMEs in the Philippines. SMEs have always played a vital role in the creation of goods and services in the country. It is therefore imperative that SMEs adhere to safe environment practices so that the greening of industries in this region is consummate. In this research we have considered SMEs operating in the food and beverage, furniture, fashion accessories, hotel and restaurant, automotive parts and electroplating sectors. The metric adopted in this research follows the framework given by the Federal Environmental Ministry in Bonn and the Federal Environmental Agency in Berlin.The empirical approach develops an exploratory analysis and a structural equation model to bring out statistically significant linkages between five latent constructs: environment management indicators, environment performance indicators, environmental performance, business performance and competitiveness. The research hopes to urge SMEs to implement this metric with confidence given that this would not only enhance their environmental performance but also lead to superior business performance and enhanced competitiveness.

A comprehensive literature review on, and the construction of a framework for, environmental legitimacy, accountability and proactivity

“…Burritt et al (2002), for example, underline some of the potential applications of environmental (management) accounting, including to estimate ecological strengths and weaknesses and improvements needed, control negative impacts on the environment, assess eco-efficiency, provide a foundation for both internal decision making and external communication, and to help promote ecologically sustainable development (see also Epstein and Wisner, 2005;Henri and Journeault, 2010;Rao et al, 2009). Despite these promising benefits, the use of environmental accounting as a control mechanism is still minimal Henri and Journeault, 2010;Molina-Azorín et al, 2009) and has been more widespread in budgeting and risk assessment systems than in other areas (see Bartolomeo et al, 2000;Frost and Wilmshurst, 2000).…”

“…Despite these promising benefits, the use of environmental accounting as a control mechanism is still minimal Henri and Journeault, 2010;Molina-Azorín et al, 2009) and has been more widespread in budgeting and risk assessment systems than in other areas (see Bartolomeo et al, 2000;Frost and Wilmshurst, 2000). However, within the limited literature on the influence of environmental accounting on environmental performance, these studies found that environmental costs (i.e., both capital and operating) (Rao et al, 2009) and reward systems (Epstein and Wisner, 2005) are associated with better environmental performance.…”

“…Some prior literature also associates good environmental performance with being more profitable (Mahoney and Roberts, 2007;Molina-Azorín et al, 2009;Wisner et al, 2006), competitive (Lefebvre et al, 2003;Rao et al, 2009;Wagner and Schaltegger, 2004), efficient (Burnett and Hansen, 2008;Wang et al, 2014), productive (Molina-Azorín et al, 2009), and innovative (Lefebvre et al, 2003). Furthermore, studies of the impacts on stock market performance increasingly provide evidence in favour of good environmental performance (e.g., Bachoo et al, 2013;Hughes, 2000;Moneva and Cuellar, 2009) (see arrows "8" pointing from right to left, linking environmental legitimacy, environmental accountability (which includes environmental performance), and environmental proactivity, to financial performance (CF6)).…”

Fatores Contingenciais Da Gestão Ambiental Em Pequenas E Médias Empresas

“…Acadêmicos e formuladores de políticas estão reconhecendo, cada vez mais, o papel essencial que as PMEs devem desempenhar para a resolução dos problemas ambientais da atualidade Blundel, Monaghan, & Thomas, 2013;Revell et al, 2010). Assim, torna-se imprescindível que as operações dessas empresas se tornem ambientalmente amigáveis (Rao, Singh, O'Castillo, Intal, & Sajid, 2009), ou seja, causem o mínimo dano possível ao ambiente natural. Uma forma de essas empresas alcançarem uma melhoria ambiental de suas atividades é por meio da implantação de atividades de gestão ambiental.…”

Procedimiento para la evaluación del desempeño ambiental: aplicación em el sector energético cubano

“…Algunos de los indicadores ambientales empresariales más usados son recogidos en Ormazabal & Larrañaga (1999), NC-ISO 14031 (ISO, 2005), GRI (2006), Rao et al (2009) y Herva et al (2011.…”