The means to substantive performance improvements – environmental management control systems in ISO 14001– certified SMEs

Leanne Johnstone

Sustainability Accounting, Management and Policy Journal, 2022, vol. 13, issue 5, 1082-1108

Abstract: Purpose - This study aims to address how the ISO 14001 standardisation and certification process improves substantive performance in small to medium-sized enterprises (SMEs) through the development of an environmental management control system (EMCS). Design/methodology/approach - A qualitative cross-case interview design with those responsible for the implementation of an environmental management system (certified to ISO 14001) in SMEs is adopted to inductively “theorise” the EMCS. Findings - The design and monitoring of environmental controls are often beyond the scope of the SMEs’ top management team and include extra-organisational dimensions such as the external audit and institutional requirements. This suggests more complex control pathways for SMEs to produce EMCS that primarily function as packages and are broader than the analytical level of the firm. Here, controlling for environmental performance exists at strategic and operational levels, as well as beyond the SMEs’ boundaries. Practical implications - Various internal controls are put forward for SME owner-managers to meet environmental targets (e.g. gamification and interpersonal communication strategies). This builds upon a broader accountability perspective wherein formalised hierarchical control is only one route for ensuring sustainable action within the ISO 14001-certified SMEs. Social implications - This study contributes to a more sustainable society through developing an understanding of how environmental sustainability is substantively managed by SMEs to improve performance for current and future generations. Originality/value - This paper, to the best of the author’s knowledge, is one of the first to establish how SMEs control for environmental sustainability from empirically derived evidence. In doing so, it provides an example of the EMCS for the SME context.

Keywords: Environmental management control system; Environmental management system; Environmental performance; ISO 14001; SMEs; Sustainability control (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:sampjp:sampj-11-2021-0456

DOI: 10.1108/SAMPJ-11-2021-0456

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