Authors : Kadaruddin Aiyub, Kadir Arifin, Azahan Awang and Jamaluddin Md. Jahi
Abstract: This study reports the environmental performance of Small and Medium-sized Enterprises (SMEs), who are already certified to the ISO 14001 standard in the United Kingdom. A survey questionnaire was used and 59 SMEs responded to this study. The results show that SMEs has gained various benefits from the implementation of the standard. The ISO 14001 implementation has increased awareness among SMEs staff, improved procedure and documentation, improved management structures and upheld their image. SMEs also recorded financial savings in areas like waste recycling/reuse, energy and water consumption and legal compliance. Even though, the saving are far less than larger organizations has obtained, its shows that this standard could give more to SMEs in the longer period. Through a good environmental image and having EMS in place, SMEs have a competitive edge in the market where supply chain pressure is increasing. However, they still faced problems in terms of costs and time during the implementation processes and in maintaining the standard. These problems can be solved if they have support from the authorities, business clubs and environmental NGOs. Publicity and promotion of the benefits of ISO 14001 implementation in SMEs could encourage other SMEs to follow suit. Further incentives by the government like tax reduction and financial grants to SMEs who are certified should be considered. As financial problems still remain an obstacle for SMEs in adopting EMS, financial grants, like SCEEMAS can be useful.
Kadaruddin Aiyub, Kadir Arifin, Azahan Awang and Jamaluddin Md. Jahi, 2009. Environmental Performance in Small and Medium Sized Enterprises (SMEs) Certified to ISO 14001 in the United Kingdom. International Business Management, 3: 7-14.