Factors influencing companies' response to environmental responsibility

The growth in the small firm sector over the last decade has created a situation where approximately 98% of all businesses are classed as small. The economic impact of the sector is obvious and is recognized and fostered by the UK Government; the environmental impact of these firms, however, has been overlooked. To date, empirical evidence has indicated that small firms have been reticent to take a more proactive role in improving environmental performance. It is argued here that there is a need to develop greater environmental awareness within the small firm sector. Empirical evidence is used to investigate the attitudes that exist within small firms towards the environment and the actions they are prepared to undertake. This is compared with similar evidence obtained on the attitudes and actions of large firms. Through the use of discriminant analysis, certain factors have been identified which explain the relatively low use of environmental audits in the small firm sector. Initiatives are proposed which seek to develop greater environmental commitment from businesses, especially those in the small firm sector