An exploratory study of the environmental behaviour of New Zealand small and medium-sized enterprise (SME) manufacturers

Abstract

Driven by growing environmental awareness, increased scientific knowledge, stakeholder pressure, and legislation, businesses (either willingly or unwillingly) are increasingly confronting environmental issues. New Zealand holds an enviable reputation worldwide as being a ‘clean, green’ country. This reputation is leveraged to its full extent by many businesses and the government to promote New Zealand products and services. While New Zealand relies heavily on its environmental reputation, prior studies show that the environmental performance of New Zealand businesses is, in the most part, lacking. Additionally, there is little information on the environmental behaviour of New Zealand Small and Medium-Sized Enterprises (SMEs) or the manufacturing sector. The manufacturing sector is of considerable interest in determining the environmental practices of SMEs due to its close relationship with energy use and pollution. The research gathered a variety of qualitative and quantitative data by means of an email survey sent to New Zealand manufacturers. The research explores how New Zealand manufacturers view the environment, what they are doing to address environmental issues, and the rationale behind their environmental action or lack thereof. It was found that while there is a high degree of awareness amongst manufacturers about environmental issues, they are undertaking minimal actions to mitigate their environmental impacts. Overall, the research found that manufacturers see little rationale for pursuing environmental action due primarily to high costs and low rewards, or a perception that their business has no environmental impact. It is concluded that the most significant influences on the environmental views, actions, and drivers of New Zealand SME manufacturers are environmental regulation, and the financial cost to the business of an environmental effect. Addressing environmental regulation and the financial costs of environmental effects provides the most likely means of affecting the environmental behaviour of New Zealand SME manufacturers.