An exploration of drivers for small businesses to implement environmental actions in Victoria, Australia

Abstract

The adoption of environmental practices in small and medium scale businesses is increasing. Given the diverse environmental actions available to firms, it is important to understand the specific drivers for different actions to be taken. Based on managerial survey data from Victoria, Australia, this research uses modeling to determine how ethical conscience of managers drive different types of sustainable environmental actions. The results indicate that ethical conscience of managers drives waste, energy and water related actions, while external factors such as supply chain imperatives and customer demand drive circular business actions. New technology and industry guidelines were major barriers for most types of environmental actions while social barriers were significant for energy and water related actions. This implies that the increased ethical conscience of managers, especially while adopting new technology can increase the adoption of environmental actions in businesses. The results will have implications in crafting the corporate strategy and developing good and services that will aid to the achievement of Sustainable Development Goals (SDG 11 and 12), focusing on sustainable cities and communities, and responsible production and consumption.