Development of social, environmental, and economic indicators for a small/medium enterprise

Abstract

PurposeA growing number of companies are measuring the sustainability performance of their businesses. Some companies are using pre‐existing sustainability indicator systems to assess their performance. Other companies are looking beyond measurement of impacts to create their own system of indicators to measure sustainability. Formulating relevant indicators of sustainability performance is a difficult task for any organization, but especially for small/medium enterprises (SMEs) that often lack financial, knowledge, and labor resources. The purpose of this paper is to consider two different sustainability assessment approaches undertaken by a single case study company, a start‐up SME.Design/methodology/approachThe authors developed a method for an SME, Ecologic Designs, Inc., a self‐identified green business that reclaims materials to make bags and accessories, to create its own sustainability indicators without outside expert help. This research chronicles the struggles and triumphs of the SME in measuring its sustainability performance using a pre‐existing system and then using the developed method.FindingsThe SME's managers applied the developed method to create, select, and weight sustainability indicators to help answer a strategic planning decision – where to locate operations and facilities in an expanding supply chain.Originality/valueThe paper describes the struggles and triumphs of a start‐up SME in measuring its sustainability performance using a pre‐existing system and then using the developed method.

The role of manufacturing in affecting the social dimension of sustainability

“…Clarke-Sather et al (2011) analyzed a small/medium enterprise that examined sustainability indicators using two different approaches [55]. A main challenge was the 'inability to measure quantitative indicators or knowing how to improve sustainability after measuring it' [55]. It was concluded that an outside expert is likely needed to set up workable sustainability measurement systems.…”

Conceptualising how SMEs incorporate green content in their websites

“…These offer a greater sense of legitimacy compared to a statement that a firm has reduced its impact without statistics because it implicitly or explicitly states the firm is measuring their impact reductions. ePromo2 was the only website with such a statistic: This was an interesting finding because SME-specific research suggests they would have difficulty providing such statistics because SMEs often do not measure green outcomes (Clarke-Sather et al, 2011) or conduct audits (Brammer et al, 2012;Hofmann et al, 2012). Of even greater surprise was that with ePromoPrint2 we discovered that the website of the government green program which the firm completed stated the percentage and quantity reductions made by ePromoPrint2 in energy, greenhouse gases and waste.…”

Changing Social and Environmental Reporting Systems

“…Among the studies examining such processes and systems, an increasing number of studies have examined the development of indicators (Clarke-Sather et al 2011;Delai and Takahashi 2011;Durden 2008;Keeble et al 2003;Searcy et al 2005Searcy et al , 2007Searcy et al , 2008Searcy et al , 2009 and the assessment of frameworks that are intended to guide the integration of social and environmental issues with management systems (Bonacchi and Rinaldi 2007;Burritt et al 2011;Caldelli and Parmigiani 2004;Cresti 2009;Gond et al 2012;Searcy 2009). However, in terms of analyses of the establishment of data-preparation systems and reporting processes for the external report, the literature is more silent.…”