Linkages between best practice in business and good environmental performance by companies

Abstract

Is the adoption of currently accepted best practice in business associated with improved environmental performance by companies? What methods can be used to assess and compare the environmental practices and performance of different companies? In this pilot study, the business and environmental practices and performances of five companies in the metal working sector were examined and scored. The business practices and performances were assessed using the best practice model adopted in the Australian Manufacturers Council study (AMC, November 1994, Melbourne, 112pp.). The environmental practices and performance of the companies were assessed based on a five stage framework of business response to environmental issues presented here. A strong correlation was observed between environmental performance and business practices (correlation coefficient, r = 0.85, p < 0.05). The company closest to best practice had a strong focus on quality, efficiency and elimination of waste, well-developed strategy, good teamwork and a high level of commitment and also had the highest score for environmental performance. The company with poorest score for its business practices had the poorest environmental performance, with the remaining companies lying between on both scores. There was no significant correlation between business performance outcomes and environmental performance.