A metric for corporate environmental indicators … for small and medium enterprises in the Philippines

This paper is an outcome of the empirical research, funded by UNDP Philippines and National Economic Development Authority (NEDA), done to establish and implement a metric of corporate environmental indicators for SMEs in the Philippines. SMEs have always played a vital role in the creation of goods and services in the country. It is therefore imperative that SMEs adhere to safe environment practices so that the greening of industries in this region is consummate. In this research we have considered SMEs operating in the food and beverage, furniture, fashion accessories, hotel and restaurant, automotive parts and electroplating sectors. The metric adopted in this research follows the framework given by the Federal Environmental Ministry in Bonn and the Federal Environmental Agency in Berlin. The empirical approach develops an exploratory analysis and a structural equation model to bring out statistically significant linkages between five latent constructs: environment management indicators, environment performance indicators, environmental performance, business performance and competitiveness. The research hopes to urge SMEs to implement this metric with confidence given that this would not only enhance their environmental performance but also lead to superior business performance and enhanced competitiveness. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.