An evaluation of the Impact of Environmental Management Systems on the Economic Performance of Business Enterprises in South Africa

Date
2006-10-31T07:02:16Z
Authors
Khuto, Motseki
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Abstract
This research report focuses on the impact of environmental management systems (EMS) on the economic performance of business enterprises with respect to the three research variables, namely water, energy and raw materials. A systematic sampling technique with a random start and the K-Value sampling interval were employed to draw a sample size of 30 enterprises from a list of 240 EMS certified enterprises. However, the response rate ultimately turned out to be only 30 % of the sample size. The research discovered that EMS programmes that are practised by enterprises under study in South Africa are inefficient, as strategies adopted to cut down on the consumption of the research variables are inefficient. It has further been found that due to unavailability of data, business enterprises failed to consistently and convincingly provide data pertaining to the costs of EMS adoption. Inefficient strategies in cutting down consumption of research variables are concluded to have led to minimal savings and revenue accruing to the enterprises. This is observed to be a result of the following factors: not undertaking some research ahead of any action to shed light on the nature and magnitude of responsive measures required for specific problem areas; costly EMS technology and infrastructure; lack of innovativeness in exhausting the full potential value of the research variables; poor EMS practice etc. Failure to provide data by enterprises is observed to be a result of little value, which enterprises attached to information storage and documentation as well as environmental accounting system, yet they are such crucial components of EMS. This has therefore made impossible to weigh gains against costs to establish whether business enterprises are gaining or losing in their EMS projects. On the basis of the observed shortcomings, enterprises are advised to have in place a comprehensive EMS database and to conduct some research ahead of any responsive action. The South African government is recommended to intervene by providing an enabling environment for EMS by implementing EMS supporting policies and promoting awareness campaigns. Furthermore, research into the observed problem areas has been recommended in order to get to the bottom of EMS problems in South Africa.
Description
Student Number: 0308601G School of Civil Engineering Faculty of Engineering and the Built Environment
Keywords
Environmental management systems, environmental performance, economic performance, efficient of resources, sustainable development, design for environment
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