ABSTRACT
Much literature on CSR suggests that formal management tools to manage environmental impacts, such as environmental reporting or ISO 14001 certification, are not suitable for SMEs. Other studies, however, argue that using some form of formalization helps SMEs to improve environmental management. Chapter 2 studies empirically the effects of relatively simple formal management tools in the form of SMEs using targets for environmental impacts. The test results show ample support for a positive impact of target setting on environmental outcomes. Since only 25% of SMEs use targets, there is scope for substantial improvement in environmental impacts if all SMEs were to implement this relatively simple process step.
