External factors influencing the environmental performance of South African firms

Abstract

This article reviews the external factors that influence environmental performance of companies in South Africa, drawing on international and local literature. After considering factors within the natural, social, economic and institutional environments, the article develops a typology for predicting the environmental performance of the business sector. This model is then applied to the South African context to identify positive and negative influences on environmental behaviour. The analysis indicates that, of the 18 factors identified, only five are currently promoting good performance. A further seven factors, however, are likely to show gradual improvement as a result of government policies in the economic, social and environmental arenas. Issues raised for consideration by policy makers include: the integration of financial, industrial and education policies with environmental initiatives: the pricing of minerals, electricity, and disposal of waste into the air and sea; and improved enforcement of environmental legislation.