Using risk assessment mechanisms to regulate legislative compliance in SMEs

Wilson, C. D. H, Williams, I. D. and Kemp, S. (2008) Using risk assessment mechanisms to regulate legislative compliance in SMEs. Waste 2008- Waste and Resource Management – A shared responsibility, Stratford-upon-Avon, UK. 15 - 16 Sep 2008. pp. 137-148 .

Record type: Conference or Workshop Item (Paper)

Abstract

Legal compliance and ‘better regulation’ have been the focus of a considerable amount of recent Government initiatives. Hampton (2005) suggested that part of the solution is to regulate business using a risk-based system- a system which is already used by the Environment Agency in England and Wales.
The system has obvious flaws, aside from the fact that many industries and in particular many SMEs are not included under this permitting regime. Evidence suggests that approximately 80% of environmental incidents are caused by SMEs; however, many are not audited for compliance with any environmental legislation and thus non-compliances go unpunished.
Roger (2007) explains that this is further compounded by a lack of resources for local authorities to enforce the ‘less hazardous’ activities in SMEs resulting in them only having the ability to respond to complaints. This paper evaluates the current risk-based approach to regulating compliance. It examines SMEs’ current compliance levels and identifies future strategies for the improvement of environmental compliance control systems for SMEs.

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