ESG environmental practices in family firms: a case study from Poland and Germany

Abstract

The aim of this article is to examine how family firms in Poland and Germany engage in ESG environmental practices and how the institutional and cultural context shapes these behaviours. The study uses a mixed-method design consisting of a questionnaire survey of 73 family firms and 18 semi-structured interviews with owners and managers, thereby combining breadth of comparison with in-depth qualitative insight into the motivations behind environmental engagement. Environmental initiatives include, among others, improving energy efficiency, waste and resource management, and reducing emissions, which affect operating costs, access to financing, and exposure to regulatory risk. The results of the study show that Polish family firms tend to base their environmental practices on community and value-based logic, while German companies embed them more strongly in formal ESG strategies and regulatory compliance. These differences translate into different patterns of local environmental initiatives and perceived economic benefits from such activities. The main limitation is the relatively small German sub-sample, which limits the possibility of statistical generalisations. The article contains practical implications for adapting environmental policy instruments to the needs of family firms and adds value by combining the perspectives of ESG, environmental economics and family business.