Technological innovations are critical for businesses to sustain a competitive advantage in an increasingly competitive globalised environment. Amongst other advances, Industry 4.0 (I4.0) technologies are having a growing impact on society; they have become a significant part of family business resources to create more sustainable environments and exploit new opportunities. However, few studies have analysed the impacts of I4.0 on responsible environmental management and society in the context of a family business. To take a step toward filling this gap, this study has employed a system dynamics model to evaluate the impacts of I4.0 on the clean production processes of family businesses in an emerging economy and to describe I4.0 practices on determinants of ethical behaviour and environmental management. Implementation is conducted in the packaging sector to analyse the impacts of I4.0 on CO2 emissions, total packaging waste recovery and societal responsibilities on family businesses in Turkey. The results show that ethical business development contributes toward enhancing corporate social responsibility and environmental management systems in an I4.0 context. The findings can inform the efforts of managers, governments and decision-makers to analyse and manage the societal and environmental impacts of their activities to create a more sustainable environment for family businesses.