INTERNATIONAL DIFFUSION OF ISO 14000 CERTIFICATION

The ISO 9000 series of quality management systems standards and the more recent ISO 14000 environmental management systems standards have generated much controversy among practitioners. Although ISO 9000 has become a de facto requirement for many firms, its effects are poorly understood, and similarly the value and domain of applicability of ISO 14000 have been questioned. This paper reports on an exploratory study into the global spread of ISO 14000. We interviewed practitioners worldwide to identify factors that they believe explain differences between national ISO 14000 certification counts. We then collected quantititive data for these factors and, using regression analysis, we found that exports, environmental attitudes (combined with economic development), and ISO 9000 certification count were significant. The fact that ISO 9000 appears as an important factor explaining diffusion of ISO 14000 certifications suggests that the drivers behind the two have significant overlap. This indicates that, although ISO 14000 is an environmental standard, many of the factors driving national certification patterns are not at all environmental in nature, and that ISO 14000 therefore needs to be studied from a broader perspective than from a purely environmental point of view.     

Does family matter? Ownership,motives and firms’ environmental strategy

Extant research has primarily focused on the economic drivers and outcomes of corporate environmental performance. This trajectory oversimplifies the motives for environmental strategies across all firm types and particularly overlooks how firm ownership presents other motives for environmental strategies. In this study, we leverage institutional theory to examine how family motives, underpinned by family members' desire to gain or preserve family legitimacy and socio-emotional wealth, affect ISO 14001 certification. Using firm-level data, we find that family ownership has a positive effect on ISO 14001 certification. This effect is stronger for firms whose names include the family name and also for firms located closer to large cities. Our study contributes to nonmarket strategy literature by showing that family motives underpin firms’ environmental initiatives. It also contributes to institutional theory by delineating the levels of legitimacy that spur nonmarket strategy in family firms.     

Deciding on ISO 14001: Economics, Institutions, and Context

ISO 14001 is an international standard for environmental management systems that was introduced in September 1996. It has gained wide recognition among businesses, much like its sister standard on quality management systems, ISO 9000. As a result, managers in almost every organization will evaluate whether the organization should become ISO 14001 certified. However, most analyses of ISO 14001 that are intended to guide managers in their evaluation have focused on the merits of ISO 14001, such as improved competitiveness, management control, and regulatory compliance. Very few articles provide a balanced picture of the costs and benefits of ISO 14001—including the conditions under which adoption will be most effective. This article redresses this gap by providing an analysis of not only why firms may choose to certify based on economic and institutional considerations, but also, when certification might be appropriate based on the firm’s context.In 1998, the Jutras division of Meridian Magnesium Inc., which manufactures magnesium automotive parts, reported that it saved almost $2 million soon after its $45,000 investment on an ISO 14001 certified environmental management system (EMS).¹ The company reduced its use of electricity, natural gas, and lubricants, while producing less solid waste and contaminated water. These were not just one-time savings; they were expected to continue into perpetuity. Not all their ISO 14001 projects were winners, however. Jutras implemented ten projects for their EMS in the first year with an initial goal of saving over $460,000 in costs. Four of the projects did not result in any savings and one had disappointing but positive results. The remaining projects, however, provided larger than expected returns. The cost savings increased the competitiveness of a firm that prides itself on being the low cost leader in an increasingly competitive automotive parts industry. The benefits to the environment were a bonus. And there was yet another bonus from ISO 14001 that had not been anticipated: the preference for ISO certified suppliers by its key customers, Ford and General Motors, and the social legitimacy earned from stakeholders pressuring for greener business practices. The company now posts its ISO 14001 certification on its web site as one of its main achievements.Although this type of vignette presents ISO 14001 in a positive light, not all firms have embraced the standard with enthusiasm. While over 22,000 facilities in 98 countries were ISO 14001 certified by December 31, 2000, many firms had decided to delay certification or reject it altogether.² The significant financial rewards realized by the Jutras Division of Meridian Magnesium have not been perceived by many of its peers, even though most analyses of ISO 14001 attempt to convince the reader that such a system is of significant strategic importance and a panacea of opportunity. Writers typically tout the potential for lower costs, increased competitiveness, market share growth, higher profits, and regulatory compliance, such as those experienced by Meridian Magnesium.³The costs of ISO 14001, however, are not trivial. Managers need to undertake a careful analysis of the relevance of ISO 14001 to their firm before they decide to jump on the ISO 14001 bandwagon. While managers can estimate the direct costs of certification with the help of good internal cost accounting, evaluating the intangible costs and benefits and the indirect impacts on the firm’s performance is more difficult. In this article, we provide background perspectives and evaluation criteria for those aspects of ISO 14001 certification, looking specifically at the marginal benefit of ISO 14001 certification over an in-house EMS. This article, then, identifies why firms may certify and in which contexts, based on economic and institutional considerations. Armed with relevant decision-making criteria, we present managers with an analytical tool to assist them in determining if ISO 14001 is appropriate for their firm.The insights provided here build on three studies:

1.

an investigation of the motivations of environmental responsiveness by interviewing members of 53 firms in the UK and Japan;⁴

2.

an investigation of the factors that influence the adoption of ISO 14001 based on a statistical analysis of 46 matched pairs of certified and non-certified firms and interviews with members of six firms in the US;⁵ and

3.

an investigation of the contexts that explain adoption based on interviews with 16 pulp and paper companies in Canada.⁶

Details of these studies are provided in text boxes later in this paper. While these studies form the foundation of this paper, many of the anecdotes provided here are based on published sources because the interviewees were promised complete confidentiality.     

Response to “Revisiting ISO 14000 Diffusion: A New ”Look“ at the Drivers of Certification”

In Corbett and Kirsch (2001), we used a simple regression in an exploratory investigation of drivers of global diffusion of ISO 14000 certification. We found that ISO 9000 certification levels, environmental treaties ratified, and exports as a proportion of GDP were the main significant variables, where the environmental measure may be moderated by GDP per capita. In his replication study, Vastag (2004, in this issue) analyzes the same data using more visual techniques, specifically regression trees, and finds support for the significance of ISO 9000 certification levels and environmental treaties ratified, but not for export‐propensity. Vastag raises a number of relevant methodological issues, to which we add some perspectives here.     

The Influence of ISO 9000 Certification on Process Compliance

This article examines the influence of ISO 9000 certification on plant‐level process compliance, which arguably is its first‐order, targeted performance dimension. The empirical setting is the medical device manufacturing industry. Process compliance is measured through Food and Drug Administration inspections of manufacturing plants. We control for several observable factors that possibly affect process compliance by matching certified plants with non‐certified plants. Using longitudinal data, we find plants that obtained certification in the earlier diffusion period (early‐certified plants) tend to have significantly better process compliance than a matched, non‐certified control group of plants. The compliance difference between early‐certified plants and their matched control group is greater than the compliance difference between late‐certified plants and their matched control group. We also find deterioration in process compliance over time after certification. Because we capture longitudinally the first‐order effects of ISO 9000 on process compliance, this study provides a useful baseline for assessing causality in ISO 9000‐performance linkages. Also, we explain, in part, the inconsistencies observed in related ISO 9000 literature examining the performance effects of certification. Further, this research offers managerial insights on the dynamics of certification and process compliance with time, and highlights the need for continued vigilance post certification.     

An Analysis of the Relationship between Environmental Motivations and ISO14001 Certification

The objectives of this paper are both to identify the environmental motivations associated with the decision to initiate the process for ISO14001 certification and to check whether such motivations undergo any changes once the company obtains its certification and experiences the actual effects of this process. Based on the work of Bansal and Roth, we distinguish between ethical, competitive and relational motivations, and compare the importance of these motivations in four company stages with respect to the ISO14001 certification: not considered, considered, in process and awarded. This comparison was performed through a logit analysis applied over the data supplied by 184 Spanish manufacturers from three different industrial sectors. It was concluded that the decision to pursue the ISO14001 certification responds to ethical and competitive motivations, and that once the company gets its certification, the company portfolio of environmental motivations does not change significantly.     

Why are manufacturing SMEs cancelling their ISO 9001 certification? Research from Italy

We investigated why Italian manufacturing small and medium-sized enterprise (SMEs) cancelled ISO 9001 certification from the Italian database and the problems and difficulties that led to this. Eight such problems derived from a literature review and interviews with a Delphi panel of 20 experts were tested through an online questionnaire. The questionnaire was completed by 167 managers from Italian SMEs that have cancelled their ISO 9001 certification. Costs related to consultancy and certification body are no longer a difficulty for maintaining ISO 9001 and neither are misinterpretations with the external auditors or paperwork. Internal audits are considered a problem when they are not managed with the aim of measuring performances. Staff can represent a cost when just dedicated to administrative and bureaucratic activities. The more relevant difficulties were top management commitment, measurability of performances and customers’ current lack of interest in ISO 9001. Respondents’ comments also provided interesting suggestions for practitioners such as quality managers and quality consultants to avoid mistakes while maintaining ISO 9001 certification.     

American and European ISO 14001 accreditation requirements and their influences on registrar practice and environmental performance

In order to insure that ISO 14001 is audited consistently across the world, the International Standards Organization (ISO) has created ISO 66, a standard that accreditation bodies use to assess registrars with. However, there are international differences in interpretation of this standard, particularly between the United States and Europe. This paper highlights these differences and their implications to registrar practices and organizational environmental performance.A careful analysis of the requirements by the International Accreditation Forum (IAF) Guidance to ISO 66, the Dutch council for Accreditation (RvA), and the American National Standards Institute-Registrar Accreditation Body (ANSI-RAB) uncovered significant differences in registrar requirements. It is concluded that these differences may be responsible for the variability found in registrar practices. Which, in turn, may have influenced the level of environmental performance characteristics exhibited by their ISO 14001 certified companies. Broad differences in accreditation requirements ultimately leads to a loss of credibility for the ISO 14001 certification, thus losing a potentially effective tool for encouraging volunteer efforts towards environmental responsibility and sustainability.     

Implementing ISO 14001—An International Survey Assessing the Benefits of Certification

The costs and benefits of ISO 14001 certification result in firms choosing this route as a tool for proactive environmental management, according to a survey of 131 companies across the world. The following paper examines the motivation to pursue ISO 14001 certification for companies in developed and developing countries. While the costs of ISO 14001 certification vary widely, almost all respondents report substantial cost savings as a result of implementation. This was especially the case in developing countries, where enthusiasm about the standard (among certified firms) is very high. Contrary to the concerns voiced by skeptics, many firms stated that they decided to implement an ISO 14001 in order to “be a good neighbor” and to raise their employee's level of environmental awareness. Surprisingly, very few respondents stated that their primary motivations for implementation were profit-related. The majority of firms appear to be using ISO 14001 as a tool for proactive environmental management, as its creators intended.     

An integrated framework of mimetic pressures,quality and environmental management,and firm performances

Abstract

Manufacturers have extensively recognised the strategic importance of quality and environmental management. However, there is little guidance on how they adopt and exercise both management practices in a way that enhances firms’ performance outcomes. To fill the research gap, this paper empirically investigates the relationships among mimetic pressures, a firm’s quality management practices (QMPs), environmental management system (EMS), and environmental and financial performances. By using a data set collected from 212?U.S. manufacturing firms, this study examines the proposed hypotheses. Our major findings are: first, mimetic pressures are a driving factor for EMS but do not motivate the adoption of QMPs; second, QMPs are an important enabler not only for enhancing firms’ financial performance but also for promoting EMS and environmental performance; and finally, EMS does not influence firms’ financial performance directly, but indirectly does so through enhancing environmental performance. This study contributes to the literature of quality and environmental management and provides practical implications by addressing motivating factors of both QMPs and EMS, and identifying factors for successful environmental management practices.     

The Financial Impact of FSC Certification in the United States: A Contingency Perspective

This article focuses on an important and emergent standard for sustainable operations management: the Forest Stewardship Council (FSC) certification. Unlike similar certifications, its focus is on the entire upstream supply chain, reflecting the criticality of supply chain management to ensure sustainable products. We investigate the financial impact from FSC certification, offering valuable decision support for managers considering this certification. Taking a contingency perspective, we view a firm's supply chain position and its prior certification to the ISO 14001 standard as influencing the results. Drawing on signaling theory, we suggest that firms farther downstream in the supply chain realize significantly greater abnormal financial performance benefits than firms upstream in the supply chain. We further hypothesize that firms that were not ISO 14001 certified at the time of FSC certification realize significantly greater abnormal financial performance benefits than firms that did have the ISO 14001 certification. To test these hypotheses, we utilize financial data of all publicly traded firms in the United States that have obtained the FSC certification, and assess whether FSC certification leads to abnormal performance benefits considering the above contingencies. Data collected from the FSC Certificate Database and Compustat, employed in an event study, provide support for our hypotheses. Overall, our findings contribute to research on decision making in the context of sustainable operations management, and offer a plausible explanation for contradictory results in prior studies. We highlight the applicability of signaling theory to decision sciences research, and stress the need to consider contingencies in sustainability management research.     

A structural analysis of greening the supplier,environmental performance and competitive advantage

A clear research need has been identified to confirm the structural relationships between greening the supplier, enhanced environmental performance and improved competitive advantage, to provide an impetus for firms to green their suppliers. A mail survey was conducted and empirical data of 119 ISO 14001 manufacturing firms in Malaysia was gathered for this study. Structural equation modelling technique was applied in this research article. Results from the analysis, reveal the existence of a positive and significant linkage between green suppliers with both environmental performance and competitive advantage. At the same time, environmental performance has also been shown to positively and significantly affect competitive advantage; while environmental performance plays a partial mediating role between greening the supplier and competitiveness. Such significant finding is especially essential for the manufacturing sector registered with ISO 14001 who intend to enhance their environmental performance and carve a niche competitive edge in the business arena.     

Relations between environmental problems,psychology and health among shift-workers in the Norwegian process industry

Abstract

A group of 89 male shift-workers, mean age 38 years, was examined for health complaints, subjective experience of their work environment, psychological defence strategies, and immunological factors. They worked in a process industry, controlling a complex chemical process partly by instruments and partly by direct checking of mechanical devices such as valves. Shifts were eight hours long and changed every second week.

The main problem areas identified were problems with the management, colleagues and superiors, feelings of being under-valued, time pressure, fear of making mistakes, and lack of influence and communication. The main health complaints were sleep disturbance and gastro-intestinal problems. Shift workers also complained about allergies, breathing difficulties, tension, anxiety and depression. There were no pathological levels of plasma immunoglobulins (Ig) or Ig complements. However, levels did correlate with experience of work-related problems and with measures of defence mechanisms. Up to 25% of the variance in die immunological indicators was explained by a combination of defence mechanism scores and those of perceived health and work problems. This suggests that immunoglobulins may be an indicator of work-related health risks (‘stress’), even if the level of explained variance is too low to use immunoglobulins alone as a ‘marker’. The same variables, and immunoglobulins, also related significantly to perceived health. This may be a particularly important indicator, and when combined with immunology and psychological variables, also as a risk factor for organic disease.     

Taipei,Taiwan: A transformational learning event: Reflecting on the 4th Asian Conference of Academy of Human Resource Development

Abstract

The 4th Asian Conference of the Academy of Human Resource Development held in Taipei, Taiwan, nurtured new learning, networking and international integration. As we reflected upon the experience in Taiwan, the realization was evident that we now view the world from a global perspective. We no longer look at the world through our own country's lenses. Through participation in this transformational learning event, the way we see the world and ourselves has changed as well as enriched our HRD knowledge.     

An examination of the ISO 9001:2000 standard and its influence on the integration of management systems

Abstract

Analysis of the literature and examination of the various models of integration and testing in the field, have revealed five key issues relating to management system integration. This paper examines the recently published ISO 9001 : 2000 quality management system standard to see how it addresses these issues, under the headings of compatibility, scope and organizational culture. The examination reveals that while compatibility with the ISO 14001 and OHSAS 18001 standards has been improved in some areas, a different approach and model of a management system has been used. The paper suggests that differences in the scope of the standards are also likely to give rise to different sub-cultures which will hinder integration, and scope and culture are more important than compatibility. This leads the authors to conclude that new models of integration should be based on an approach and definitions which can be used in any management system, as well as an integrated one. Models of an integrated management system should also emphasize the need for no significant differences in the scope of the integrated systems, and a strong culture which supports the main requirements of TQM.     

Evaluating the impact of lean practices on environmental performance: evidences from five manufacturing companies

Abstract

Previous evidence suggests that lean practices help organizations to enhance environmental performance. However, the impact of lean practices on the environment is still unclear. This study, therefore, aims to analyse the relationship between lean and environmental performance in two main stages: first, a review of the relevant literature was developed, followed by a multiple case study analysis conducted in five manufacturing companies. Onsite data were collected from the firms during a 5 years’ time span of research and developing semi-structured interviews. Findings indicate that the environmental performance of the companies analysed is generally enhanced in the long-term after the implementation of lean. Moreover, the results suggest that the environmental performance of the firms investigated is mainly improved by using JIT and TQM practices in a lean transformation context. The research findings provide further results remarking the possible negative impact of Kanban deliveries, 5S and TPM on various environmental performance indicators.     

The adoption of multiple certification standards: perceived performance implications of quality,environmental and health & safety certifications

This study assesses the combined impact of multiple certifications (i.e. ISO 9001, ISO 14001, OHSAS 18001) on perceived performance dimensions related to quality, environmental and occupational health and safety. Using survey data collected from 59 Irish manufacturing plants in 2014, we employed MANCOVA and regression analysis to test our proposed hypothesis. The results suggest that companies that are simultaneously ISO 9001, ISO 14001 and OHSAS 18001 certified are significantly better performers with regard to environmental and occupational health and safety compared to companies without multiple certifications. However, from a perceived quality performance perspective, having these multiple certifications doesn’t seem to be an effective performance improvement tool.     

Supply chain agility as an acclimatisation process to environmental uncertainty and organisational vulnerabilities: insights from British SMEs

Abstract

Even though supply chain agility (SCA) has been considered an essential concept in supply chain management (SCM) research, the way it is experienced and manifested, especially by small and medium-sized enterprises (SMEs), has received much less attention. Our purpose is to focus on SME organisational vulnerabilities in the context of increased environmental uncertainty, and explore how SCA is developed and applied by SMEs amid their vulnerabilities. By relying on insights from comparative case studies of three British SMEs, we examine SME SCA as an acclimatisation process and delve into SMEs’ experiences of facing environmental uncertainty while developing and applying SCA. Our findings highlight that organisational attitudes underlie how SMEs perceive environmental uncertainty, tackle organisational vulnerabilities and develop SCA as an acclimatisation process. Our findings also reveal that resource constraints, supply chain relationships, interorganisational power dynamics, and access to information play important roles in developing SCA.     

A high-quality-supplier selection model for supply chain management and ISO 9001 system

Supplier selection process for supply chain management (SCM) and ISO 9001 quality management system environments is considered. Determining suitable suppliers in the supply chain has become a key strategic consideration. However, the nature of these decisions is usually complex and unstructured. This paper proposes a high-quality-supplier selection (HQSS) model to deal with supplier selection problems in supply chain management. In selecting a supplier, quality management factors are considered first, and then price, delivery, etc. Quality management factors include a quality management audit, product testing, engineering work force, capability index, training time, etc., based on a five-interval scale. Next, the HQSS model determines the final solution by considering factors such as price, production lead-time, and delivery time.     

Municipal Budget Management and the Generation of Urban Sprawl. A Case Study of the Lombardy Region (Italy)

ABSTRACT

The paper describes one of the Italian sprawl drivers: the circle triggered by the use of urban charges to solve budget problems. From 2005 to 2018, Italian municipalities could use urban charges to solve normal budget problems: they could plan new urban areas to provide new urban charges, new building and services, and they could manage old and new services at the expense of normal budget. The planning of unnecessary urban areas was effectively influenced by budget problems. The paper illustrates this issue during a period without open data sources in order to improve land management and environmental sustainability.