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.     

A MODEL OF SITE‐SPECIFIC ANTECEDENTS OF ISO 14001 CERTIFICATION

ISO 14001 constitutes a major dilemma for many American firms. This new standard holds the promise of waste reduction and better process management, but the benefits and costs are very difficult to predict. This study attempts to identify and explain antecedents impacting the decision to pursue certification for some of the first plants certified in the United States. Using data from a large survey of U.S. managers and a Logit analysis, we find the factors influencing management decisions to actively pursue ISO 14001 certification to be distinctly different from those factors influencing management's decision not to pursue certification. For the latter, the decision is economically based; for the former, it is driven by other, more qualitative considerations.     

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.     

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.     

STAKEHOLDERS AND COMPETITIVE ADVANTAGE: THE CASE OF ISO 14001

This paper integrates a stakeholder perspective into the resource‐based view of the firm, to analyze the mechanisms that link the adoption of the international Environmental Management Standard ISO 14001 to firms' competitive advantage. This paper shows that the perceived competitiveness impact of the standard depends mostly on the involvement of firms' external stakeholders (distributors, customers, community members, and regulatory agencies) in its design. ISO 14001 is a process standard, and it is difficult for stakeholders to get credible information on the effectiveness of the standard if they are not involved in its design. Stakeholders' involvement in a firm's ISO 14001 standard becomes a valuable organizational capability, which is difficult to imitate by competitors. The analysis is supported by primary data collected from a questionnaire mailed to 152 firms, resulting in 55 observations representing 30% of the total number of firms certified in the U.S. in August 1998.     

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.     

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.     

Adoption and Outcomes of ISO 14001: A Systematic Review

The objective of this paper is to analyze the adoption and outcomes of the ISO 14001 standard through a systematic review of the main studies on this issue published in peer‐reviewed journals between 1996 and 2015. The 94 papers analyzed make it possible to paint a comprehensive picture of the effectiveness of ISO 14001 in environmental management practices, performance in this area and social aspects such as employee awareness. The systematic review also sheds more light on the main pitfalls and success factors of the standard. Nevertheless, the similarities and even redundancies of the literature in terms of objectives, approaches and methods used tend to produce quite predictable and optimistic results, which do not reflect the complexity of the impact of ISO 14001. The paper highlights the importance of more diverse and critical approaches that might challenge the successful rhetoric of the dominant literature, which tends to focus on positive aspects and be limited to a few countries that are not representative of the wide international distribution of certification. The findings of this systematic review can also help managers in making decisions on the adoption and renewal of certification.     

Sustainability in the Construction Business — A Case Study

Skanska is among the world's five largest construction companies, with construction-related activities and project development operations in some 60 countries. A strategic approach to environment was adopted in 1995. In 1998 a decision was made to introduce certified environmental management systems. The drivers behind these steps were pressures from the market, future legislation and public opinion.By the end of 2000, all business units of Skanska had environmental management systems certified according to ISO 14001. Newly acquired companies are required to have certified systems within two years after acquisition. While environmental management systems provide the necessary framework, more technical tools are also needed. Some examples of such tools are presented in this article.ISO 14001 is an important element in focusing the attention of the organization on environmental issues, but for leadership in environment, a number of guiding principles are also presented and discussed.Finally, corporate social responsibility (CSR) can be seen as a framework for all types of issues where a company is regarded as having certain obligations toward society at large, because of direct or indirect effects from its business operations. It is only logical that Skanska, following its work with ISO 14001 and the move toward leadership in environment, now has decided to develop a CSR platform.     

Manufacturing management strategies for environmental protection: Toward the environmental upgrading of management and manufacturing systems to cope with environmental laws

Recent environmental problems have been caused by business activities and a lifestyle based on mass production, mass consumption and mass disposal. These problems have also become global in scale. Increasingly, global efforts are being applied to preserve and improve the environment. NEC, a worldwide electronics manufacturer, created its own environment action plan called Eco-Action 21. This is a continuously evolving plan applied throughout the NEC group and subsidiaries. Globally, 34 NEC manufacturing sites have received ISO 14001 certification. NEC Tohoku in Japan and NEC Ireland obtained BS 7750 certification even before this. NEC improves subcontractors' environmental behaviour with our accumulated expertize and technology derived from our ISO experience and our own development. Input for this paper was not only from NEC Tohoku and the NEC group, but also from outside NEC.     

Learning and innovation in the context of process-focused management practices: The case of an environmental management system

Adoption of process-focused management practices has been associated with inertia and rigidity in adopting firms. By drawing on the literature on routines and using survey data from 192 ISO 14001 certified facilities in the United States, I find that change catalysis or a deep form of learning which presents the opportunity for innovation can happen in this context. I also examine the internal and external determinants of change catalysis. By doing so I contribute to a better understanding of how process-focused management practices can be a source of innovation within firms.     

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.     

ISO 14001 Certification in Zimbabwe: Experiences, Problems and Prospects

The quest for sustainable development has become paramount, whereby there is a need to satisfy the needs of today without compromising the needs of tomorrow, with the aim of improving the quality of life now and in future. Environmental management systems need to be integrated into the overall management framework in order for society to develop in a sustainable manner. ISO 14001 has the effective elements for such an environmental management system. It is systematically structured, effective and verifiable. This paper examines the implementation of ISO 14001 in Zimbabwe, and the responses from various organisations to standardisation. The environmental laws in Zimbabwe, and the need to improve their enforcement, are discussed. A role for computers in environmental management in Zimbabwe is suggested, as well as driving forces for better environmental management and solutions to overcome the main constraints to ISO 14001 certification.     

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.     

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.     

Greening the health care supply chain: Triggers of change,models for success

A historic agreement signed in July 1998 between the American Hospital Association (AHA) and the U.S. Environmental Protection Agency (EPA) signals changes in waste management in the health care industry. The agreement, which calls for a fifty percent reduction of hospital waste by 2010, will not only have an impact on hospital facility managers, but throughout the entire healthcare supply chain. As this article argues, improving the environmental impact of the health care industry should start with the health care delivery institutions themselves. The health care industry has a long way to go in addressing its environmental impacts, compared to the energy and chemical industries, for example. One reason is that these industries are raising their suppliers' environmental performance. Health care delivery institutions can effectively pull environmental performance requirements through the entire supply chain as well. This can be accomplished by examining supply chain strategies of leading industries and firms and considering the role of environmental management systems such as a ISO 14001 throughout the entire chain.     

Cost of quality reporting: Some Australian evidence

The study explored the quality management practices, specifically addressing cost of quality reporting, of Australian manufacturers certified to AS/NZS ISO 9000. The findings suggest that firms have responded to the demands of the new manufacturing environment and have implemented quality management initiatives in an effort to gain a competitive advantage in the marketplace. The minority of respondents prepared cost of quality reports. For those firms reporting quality costs, the motivation was to identify high-cost problem areas. Firms not reporting quality costs cited lack of management support and the belief that quality was part of the firm's culture.