Identifying the Factors which Affect the Decision to Attain ISO 14000

Formally adopted in 1996 by the International Organization of Standardization, ISO 14000 represents a new voluntary international environmental standard which will likely be adopted by the vast majority of corporations. While the literature is clearly divided in its assessment of ISO 14000, an underlying common theme is that the decision to achieve ISO 14000 certification constitutes a major undertaking for most firms. Such an undertaking, it is argued, does not take place in a vacuum. Rather, it is a response to a number of factors or influences. However, no research to date has empirically identified these factors and explained how they can be leveraged into a competitive advantage. In this article, we use qualitative case studies to identify which factors affect the decision to attain ISO 14000 certification and we also explain how these factors can influence the level of success achieved during the certification process

A Model of the Decision to Achieve ISO 14000 Certification

The ISO 14000 certification standard is a relatively new development. Based on the highly successful ISO 9000 certification standard in quality, ISO 14000 is oriented towards environmental performance. Its major focus is on the structure, implementation and maintenance of the formal corporate environmental management information system. However, since its release, the ISO 14000 standard has generated a great deal of discussion. Its level and rate of acceptance has not mirrored the rate previously observed for the ISO 9000 standards. In the United States, some firms have announced that they have no interest in being ISO 14000 certified, while others have committed themselves to this standard. To resolve the apparent paradox, this paper attempts to identify the determinants of ISO 14000 adoption, and why those determinants are important. Based on a survey sample consisting of some 1500 respondents, the paper also presents some initial findings

Why be first if it doesn’t pay? The case of early adopters of C-TPAT supply chain security certification

Purpose The purpose of this paper is to focus on adoption of certified management standards, specifically public standards. Such standards play an increasingly important role in today’s business environment. However, to generate adoption benefits, they must be first widely accepted – a situation where they have become viewed as the de facto norms. For this state to occur early adopters play a critical role. Past research has argued that early adopters, in exchange for assuming more risk, are rewarded with higher economic returns. Yet, these findings are based on private, not public standards. With public standards, early adopters do not receive such benefits. There is evidence that public standards are becoming more important. This situation leads to a simple but important question addressed in this study – if early adopters assume the risks of embracing a new public standard without economic benefits, then what is their motivation? To resolve this question, this study draws on agency theory and prospect theory. The authors argue that early adopters embrace such standards because of their desire to minimize risk resulting from failure to support the goal at the heart of the public standards. Design/methodology/approach Data were obtained from the Customs-Trade Partnership Against Terrorism (C-TPAT) Partners Cost Benefit Survey and analyzed through structural equation modeling. Findings Early adopters of public standards are not driven by economic benefits but rather by the need to minimize their exposure to the risks associated with failing to satisfy the goals associated with a public standard. In other words, they were motivated by the need to minimize costs. In the case of C-TPAT, these costs are those of failing to provide or improve network security. Research limitations/implications This study has shed new light on the standards adoption process by clarifying the specific motivations that drive early adoption of a public standard. In addition to identifying the loss aversion motives of early adopters and economic benefit motives of later adopters, the authors have also elaborated on the notion that standards have differing levels of precedence, particularly when comparing private with public standards. Practical implications In a world characterized by increasing demands for outcomes such as improved security and where governmental funding is falling, due to growing deficits and governments that are becoming more conservative, the authors expect the use of public standards to increase. Originality/value Different from prior research on private standard, the paper focuses on the organizations involved in the adoption and diffusion of a public standard, with special attention being devoted to the early adopters. The paper provides a theoretical explanation for the actions of early adopters of a public standard through the theoretical lens of prospect theory

Identifying the factors which affect the decision to attain ISO 14000

Formally adopted in 1996 by the International Organization of Standardization, ISO 14000 represents a new voluntary international environmental standard, which will likely be adopted by the vast majority of corporations. Its major focus is on the structure, implementation, and maintenance of a formal environmental management system. While the literature is clearly divided in its assessment of ISO 14000, an underlying common theme is that the decision to achieve ISO 14000 certification constitutes a major undertaking for most firms. Such an undertaking, it is argued, does not take place in a vacuum. Rather, it is a response to a number of factors or influences. However, no research to date has empirically identified these factors and explained how they can be leveraged into a competitive advantage. In this article, we use qualitative case studies to identify which factors affect the decision to attain ISO 14000 certification and we also explain how these factors can influence the level of success achieved during the certification process. © 2004 Elsevier Ltd. All rights reserved

How Does Management View Environmentally Responsible Manufacturing? An Empirical Study

This study focuses on assessing management's perceptions of Environmentally Responsible Manufacturing and the Environmental Management System (EMS) - the formal corporate system often held responsible for implementing ERM. This focus on management is needed given the importance of management support to any corporate-wide undertaking. The findings show that under certain conditions, which are widely applicable, there is a general lack of agreement between the various managerial levels about the EMS and its effects. Furthermore, top management, in several cases, does not have a very positive view of EMS and ERM. The result is the emergence of a potential obstacle to the widespread acceptance of ERM and EMS.</p

Identifying the Factors which Affect the Decision to Attain ISO 14000

Formally adopted in 1996 by the International Organization of Standardization, ISO 14000 represents a new voluntary international environmental standard which will likely be adopted by the vast majority of corporations. While the literature is clearly divided in its assessment of ISO 14000, an underlying common theme is that the decision to achieve ISO 14000 certification constitutes a major undertaking for most firms. Such an undertaking, it is argued, does not take place in a vacuum. Rather, it is a response to a number of factors or influences. However, no research to date has empirically identified these factors and explained how they can be leveraged into a competitive advantage. In this article, we use qualitative case studies to identify which factors affect the decision to attain ISO 14000 certification and we also explain how these factors can influence the level of success achieved during the certification process.</p