ISO 14001 has engaged with all industries, international firms and governments around the world and outlines to assist the organizations to reduce the impact of operation towards environment as well as to construct a systematic managing process to improve environmental performance. The main objectives that can be derived from this study is to identify the challenges in implementing ISO 14001 and to identify the benefits of ISO 14001 standards implementation as well as to analyse the critical success factors of ISO 14001 execution in Pulau Pinang using analytic hierarchy process (AHP). Besides that, increase in bureaucracy and demand for more and unneeded certification has made the organization to consider about the EMS execution. The sampling method used in this research was a purposive sampling which based on objective of study. The survey was conducted by distributing the questionnaire to all the 13 companies that certify with the ISO 14001 standards in Pulau Pinang. An empirical study using the analytic hierarchy process (AHP) was carried out to find the relative weights and priorities of these critical success factors and benefits. The findings of the study indicate that the critical success factors in the order of importance are as follows management approach (0.2694), organizational change (0.2477), external and social aspects (0.2457) and technical aspects (0.2373). The findings of this empirical study specify which elements an organization should ponder for effective execution of ISO 14001. The research model proposed in this study offers methodology to analyse and recognize the critical success factor and the advantages due to ISO 14001 execution. Even though the study was done in manufacturing and electronics sector in Pulau Pinang but the proposed research model can be utilized in other sector as well
