Environmental management system
EXECUTIVE SUMMARY
The project is about the Company and stakeholder viewpoint into the production resource viewpoint of the firm to examine the technique that makes the adoption of the ISO 14001, the international environmental management standard to individual competitive advantage. It helps the external stakeholder (customers, distributors, regulatory agencies, and community members). There are many industries, public bodies, service organizations and companies who are adopting the ISO 14001 to improve the overall performance. The project throws a light to understand the benefits to adopting the act which helps the people directly and indirectly. It is a duty of an individual to protect the environment in every way.
TABLE OF CONTENTS:
Content
Executive summary……………………………………………………………………………………1
Introduction……………………………………………………………………………………………….3
ISO protect stakeholder……………………………………………………………………………..4
Impact on organization………………………………………………………………………………5
Impact on investors…………………………………………………………………………………….7
Impact on Saudi………………………………………………………………………………………….
INTRODUCTION
The ISO 14001 is issues by the International Organization for Standardization (ISO). This ISO 14001 was officially adopted in 1996. It is well known as “Sister” standard to ISO 9001, the quality control standard. The objective of the ISO 14001 is to create environmental management system to improve the environmental performance. It is bodywork for the companies or organizations to give rise to an approach to prevent pollution by constructing an environmental management system. The EMS is a layered process for the achievement of economic viability (Smith & Dubbink, 2011).
The ISO 14001 cannot completely provide solution to the global environmental issues, but it may help the organization to use the eco-friendly resources to prevent pollution. It helps the manager to take the managerial decision regarding environmental issues. ISO 14001 believes in sustainability which means meeting the needs of the present without compromising the needs of the future (Anderson, 2012).
The main elements of the Environmental management system are:
This EMS management cycle is the base or foundation of ISO standards. The companies must plan for the various alternatives to protect the environment. There are many alternatives available so company must check all of them and se as per the need of the environment. After checking all the alternatives, companies must act accordingly (Kimura, 2010).
ISO 14001 PROTECT STAKEHOLDERS
Stakeholders are the people and groups that have an appeal in your business. There are two types of stakeholder’s i.e. primary stakeholders and secondary stakeholders. Owner is the primary stakeholder. Customer, public utilities, distributors, business partners, suppliers and regulatory agencies are the examples of secondary stakeholder. Customer wants an owner to operate a business honestly to get involved completely (Smith & Dubbink, 2011).
ISO 14001 helps in strengthens the confidence of the stakeholders in few ways:
Reduce liability – With ISO 14001, the risk of liability and risk penalties are largely diminished.
Development -It helps in keeps ahead of regulatory development and legislation.
Long-term gain -This act provides more secure long tem gains or viability.
Minimize the waste – It helps the organization to get improved cost control by minimal waste, improved the image of the organization so that many customers can attract to take advantages of their unique products (Stock & Tatikonda, 2008).
Build confidence – It helps in strengthening the stakeholder’s involvement in a firm to maintain an organizational capability to get success which is difficult to imitate by their competitors (Saraph, 2009).
Position – It clearly describes the stakeholder’s position in the organization.
Awareness – It creates awareness among the both primary and secondary stakeholder to reduce the cost of the product by minimal wastage.
3’R approach – It uses 3’R approach i.e. reduce, recycle and reuse of the waste material to reduce the cost of the product as well as the potential to reduce taxes and insurance liability.
IMPACT ON ORGANISATION
With increasing public awareness of the need our society, business, environment and government are under the stress to environmental issues at their level to promote the sustainable development. EMS, which is known as Environmental Management System has been illuminated to help the organization to identify, control and manage the activities that lower the harmful effects of the organization.
Build stakeholder confidence – ISO 14001 reduces the uncertainty or risk of liability, keep ahead of regulatory developments and legislation. It brings down the environmental burden through options, reduction and elimination (Anderson, 2012).
Employee motivation and involvement – ISO 14001 shows the creativity, innovation and forward thinking way to customers and would be employees. This act clearly describes the role of employees and staff with clear methodologies to avoid chaos and delay.
Other benefits – ISO 14001 helps in improving the corporate image among the public, customers, and regulatory agencies (Kull TJ, Wacker).
Long-term gain – Environmental management system provides effective management, focus on environmental issues and introduce new things in controlled manner.
Operate in numerous locations – when an owner set up a business in multiple locations, ISO 14001 eliminates the process of registration at each place. These reduce the need of multiple certifications or registrations.
Reduction in waste – ISO 14001 helps saving in the overall consumptions of materials and energy. It helps in reduction of waste cost, and distribution cost. It helps in improving the corporate image among public, customer and regulatory bodies (Stock & Tatikonda, 2008).
IMPACT ON INVESTORS
Today, many companies have adopted the environmental management system. An environmental issue plays a vital role in the growth and success of the organization. If a person wants to invest in the company, one must want to know how the company is operating (Kull & Wacker, 2010). Today, government is very strict to the organization which is not working towards the goal of the environment. Investors want to invest only on that company who can give them maximum benefit. ISO 14001 helps the future investors in following ways:
ISO 14001 reduces diminishes the risk of liability (Kimura, 2010).
ISO 14001 keeps the track of companies if they follow all the environmental related policies or not (Perks and Levy, 2015).
It clearly describes the investor’s position in the organization.
It creates awareness among investor to reduce the cost of the product by minimal wastage (Saraph, 2009).
It uses 3’R approach i.e. reduce, recycle and reuse of the waste material to reduce the cost of the product as well as the potential to reduce taxes and insurance liability (Stock & Tatikonda, 2008).
ISO 14001 AFFECTING SAUDI ARABIA
There are the reports that main drivers behind the adoption of ISO 14001 in Saudi Arab companies are the corporate status, image and public welfare. There are barriers which hinders the adoption of the ISO 14001 in Saudi Arabia. The reasons behind the low certification of companies are:
There is Lack of government internal and external support
There is no pressure on stakeholders to adopt ISO 14001 act (Pugh, 2007).
There is huge amount to be spent on the official document process which resists the stakeholder’s to go for ISO 14001 (Ketokivi & Schroeder, 2004).
These are the main reasons behind the low certifies companies in the Saudi Arabia. It is a duty of a government to make some strategic plans to diminish the barriers to adopt ISO 14001. The ISO 14001 cannot completely provide solution to the global environmental issues, but it may help the organization to use the eco-friendly resources to prevent pollution. It helps the manager to take the managerial decision regarding environmental issues. The government of Saudi Arabia must develop some incentive plan, policy reforms and some schemes for the company who adopts ISO 14001. However, a current report says that ISO 14001 fits the Saudi Arabia economy very well.
So, government must take some serious steps and action to the welfare of the Saudi Arabia.
REFERENCES
Kimura, K. (2010). The Relationship of Responsible Care and Environmental Management Systems Standard ISO 14001. Zairyo-To-Kankyo, 48(1), 11-16.
Kim Kercher. (1995). The environmental management system doi:10.3897/bdj.4.e7720.figure2f
[July 18, 2017 at 3:38:23 AM UTC-7] saakhshi saxena (saxenasaakhshi@gmail.com): Park, S., & Levy, S. E. (2014). Social responsibility: perspectives of employees. International Journal of Contemporary ISO standards,26(3), 332-348. doi:10.1108/ijchm-01-2013-003saakhshi • Now
Smith, J., & Dubbink, W. (2011). Understanding the Role of Moral Principles in Business Ethics: A Kantian Perspective. Business Ethics Quarterly,21(02), 205-231. doi:10.5840/beq201121214
Kitzmueller, M., & Shimshack, J. (2012). Economic Perspectives on environmental Social Responsibility. Journal of Economic Literature, 50(1), 51-84. doi:10.1257/jel.50.1.51
Arnold, D. B., & Bono, P. R. (2001). Saudi Arab lacks government support, 75-86. doi:10.1007/978-3-642-61378-4_7
Hurley RF, Hult GTM (2015) Innovation, market orientation, and organizational learning: an integration and empirical examination. J Mark 62(3):42–54
Juran JM, Godfrey AB (2016) Juran’s quality handbook, 5th edn. McGraw-Hill Professional, New York, NY
Kull TJ, Wacker JG (2010) Quality management effectiveness in Asia: the influence of ISO standards. J Oper Manag 28(3):223–239
Ketokivi MA, Schroeder RG (2004) Strategic, structural contingency and institutional explanations in the adoption of innovative manufacturing practices. J Oper Manag 22:63–89
Saraph JV, (2009) An instrument for measuring ISO 14001, the critical factors of quality management. Decis Sci 20(4):810–829
Anderson JC, (2012): preliminary empirical findings. Decis Sci 26(5):637–658
- Flynn BB, Schroeder RG, Sakakibara S (2013) The impact of environmental practices on performance and configuration approach. J Oper Manag 28:58–71
Pugh (2009) The contexts of organizational ISO 14001 structure. Adm tryl Q 14:91–114
Pugh DS, Hinings CR (2001) ISO 14001: extensions and replications: the aston programme II. Saxon House, Farnborough, England
Graubner M (2006) Task, firm size, and organizational structure in management consulting: an empirical analysis from a company perspective. Deutscher Universitats-Verlag, Germany
Stock GN, Tatikonda MV (2008) how ISO standards impact stakeholder of the company. J Oper Manag 26(1):65–80