Business Justification for Environmental Management Systems Case Study of ISO 14000 and the Benefits to the Bottom Line

A Business Case for an ISO 14001 Certification

Sean D . Stadler

Master of Science in Business Administration

Kennedy-Western University

Instructor

December 2005

Abstract

The ISO 14000 series takes the international standards system to the field of environmental concerns . ISO 14001 focuses on the development and maintenance of an Environmental Management System , within the ISO 14000 series . The ISO 14000 series is of relatively recent origin having been instituted in 1991 . However , it has emerged as a significant force within a short time

The ISO 14000 series is

relevant for the world of business , for governments and regulators , for organizations that work not-for-profit and for entities of all types and sizes , wherever they may be . Its universal nature makes it a unique and dominant system for all people who are concerned with pollution , waste and about the consumption of resources that are limited and which cannot be renewed

ISO 14000 promotes professional conduct . Training people and involving them in key processes lie at the heart of the ISO 14000 system . The rigors of certification serve to develop human resources . It can serve to motivate people at all levels of the hierarchy , and to foster team spirit

The ISO 14000 system is not limited to altruism and to noble intentions It is worth hard cash . ISO 14001 puts great pressure to bear on achieving productivity improvements that translate to valuable cost savings . Major international corporations enjoy impressive profit growth through the ISO 14000 series

All ISO certifications carry the benefits of independent and international recognition . ISO extension in to the field of environmental concerns through the 14000 series brings desirable pressure on companies that produce hazardous substances and which generate enormous amounts of waste . Customers everywhere have the choice to insist on ISO 14000 certifications . Companies may find themselves excluded from significant market segments if they continue to ignore or to avoid ISO 14000 . Some organizations may find themselves out of business if they do not secure ISO 14000 certification

Apple leads a galaxy of the world 's most respected enterprises in using ISO 14001 certification as a cornerstone of competitive strategy Lithium ion battery technology is an example of innovation that a commitment to environmental conservation can present

Solutions inspired by ISO 14001 can have welcome economic benefits apart from noble achievements in terms of environmental conservation Reduction in energy consumption is an outstanding example , since power generation can be both expensive as well as polluting

ISO 14000 calls for abiding commitment on the part of all entities that seek certification . The system consumes major portions of employee time ISO 14000 becomes a major element of cost , though it does produce handsome returns

The ISO 14000 series follows a highly structured implementation procedure . There is comprehensive documentation widely available that any organization can use to enter the system . Most organizations find it expedient to use consultants to guide them through the process Independent auditors are inevitable . External auditors must be knowledgeable , experienced and accredited

ISO 14000 has important weaknesses . Loss of...