The impact of operational characteristics on firms' EMS decisions: strategic adoption of ISO 14001 certifications

Takuya Takahashi · Masao Nakamura

48 citations0/0 files storedCorporate Social Responsibility and Environmental Management

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Quality and Management Systems Corporate Social Responsibility Reporting Environmental Sustainability in Business

Abstract

Abstract Firms choose to seek environmental management system (EMS) certifications such as ISO 14001 for a variety of reasons. In this paper we put forward a hypothesis that firms seek ISO 14001 certifications for their establishments when their operations involve low degrees of complexity. Another hypothesis we consider is that firms facing more uncertainty in their operations (and hence more risk) seek ISO 14001 certifications. These hypotheses have not been yet addressed in the literature and are of particular interest to business managers and policymakers. We empirically test these hypotheses using probit and duration models using matched establishment–firm–industry data for large Japanese manufacturers. Our findings support the first as well as the second hypotheses. This suggests that firms tend to certify more routine and less complex operations first, and that firms use ISO 14001 certifications as an insurance scheme. Copyright © 2009 John Wiley & Sons, Ltd and ERP Environment.

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References

2004International evidence on ethical mutual fund performance and investment style 2000Socially Responsible Mutual Funds (corrected)2003Incentives for environmental self-regulation and implications for environmental performance 1996Why Do Firms Volunteer to Exceed Environmental Regulations? Understanding Participation in EPA's 33/50 Program 1995An Experiment in Voluntary Environmental Regulation: Participation in EPA′s 33/50 Program 2002Corporate Environmental Management: Regulatory and Market-Based Incentives 2001Why Japanese Firms Choose to Certify: A Study of Managerial Responses to Environmental Issues 1999Bringing the environment down to earth.

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2015The impact of ISO 14001 on corporate environmental performance: a study of Swedish manufacturing firms 2015The level of socioeconomic development of EU countries and the state of ISO 14001 certification 2016Sustainability and EMAS: Impact of Motivations and Barriers on the Perceived Benefits from the Adoption of Standards

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