ISO 14000
Charles L. Schott IIIUniversity of Indianapolis
Charles L. Schott ill is currently a full-time undergraduate in Economics andFinance at the University of Indianapolis, Indianapolis, Indiana
2535 Fox Harbour LaneIndianapolis, IN 46227
(317) 783-5866
2ISO 14000
ISO 14000 is a new approach to environmental protection. It challenges organizations to
take a serious approach to environmental issues. ISO 14000 commits organizations to
continuous improvement to make their processes as effective and reliable as possible. It brings
organizations, as a whole, toward awareness for their environmental responsibilities. ISO 14000
helps organizations reduce the negative ways they affect the environment.
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Firms today, are not only faced with the issue of how to deal with international trade, but
they musta1so face environmental laws, which vary from country to country. The International
Organization for Standardization (ISO) 14000 series addresses this concern because it has been
developed to help align countries worldwide so that all nations abide by similar environmental
laws and regulations
Within the past twenty years the world has become more aware of how industry affects
the environment. It has become apparent that industrial changes are needed to help reduce ozone
depletion, acid rain, and rain forest deterioration. Environmental awareness has become an
important issue among industrialized countries. Many organizations face greater responsibility
toward hazardous waste because they are being held more accountable for their actions. Pushing
the environment to the forefront in the industrialized world makes companies address the issue of
adjusting operations so they are in accordance with environmental regulations.
The ISO 14000 series is an answer to the worldwide environmental regulation confusion.
Organizations find it difficult to not only abide by the numerous laws and regulations of the
country, but they must also understand and abide by other country's regulations to operate
worldwide. ISO 14000 simplifies the issue because it promotes worldwide compliance to an
environmental standard. It requires organizations to be aware of every environmental law and
regulation.
The ISO 14000 series is still a relatively new concept. Some countries have been slow to
accept it because they are still questioning how it will benefit industry. Others, however, realize
the importance of an international environmental standard and have supported it from day one.
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WHAT IS ISO 14000
ISO 14000, the Environmental Management System (EMS) standard, was first developed
by the International Organization for Standardization, ISO. ISO 14000 is not a standard in itself,
instead it categorizes a series of 20 standards and guidelines (7). The 14000 series, taken as a
whole, aims to provide guidance for developing a comprehensive approach to environmental
management and for standardizing some key environmental tools of analysis (2). Though
numerous standards are still under development, two standards have been finalized and
implemented, ISO 14001 and ISO 14004 (7).
ISO 14001, entitled "Environmental Management System -Specification with Guidance
for Use" is arguably the most consequential in the ISO 14000 series. It lays out the elements of
the Environmental Management System. Organizations seeking registration or certification must
confonn to these elements (2). The ISO 14001 standard composed five key principles as a
method to establish an EMS (4).
Principle 1 "Commitment and Policy. Top management must make a commitment to
the program. A statement of environmental direction that is acknowledged
and adhered to by both senior management and the rank-and-file."
"Planning. To be successful, the program must be organized. ThisPrinciple 2:
includes establishing an organization's structure, promoting internal and
external communication, and identifying environmental impacts."
"Implementation. The implementation program must include writtenPrinciple 3:
process descriptions, establishment of prevention programs and employee
..,traInIng.
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Principle 4 "Measurement and Evaluation. A mechanism for assessing performance
and progress towards goals must be established. This also involves
making and documenting all coaective actions."
Principle 5 "Management Review. Senior management must routinely review the
EMS activities to ensure that all activities are appropriate." (7)
ISO 14004 entitled "Environmental Management Systems -Guidelines on Principles,
Systems, and Supporting Techniques" provides supplementary information (2). The five key
principles of ISO 14001 also apply to ISO 14004. The difference between the two is that ISO
14004 is not designed for registration or certification. Organizations looking to implement or
upgrade an EMS use ISO 14004. This standard mainly applies to small and medium size
companies trying to implement an EMS. However, larger organizations trying to improve an
existing Environmental Management System can also use it. ISO 14004 is a good reference
document for organizations because it contains guidelines and helpful hints on all aspects of an
EMS (9).
How to Become ISO 14000 Registered
When an organization registers for ISO 14001, it should consider the following things;
does it coincide with company goals, is the company compliant with the standard, and does the
company want to self-certify or use a third-party. The first consideration should revolve around
the organization's goals and objectives. If the organization's goals and objectives are not
parallel with the standard, then it is not in the organizations best interest to seek ISO 14001
certification (the tenns registration and certification are such that they can be used
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interchangeably (9».
The organization should evaluate the current status of their Environmental Management
System (EMS) to decide if they are compliant with ISO 14001 requirements. If they are not, the
organization may decide to first take time to make corrections to the EMS before pursuing
to obtain it (registration) more quickly (9).
If an organization already has a solid foundation for its EMS, it can choose to become
registered two ways, either by a third-party or through self-certification When an organization
are certified. This method of registration applies mainly to small service businesses, local
governments, and nonprofit organizations
When a company chooses to register its EMS through a third-party it first must hire a
registrar, a tenD used to designate third-party auditing organizations The registrar then conducts
a thorough audit (9). The decision of choosing a registrar is probably one of the most crucial
steps in the registration process. Registrar organizations can operate quite differently, and not all
of them have the same accredibility. The kind of evaluation and criteria used to register the
company depends on the registrar selected. It is recommended that national accrediting bodies be
used for registration. Using a national accrediting body reduces the risk that other organizations
might not recognize the registration.
Third-party registration is achieved through an audit. This is by far the most beneficial
and the most widely accepted form of registration. Audits are conducted in two phases. The first
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step involves a review of EMS documentation, which entails how it is set up and a site survey.
The second step evaluates whether the EMS operates in accordance with ISO 14001 as well as
the company's written procedures (7). Some companies see clear benefits in hiring auditors.
Auditors scrutinize environment-related processes more carefully than the process of self-
certification (6). A third-party assessment of environmental management will likely carry more
weight than any internal program (5).
To actually become certified, the audit team interviews people throughout the business,
reads procedures and other documentation, and observes how well the management system
works (2). The audit team then assesses whether the procedures documented by the company
meet ISO 14001 requirements. If they do, they are granted ISO 14001 certification. If they fail
to meet the requirement, the audit team will provide them with a detailed listing of operations
needing change The business is then instructed to make necessary changes in order to become
certified. If corrective action is not taken, the company does not become certified.
When a company achieves ISO 14001 registration, certification lasts for three years and
then the registration process must be repeated. During those three years, a company is required
to continually be audited to ensure that the system is being maintained and improved. Achieving
ISO certification definitely is not the final stage
Costs of ISO 14001 Registration
The ISO 14000 process is not easy and requires a strong commitment from the entire
organization. "Get all of your people involved in your process, it will increase the likelihood of
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your success."(6) Many organizations are skeptical about considering ISO 14000 registration.
Cost is a major concern. The cost of implementation varies depending upon the size and
complexity of the business. The cost of an auditor can range from $1000 to $2000 per day
during the 12 to 18 months it takes to become registered, causing the initial registration to be
expensive (6). Once an organization becomes certified there are sometimes additional costs, such
as training and consulting (6). The total cost of implementation can be extremely expensive.
THE NEED FOR ISO 14000
Worldwide, there seems to be mixed opinion about the importance and relevance of
having an Environmental Management System. Some critics argue that in the United States
enough environmental regulations already exist, and adding another standard is just going to
increase the amount of inspections and confrontations with regulators. On the other hand, some
see the new international environmental standard as a way to consolidate all of the different
regulatory bodies into one, thus creating a worldwide regulation. By creating one comprehensive
environmental regulation, awareness among all types of organizations increases and puts the
environment in the mainstream of business (6).
Akerlund & Rausing (A&R), a food packaging supplier throughout Europe, felt the
pressure for the need to have an environmental standard. A&R is in the process of certifying all
fourteen plants in Europe because of the recent concern from A&R' s customers about their
environmental work. A&R customers have been demanding products that show concern for the
environment at each production stage (8). Studies in Europe have shown that the third most
important factor in selecting goods for purchase, after price and quality, is environmental
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consideration (8). With consumer preferences leaning toward environmental issues,
organizations that have met international environmental standards, such as ISO 14000, will be
pushed to the forefront. "I believe companies who ignore the issue do so at a greatly increased
risk to their long-tenD survival. Retailers are a powerful influence today and expectations of
their suppliers' safety and environmental performances is increasing rapidly," said Ceri Swift an
environment, health and safety engineer in Wrexfan, UK at a Tetra Pak's plant (8). Tetra Pak is
a world leader in packaging material, and in 1998 they won first place in the Wales Environment
Award program
Companies that follow the ISO 14001 standard also see the advantage of being viewed by
the public and clients as environmentally friendly (1). ISO 14001 causes corporations to take a
global look at themselves. They must examine the external benefits of a regulatory framework.
ISO 14001 certification could mean benefits in tenns of less attention from regulatory agencies
and the possibility of having lower environmental liability (6). Ultimately, ISO 14001 leads to
cost reduction and higher levels of profitability. For instance, sound environmental management
can result in significant cost savings for many types of organizations as wastes and inputs of raw
materials are reduced (1).
In a competitive market, the loss of a contract due to non-compliance can damage a firm's
prestige and finances. ISO 14001 offers an organized approach to manage environmental issues
This approach can help a company cut environmental costs and thereby increase profits by
decreasing energy costs, lowering expenses for waste disposal and treatment, and reducing
remediation costs (7).
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THE INTERNATIONAL VIEW
The overall response around the world to the ISO series of standards for environmental
management systems is generally positive (2). According to Pamela Bridgen, vice president of
ICF Kaiser International, "there appears to be an ubiquitous interest on the part of governments
and industries in moving from command-and-control environmental regulation, to voluntary
EMS."(2) With any new innovative idea there are critics as well as supporters. Most of the
countries having difficulty accepting ISO 14000 are the more developed countries which already
have some form of regulatory body. Most of these countries are trying to evaluate the benefit of
having another regulatory standard. Developing countries on the other hand appear to be more
willing to accept ISO 14000. These developing countries have little or nothing in the way of
environmental legislation and regulation, which adds to the importance of the ISO 14000 series
standards,
North and South America
The United States government is experimenting with applicability and usefulness of ISO
14000.
The government recognizes the need for less government regulation and the need for
some type of environmental regulation world wide such as the ISO 14000 series. However, V.S
companies are interested but hesitant to register because they are not feeling enough pressure
from their customers (6). Until customers demand participation or direct commercial advantage
results, U.S. companies are waiting to make an investment in the process (2).
Canada's feelings in the beginning were much the same as the United States today; it
showed a lot of hesitancy toward accepting the ISO 14000 series. Canadian viewpoint has
f
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recently changed however, and now seems to favor ISO 14000 series standards. One reason is
the significant number of customers demanding that the standards be met. Companies not already
certified are taking measures to ensure registration as quickly as possible. Pamela Bridgen
claims that, "Canada is starting to realize that the ISO 14001 auditing standards will soon
become international standards and that certification will be essential to operate successfully in
the global marketplace."(2)
In South America awareness of ISO 14000 is not as widespread as in North America, but
recent measures have been taken to introduce the environmental standard. Over the past year,
knowledge of 180 14000 has increased significantly, which is partly due to Brazil's involvement
in the ISO 14000 process. Other countries in South America do not seem to be as attentive to the
importance of the standard. If Brazil did not have confidence in the ISO 14000 series, there
might not be any participation at all among these countries. The Brazilian government
recognizes that the standard will help to improve the relationship between environmental
regulations and economic activities and expects benefits from the proactive approach of ISO
14000 (2),
The Pacific Rim
The Pacific Rim countries are by far the most involved in the ISO 14000 process. These
countries believe that ISO 14000 is the wave of the future. They have accepted the
environmental standard willingly. Japan, Korea, and Australia believe that there are strong
environmental advantages of the ISO 14000 series standards
Governments and industries in both Japan and Korea support the process The Japanese
.
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government and industry recognizes the importance of the international standardization and
expects that ISO 14000 can help to decrease environmental risks and costs (2). Japan and others
in Asia-Pacific are extremely aggressive when it comes to 14001 They see it as a competitive
advantage (6). The Korean government and industry believe that implementation of ISO 14000
could provide them with a competitive edge in worldwide markets, as well as translate to
environmental benefits such as pollution prevention (2),
Australia is a country divided; the government is not quite ready to accept the standard
while the industry has accepted it quickly. The Australian government has been very slow to
recognize the benefits of ISO 14000. The industry on the other hand believes that the standard is
the "ticket to worldwide markets", and that ISO 14000 can be used as a marketing tool to attract
consumers on the basis of an environmentally friendly company (2).
European Nations
European nations are divided in their attitudes toward ISO 14000 because there is concern
regarding the applicability of ISO 14000 in the context ofEco Management and Audit Scheme
(EMAS) (8). The EMAS is very similar to ISO 14000 because it to is an Environmental
Management System. The EMAS is widely used among the European nations as an
environmental standard. The major discussion among the nations is how the two systems can be
integrated. Some feel that EMAS is more comprehensive than ISO 14000 and that ISO 14000
could undennine EMAS's objectives (2). Although there are these concerns, most of the
European nations do regard ISO 14000 as a good device and believe it can be a useful tool to
protect the environment and deal with these issues. Most European nations anticipate that ISO
14000 will provide the basis for an important industry and government partnership to lead its
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nations and the world to sustainability (2).
There is cautious acceptance in developed countries of the ISO 14000 process as an
essential tool in the improvement of a consistent international standard for EMS (2). Many of
these countries are trying to address the issue of what to do with current regulatory bodies and
how these can co-exist if ISO 14000 is implemented. Nonetheless, worldwide it is generally
recognized that a standard such as ISO 14000 is needed to promote environmental protection and
international trade (2).
CONCLUSION
The ISO 14000 series is an innovative approach to improving the international
environmental relationships among industries. Countries worldwide have acknowledged the fact
that one international regulatory body is needed and could be extremely beneficial for trade and
trade relations. With the environment becoming an important issue, ISO 14000 makes perfect
sense. The standard gives specific recognition to those organizations that have made a
commitment to adjust their day-to-day operations so that the environment is clean and safe.
The ISO 14000 series is the future in international environmental standardization. As the
environmental issues become even more important in the future, countries and industries will
recognize the need to join together to address them. The ISO 14000 series is the starting step for
an internationally accepted standard for environmental regulation
.
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WORKS CITED
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Environmental Quality Management Autumn 1996,45-49.
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International Environmental Management Standards. New York: McGraw-Hill, 1996
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August 1998. <http://web.lexis-nexis.com/univers5=fO92d95ee8745afcaed96>
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<http://insite.palni.edu/WebZJFETCH. ..ntitytoprecno=9:entitycurrecno=9>
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