The influence of ISO 14000 on firm performance
AbstractPurpose – Economic prosperity has often come at the expense of the natural environment. Environmental degradation has surfaced in problems such as pollution, increased carbon dioxide emissions via burning of fossil fuels and environmental waste. Ignoring the ecological costs through indiscriminate use of non-renewable resources may lead to increase in the cost of doing business in the future. This unsustainable trend exacerbates inter-generational poverty and equity. Responsible firms have resorted to ISO 14000 certifications, which comprise guidelines for environmental management systems which promote green, efficient production processes. However, ISO 14000 is not a performance standard and does formulate financial key performance indicators. Nonetheless, extant literature has documented the perception that ISO 14000 certification leads to increased competitive advantage, pre-emption of regulations, increased financial performance, enhanced reputation and reduction of cost of business. This study seeks to bridge the lacuna in research on the influence of ISO 14000 certification on firm financial performance in Malaysia. Design/methodology/approach – Methodologically, certain matching criteria have been used to enhance the comparability of ISO 14000 certified firms with their non-certified counterparts based on the work of Collins, and Collins and Porras. Findings – The findings indicate that ISO 14000 certification improves average return of equity but not necessarily in terms of sales and capitalisation. Originality/value – The study suggests that there may be a business case for ISO 14000 certification terms of return on equity in the medium term within the Malaysian context.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Emerald Group Publishing in its journal Social Responsibility Journal.
Volume (Year): 5 (2009)
Issue (Month): 3 (August)
Contact details of provider:
Web page: http://www.emeraldinsight.com
Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Harris).
If references are entirely missing, you can add them using this form.