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Environmental Policy Performances for Sustainable Development: From the Perspective of ISO 14001 Certification

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  • Sang M. Lee
  • Yonghwi Noh
  • Donghyun Choi
  • Jin Sung Rha

Abstract

This study investigated the financial performances of environmental policy by using the long‐term effect of ISO 14001 certification. Drawing on a natural‐resource‐based view of the firm, this study examined abnormal performances of ISO 14001 certified firms on the New York Stock Exchange (NYSE) and National Association of Securities Dealers Automated Quotations (NASDAQ) in the USA during the period 1996–2010 employing a rigorous event study methodology. The results indicate that the profitability variables showed immediate positive abnormal effects after firms applied for the ISO 14001 certification, while the market benefit variable showed gradual improvements after obtaining the certification. However, ISO 14001 did not show significant effect on the internal process improvement. Overall, ISO 14001 was found beneficial to the firm in the long run from the perspectives of profitability and market benefits. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

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  • Sang M. Lee & Yonghwi Noh & Donghyun Choi & Jin Sung Rha, 2017. "Environmental Policy Performances for Sustainable Development: From the Perspective of ISO 14001 Certification," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(2), pages 108-120, March.
    • Handle: RePEc:wly:corsem:v:24:y:2017:i:2:p:108-120
    DOI: 10.1002/csr.1395
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    18. Laura Bravi & Gilberto Santos & Alessandro Pagano & Federica Murmura, 2020. "Environmental management system according to ISO 14001:2015 as a driver to sustainable development," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(6), pages 2599-2614, November.
    19. Iñaki Heras‐Saizarbitoria & Olivier Boiral & Alberto Díaz de Junguitu, 2020. "Environmental management certification and environmental performance: Greening or greenwashing?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2829-2841, September.
    20. Belén Payán‐Sánchez & José Antonio Plaza‐Úbeda & Miguel Pérez‐Valls & Eva Carmona‐Moreno, 2018. "Social Embeddedness for Sustainability in the Aviation Sector," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(4), pages 537-553, July.
    21. Hammad Riaz & Abubakr Saeed & Muhammad Saad Baloch & Nasrullah & Zeeshan Ahmad Khan, 2019. "Valuation of Environmental Management Standard ISO 14001: Evidence from an Emerging Market," JRFM, MDPI, vol. 12(1), pages 1-14, January.
    22. Zhihong Wang & Tien‐Shih Hsieh & Joseph Sarkis, 2018. "CSR Performance and the Readability of CSR Reports: Too Good to be True?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(1), pages 66-79, January.

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