Economic performance of the ISO 14001 standard in the olive oil production industry in Spain

The need for environmental protection through waste minimization, pollution prevention and energy efficiency, among other actions, has resulted in a shift in awareness for Government institutions, businesses and consumers. Now more than ever, there is an increase in sustainable consumption, a greater care for the environment and a global effort to mitigate climate change. This paper examines the Agro-food Industry, where food production and consumption is one of the major causes of global environmental degradation. Our study focuses on olive oil production and its high contamination levels due to the large quantities of waste it generates, affecting both terrestrial and aquatic ecosystems. Within the Agro-food Industry, the olive oil producers are realizing the negative impact and consequences that this activity has on the environment. Consequently, the olive oil industry has decided to make some changes in order to tackle those environmental problems. One example of these efforts is the adoption of environmental standards, specifically, ISO 14001 standard, which is the most widely accepted by the olive oil production industry. This paper analyses the implementation of volunteer environmental standards by distributors and consumers, such as the adoption of ISO 14001 standard, as well as the impact of this conduct on the outcomes of the Spanish olive oil producing companies. The following variables have been considered: sales on domestic markets, export rate, volume of cross-frontier business, and the results of operating profits and attributable income of such companies. We carried out a panel study through ANOVA analysis in repeated samples that were based on objective data such as the accounting status of the companies during the 2013- 2015 fiscal years. Initially, a telephone survey was conducted between the months of September and December 2019 in order to determine if the companies had adopted the ISO 14001 standard as well as their export data. By the end of this survey, we obtained a sample of 377 companies. The results suggest that the adoption of ISO 14001 standard can meet the preferences of the consumers and therefore improve the sales revenue of the companies. Regarding the exportation markets, the study shows that this standard can help to enhance their brand image and reputation, strengthen their competitiveness, and increase customer satisfaction among retailers and finally may result in higher sales. However, no positive benefits or results on the company's activity have been identified yet. * This work has been prepared in the framework of the materialization of the research activity corresponding to the Research Project called "Eco-innovation in the Andalusian olive oil sector: situation, driving factors and strategies" with reference: 1264899-FEDER-UJA (Resolution of 17th of January 2020, of the Rector of the University of Jaén, by which the Definitive Resolution of allocation of financial support for R&D&I projects -Andalusia. Operational programme: Andalusia ERDF 2014-2020, in an open and competitive selection process is made public. Call 2018).