IDEAS home Printed from https://ideas.repec.org/a/eme/srjpps/v5y2009i3p408-422.html
   My bibliography  Save this article

The influence of ISO 14000 on firm performance

Author

Listed:
  • Joyce Koe Hwee Nga

Abstract

Purpose - 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.

Suggested Citation

  • Joyce Koe Hwee Nga, 2009. "The influence of ISO 14000 on firm performance," Social Responsibility Journal, Emerald Group Publishing, vol. 5(3), pages 408-422, July.
  • Handle: RePEc:eme:srjpps:v:5:y:2009:i:3:p:408-422
    as

    Download full text from publisher

    File URL: http://www.emeraldinsight.com/10.1108/17471110910977311?utm_campaign=RePEc&WT.mc_id=RePEc
    Download Restriction: Access to full text is restricted to subscribers

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:srjpps:v:5:y:2009:i:3:p:408-422. See general 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: (Louise Lister). General contact details of provider: http://www.emeraldinsight.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.