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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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    5. Ying Zhang & Hongfei Ruan & Guiyao Tang & Li Tong, 2021. "Power of sustainable development: Does environmental management system certification affect a firm's access to finance?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 3772-3788, December.
    6. Kyungmin Baek, 2018. "Sustainable development and pollutant outcomes: The case of ISO 14001 in Korea," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(5), pages 825-832, September.
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    9. 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.
    10. Liu, Feng & Rhim, Hosun & Park, Kwangtae & Xu, Jian & Lo, Chris K.Y., 2021. "HACCP certification in food industry: Trade-offs in product safety and firm performance," International Journal of Production Economics, Elsevier, vol. 231(C).
    11. Bomi Song & Donghyun Choi, 2018. "Dynamic Capability of the Firm as Driver of Green Supply Chain Management Implementation," Sustainability, MDPI, vol. 10(7), pages 1-16, July.
    12. 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.
    13. 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.
    14. 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.
    15. Olivier Boiral & Iñaki Heras‐Saizarbitoria & Marie‐Christine Brotherton, 2018. "Corporate Biodiversity Management through Certifiable Standards," Business Strategy and the Environment, Wiley Blackwell, vol. 27(3), pages 389-402, March.
    16. Sang M. Lee & Donghyun Choi, 2021. "Supply Chain Governance Mechanisms, Green Supply Chain Management, and Organizational Performance," Sustainability, MDPI, vol. 13(23), pages 1-16, November.
    17. Robert Kuceba & Grzegorz Chmielarz & Marcin Soltysiak, 2021. "Vital Factors Stimulating Development and Competitiveness of Design and Construction Enterprises of Photovoltaic Farms," Energies, MDPI, vol. 14(12), pages 1-15, June.
    18. 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.
    19. Mark Anthony Camilleri, 2022. "The rationale for ISO 14001 certification: A systematic review and a cost–benefit analysis," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(4), pages 1067-1083, July.
    20. Luis Fonseca & Vitor Silva & José Carlos Sá & Vanda Lima & Gilberto Santos & Rui Silva, 2022. "B Corp versus ISO 9001 and 14001 certifications: Aligned, or alternative paths, towards sustainable development?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(3), pages 496-508, May.
    21. Christian Valery Tayo Tene & Olivier Boiral & Iñaki Heras‐Saizarbitoria, 2021. "Does quality management improve the internalization of environmental practices? An empirical study in Africa," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3053-3064, November.
    22. Shahida Shahimi & Hafizuddin-Syah B.A.M. & Hanisah S.F., 2023. "Sustainability Practices and Financial Profitability: The Case of the World’s Top 20 Crude Palm Oil Producers," SAGE Open, , vol. 13(4), pages 21582440231, October.

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