Measuring The Impact of ISO 14001 Implementation
Measuring The Impact of ISO 14001 Implementation
Measuring The Impact of ISO 14001 Implementation
2 (2018), 637-646
DOI: 10.15244/pjoes/76035 ONLINE PUBLICATION DATE: 2018-01-15
Original Research
Measuring the Impact of ISO 14001
Implementation
3
Director, Shreyas Quality Management System, Abhyankar Nagar, Nagpur, India
Abstract
This paper aims to develop a model based on ISO 14001(EMS) clauses to improve environmental
performance and enhance business efficiency in Indian context. For this purpose, a questionnaire was
prepared considering all the clauses to understand and arrive at better performance. Input and output
variables were derived through deep study and reviewed by people involved in implementation. Based
on 146 responses, the present research has resulted in a strong relationship between each clause of ISO
14001. The findings of this study confirm that input and output variables have a positive and significant
relationship. The reliability and factor analysis is done by adopting SPSS software, and models are
prepared for the same industries. In the present study, linear regression coefficients R = .869, .833, and .847,
which indicates that there is strong correlation between independent and dependent variables. Multiple
linear regressions were performed on five independent variables toward three dependent variables, and
results for the regression models were significant, i.e., Sig. = 0.000. The availability of resources (0.624
to 0.906) is found to be more significant for input variables among the other four variables, whereas the
input variables, i.e. achievement of objective, has come out as the strongest amongst all output variables.
It has been observed that Model 1 has contributed more in the present study, which proposes significant
improvement after implementing the model in any sector of ISO 14001-certified industries.
most efficient top management is not able to realize environmental actions [11]. Effective EMS can help
the determined targets. Also, qualified workers’ ideas facilities identify and correct regulatory problems before
are not used very often in order to improve EMS. Only they become violations [12]. There has been significant
stable and effectively supervised processes, as well as awareness of global environmental problems, in particular
properly monitored significant environmental aspects, relating to global warming, ozone depletion, biodiversity,
can ensure appropriate EMS improvement [2]. ISO 14001 pollution, and population growth. With this increasing
certification/implementation has certainly proven to be an awareness comes the realization that the potential impacts
important driver for the enhancement of environmental of proposed development activities need to be assessed
performance [3]. and understood so that appropriate management and
Very often organizations, when taking decisions control strategies can be adopted [13].
to implement an environmental management system In principle the implementation of EMS has a potential
conforming to ISO 14001, speculate about when and benefit to implement pollution prevention practices and
what benefits they can achieve. This stems from the fact to improve overall environmental performance and wise
that implementing and maintaining an environmental use of scarce resources through the implementation of
management system is an expensive process, and this ISO 14001 standards. But it is usually a big challenge for
management system brings positive effects in the long accredited industries to maintain the expected standard
term [4]. An effective EMS can help a firm manage, at all times due to lack of commitment [14]. The main
measure, and improve the environmental aspects of its aim of the procedure was to identify desirable features
operations. EMS has the potential to lead to more efficient of the system contributing to the enterprises’ better
compliance with mandatory and voluntary environmental performance. The features of ISO 14001, essential for
requirements. EMS may help companies effect a cultural better performance, were attributed to the following stages
change as environmental management practices are of the environmental management system: commitment
incorporated into its overall business operations [5]. of all the workers, establishing procedures for achieving
Environmental performance improvements are enhanced objectives and targets, establishing procedures for
only to the degree/extent that the system is implemented, limiting impurities, conducting periodic internal audits,
alongside the objectives/targets and management evaluating environmental performance, management
commitment [6]. There is also a need for integrating cross- reviews, and minimizing the negative influence on the
functional activities to include environmental training of environment [15].
personnel. Finally, there is the need for formal procedures The aim of our research is to develop a model for
and the availability of these specialized procedures and managing the environment through ISO 14001 (EMS)
information to be available to people in new product clauses, from which quantifiable indication of overall
development, recycling, and pollution prevention [7]. environmental performance for an organization may be
As far as literature in this subject matter is concerned, no established. This research establishes a methodology for
comprehensive review directly related to the identification the derivation of a well-defined system that provides a
of benefits arising from implementing an environmental numeric variable, by using numerical values that have
management system according to ISO 14001 standard been obtained from a set of linguistic values evaluated
has been compiled. Knowledge about the benefits arising against independent variables.
from environmental management system implementation Earlier organizations were commonly classified
is based on the review of literature, ISO 14000 series simply according to size and the barriers they experience
requirements, and surveys conducted among a group of while implementing an ISO 14001 (EMS). This system
experts in the field of environmental management [8]. of classification is not sufficient for understanding
In sum, while many governments promote voluntary the multifaceted environments within which modern
approaches to improve the environment beyond that organizations operate. Earlier studies on Environmental
which is required by law, there is still much to learn about management system implementation have not addressed
this non-regulatory approach [9]. The usefulness of EMS the vital issues of the relationship between various
as a tool to manage environmental issues in companies clauses of ISO 14001 for improving organizational
is a question of interest to many different parties. One of environmental performance along with development of
the most interested groups conceivably is the companies an approximate generalized field data-based model. We
themselves, who invest a large amount of resources also have observed that mostly research considered only
into the implementation and operation of EMS. As a on a manufacturing sector at a time and with very few
natural follow-up they seek to find out not only their own attributes have been considered and responses collected.
performance in connection to increased environmental In this research study, the core attributes of all the
work, but also the general value of the standardized EMS clauses of ISO 14001 have been considered and responses
as recognized on the relevant markets [10]. collected from certified industries to measure the impacts
It can be verified that ISO 140001 certification of EMS implementation on improving environmental
contributes to improving environmental management in performance. In the present research study, the models
companies. That system complies with environmental have been developed to enhance environmental
legislation and requires a commitment of the certified performance of the ISO 14001 certified organization
company to a continuous search for improvement in through SPSS.
Measuring the Impact of ISO 14001... 639
Factor I We have an existing process for corrective and preventive action .795
(Availability of This can be linked to another existing organizational process (like annual or strategic planning
resource) .792
process)
Causes of nonconformities and other system deficiencies have been determined .792
We ensure that adequate resources have been allocated for an environmental management system .758
The review meeting is linked to an existing organizational process (such as budget, annual planning,
.758
or auditing cycles)
We ensure that obsolete documents are not used in the system .735
We display various parameters at the main entrance and update the same .734
Our document control process is integrated with other organizational functions (such as QMS or
.624
OHSAS)
The policy is communicated to suppliers and contractors and other interested parties .939
We have considered how all operations and activities are associated with environmental objectives
.939
and targets
The implementation process is linked to an existing organizational process such as budget, annual
.898
planning, or auditing schedule
Factor II Our contractors and other visitors know what to do in an emergency situation .898
(Effective
communications) As per frequency specified in the procedure, the compliance status is discussed in the meeting and a
.884
record is maintained
There has been a reduction in legal non-compliance .884
EMS audits are conducted as described in the audit schedule .762
We have an effective process for defining roles, responsibilities, and authorities for environmental
.762
management
We have identified safe places for effective control of records in case of fire .823
We establish and review such programs by linking to budget and auditing cycles .823
Employees are aware of their job responsibilities .812
Table 1. Continued.
We have considered how all operations and activities are associated with legal requirements .845
The policy reflects the three key commitments (to compliance, prevention of pollution, and
.845
continual improvement)
The above process can be improved further by involving outside parties .837
Factor IV
(Effective process We have trained personnel for their roles and responsibilities during emergencies .837
of implementation) Our existing process of identifying aspects is effective .613
We have reviewed our operations and activities for potential emergency situations .613
We ensure effective correspondence in case of changes in legal and other requirements .531
Compliance or legal requirements is discussed in the management review meeting .531
We conduct review as per frequency .825
We prepare a training calendar on the basis of requirements of employees .825
Social requirements are considered as an objective in our organization .730
Factor V Operations and activities associated with significant environmental aspects, legal requirements, and
(Following .730
environmental objectives are identified
documented
We have identified operations an activities associated with significant environmental aspects, legal
procedure) .691
requirements, and environmental objectives
Our documentation is integrated with other organizational documentation (such as human resource
.449
plans or quality procedures)
We have identified safe places for effective control of documents in case of fire .439
The scree plot graphs the eigenvalue against the factor input variables. Scree plots are shown for input variables
number. From the five factors on (input variables) and in Fig. 1 and output variables in Fig. 2. From the curves,
three factors on (output variables), we can observe that the number of factors appears to be 5 and 3 in input and
the line is almost flat, meaning that each successive factor output variables, respectively.
is accounting for smaller and smaller amounts of the total The outcome of component matrix shows the
variance. It has been noted that the scree plot flattens out loadings (extracted values of each item under three
after the fifth and third components in input and output variables) of the 76 variables on the five factors extracted.
variables, respectively, as given in figures. Note that the The higher the absolute value of the loading, the more
scree plot and the eigenvalues support the conclusion that the factor contributes to the variable (We have extracted
these 13 variables can be reduced to five components in five variables wherein the 76 items are divided into five
Table 3. ANOVAa
Model Sum of Squares df Mean Square F Sig.
Regression 49.646 5 9.929 42.447 .000b
1 Residual 16.140 69 .234
Total 65.787 74
a. Dependent Variable: Output-1
b. Predictors: (Constant), Input Factor-5, Input Factor -3, Input Factor -1, Input Factor -4, Input Factor -2
Table 4. Coefficients.
Unstandardized coefficients Standardized coefficients Sig.
Std. error t
B Beta
(Constant) -.180 .377 -.478 .634
Input-Factor-1 -.183 .256 -.157 -.712 .479
Input-Factor-2 .428 .274 .378 1.563 .123
Input-Factor-3 .242 .226 .176 1.070 .288
Input-Factor-4 -.233 .242 -.171 -.962 .339
Input-Factor-5 .731 .105 .687 6.971 .000
variables according to most important items with similar It is essential to communicate the environmental
responses to components 1-13). Afterward, the rotated policy wherein interested parties can play a big role in
component matrix was performed. The idea of rotation is developing and managing the system as per the standard.
to reduce the number factors on which the variables under Interested parties can contribute more if they are involved
investigation have high loadings. in the implementation process. Objectives and targets are
We observed in the present study that availability the backbone of the system. Hence, all relevant operations
of resources and effective communication and effective and activities are required to be considered for setting an
implementation processes are falling under most objective at various levels of functions. Corrective actions
important input variables. The availability of resources are required to be taken whenever system demands
(0.624 to 0.906) is found to be more significant input through internal or external audits or amendment of the
variables amongst other four variables. Mostly, input system. The other attributes are also observed and equally
and output variables range from 0.7 to 0.8 and 0.6 to 0.7, important for developing and managing the system as
respectively. On the other hand, better compliance and given in Tables 1 and 2.
achievement of objectives are found to be more significant
and factor loading is observed as 0.616 to 0.886 and 0.477 Regression Analysis and Models
to 0.835, respectively, whereas the input variables (i.e.,
achievement of objectives) has come out as the strongest Multiple regression was performed to assess the
variable among all output variables as given below in multiple correlation coefficients (R) between a dependent
Tables 1 and 2. variable and the eight summated scales. R was found to
The following attributes have been observed (having be 0.690 (R 2 = 0.476; F = 3.942; p<0.001). This result
highest loading) as strongest and significant in the present indicated that the eight scales have a high degree of
study, which needs special attention for implementing criterion-related validity when taken together [26]. A new
and bringing further improvement in the system, which model was estimated and the assumptions underlying
are given and discussed as: the regression model were tested again. The adjusted R 2
–– The policy is communicated to the supplier and of 0.900 is acceptable for this type of analysis and the
contractors and other interested parties (0.939). model is statistically significant (p value = 0.025) [27].
–– An organization has considered all operations and Multiple linear regressions were performed on the five
activities are associated with environmental objectives independent variables toward three dependent variables.
and targets (0.939). The overall result for the regression model was significant
–– Information on nonconformities and corrective (significance = 0.000). The result of this regression is
actions are used within the EMS (0.906). shown in Table 3 and 4.
–– The interested parties play an important role in setting Model summary is useful in multiple regressions
an objective (0.906). and remaining part of the study. In the present study,
644 Gawaikar V., et al.
R and R square value have been determined. R value Input factors 1 and 4 have a negative relationship
represents simple correlation and 1.00 indicates a high with output factor 1, and input factors 2, 3, and 5 have a
degree of correlation. R square indicates how much positive relationship with output factor 1 of model 1.
of the total variation in the dependent variable can be The values of R2 were more than 0.9930 for 24
explained by independent variables. In this case 100% provinces of Iran. The radiation-based methods estimated
can be explained, which is high [28]. The final model the reference evapotranspiration near the Caspian Sea
provides estimates of the regression parameters to test the better than the other regions. The most precise methods
hypothesis concerning different motivational and control were the Berengena-Gavilan, modified Priestley-Taylor,
variables. The R 2 value of the final regression model is and Priestley-Taylor methods for the provinces ES (central
0.37 and R 2 adj value is 0.32. The predicted R 2 pre value Iran), GI and GO (northern Iran), and the Stephens-
for the final model is 0.26. The F ratio value of 8.16 of Stewart method for IL (western Iran). Finally, a list of
the final model demonstrates that the model is significant the best performances of each method is presented to use
at 1% level of significance [29]. In the present study, the other regions and next research steps according to the
model summary includes multiple correlation coefficient values of mean, maximum, and minimum temperature,
R and its square (i.e. R²), and also the adjusted version of relative humidity, solar radiation, elevation, sunshine,
this coefficient as summary measures of the model fit. As and wind speed. The best weather conditions to use
can be seen the linear regression coefficient R= .869, .833, radiation-based equations are 23.6-24.6 MJ m-2 day-1, 12-
and .847, which indicates that there is strong correlation 20°C, 18-24°C, 5-13°C, and <180 hour month-1 for solar
between dependent and independent variables (a figure radiation, mean, maximum, and minimum temperature,
closer to 1.000 means a strong correlation). In terms of and sunshine, respectively [32]. In our current research,
variability, the value amount of R² = .755 or 76%, .694 models 1, 2, and 3, and the relational variables (include
or 69%, and .717 or 71%, which explains the variability control variables) cumulatively have contributed .755 per
within the population (this means that 76%, 69%, and 71% cent (.76x100), .694 per cent (.694x100), and .717 per cent
of the population in the sample agree on the correlation (.717x100) of the variance, respectively. This percentage of
between the given variables). the variance can be explained by the predictor variables.
Qualitative analysis showed that there is a positive The results showed that ISO 14001 EMS implementation
correlation between environmental awareness of (ß = -.157, p<.01), (ß = -.125, p<.01), and (ß = -.180, p<.01)
entrepreneurs/managers and environmental policy and were found to be significant. According to the present
generally with environmental practices (significant study, models such as management of waste (Model
at p<0.05; r: 0.6). There is some differentiation in 1), better compliance (Model 2), and achievement of
correlation depending on what kind of practices they are. objective (Model 3) have been developed. Management
Environmental awareness is positively correlated with of waste and achievement of objective are observed to be
the implementation of environmental systems practices – more significant and have contributed more compared to
ISO 14001, EMAS (at p<0.05; r - 0.56). Environmental the remaining one, i.e., better compliance. This means
awareness and the protection of natural resources that special care needs to be taken for managing various
practices are also positively correlated (significant at types of waste such as hazardous and non-hazardous
p<0.05; r: 0.33), but unfortunately there is no effect waste. Smart objectives must be achieved at the required
of environmental awareness for support of ecological timeframe, which may appropriately benefit the system.
organizations [30]. The author has studied and discussed all the models:
Setting the confidence interval at 99%, the results of –– Management of Waste = -0.180+ (-0.183 x Input-
ANOVA test (Table 3) provide an F-test value for the null Factor-1) + (0.428 x Input-Factor-2) + (0.242 x Input-
hypothesis. However, based on the analysis we can reject Factor-3) + (-0.233 x Input-Factor-4) + (0.731x Input-
the null hypothesis where F = 42.447 of model 1 and Factor-5).
p = 0.001 (P<0.01), wherein confidence interval is by –– Better Compliance = -0.192 + (-0.157 x Input-Factor-1)
default set at 99%. + (0.508 x Input-Factor-2) + (-0.130 x Input-Factor-3)
We look into two values: F and the Sig. A high F value + (0.189 x Input-Factor-4) + (0.627 x Input-Factor-5).
means that there is more chance of the null hypothesis –– Achievement of Objective = 0-879 + (-0.157 x Input-
being rejected and the alternate being accepted. Here it Factor-1) + (0.193x Input-Factor-2) + (-0.009 x Input-
is 42.447 of model 1, which means that the values are Factor-3) + (0.370 x Input-Factor-4) + (0.417 x Input-
pretty high. On the other hand, the significance tells us Factor-5).
the confidence level of accepting the alternate hypothesis.
A significance value of 0.004<0.005 indicates that the
correlation is statistically significant [31]. Here the Conclusions
Sig is 0.000 for all models, which means the alternate
hypothesis is accepted. It is understood that both the F This study empirically investigated the relationships
value and the Sig. value that the two variables are indeed between the 76 input variables on 12 dependent variables.
different from each other and that they affect outputs 1, The following conclusions and recommendations can be
2, and 3 in a different manner. Table 4 tells us about the put forth based on the analysis of variance between these
structure of the model. The analysis of the same is: variables.
Measuring the Impact of ISO 14001... 645
The above findings are distinctively important as it is teams and the other staff is essential for maintaining the
solely based on various clauses of ISO 14001 in Indian environmental management system.
context, which are different from previous studies that Furthermore, the present study and research is based
focus mainly on other environment sectors in developed on ISO 14001:2004 (EMS), which is valid up to September
countries. The sample size of 76 is found to be adequate 2018. This study can be performed for the ISO 14001:2015
and satisfactory, which means the study has gotten strong standard for getting the model to the next improvement
and required interrelationships. level in the system.
From the study, the number of factors arrived are 5 In India, the implementation could be improved
and 3 as input and output variables, respectively, which further, especially in the service and manufacturing
are also demonstrating intact relationships among sectors with a large sample size of 300 or more with
various variables and measurement of ISO 14001 impacts more response from the various organizations. We also
is influenced by input and output variables, namely recommend extending the research to other industries
availability of resources, effective communications, such as educational institutions, hotels, or more polluted
addressing global issues, effective process of industries in India.
implementation, following documented procedure, Further research needs:
managing waste, better compliance, and achieving –– Involvement of more people in the system is required
objectives. because all the employees were not able answer the
The ISO 14001 clauses such as (i) objective, targets questions prepared based on the clauses.
and programmes, (ii) resources, role, responsibility and –– All the ISO 14001-certified industries should conduct
authority, and (iii) internal audits are the most important quiz tests in a year (perhaps on World Environment
variables that influenced the study. We have observed Day) to improve participation and knowledge in the
through the present study that the availability of resources system.
is found to be more significant with input variables among –– Involvement of top management and providing
the other four variables. Whereas the input variables (i.e., required resources for giving a boost to the system
achievement of objectives) has come out as the strongest and employees.
variable among all output variables. In our entire study, –– Models can be derived in three sectors, i.e., small,
the significance is less than 0.05, i.e., the significance level medium, and large, and then improvements can be
is small enough to reject the null hypothesis. This means compared and judged based on responses through the
that the correlation matrix is not an identity matrix. questionnaire.
More importantly, the outcome of the study is limited to
input and output factors covering all required attributes from
each clause. The author has tried to cover all the clauses Acknowledgements
and prepared attributes address the clauses that are very
lengthy. The analysis obtained above is very helpful for I am very thankful to my family members and Ph.D.
getting required and expected results through the model guides for extending cooperation for my research works.
questionnaire, which is the outcome of the input and output I extend my gratitude to Shri Ramdeobaba College of
variables. Engineering and Management, Nagpur, India for guiding
The study will definitely encourage the implementation me in this regard. I also want to forward may sincere
of the model questionnaire for achieving further acknowledgements to the ISO 14001-certified industries
improvement in ISO 14001 (EMS). The derived model for submitting their value-add responses based on the
in this study provides further improvement in existing input and output variables and model questionnaire. I
environment performance of ISO 14001-certified would also like to give special thanks to the management
organizations. The derived model can be used in any of Maharashtra Power Sector, India as most of the
manufacturing sector as well as service sectors. responses were collected from them and devoted their
It was observed that some of the respondents are not precious time for my research work.
fully aware of the ISO 14001 clauses in certified industries.
Due to this, the development of the model will not be
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