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Candid Views of Fortune 500 Companies
EXECUTIVE SUMMARY
There is no greater buzzword today in
relation to global environmental management or supplier environmental
conditions than the new voluntary international standard for environmental
management systems, ISO (International Organization for Standardization)
14001. The stakes are high, and ISO 14001 has galvanized interest in major
issues of corporate environmental management. Is this standard a useful new
tool for environmental management, or is it a condition that will be imposed
on the marketplace?
Given projected investments in ISO
14001, particularly in Asia, this is a timely and crucial question. This
survey set out to establish what global firms are doing in both corporate
environmental management and supply-chain management and what role ISO 14001
is playing in each area.
The survey consisted of interviews by
telephone, fax, and mail of environmental managers and executives at thirty
major global companies, representing more than $650 billion1 in annual
revenues. The findings are of strategic consequence for firms thinking about
ISO 14001 as a tool to design or improve their environmental management
systems (EMSs) and supplier environmental management.
Findings
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Most global firms have EMSs in place
that they consider to be more advanced than ISO 14001. They have
formulated strategic positions on ISO 14001 in case it becomes a market
condition, as did other ISO standards, particularly ISO 9001. But in
practice, environmental managers have practical approaches to ISO 14001.
They are taking out the "smart parts" where and if these can add value but
are less interested in certification, which requires too many resources
without adequate return for business, the public, or regulators.
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Firms seeking to improve their
customized EMSs are finding value in certain aspects of ISO 14001, ranging
from audit criteria to documentation control. The value of this standard
is that it may provide a systemic checklist for environmental managers
seeking improvement areas and it allows them to introduce the idea of an
EMS to other operating divisions.
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Supply-chain environmental
management is an emerging issue. Although various firms, industry sectors
(automobiles, chemicals, and computers), and groups of firms have taken a
lead on this, none of these initiatives integrate ISO 14001. In fact, in
the minds of environmental managers, the issue of supply-chain
environmental management is unrelated to ISO 14001. This presents a
paradox, because ISO 14001 is viewed by suppliers as a looming "hammer,"
which is driving ISO 14001 to become the very instrument that they fear.
For more information, check out the
following:
REPORT
ANNEX: SURVEY RESPONSES |
