Business Essays – Environmental Management System

EMAS ordinance, including relevant literature, as well as comparing the EMAS ordinance with the ISO 14001 norm. The methodological analysis chapter will explain how research is conducted using secondary research and a questionnaire for primary research. In chapter four, findings based on both primary and secondary research data will be presented and analyzed. Chapter five will then discuss overall research findings before drawing a conclusion.

2 Literature Review

2.1 Business and Environment
2.1.1 Identification of Business
Significant changes have occurred in the business landscape since the Industrial Revolution in Western Europe two hundred years ago (Blair, 2001). New industries like chemical, motor, and retail have emerged, accompanied by advancements in technology and global market expansion.The changes that have occurred over the past two hundred years have had a significant impact on the environment, which is different from what was observed in the past. In order to discuss the environmental impact of concern, we must first understand what concern refers to in terms of commercial organizations and their activities within a capitalist economic system (Blair, 2001). However, it's important to note that "industry" and "business" are often used interchangeably, as is the case within this article. Business has the same meaning as industry; it refers to a collection of companies that operate similar processes resulting in related products or services that a third party wants to purchase (Blair, 2001). Industries can be categorized into primary, secondary or tertiary sectors. Primary industries involve fishing, forestry, agriculture, and extractive industries such as mining and quarrying. These industries directly collect resources through physical processes for development purposes. Secondary industries are manufacturing sectors that use raw materials and various processes to create tangible goods,

thus increasing their value. On the other hand, tertiary industries provide services either to individuals or other organizations. The environmental impact of these three types of industries is distinct enough to require separate analysis since they each have different effects on the environment (Welford, 1998).The oil industry has more negative impacts on the environment compared to the retail industry due to its classification as a primary industry. Primary industries have a substantial environmental footprint as they interact closely with nature. Activities like oil and gas flaring contribute to elevated pollution levels, exacerbating global warming. Oil spills also cause localized damage to marine ecosystems. These industries generate significant amounts of waste, particularly from fossil fuel and mining sectors, but agricultural waste from factories should not be overlooked either. Farming and forestry in primary industries greatly impact habitats as they require large land areas for operation, significantly influencing the region's flora and fauna based on their practices. Additionally, farming and forestry have notable landscape impacts that shape important landscapes in developed countries.

Secondary industries primarily focus on manufacturing, combining natural materials and components to create final products or use them in other production processes. These manufacturing processes consume a significant amount of energy and result in waste products and pollution being generated.Although waste is considered normal, pollution is seen as an unavoidable consequence that ideally should be avoided but often leads to the degradation of air, water, land, as well as sound and visual disturbances. Furthermore, the transportation, use, and disposal of these manufactured products also have environmental impacts. On the other hand, third industries such as service businesses have received less attention regarding their environmental impacts due

to the perception that they rely less on physical resources and deal with intangible products. However, third industries still contribute to environmental impacts although they may not be as obvious. For instance, while a supermarket appears to have a lesser impact compared to an oil refinery, it still leaves its own footprint. The transportation of goods within the supermarket chain and customers' travel (especially to suburban stores) contribute to air pollution. Third industries also consume energy for heating, lighting,
equipment usage which further adds to their environmental impacts.They also contribute
to pollution through the travel of their employees and clients,
generate waste from canteens,and consume materials inefficiently.Additionally,
they produce significant amounts of paper waste.There has been a growing concern for the environment
and the harm caused to it in recent decades.Initially,
there was a belief that growth and development were incompatible with environmental protection.
During this time, there was a dominance of anti-growth theories. Nevertheless, thinking shifted in the 1980s towards sustainable development, which is widely recognized today. Sustainable development aims to satisfy the present generation's needs without compromising future generations' ability to meet their own needs. It acknowledges the possibility of balancing development and protecting the environment. However, transitioning from old development practices that cause pollution, harm the atmosphere, disrupt traditional ways of life, destroy ecosystems, and empower international industrial giants is necessary.

The Brundtland Report emphasizes this shift towards sustainability and calls for significant changes in global economic patterns. In the corporate world, practical strategies are needed to turn theoretical ideas into actions for sustainable development. Companies play a crucial role in developing renewable alternatives, reducing waste, and improving energy efficiency. The text stresses the importance of organizations implementing management strategies

to enhance their environmental performance.

To achieve this goal, companies can adopt environmental policies and conduct audits or reassessments due to various pressures such as legislative requirements, marketing demands, public expectations, ethical considerations, and government concerns. However, integrating these commitments into existing organizational structures poses a challenge.Many companies have adopted the use of an environmental management system (EMS) as a tool to address the challenge of controlling their environmental impact. The EMS provides an organizational structure that includes responsibilities, practices, procedures, processes, and resources for determining and implementing environmental policy. While voluntary, an EMS helps companies control their environmental impact and can be based on quality management systems like ISO 9000. A criterion has been developed for EMSs to ensure quality and encourage improvement in environmental performance. Over time, various voluntary environmental management strategies have been developed. The first EMS criterion was BS 7750 by BSI in March 1992, followed by the European Commission proposing EMAS in 1993. In October 1996, the ISO 14000 series was published after less than three years of development, marking the beginning of international standardization of EMSs. These standardized systems are voluntary but can be externally verified by nationally commissioned bodies similar to ISO 9000 quality standards. Companies that register with these strategies and obtain EMAS and ISO 14001 accreditation gain added value such as market advantages and legal compliance according to Netherwood (1998).The standardized EMS phases are closely related to quality management systems, providing a systematic and cyclical process of continual improvement. Figure 1 illustrates this process, starting with planning for a desired outcome, implementing the plan, checking its effectiveness, and making adjustments based on observations. If the desired outcome

remains constant, this type of system naturally leads to continuous progress towards the goal (Roberts, 1998).

To achieve environmental performance through this management process, a company must define responsibilities, allocate resources, train staff, monitor performance,and conduct audits and reviews (Netherwood, 1998). All these activities rely on a commitment to continuous environmental improvement and an environmental policy. The stages of a typical environmental management system are depicted in Figure 2.

Implementing an EMS requires time, human resources, and money (Bansal ,2002). Companies may become more aware of the costs associated with implementing an EMS. Some argue that introducing EMS and its criteria will only add more bureaucracy to the company. However there are reasons why a company would need an environmental management system.Creating a successful EMS can bring more benefits than costs.Improved environmental management has two broad categories of benefits (Roberts ,1998). The first category addresses the importance of improved environmental management for global sustainability and our planet's well-being.Improved environmental management is crucial for moving towards sustainable business practices. The benefits of this can directly benefit companies, as shown in Table 3 which lists the advantages associated with ISO 14001. The International Organization for Standardization (ISO) developed the ISO 14000 series to address the need for a global environmental management standard. This series, also known as ISO 14000, allows organizations worldwide to participate in environmental efforts and evaluate their performance against internationally recognized standards. Comprising of multiple standards, the ISO 14000 series can be categorized into specification and guidance standards. Specification standards like ISO 14001 outline what companies must do to achieve certification and serve as a blueprint for implementing effective environmental management systems that enhance organizational practices.

These standards are designed to be applicable across different types and sizes of organizations and adaptable to various geographical and cultural contexts (ISO, 1996; Krut, 1998; Roberts, 1998). Both ISO 14001 and other standards within the ISO 14000 series aim to support environmental protection and pollution prevention while considering socio-economic needs.ISO 14001 is applicable to any organization seeking to enhance and showcase its environmental performance through a certified environmental management system (Roberts, 1998). ISO 14001 does not impose specific requirements for environmental performance, but rather outlines the requirements for the management system itself. Proper maintenance of this system will lead to improved environmental performance by reducing emissions and wastewater.

2.3.2 Phases for Implementing ISO 14001

2.3.2.1 Environmental Policy

The environmental policy is an official document that establishes rules and objectives for improving the environment. Adhering to this policy is crucial for the overall integrity and success of the EMS. The policy should include commitments to continual improvement, pollution prevention, and compliance with relevant environmental legislation.

2.3.2.2 Planning

The organization must establish objectives and targets based on its policy commitments and create a plan to achieve them.Organizations set broad aims in order to improve their environmental performance.These aims are accompanied by specific measures called environmental targets that must be achieved (Roberts, 1998). Each aim must have at least one corresponding target, all of which should directly relate to a stated aim.
After implementing the plan and establishing the necessary elements for successful execution and operation, the organization needs to assess whether it has achieved its aims and targets. If not, corrective action must be taken. Regular audits of the management system should also be conducted to ensure compliance with the

standard (Welford, 1998).

In addition, management reviews are necessary to ensure ongoing effectiveness and suitability of the system and make any needed changes.

EMAS, or Eco-Management and Audit Scheme, is a voluntary initiative for companies and organizations within the European Union (EU) and European Economic Area (EEA) countries - Iceland, Liechtenstein, Norway - to evaluate, report on, and improve their environmental performance. EMAS is also being implemented by candidate countries preparing for EU accession (EMAS Regulation No 1836/93 of 29 June 1993).

Initially limited to industrial sectors when introduced in 1995 as part of EMAS strategy participation became available for companies. The purpose of EMAS is to recognize and reward organizations that surpass the minimum legal requirements and consistently improve their environmental performance.

These participating organizations must regularly publish a public statement detailing their environmental performance which helps enhance credibility and recognition of EMAS. In June 1997, a review of EMAS was conducted after five years in operation resulting in publication of EMAS II in April 2001.EMAS II is applicable to all economic sectors, encompassing public and private services. It incorporates EN/ISO 14001 as the mandatory environmental management system for EMAS and introduces an appealing logo for external indication of enrollment. The implementation of EMAS involves multiple phases aimed at fostering continuous improvements in organizational environmental performance.

This passage underscores the significance of establishing and executing environmental management systems, periodically evaluating their performance, providing information about environmental performance, engaging in transparent dialogue with stakeholders (including employees) through training programs. If requested, employee representatives will also participate in reviewing the organization's environmental impacts such as production processes, products, and services. The assessment methods, legal framework, and existing environmental management practices and

procedures will also be scrutinized.

Based on the findings from this evaluation, an effective Environmental Management System (EMS) will be established to achieve the organization's environmental policy objectives. This EMS will outline responsibilities, objectives, procedures, training requirements monitoring systems,and communication systems. Moreover,a separate independent environmental audit will assess both the management system itself as well as the organization's overall environmental performance.An EMAS verifier accredited with an EMAS Accreditation Body (UKAS in the UK) must analyze and verify the environmental reappraisal process of EMS as well as auditing processes to ensure credibility and accuracy. They must also verify the accuracy of the environmental statement prepared for outlining achievements against environmental objectives and plans for continuous improvement. Section 2.4.2.5 of this document emphasizes the essentiality of obtaining independent verification from an EMAS verifier. Additionally, section 2.4.2.6 states that once validated, the environmental statement must be sent to the appropriate EMAS Competent Body for enrollment and made publicly available.

Implementing EMSs can present challenges for SMEs due to both internal and external barriers they face when addressing their environmental issues, as stated by Hillary (1999). Internal barriers primarily hinder progress in achieving environmental performance improvements and EMS adoption.These obstacles include a negative company culture towards the environment, a disconnect between positive attitudes and actions, skepticism about the benefits of environmental improvements, neglecting environmental issues due to lack of awareness and customer pressure, difficulty accessing quality advice and information for EMS implementation, resource redirection to core business activities during implementation, challenges in acquiring and retaining human resources for implementation, compatibility issues and high certification costs when implementing EMSs, customer and supply chain pressures driving environmental improvements for SMEs. However, medium-sized enterprises

are more influenced by regulators and local authorities than customers in terms of overall environmental performance.

Chapter 3, titled "Methodology," provides a detailed account of the research methods used in completing the survey. According to White (2000), it is important for research to have specific aims and be focused rather than general. This chapter utilizes academic theory to explain the advantages and disadvantages of research methods. It also aims to outline any limitations of the research at its conclusion.

Under section 3.2, titled "Quantitative Approach," this thesis uses a survey to gather information and understand how small and medium-sized enterprises can benefit from environmental management systems.Questionnaires were administered to individuals from 12 different German companies. Scientific research typically utilizes two main methods: positivism, which focuses on ideal well-defined knowledge; and hermeneutic methods that involve various forms of knowledge (Proctor, 2003). The hermeneutic method, also known as a qualitative approach, involves interpretation and understanding through interviews (Thomas, 1997). However, the quantitative approach has received criticism for its data collection practices as researchers may handle the subject matter without awareness (Thomas, 1997). When researching environmental management systems, a quantitative approach is necessary to analyze the environment and experiences of various companies (Deacon et al., 1999). Examining environmental management systems at different levels is preferred due to their potential for exploration (Casell & Symon, 2004). Qualitative methods provide initial understanding while quantitative methods generalize data from a sample to the population. In this thesis, both qualitative and quantitative approaches will be used to enhance a thorough definition and topical perspective on environmental management systems. Conducting secondary research through literature studies using resources from Northumbria University's library and databases such as

Emerald, Ebsco Host Business Source Premier, FT.com (Financial Times), Science Direct,and Nexis will aid in gathering information.The text discusses various keywords such as EMAS, ISO 14001, sustainability, environmental direction systems, and continual improvement. These keywords were utilized to cover different aspects related to specific countries. In addition, sources that focus on the entrepreneurial portion of marketing were used to gain a comprehensive understanding of environmental direction systems in relation to EMAS and ISO 14001 regulation. The literature is categorized into primary and secondary sources, with primary sources being authored by individuals involved in the research. On the other hand, secondary sources tackle specific topics but lack direct research. However, it is important to note that secondary literature may not always provide sufficient information regarding the study methodologies employed by researchers.