11, P < .0001), but nonsignificant differences for performance (F = .007, P < .93) and foreign sales (F = .51, P < .47) in the ISO and non-ISO companies. The data analysis also showed that ISO registered companies experienced higher average profitability compared to their counterparts in their respective industries that were not registered; however, the data analysis also showed that ISO companies did not experience higher operational performance and foreign sales compared to their non-ISO counterparts (Simmons and White 330). Finally, an ANOVA found a significant size differential between the two groups of companies (F = 29.60, p < .0001), with non-ISO companies being smaller on average than their ISO-registered counterparts in the sample measured (Simmons and White 330). These researchers were quick to point out, though, that there were some limitations to this analytical approach that transcended the ability of their method to accurately model. In this regard, Simmons and White concluded that, "There may be other systematic differences between registered and nonregistered firms that significantly impact these relationships. For example, if companies that are more involved in quality programs in general are more likely to be ISO 9000 registered, then any observed relationships may be due to the general emphasis on quality rather than ISO registration" (Simmons and White 330).
ISO 14000
The International Organization for Standardization reports that the ISO 14000 family is concerned with different aspects of environmental management. The first two ISO 14000 standards, ISO 14001:2004 and ISO 14004:2004, are focused on environmental management systems (EMS) (ISO 14000 essentials 1). According to Hormozi, "An EMS is a system by which managers identify and address environmental problems. An EMS includes several steps: assessing problems, establishing goals, measuring progress, training workers, auditing performance, rewarding or penalizing behavior, and verifying through third party review" (33). Proponents maintain that organizations that have an effective EMS in place are better able manage, measure, and improve the environmental aspects of their operations through efficient compliance with both mandatory and voluntary environmental requirements (Hormozi 33). The ISO 14001:2004 standard set forth the requirements for an EMS and the ISO 14004:2004 standard provides general guidance for EMS. The remaining ISO 14000 standards and guidelines in the family are focused on various aspects of environmental-related practices, such as labeling requirements, performance evaluation, life cycle analysis, communication and auditing (ISO 14000 essentials 1-2). According to Murray, Kelly and Ganzi, "This series of standards is being established by consensus across a broad consortium of governments, businesses, and standardization organizations throughout the world. It is slated to be the first set of standards ever established in consultation with the global manufacturing community" (4). In addition, ISO 14000 is intended to harmonize organization's environmental management systems with their ISO 9000 quality management system (Simmons and White 1999).
The current work structure of the ISO 14000's TC 207 is divided into seven elements as follows:
1. Environmental management systems (EMS);
2. Environmental auditing (EA);
3. Environmental labeling (EL);
4. Environmental performance evaluation (EPE);
5. Life cycle assessment (LCA);
6. Terms and definitions (T&D); and,
7. Environmental aspects in product standards (EAPS) (Hormozi 33).
Basically, there are two platforms to the ISO 14000 series that are regarded as being essential, with the first relating to management and the second relating to products as illustrated in Figure 2 below.
Figure 2. ISO 14000 Series Management Platform
Source: Hormozi 33
The environmental management systems standards established by the ISO 14000 series are designed in such a way that they are applicable and therefore useful for almost any type of industrial producer (Hormozi 33). The ISO 14000 standards are concerned with the following main categories of environmental management processes: (1) establishment of an environmental policy, (2) environmental planning, (3) policy implementation and operation, (4) monitoring and corrective action programs, and (5) management review (Murray et al. 5). The standards also provide a basic framework that industrial producers can use to improve their environmental performance by establishing environmental goals, implementing a plan for achieving such goals, as well as monitoring the effectiveness and requisite corrective actions (Murray et al. 5). Like the ISO 9000 standards, though, registration and compliance with the ISO 14000 is not an inexpensive undertaking, but is slightly less expensive: "This certification is done at facility level. Currently, such certification is estimated to cost about $20,000 per facility" (Prakash 12-13).
An analysis of 96 Taiwanese listed firms in four major manufacturing categories that obtained ISO 14000 certification during the period from 1997 to 1999 was conducted by Lee, Hu and Ko using the data envelopment analysis (DEA) and Wilcoxon signed-rank test. These analytical methods were used to assess the effect of ISO registration and compliance on these...
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