Abstract

A proactive environmental policy linked to ISO 14000 must be based on strategic planning and implementation. Key elements are commitment to prevention and to continual improvement as well as an assurance of compliance with regulations and laws. Proactive policy can help multinational companies build social responsibility into sustainable development. As an international EMS (environmental management system) standard, ISO 14000 emphasizes strategy formulation. Strategies, goals, and objectives are formulated only after consideration of such factors as: stakeholder demands; cost reductions and productivity increases gained from initiatives like process reengineering and total quality management; the link between environmental performance and company reputation; competitor positions; and the strengths and weaknesses of environmental policies. The resulting EMS should be institutionalized into the organization, as it handles such activities as risk monitoring, materials monitoring, and source monitoring. If strategy is to lead to sustained competitive advantage, the organization must assess: the impact of ISO 1400 registration on consumer perception of product quality; applications of best-price strategy; and strategic cost concerns. These cost issues cover short-term and long-term considerations as well as the measurement of financial impact of implementation. Activity based costing and related methods are key components of SEM: strategic environmental management. Specific implementation of an ISO 14001 program involves seven areas: structure and responsibility; training, awareness, and compliance; communication; documentation; document control; operational control; and emergency preparedness and response.