THE EFFECT OF THE ISO-14001 EMS ON CORPORATE FINANCIAL PERFORMANCE

Does ISO-14001 EMS contribute to financial performance? Providing an answer to this question could increase the direct motivation for companies to register. Providing an answer to this question has broad-reaching implications not only for companies who wish to be green, but also for the whole ecosystem as well. The academic significance of this approach is to fill a need in the existing literature for empirical evidence on the financial effects of ISO-14001 EMS. The practical value of this approach is based on the premise that if the registration of ISO-14001 EMS is related to corporate financial performance, then ISO- 14001 EMS will not only offer an environmental incentive, but also a financial incentive. However, the result of the present study is negative - ISO-14001 EMS does not pay! Several issues are being discussed, including but limited to: Reliability, Validity, Diluted Effect, Lagged Effect, and Overlapped Effect etc... Does ISO Certification Represent EMS? Does ISO Certification Qualify To Be a Tool of TBL? This study concludes that "The Quality of Implementation" is more critical than "Green-Wash-Formality of Registration".

Autorentext

Dr. Zhao is an associate professor of management at Department of Management, Oregon Institute of Technology, Klamath Falls, Oregon, USA. His specialty is in the research and teaching of Environmental Management, Strategic Management, and Process and operations Management courses for both under and graduate students (MBA program).