2.5 Benefits of EMS implementation

2.5 Benefits of EMS implementation:

The basic idea of EMS development was based on wellbeing of the business community, industrial sector, nature (including flora and fauna) and civil community. The growing demand and familiarity about ISO 14001 as EMS cannot be ignored and it should not be negated (Wilson and Sasseville: 1999, XV). The literature reveals many tangible and intangible benefits regarding adoption and maintenance of EMS. Generally, the benefits have been categories in three area like Managerial aspects (positive attitude of higher management), operational aspects (improvement in operation methodology and motivated attitude of employees), and socio- economic aspect (enhanced image and market competitiveness).  

Similar, aspect has been reported such as growing interaction with stakeholders and customer, increase in firm’s efficiency, improvement in organizational performance, advantage of competitiveness over competitors (Poksinska et al, 2003). Quazi (1999: 306) argues that the correct and sound implementation of EMS may results in many rewards and achievements.

  Massoud et al (2010:p201), Quazi (1997), Rezaee and Elam (2000) and; Nee and Wahid (2010) stated following incentives and rewards

Table 2.5: Benefits and Incentives

Benefits and Incentives

·         Clean/effective operations ·         Productivity , improvement  and cost savings ·         Profitability and competitive savings ·         Market expansion ·         Improved company image and management ·         Enhanced relationship with stakeholders ·         Sound business practices ·          Comply with major customer requirement ·         Low premier insurance and other relevant services ·         Increasing people goodwill by reducing and preventing pollution and waste ·         Reduction in frequency of audits

Empirical evidences, reflects above mentioned benefits. The manufacturing sector especially SMEs can enjoy the long term benefit but it require more effort and investment. Different case studies indicated the operational cost saving as benefits under EMS implementation in terms of pollution control, waste reduction, time management, energy efficiency. Quazi (1999) states that a significant reduction in operational cost has been reported by ISO certified companies in Singapore Generally, it is obvious that the overall impact of adoption of EMS is positive and results in various benefits. Lawrence et al (2002: p. 43) reported following points as benefits in the process of EMS implementation,

·         Cost saving and improved management control;

·         Meeting customer expectations;

·         Demonstrating commitment to environmental friendly and responsibility;

              Improved environmental performance;

·         Staying head of legislations; and

·         Increased employee motivation

In author’s point of view, these factors have more value than just obtaining a piece of paper as certification may   lead to erosion of management system rather than improvement. (Poksinska I et al 2003) mentioned that a significant gain has been reported in corporate image and improvement in environmental performance has been rated as second. In addition, customer satisfaction, enhanced employee’s moral with gain in market share has been reported as moderate benefits enjoyed by firms and less improvement in profit margin with no significant increase in productivity has been rated as low.