What Do We Know About EMSs? A Review of the Empirical Literature

Transcription

1 What Do We Know About EMSs? A Review of the Empirical Literature Andrew M. Hutson Department of Public Policy University of North Carolina at Chapel Hill MSWG Learning Together Workshop June 3, /30/02 ndems@unc.edu 1

2 Overview Annotated Bibliography Works Included in Literature Review Issues/Questions Covered Primary Findings/Conclusions Wrap-up 5/30/02 2

3 Annotated Bibliography 210 journal articles, reports, studies and other references regarding EMSs compiled and annotated by research assistants at UNC Starting point for literature review Still growing; suggestions and additions welcome 5/30/02 3

4 Context Much early skepticism without empirical justification Now, a few years worth of work available to evaluate 5/30/02 ndems@unc.edu 4

5 Works Included Empirical academic studies Case studies Quantitative reports Borderline empirical 5/30/02 5

6 5/30/02 6

7 Areas Covered Motivations Environmental Performance International Variation Management Practices Relationship to Quality Management Obstacles Supply Chain Employees Stakeholders Community Relations 5/30/02 7

8 What do we know about motivations? 5/30/02 8

9 Motivations Majority of results related to some or all of the following: Improve environmental performance Upgrade documentation Improve public relations/company image Improve efficiency Desire to integrate with TQM/ISO 9000 Ensure regulatory compliance Obtain/maintain competitive advantage Nash et al (2000), Brio et al (2001), Florida & Davison (2001), Hutson (2001), Morrow & Rondinelli (2002) 5/30/02 9

10 Motivations cont. Order of importance: corporate goals, commitment to environmental improvement, state regulatory climate, business performance, improved community relations Florida & Davison (2001) Systems are reactive and driven by problems or regulation Melnyk et al (1999) Internal and external factors influence decision to adopt Darnall (2001) 5/30/02 10

11 What do we know about environmental performance? 5/30/02 11

12 Environmental Performance ISO is more effective at impacting environmental performance than other voluntary programs Melnyk et al (1999) Firms report improvements in a variety of environmental indicators including waste reduction, resource conservation, energy use, lower emissions, and recycling Berry & Rondinelli (2000), Mohammed (2000), Rondinelli & Vastag (2000), Florida & Davison (2001) 5/30/02 ndems@unc.edu 12

13 Environmental Performance Cont. Using TRI in automobile assembly, Matthews (2001) found: Facilities with the system were not performing significantly better than facilities without the system No differences in toxic waste management were seen between firms certified to the standard and those without certification Compliance with air permits was similar between certified and non-certified facilities 5/30/02 13

14 Environmental Performance Cont. However -- Also using TRI data but in the electronics industry, Russo (2001) found: Within the sample of facilities with emissions above TRI reporting thresholds, ISO registration significantly reduced subsequent toxic emissions For the entire sample, the presence of an EMS was a significant predictor of improved toxic emissions performance 5/30/02 ndems@unc.edu 14

15 Env.. Performance Conclusions Self-reported data and case studies point to connection between EMSs and improved environmental performance Discrepancies in TRI studies may be due to either: Methodological differences and/or errors Differences between sectors studied 5/30/02 15

16 What do we know about international variation of EMS adoption? 5/30/02 16

17 Source: Reinhard Peglau, Federal Environmental Agency, Germany 5/30/02 17

18 International Variation Variation explained by domestic/institutional context of each country Environmental groups Regulators Public Delmas (2001), Kollman & Prakash (2002) 5/30/02 18

19 International Variation Cont. ISO counts are related to the presence of high ISO 9000 counts (relative to GDP), higher export-propensity (relative to GDP) and higher environmentality Corbett & Kirsch (2000) 5/30/02 19

20 What do we know about EMS relationship with overall management practices? 5/30/02 20

21 How Practices Affect EMSs High association of EMS/ISO with other advanced management practices/internal capabilities Darnall (2001), Florida & Davison (2001) Experiences with other management systems is the primary reason for EMS success Brio et al 9 5/30/02 ndems@unc.edu 21

22 How EMSs Affect Practices Except for lead times, ISO greatly improves every dimension of performance Melnyk et al (1999) Better record keeping, scheduling of environmental tests and equipment calibration Rondinelli & Vastag (2000) 5/30/02 22

23 How EMS Affect Practices Cont. Preventative approaches and sound internal waste management allowed companies to improve cost control and poor processes Corbett & Cutler (2000) ISO has led to integration of environmental objectives into operating routines Nash et al (2000) 5/30/02 23

24 What do we know about EMSs relationship with quality management? 5/30/02 24

25 Quality Management High ISO adoption is associated with ISO 9001 adoption Corbett & Kirsch (2000) ISO 9001 adoption increases the likelihood of ISO adoption King & Lenox (2001) Nearly twice as many EMS adopters have JIT or TQM systems in place as non-adopters Florida & Davison (2001) 5/30/02 25

26 Quality Management Successful attainment of ISO is influenced by past success with TQM systems Melnyk et al (1999) Managers are developing EMS based on past experience with TQM systems Berry & Rondinelli (2000), Corbett & Cutler (2000) Firms that mandate ISO required ISO 9001 more than firms that encourage Darnall (2001) 5/30/02 26

27 What do we know about obstacles to implementation? 5/30/02 27

28 Obstacles Progress in attaining ISO certification is influenced by regulatory uncertainty and cost of certification Melnyk et al (1999) SMEs affected by: Uncertainty about market benefits Lack of proper support, guidance and good information Lack of human resources is the major barrier - Hillary (1999) 5/30/02 ndems@unc.edu 28

29 What do we know about the supply chain? 5/30/02 29

30 Supply Chain Little attention devoted to problems along supply chain Melnyk et al (1999) ISO is the first formalized management system most Mexican auto suppliers (65%) have had in place and most would not have implemented without mandate. 96% believe they will benefit Hutson (2001) Management practices are imported through supply chains Corbett (2002) 5/30/02 30

31 What do we know about employees? 5/30/02 31

32 Employees Employee involvement and empowerment extremely important for EMS success Rondinelli & Vastag (2000), Kitazawa & Sarkis (2000) Training of personnel was one of the most important factors for ISO Success Brio et al (2001) Correlation between beyond compliance as EMS goal and high employee involvement Gallagher (2002) 5/30/02 32

33 What do we know about stakeholders? 5/30/02 33

34 Those, sire, are the uncommon folk. 5/30/02 34

35 Stakeholders Relationship of SMEs with Stakeholders improves with EMS Hillary (1999) Stakeholder involvement affects CA of EMS. The greater the involvement of external stakeholders, the greater the perceived CA Delmas (2001) Stakeholder opinion toward ISO affects domestic demand for the standard Kollman & Prakash (2002) 5/30/02 35

36 What do we know about community relations? 5/30/02 36

37 Community Relations Adoption of ISO causes firms to consider the role of local people in the firm s daily environmental activities and helps enhance the environmental awareness of local people Mohammed (2000) EMS plants are more likely to sponsor community activities, pose lower risks, share information with and involve the community in environmental programs, as well as report improved relationships over past 5 years Florida & Davison (2001) 5/30/02 ndems@unc.edu 37

38 Community Relations Responsible Care prompted similar practices among different firms in the area of community relations and distribution (areas of high visibility), but permitted much variation in other company activities of lower visibility Howard, Nash and Ehrenfeld (2000) 5/30/02 38

39 Summary Motivations/drivers vary greatly Management practices matter experience pays off, more likely to implement Quality systems strongly linked to EMSs Adoption rates depend on level of domestic support 5/30/02 39

40 Summary Cont. Employees matter successful systems have employee buy-in Stakeholder involvement may add legitimacy EMS are tied to improved community relations Jury still out on environmental performance 5/30/02 40

41 Limitations Literature still very young not the final word Bibliography not complete More work we may have missed This review is merely a snapshot Analysis dependent upon strength of original articles 5/30/02 ndems@unc.edu 41

42 Next Steps: Continue adding to bibliography Suggestions/additions appreciated! Make publicly available More empirical work still needs to be done 5/30/02 42

43 Thanks and Acknowledgement Chiara D Amore Department of Environmental Science & Engineering, UNC Chapel Hill Bibliography available at NDEMS website: 5/30/02 ndems@unc.edu 43