B U S I N E S S
With the implementation of new and stricter legislation and significant improvement in its enforcement, it is becoming increasingly clear that CEE businesses need to consider environmental issues in order to remain competitive, or even in some cases to avoid closure. One way for a company to address the environmental impact of its activities is to introduce an environmental management system (EMS).
There are a number of standards applied on an international, European, and national basis which can be used as a model for an environmental management system. The best known among them are ISO 14000, EMAS, and BS7750.
The European EMAS (Eco-Management and Audit Scheme), was introduced by the EU Council and implemented in European Union member states in 1995. Presently, it is a voluntary scheme for individual companies within the industrial sector.
Finally, there is the BS7750, a national standard introduced in the UK in 1992 by the British Industrial Standards organization. The BS7750 is compatible with the ISO 14001 and EMAS, and it is likely that it will cease to be relevant once either of the other two standards gain international recognition.
All of the EMS standards stress the need for continuous improvement in companies' environmental performance and require compliance with applicable legislation and regulations. In general, they focus on processes and practices in a company rather than on specific products. While the three standards differ in some technical details, they all call for a similar set of components:
From a company's internal point of view, accession to the ISO 9000 usually improves in-house communication and decreases the number of employee accidents. Material and energy waste decreases, there are fewer product defects, and customers report increased satisfaction. The ISO 9000 series also makes it easier to do business around the world - companies are able to select among ISO 9000 certificate holders worldwide and know that they are dealing with a quality company. Thus, ISO 9000 gives businesses not only an opportunity to save money, but also the opportunity to bid for more work.
The drawback, however, is that ISO 9000 can be quite costly. Most companies spend from $9,000 to $40,000 to become certified, and the registration process takes 12 to 18 months, depending on which standard is registered. In light of the costs of registering to an EMS standard the question arises as to whether such a move makes economic and strategic sense for an Eastern European company. Can a CEE firm afford to commit resourcesÐmoney, time, manpowerÐto introducing an environmental management system?
Let us review some of the ways in which a company can benefit from instituting a formal environmental management system:
Operating Cost Savings - the most common benefits result from a review of and improvement in efficiency of resource and energy utilization. The other factor is minimization of waste and reduction of waste disposal costs.
Environmental Compliance - non-compliance fines are avoided and the bad publicity that inevitably follows an environmental prosecution is averted.
Customer Relations - many companies prefer to use suppliers with good environmental records. The customer, conscious of his/her reputation and environmental compliance requirements, often chooses to use suppliers and sub-contractors who can demonstrate satisfactory environmental performance.
Marketing Opportunities - good environmental performance provides a marketing tool, and can attract many potential customers and open wider markets.
Corporate Image - responsible environmental attitude can improve the image of the corporation with the public and client base, as well as with the company's stockholders.
Investment - seeking additional investment for the organization is aided by sound, demonstrable environmental performance.
Insurance - insurance companies are increasingly aware of the risk from the poor environmental performance of clients. Companies with an effective EMS can claim that they pose less risk to the insurer and negotiate lower premiums.
It is interesting to note here that some of the above benefits can be reaped even without a formal certification to any standard. This means that a company may profit from just carrying out an internal audit based on an environmental management system methodology, without ever applying for certification.
All in all, there is no easy answer for a CEE company considering whether to register to a particular EMS. Company size and financial situation, scope of operations, type of product, availability and cost of certification will all play a part in the individual firm's decision to adopt international standards. One thing seems clear however - environmental management systems are here to stay, and they deserve a closer look.