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Q&A: What are the benefits of an ISO 14001 certification?

UPDATED 2/2/23: This morning I was sent a request to answer one simple question from a leader of one of my favorite treat (BEER!) manufacturers in Bangalore Urban, Karnataka, India.

The number of questions about corporate social responsibility (CSR - ISO 26001), environmental management systems (ISO 14001) and health/safety systems (ISO 45001) from Asia has sky-rocketed in the last 12-24 months. I always try to be a friendly Westerner and advise students and professionals eager to learn. As a professor at the College of Charleston, I love receiving questions and seeing proactive learning at work.

Why do folks in Asia reach out to me? My guess is because I write more than your average Joe about what it takes to be good corporate steward. I understand and love "digging in the dirt" with actions needed to convert these slogans or mission statements into actionable steps in good business practices. The East is absolutely waking up to better practices - slowly by surely. I'm hopeful.

Just like the EU and the US in our early industrial revolutions, "money first" takes precedence in the first decade or two of commercial exposure. Emerging markets pave way to cheap labor and other business practices because "cost first" tends to drive buying decisions in supply chains. It is hard to think about aspects higher up on Maslow's hierarchy of needs when one has never spent a single day outside of poverty. Coming from poverty myself, I get it. Not 3rd-world poverty thankfully, but I certainly understand that improvement takes prioritization and time. Some of us get a huge head start. Especially in the West. I recognize and honor this without judgement. Perhaps that is why I receive these questions from my friends in the East. Below is my response to my new friend Srinivas from Bangalore.

What are the benefits of an ISO 14001 certification?

INTERNAL BENEFITS

ISO 14001 Quick Reference Guide

Short-term: Immediate internal benefits include significant cost savings and a safe/healthier place for employees to work. A recognized 3rd party certification for your environmental management system (EMS) conveys leadership commitment to all internal associates, therefore increasing awareness in thousands of day-to-day activities. Environmentally conscious associates make better decisions for reducing negative impacts both internally and externally. Improper handling of waste such as scrap, oils, coolants and others is also directly related to slips, trips and falls.

Long-term: Cost savings due to reuse of materials vs. landfill, better partnership in the supply chain with responsible suppliers, and overall improved corporate social responsibility (CSR). This leads to better sales and better morale for neighbors, consumers, employees and their families. ISO 14001 can add to the many reasons why talent chooses to work for a firm. Especially younger applicants who value these issues when making buying and employment decisions.

EXTERNAL BENEFITS

Short-term: Immediate external benefits includes the lowering of environmental impacts that neighbors, the supply chain and the neighboring community may feel negative effects of. Some examples include reduction in noise (light or audio) and pollutants from workplace emissions (air & water).

Long-term: The earth needs as many initiatives for clean and responsible work practices as it can get. Macro-level issues include the collective reduction in carbon emission. Micro-level issues include cost reduction = lower cost of products, a safer neighboring community = higher property value, and the support of small business owners that specialize in recycling services, recycling/reuse of materials used in production such as shop towels, recycled coolants, reclaimed hit used for energy creation (i.e. steam, heating water) and reduced risk of environmental catastrophes.

If we can help you with questions regarding productivity hacks, business overhaul or other organizational excellence topics, visit us online or send us an IM. Check out our ISO 14001 Resources page for free advice on doing your part to improve our environments.