Environmental management system and financial performance
The paper aims to explore the relationship between ISO 14001 certification and a company’s financial performance to investigate whether the certification to ISO 14001 environmental management standard has benefited the company’s financial performance or not. Using Malaysia as the research context...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Faculty of Economics and Administration, University of Malaya
2016
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| Subjects: | |
| Online Access: | http://eprints.intimal.edu.my/754/ http://eprints.intimal.edu.my/754/1/Environmental%20Management%20System%20and%20Financial%20Performance.pdf |
| Summary: | The paper aims to explore the relationship between ISO 14001 certification and
a company’s financial performance to investigate whether the certification to ISO 14001
environmental management standard has benefited the company’s financial performance
or not. Using Malaysia as the research context, the results of a linear regression analysis
show that firms with above-average performance have a greater tendency to pursue ISO
14001 certification. The findings also indicate that there is a significant relationship
between ISO14001 certification and a company’s financial performance in an emerging
economy context. The reason is the adoption of ISO 14001 standard does offers many
benefits to companies, such as greater reputation and brand awareness on one hand, and
higher sales and investors’ confidence on the other. The ISO 14001 certification helps to
develop a better system which leads to costs reduction and revenue increase in the long
run. |
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