CURRENT VIETNAMESE LAWS AND REGULATIONS ON ENVIRONMENTAL PROTECTION

IMPLEMENTING AN ENVIRONMENTAL MANAGEMENT SYSTEM THROUGH
ISO 14001: A CASE STUDY AT LEVER VIETNAM, HANOI BRANCH
by
Le Thang Long
A research study submitted in partial fulfillment of the requirements
for the degree of Master of Business Administration
Examination Committee Dr. Fredric W. Swierczek (Chairperson)
Dr. Barbara Igel
Dr. Arne Deussen
Nationality Vietnamese
Previous Degree Bachelor of Economics
National Economics University
Hanoi, Vietnam
Scholarship donor Government of Switzerland
Asian Institute of Technology
School of Management
Bangkok, Thailand
April 2001
ii
Acknowledgement
The author expresses his deep gratitude to his advisor, Dr. Fredric Swierczek, for his visionary
advice and comments that help complete this research study.
Sincere thanks are extended to Dr. Barbara Igel, who has given critical suggestions for a better
structure of the recommendations of the research.
The author would like to thank SAV Program, whose funding made his study at AIT possible.
Warmest love is dedicated to his father, who has been a guiding light and extended endless
encouragement for him to pursue his interest in environmental management.
The author extends his special thanks to Dr. Nguyen The Chinh and Mr. Dinh Van Tru for their
assistance in collecting information and ideas in establishing the research framework. Mr. Mai Duc
Lam also spent his valuable time to provide information for this research study.
i

Abstract
Environmental management has recently emerged as a competitive edge in the international
market. Vietnamese companies can no longer ignore this phenomenon in the way joining the world
business community. However, they are far behind world level practice in environmental
management and now pacing to catch up with their rivals in advanced countries.
ISO 1400 standards series developed by the International Organization for Standardization is
widely acknowledged as a solution for business entities based in developing countries to compete
equally in the world market in terms of environmental management. Vietnamese enterprises are
now paying more attention to environmental management and, thus, considering the option of
implementing ISO 14000.
This research aims at discovering the practice of ISO 14000 standards series in a Vietnamese
facility: Lever Vietnam, Hanoi Branch. The author wants to analyze the practice of building an
Environmental Management System through a standard of the ISO 14000 series, ISO 14001
namely “Environmental Management System specification”. Base on the analysis the research
study draws the lessons for implementing ISO 14001 at the facility and suggests recommendations
to improve the EMS of the facility.
ii
Table of Content
ACKNOWLEDGEMENT....................................................................................................................................................I
ABSTRACT..........................................................................................................................................................................II
TABLE OF CONTENT.....................................................................................................................................................III
LIST OF FIGURES............................................................................................................................................................IV
LIST OF TABLES...............................................................................................................................................................V
CHAPTER 1..........................................................................................................................................................................1
INTRODUCTION.................................................................................................................................................................1
I BACKGROUND............................................................................................................................................................1
II PROBLEM STATEMENT..............................................................................................................................................2
III RESEARCH OBJECTIVES...........................................................................................................................................2
IV RESEARCH METHODOLOGY.....................................................................................................................................2
V SCOPE AND LIMITATIONS..........................................................................................................................................3

VI PLAN OF THE RESEARCH.........................................................................................................................................3
VII PRESENTATION OF THE RESEARCH.........................................................................................................................3
CHAPTER 2..........................................................................................................................................................................5
LITERATURE REVIEW....................................................................................................................................................5
I ENVIRONMENTAL MANAGEMENT SYSTEM AND SUSTAINABLE DEVELOPMENT..........................................................5
II ISO 14000 STANDARDS SERIES AND THE PROSPECTS OF EMS.................................................................................7
CHAPTER 3........................................................................................................................................................................19
IMPLEMENTING ISO 14001 AT LV HANOI..............................................................................................................19
I CURRENT VIETNAMESE LAWS AND REGULATIONS ON ENVIRONMENTAL PROTECTION..........................................19
II SOCIAL TRENDS AND PUBLIC PERCEPTION OF ENVIRONMENTAL PERFECTION.........................................................22
III COMPANY PROFILE................................................................................................................................................22
IV ISO 14001 AT THE FACILITY.................................................................................................................................24
V DIFFICULTIES IN IMPLEMENTING ISO 14000 AT LV HANOI...................................................................................42
CHAPTER 4........................................................................................................................................................................48
CONCLUSIONS AND RECOMMENDATIONS...........................................................................................................48
I CONCLUSIONS..........................................................................................................................................................48
II RECOMMENDATIONS...............................................................................................................................................49
BIBLIOGRAPHY...............................................................................................................................................................54
iii
LIST OF FIGURES
Figure Title Page
2.1. Environmental Management System Loops 6
2.2. ISO 14000 standards series 9
3.1. Procedure for identifying significant environmental aspects at LV Hanoi 24
3.2. Environmental Management structure at LV Hanoi 29
3.3. Environmental communication hierarchy at LV Hanoi 32
3.4. Procedure for document control at LV Hanoi 34
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LIST OF TABLES
Table Title Page

2.1. ISO 14000 standards series 10
2.2. Comparison of EMS standards 14
3.1. Capital contribution of Lever Vietnam 21
3.2. Operational control over significant environmental aspects at LV Hanoi 36
v
Chapter 1
Introduction
I Background
The World Trade Organization (WTO) Committee on Trade and Environment (CTE) has brought
environmental and sustainable development issues into the mainstream of WTO work. The
Committee's first Report, which was submitted to the WTO Ministerial Conference in Singapore in
1998, notes that the WTO is interested in building a constructive relationship between trade and
environmental concerns. On the way joining WTO, Vietnam will soon take environmental
protection into serious concern and environmental issues can no longer be ignored from business
consideration.
Historically, environmental management in corporations and small companies alike has not been
included in the “inner circle” of senior management. Many organizations placed environmental
management on the back burner until compliance issues arose or contamination was found on the
property. When those instances occurred, senior management suddenly gained an intense interest in
the subject.
Today, many organizations are beginning to think beyond environmental compliance towards
environmental performance. Access to vital information about the compliance status of a company,
how many pounds are emitted or who is responsible, can easily be accessed over the Internet. This
leads to an unprecedented awareness by the public of whether an organization has a positive or
negative impact on the environment. Those who are responsible for the bottom line of a company
are also beginning to recognize that a well-designed Environmental Management System (EMS)
can have a profound impact on a company. This impact not only extends to the short-term bottom
line and public image, but also to the long-term financial health of a company. At this time an
EMS that has been certified to the internationally recognized International Organization for
Standardization’s ISO 14001 Standard is considered the state of the art in environmental

management.
Businesses are increasingly adopting the global environmental management system, ISO 14001, in
order to more effectively and efficiently manage their environmental impacts. This voluntary
system, as well as all EMSs, has the potential to provide facilities with a structure to minimize their
environmental impact, ensure compliance with environmental laws and regulations, and address
wasteful uses of natural resources. For these reasons, EMS may greatly affect the environmental
performance of facilities that adopt them and subsequently impact their financial performance, as
well.
Only recently could organizations have their EMS certified, as the final version of the international
EMS standard was published in late 1996. Since then, over 10,000 facilities around the world have
had their EMS certified (Gallagher et al., 1999). While businesses are increasingly adopting these
systems to better manage their environmental impacts, little is known about the potential these
systems have for environmental protection, social welfare, and future public policy. In Vietnam,
ISO14001 is still considered among entrepreneurs as a source of expense or obligation, and the
adoption of this standard is limited within a small number of companies, mostly foreign-invested
enterprises. This leads to a bitter fact that most Vietnamese companies may not be able to comply
1
with international regulations and standards when they go competing globally thus hindering their
entrance into world market.
II Problem statement
Companies doing their business in Vietnam are now bearing potential risk of losing their ground
due to poor environmental performance. A complete and effective Environmental Management
System is now crucially important for every business entity to proactively deal with the new
business environment at the time being. There are numerous types of EMSs among which, the ISO
14001 EMS has emerged as the most widely accepted international standard for environmental
management and has the potential to harmonize EMS worldwide. When EMS is certified with
ISO14001 standard, a company can reach farther than compliance with regulations since they are
able to rely on environmental management to differentiate themselves from competitors.
The business Lever Vietnam is doing belongs to chemical industry, which has been identified as
one of the most potential source threatening the living environment of the society. Furthermore, the

company’s market is consumer goods, cosmetics for exact, and this product category requires high
standards on industrial sanity and safety. Managing environmental performance becomes a vital
task to keep the company alive in this competitive business environment. Therefore, it is worth
looking at the practice of implementing ISO 14000 at Lever Vietnam to study why and how a
Vietnamese facility uses ISO 14001 as an essential tool to strengthen its EMS.
III Research objectives
• To evaluate the current Environmental Management System at the facility;
• To identify the main benefits of and obstacles to implementing ISO 14001 standards at the
facility;
• To suggest recommendations to the facility about strengthening the current EMS with ISO
14001 standard series.
IV Research methodology
IV.1 Primary information:
• Interview with management board of the facility to study the current EMS
• Interview with officials from Office for Standardization, Metrology and Quality Control for
overall perception about the current practice of implementing ISO14000 in Vietnam
IV.2 Secondary information:
• Books, journals, magazines, newspapers
• Company releases
• Government regulations, guidance and other documents.
2
V Scope and limitations
V.1 Scope:
This piece of research only focuses on EMS at the firm level, it does not intend to assess the
possibility and prospects of implementing ISO14001 at the industry or the nation level. The
research also implies an in-depth analysis of possibility but not a feasible study for implementing
ISO14001 standards at the company. Instead, this case study is an investigation of the practice of
implementing ISO 14001 at Lever Vietnam Hanoi Branch (hereinafter is referred to as LV Hanoi),
located at Nguyen Trai Road, Thuong Dinh, Thanh Xuan, Hanoi.
V.2 Limitations:

It might be difficult to reveal much primary information from the company. The legal system for
environmental control in Vietnam has not been built to such an effective level that can standardize
the environmental records for many kinds of company. The company chosen may not have
recorded a sufficient database for its EMS and is, thus, unable to give out much detailed
information.
VI Plan of the research
The time plan of the research can be divided into five stages:
• Literature review
• Data collection
• Data analysis and recommendation
• Completing research report
• Presentation of results
VII Presentation of the research
Chapter 1: Introduction
This part presents the rationale of the research, research methodology, background and statement of
the research problem, objectives, scopes and limitation of the study.
Chapter2: Literature review
This part reviews the definition of an EMS and its importance to sustainable development. The role
of EMS in the modern business competition and how ISO14000 standards can be used in building
an effective EMS for a facility will be discussed. Basic concepts and viewpoints based on which
the research is conducted will be justified in this chapter. Also at the focus are the general
principles and benefits when implementing ISO14000 into a firm.
Chapter3: Implementing ISO14001 at the facility
3
This part will focus on analyzing environmental practices of LV Hanoi and base on the analysis the
current EMS will be evaluated to work out the weaknesses and rooms for improvement in the
company’s current EMS. An overview of Vietnam’s legal system on environmental protection will
be provided to support the analysis. The study of the current system will be the main arguments
used for later recommendations.
This section will also discuss prospects and feasibility of implementing ISO14000 standards into

the facility. The main benefits and obstacles in the implementation process will be examined in
details to assess the reality of applying ISO14000 to strengthen the company’s EMS.
Chapter 4: Conclusions and recommendations
4
Chapter 2
Literature review
I Environmental Management System and sustainable development
Environment, health and human development in the future depend heavily on what we are doing at
the mean time. Environmental problem has become so serious that if we do not change the way we
exploit natural resources, the way we manufacture and even our lifestyle, the Earth will continue to
be hurt and the living environment to which our lives belong will continue to be destroyed.
Examples of hottest environmental problems include: depletion of Ozone layer, Greenhouse effect,
ecological imbalance, air and water pollution, toxic chemical substances, exhausted natural
resources, and environmental impacts on living quality. Those problems are getting worse and
worse and they are affecting all countries, developed or developing. Environmental problem itself
at the same time increases interdependence among the countries and no single solution can be
acceptable for all actually. The problem also can never be solved without regarding the social-
economic and other specific situations of each country or organization. As such, the second
principal of the 1972 Stockholm Conference stated: “All countries are responsible to ensure that all
activities within their control and legal regulations will not damage the environment or cause the
aspects out of control by other countries”.
Individuals and business of all types must accept responsibility for the stewardship of the Earth, not
only as a means of pollution control and resource management, but also as a way of balancing
human activities with nature’s expertise in renewing itself. Future prosperity, which is essential for
a healthy global economy, depends on preserving the Earth’s natural wealth and sustaining a
healthy ecological balance.
The 1992 Rio Conference introduced the world to the concept of sustainable development, a notion
coined by the Brundtland Commission Report, Our Common Future. Briefly stated, sustainable
development is an approach to development that utilizes the Earth and its resources in a manner
that does not compromise the ability of the future generations to meet their needs. Partially

resulting from agreements reached at the Rio Conference, sustainable development emerged as the
foundation upon which national (and even some local) governments and many major organizations
worldwide elected to build their environmental policies for the 21st century.
The significance of the sustainable development concept to the emerging worldwide paradigm shift
in environmental management is evidenced by the fact that the international business community
voluntarily elected to adopt many codes and charters that promote sustainability in one form or
another. One of the most visible examples is the Business Charter for Sustainable Development
developed by the International Chamber of Commerce. This charter lays out 16 principles for
environmental management that translates sustainability into operation terms. Over 1200
corporations, including more than 25% of the Fortune 500, have endorsed these principles.
(Dufresne, 1997)
Anticipating this trend, over the past several years many business firms worldwide have adopted
formal environmental management systems as procedures for systematically identifying
environmental aspects and impacts of their operations, setting explicit goals for compliance,
performance, and continuous improvement, and managing for them throughout these operations.
5
An Environmental Management System (EMS) is a management structure in which organizations
can assess their environmental impacts. It creates a system to assess, catalogue, and quantify
environmental impacts, not simply activity by activity, but throughout an entire organization. The
goal of EMS adoption is to help organizations ensure that their operations articulate and achieve
specified environmental goals, normally including at least compliance with environmental laws,
management of other major environmental risks and liabilities, and potentially positive
environmental improvements as well. An EMS supplies the framework to do so by creating a
systematic structure to adopt a written environmental policy; to identify all environmental aspects
and impacts of their operations; to set priorities, goals and targets for continuous improvement in
their environmental performance; to assign clear responsibilities for implementation, training,
monitoring, and corrective actions; and to evaluate and refine implementation over time so as to
achieve continuous improvement both in implementation of environmental goals and targets and in
the EMS itself. (Gallagher et al., 1999).
Five principles make up an EMS and the basic elements of an EMS are set up respectively to these

five principles, namely policy and commitment, planning, implementation, measurement and
evaluation, and review and improvement. Implementation of EMS starts with an initial review,
which is not defined as a principle, and then follows the five principles. (Figure 2.1)
Figure 2.1 Environmental Management System Loops
Source: Sturm and Igel (1996)
Evaluation of an EMS should, therefore, follow each basic element of the system to assess the
specific procedures as well as efforts exerted into those procedures. Management’s vision and
commitment, and employees’ competence are the keys to assess an EMS. Management’s vision and
commitment determine the missions and structure of an EMS, what is it built for and how should it
operate. Employees are the persons who implement and participate in daily operation and,
therefore, their knowledge in environmental management is essential to the smooth operation and
future development of the EMS.
Continual
Improvement
Checking and
corrective actions
Implementing
Planning
Initial Review
Environmental Policy
Review
6
The reasons for the business community to build up an EMS do not come solely from the public
interest about sustainable development. In fact, an effective EMS can make the road less traveled
for those organizations, which strive for perfect environmental performance. An organization can
choose to be a leader or a follower within their field. By identifying the environmental costs of its
operations broadly and by initiating prevention-based measures in all aspects of product
manufacture, distribution, use, and disposal, organizations can handle their responsibilities
proactively instead of reactively. Organizations can use integration of environmental controls
throughout a business and implementation of a life cycle approach to product and process design

analysis to prevent pollution by identifying and effectively managing all activities with potential
environmental impacts. Organizations choosing this path will set standards for other companies to
follow and will consequently achieve competitive advantage.
II ISO 14000 standards series and the prospects of EMS
II.1 What is ISO 14000 standards series
The world’s first standard for environmental management system (EMS), BS 7750, was developed
by the British Standards Institution in 1992. BS 7750 is the model for ISO 14000 standards series,
which is developed by the International Organization for Standardizations (ISO). ISO 14001, which
establishes the requirements for an EMS, was finalized in 1996.
II.1.1 ISO 14000 - Introduction
After the success of the ISO 9000 series of quality standards, the International Standards
Organization is nearing completion and publication of a comprehensive set of standards for
environmental management. This series of standards is designed to cover the whole area of
environmental issues for organizations in the global marketplace.
II.1.2 History of Development
The ISO 14000 series emerged primarily as a result of the Uruguay round of the GATT
negotiations and the Rio Summit on the Environment held in 1992. While GATT concentrates on
the need to reduce non-tariff barriers to trade, the Rio Summit generated a commitment to
protection of the environment across the world. The environmental field has seen a steady growth
of national and regional standards. The British Standards Institution has BS 7750, the Canadian
Standards Association has environmental management, auditing, eco-labeling and other standards,
the European Union has all of these plus the eco-management and audit regulations, and many
other countries (e.g. USA, Germany and Japan) have introduced eco-labeling programs.
After the rapid acceptance of ISO 9000, and the increase of environmental standards around the
world, ISO assessed the need for international environmental management standards. They formed
the Strategic Advisory Group on the Environment (SAGE) in 1991, to consider whether such
standards could serve to:
• Promote a common approach to environmental management similar to quality management
• Enhance organizations' ability to attain and measure improvements in environmental
performance; and

• Facilitate trade and remove trade barriers.
7
In 1992, SAGE's recommendations created a new committee, TC 207, for international
environmental management standards. The committee and its sub-committees include
representatives from industry, standards organizations, government and environmental
organizations from many countries. The new series of ISO14000 standards are designed to cover:
 Environmental management systems
 Environmental auditing
 Environmental performance evaluation
 Environmental labeling
 Life-cycle assessment
 Environmental aspects in product standards
Source: Dufresne (1997)
II.1.3 Why these new standards?
A set of international standards brings a worldwide focus to the environment, encouraging a
cleaner, safer, healthier world for us all. The existence of the standards allows organizations to
focus environmental efforts against internationally accepted criteria.
At present many countries and regional groupings are generating their own requirements for
environmental issues, and these vary between the groups. A single standard will ensure that there
are no conflicts between regional interpretations of good environmental practice.
The fact that companies may need environmental management certification to compete in the
global marketplace could easily overshadow all ethical reasons for environmental management.
Within Europe, many organizations gained ISO9000 Registration primarily to meet growing
demands from customers. ISO 9000 quality registration has become necessary to do business in
many areas of commerce. Similarly, the ISO 14000 management system registration may become
the primary requirement for doing business in many regions or industries.
II.1.4 Who do the standards apply to?
The standards apply to all types and sizes of organizations and are designed to encompass diverse
geographical, cultural and social conditions. For ISO14001, except for committing to continual
improvement and compliance with applicable legislation and regulations, the standard does not

establish absolute requirements for environmental performance. Many organizations, engaged in
similar activities, may have widely different environmental management systems and performance,
and may all comply with ISO14001.
II.1.5 What do the standards apply to?
This is primarily for the company to decide, and to clearly document the extent of coverage.
However, limiting coverage to a small and inconsequential area may provide competitors with an
ideal marketing opportunity. There does not appear to be a limit to the coverage of the
environmental management system in that it can include the organization's products, services,
8
activities, operations, facilities, transportation, etc. From a slightly different viewpoint, all of the
elements in the previous sentence should be considered for environmental impact resulting from
current practices, past practices and future practices, and should further be reviewed for their
impact under normal, abnormal and emergency conditions.
II.1.6 What does the ISO 14000 Series cover?
The ISO 14000 series currently compose of five types of standards, a guide, and a set of terms and
definitions that tie the verbiage of the standards together, including 15 sub-standards and a guide
formerly designed as a standard. The five types are classified into two discrete broader groups
namely organization-evaluation and product-evaluation. Figure 2.2 illustrates the ISO 14000
standards series and the interconnection between them. There are three organization-evaluation
standards - Environmental Management System specification (ISO 14001), Environment Auditing
(EA), and Environmental Performance Evaluation (EPE). The latter two standards are actually
interrelated with ISO 14001 as they provide guidance for implementation of an EMS audit and for
monitoring and measurements of key characteristics, two important elements of ISO 14001. There
are two product-evaluation standards, Product Labeling and Product Life Cycle Management, and a
guide. Environmental Aspects in Product Standards (EAPS) was formerly a standard (ISO 14060)
but was then redefined as a guide. Table 2.1 presents details of ISO 14000 standards series’ key
elements.
9
Figure 2.2 ISO 14000 standards series
Source: Woodside et al. (1997)

Product
evaluation
LCA EAPS
Product
Labeling
ISO14001 EMS
Specification
EPEA
Organization
evaluation
Terms and Definitions
Future standards
10
Table 2.1: ISO 14000 standards series
Standard Title / Description
Environmental Management Systems (EMS) Standards
ISO14001
Environmental Management Systems Specification: This standard lays
out elements of an EMS, it applies to organizations of all sizes, and
those who seek registration to the standard must conform to all
requirements delineated within.
ISO14004
Guidance Document for EMS: This document provides guidance on
setting up an EMS; it is most useful for those organizations with
immature systems.
Environmental Auditing (EA) Standards
ISO 14010
General Principles of Environmental Auditing: This document provides
general principles of environmental auditing; it is meant to apply to all
types environmental auditing and covers topics such as objectivity,

independence, competence, due professional care, and audit criteria.
ISO 14011
Audit Procedures- Auditing of Environmental Management Systems:
This document provides guidance for the EMS audit; although its use is
not required, it provides pertinent information on how to develop an
audit plan and conduct of an EMS audit.
ISO 14012
Qualification Criteria for Environmental Auditors: This document sets
forth guidance for qualification criteria for internal and external
environmental auditors who perform EMS audits.
Environmental Labels and Declaration Standards
ISO 14020
Principles of All Environmental Labeling: This document provides
guidance on the goals and principles that should be consistently
incorporated into all types of environmental labeling programs.
ISO 14021
Self-declaration of Environmental Claims – Terms and Definitions: This
document is meant to apply to manufacturers who are declaring that
their product has an environmental attribute.
ISO 14022 Symbols: This document addresses environmental labeling symbols
ISO 14023
Testing and Verification: This document addresses testing and
verification of environmental labeling claims.
ISO 14024 Practitioner Programs: Guiding Principles and Procedures for Multiple
11
Criteria (Type 1): This document lays out the principles and protocols
for environmental labeling programs.
Environmental Performance Evaluation (EPE)
ISO 14031
Environmental Performance Evaluation: This document addresses

performance indicators for operations in terms of emissions and
efficiencies of processes; it also addresses performance indicators for the
environment itself.
Life-Cycle Assessment Standards
ISO 14040
Principles and Framework: This document provides a clear overview of
the practice, applications, and limitations of LCA to a broad range of
potential LCA users.
ISO 14041
Goal/Scope Definitions and Inventory Analysis: This document
describes special requirements and guidelines for the preparation,
conduct, and critical review of the life-cycle inventory analysis.
ISO 14042
Impact Assessment: This document provides guidance on the impact of
phase of the life-cycle assessment.
ISO 14043
Interpretations: This document provides guidance on how to interpret
the life-cycle assessment of impacts.
Terms and Definitions
ISO 14050
Terms and Definitions: This document harmonizes the terms and
definitions used in the various ISO 14000 documents.
Environmental Aspects in Product Standards (EAPS)
Guide 64
(formerly
ISO 14060)
Guide for Environmental Aspects in Product Standards: This guide
helps standards writers avoid inserting specifications in product
standards that could turn out to be environmentally detrimental.
Source: Woodside et al. (1997)

II.2 General Description of ISO 14001
ISO 14001 requires an Environmental Policy to be in existence within the organization, fully
supported by senior management, and outlining the policies of the company, not only to the staff
but also to the public. The policy needs to clarify compliance with Environmental Legislation that
may effect the organization and stress a commitment to continuous improvement. Emphasis has
been placed on policy as this provides the direction for the remainder of the Management System.
12
Those companies who have witnessed ISO 9000 Assessments will know that the policy is
frequently discussed during the assessment, many staff are asked if they understand or are aware of
the policy, and any problems associated with the policy are seldom serious. The Environmental
Policy is different; this provides the initial foundation and direction for the Management System
and will be more stringently reviewed than a similar ISO 9000 policy. The statement must be
publicized in non-technical language so that it can be understood by the majority of readers. It
should relate to the sites within the organization encompassed by the Management System, it
should provide an overview of the company’s activities on the site and a description of those
activities, a clear picture of the company’s operations.
The preparatory review and definition of the organization's environmental effects is not part of a
ISO 14001 assessment, however, examination of this data will provide an external audit with a
wealth of information on the methods adopted by the company. The preparatory review itself
should be comprehensive in consideration of input processes and output at the site. This review
should be designed to identify all relevant environmental aspects that may arise from existence on
the site. These may relate to current operations, they may relate to future, perhaps even unplanned
future activities, and they will certainly relate to the activities performed on site in the past (i.e.
contamination of land).
The initial or preparatory review will also include a wide-ranging consideration of the legislation
that may affect the site, whether it is currently being complied with, and perhaps even whether
copies of the legislation are available. Many of the environmental assessments undertaken already
have highlighted that companies are often unaware of all of the legislation that affects them, and
being unaware, are often not meeting the requirements of that legislation.
The company will declare its primary environmental objectives, those that can have most

environmental impact. In order to gain most benefit these will become the primary areas of
consideration within the improvement process, and the company’s environmental program. The
program will be the plan to achieve specific goals or targets along the route to a specific goal and
describe the means to reach those objectives such that they are real and achievable. The
Environmental Management System provides further detail on the environmental program. The
EMS establishes procedures; work instructions and controls to ensure that implementation of the
policy and achievement of the targets can become a reality. Communication is a vital factor,
enabling people in the organization to be aware of their responsibilities, aware of the objectives of
the scheme, and able to contribute to its success.
As with ISO 9000 the Environmental Management System requires a planned comprehensive
periodic audit of the Environmental Management System to ensure that it is effective in operation,
is meeting specified goals, and the system continues to perform in accordance with relevant
regulations and standards. The audits are designed to provide additional information in order to
exercise effective management of the system, providing information on practices, which differ to
the current procedures or offer an opportunity for improvement.
In addition to audit, there is a requirement for Management Review of the system to ensure that it is
suitable (for the organization and the objectives) and effective in operation. Management review is
the ideal forum to make decisions on how to improve for the future.
13
II.3 ISO 14000 standards series and EMS
Many businesses have developed their own environmental management procedures for years, but
until recently there was no trend toward formalizing or standardizing them more generally. Even
within many corporations they remained largely the responsibility of a single office responsible
primarily for regulatory compliance and risk minimization, such as a Vice President for
Environment, Health and Safety, rather than an organization-wide mission for which all managers
would be held accountable.
Initially, environmental management tools such as environmental inspectors and environmental
management systems (EMS) are voluntarily implemented within the firms but these
implementation by then impact on managerial solutions relating to the risk of international banks,
insurance companies or stakeholders. This fact requires sufficient legal solutions not only within a

particular country but worldwide also.
Corporations in 1990s are rethinking what effective environmental management means and what
the actual payoffs are. Mere compliance with regulations is no longer adequate. One problem is that
regulations vary from country to country, and would lead to patchwork environmental performance
if used as a basis for a global environmental management paradigm. Further, most regulations
evolved in prescriptive frameworks that sidestepped the issue of true environmental benefit.
Prescriptive frameworks could no longer cover all the practices in daily business life and thus being
unable to keep the practice under control. Modifications or revisions of regulations will take time
chasing the today fast changing business environment. As the disadvantages of the command-and-
control regulatory approach became more apparent, the stage has to be set for a more management-
focused approach. Increased interest by the public and other stakeholders in corporate
environmental management decision-making also fueled this evolution. From consumer choice to
investor demands, the scrutiny of corporate environmental management has a greater influence now
that at any time in the past.
Many organizations have so far reviewed or evaluated their own environmental practice to draw an
overall assessment for their environmental management activities. But within their resources, tools
and knowledge, those review and evaluation may not be able to ensure that the organization not
only meets but also continuously the legal and regulatory requirements. For an effective
management, those review and evaluation must be conducted within a structured management
system that is integrated into the overall management activities.
There are numerous types of EMSs. The ISO 14001 EMS, however, has emerged as the most
widely accepted international standard for environmental management and has the potential to
harmonize EMSs worldwide. Since when it was first introduced, and as it has been designed, ISO
14000 standards series employ a systematic structure to identify, mitigate, and prevent
environmental harm, thus, integrating environmental practice into management activities. At a
minimum, organizations that adopt the ISO 14001 standard accept a responsibility to adopt a
written environmental policy; to identify all environmental aspects and impacts of their operations;
to set priorities, goals and targets for continuous improvement in their environmental performance;
to assign clear responsibilities for implementation, training, monitoring, and corrective actions; to
document their procedures and results, and evaluate and refine their implementation over time, so

as to achieve continuous improvement both in their attainment of environmental goals and targets
and in the EMS itself. An organization that adopts an ISO 14001 EMS can be certified as
conforming to it by an approved third party “registrar”. Commitment to ongoing continuous
improvement of the EMS as required in ISO 14001 standards certification is expected to have the
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potential to reduce the organization’s environmental impacts significantly over time. Similar
procedural standards, varying somewhat in their details, have been adopted in Great Britain (BS
7750) and the European Union (the Eco-Management and Auditing Scheme, or EMAS) (Andrews
et al., 1999). Table 2.2 presents a comparison between ISO 14001 and other EMS standards
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Table 2.2: Comparison of EMS Standards
System Element ISO14000 EMAS BS7750
Environmental
Management System
4.0 ANNEX I, Part B 4.1
Preparatory
Environmental
Review
ANNEX A.4.2.1
(Guide)
Article 3, Paragraph b
ANNEX I, Part C
ANNEX
A.1.2 (Guide)
Environmental
Policy
4.1 ANNEX I, Part A and D 4.2
Organization and
Personnel
4.3.1, 4.3.2 ANNEX I, Part B2 & D11 4.3

Environmental
Effects/ Aspects
4.2.1, 4.2.2 ANNEX I, Part B3 & D2/3 4.4
Objectives and
Targets
4.2.3 ANNEX I, Part A4 4.5
Environmental
Management
Programs
4.2.4 ANNEX I, Part A5 4.6
Manual and
Documentation
4.3.4, 4.3.5 ANNEX I, Part B5 4.7
Operational Controls
4.3.6, 4.3.7, 4.4.1,
4.4.2
ANNEX I, Part B4 & D6-7 4.8
Records 4.4.3 ANNEX I, Part B5 4.9
EMAS Audits 4.4.4
ANNEX I, Part B6,
ANNEX II
4.10
Management
Review
4.5 ANNEX I, Part B1 4.11
Environmental
Statement
N/A Article 5 and ANNEX V N/A
Source: Dufresne (1997)
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Only recently could facilities have their EMSs certified, as the final version of the international
EMS standard was published in late 1996. Since then, over 10,000 facilities around the world have
had their EMSs certified. In the United States, approximately 450 facilities have received ISO
certification by November 1999 and within the year 2000, this number is expected to increase by
approximately 50 percent (Darnall et al., 1999).
Significantly, the substantive decisions that make up the content of the EMS are left almost entirely
to the discretion of the adopting organization itself. An ISO 14001 EMS can be used to pursue a
wide range of self-selected environmental goals and priorities: examples include compliance with
regulatory standards, improving environmental performance beyond regulatory minimal, reducing
unregulated environmental impacts, improving environmental sustainability per se, or others. ISO
14001 does not prescribe substantive environmental performance standards, nor does it direct
which of many possible environmental goals should be given priority. It does not prescribe the
introduction of specific pollution-prevention or sustainability-related practices. It does not mandate
how fast or how far “continuous improvement” must proceed, nor even how quickly an
organization must actually achieve compliance with environmental regulations. Nor does it require
that even the EMS itself, let alone the documentation of its achievements or failures, be made
public. An EMS is thus a formal set of procedures and of voluntary but internally documented
assertions as to how an organization intends to manage its potential impacts on the natural
environment and related aspects of its operations.
Many experts have discussed about whether ISO 14000 can provide an alternative for
environmental regulations applied in the countries around the world. Some argued that as ISO
14000 has been developed as a voluntary system and because the ultimate aim of this standard
series is to go beyond all regulatory requirements, this standard series should launch a strong
reform in environmental regulations, particularly the philosophy among environmental
stakeholders. They assert that the standard series can serve as a tool to promote an evolutionary
change away from the command-and-control approach toward more cooperative environmental
enforcement efforts. Some other have reviewed the development of ISO 14000 to indicate that this
standard series is designed to primarily help organizations comply with applicable environmental
regulations and that the standard series is a framework for business managers to self-regulate their
organizations. For such, regulations should still play a key role in the development of ISO 14000

standard series though necessary changes must be taken to deal with the modern environmental
practice.
II.4 Benefits of implementing ISO 14001
Benefits of implementing ISO 14001 are many but can be focused into six main points. (Woodside
et al., 1997)
• Positions the organization in the marketplace as an environmental leader
• Provides a framework for establishing an integrated approach to environmental
management that is system-dependent and not person-dependent
• Promotes a positive image in the community and with governmental agencies
• Provides a systematic, repeatable for process to achieve continual improvement of the
organization’s EMS, thereby promoting improvement of environmental performance
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• Supports integration of relevant levels and functions into the EMS
• Provides an internationally recognized standard for the organization to use to demonstrate
to employees and interested parties its commitment to sound environmental management.
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