Name : (Group 2)

Christian Natanael (014201800052)

Ferdian Pradha Adhitama (014201800111)
Magaretha (014201800077)
M Rizki Ullyn Nuha (014201800033)
Rakan Naufal Ihsan (014201800048)

Major : Management / Marketing

Subject : Sustainability & Business
Lecturer : Mr Anton Wachidin Widjaja

Question
Describe a company that has successfully obtained ISO 14000 and Why do companies struggle
to get ISO 14000 ?

Answer :
Before going to the answers part, we want to explain what ISO 14000 is all about :
ISO 14000 series is a set of international standards in the field of environmental management
which is intended to assist organizations around the world in increasing the effectiveness of their
environmental management activities. The formulation of the ISO 14000 series standard was
initiated by the business world as a contribution to the achievement of Sustainable Development
which was agreed upon at the Earth Summit in Rio de Janeiro in 1992. Representatives of
government, business, experts, practitioners and other interested parties were involved in the
formulation of these standards. ISO 14000 series includes several groups of environmental
management tools, a.l. Environmental Management System, Environmental Audit, Environmental
Performance Evaluation, Ecolabel, and Product Lifecycle Study. The adoption of these standards
is voluntary. The most popular standard is the ISO 14001 Environmental Management System
which forms the basis of ISO 14001 certification.
In other literature ISO 14000 was published on September 1, 1996 and provides the basic
framework for the establishment of an environmental management system (EMS). The
International Organization of Standardization (headquartered in Geneva, Switzerland) defines an
EMS as that part of the overall management system which includes organizational structure,
planning activities, responsibilities, practices, procedures, processes and resources for developing
implementing, achieving, reviewing and maintaining an environmental policy [5,6]. The five
requirements of ISO 14000 include: formation of a corporate environmental policy and
commitment to an EMS, development of a plan for implementation, implementation and operation
of the EMS, monitoring and possible corrective action, and top management review and
continuous improvement [3]. Basically, the corporation must say what it is going to do, how it is
going to do it, who is going to do it, and by when it is going to do it. More concretely, the
corporation must designate responsibility for achieving objectives and targets at each relevant
function and level, provide the means for fulfilling the objectives and targets, and designate a time
frame within which they will be achieved [6,10]
So in the above understanding that ISO 14000 is a standardization of all parties at the international
level that regulates environmental and ecosystem management problems carried out by a company,
starting from the planning stage of project formation, implementing the points that have been
planned, monitoring, to evaluation.

Why do many companies in the world want to compete to get ISO 14000 certification ?
Because with ISO 14000 certification, companies will benefit by of acquiring ISO certification go
beyond the satisfaction of doing a good deed. Adhering to the standard may result in better
conformance to environmental regulations, greater marketability, better use of resources, higher
quality goods and services, increased levels of safety, improved image and increased profits.

The environmental awareness and the documentation that are required by the ISO 14000 standards
assist a company in conforming to environmental regulations. This means that a company, by
diligently adhering to the standard, is less likely to violate envir onmental regulations and is always
ready for inspection by a regulatory agency. In addition, the certification and documentation may
aid a company in acquiring capital, in defending itself during environmental litigation and in
receiving insurance or per mits.

A wider market for a company's goods and services may result from certification. Many
corporations and governments will be looking for suppliers that are ISO 14000 certified in order
to maintain their own certification and environment-friendly image. Al though the European Union
claims that ISO 9000 certification is not required to do business in Europe, that was the message
received by many non-European firms and lead to the amazing success of that standard. If ISO
14000 is similarly successful, the co mpanies who are already ISO 14000 certified will have an
advantage in global markets. Also, producers of consumer goods may find that many consumers
not only try to purchase goods from environment-friendly companies, but will spend a little more
if they feel they are helping the environment. In order to reap this benefit, a company must make
their environmental efforts known through advertising and labeling.

The process analyses that go along with ISO 14000 certification may result in streamlining
processes and more efficient use of resources and raw materials and subsequently reduce a
company's costs. Finding ways to capture emissions or recycle the product s may, in the long run,
reduce the amount of raw materials and utilities used. Reducing the amount of potentially
dangerous substances in an end product may result in less use of dangerous chemicals in a plant.
This leads to a safer internal environment for employees and the possibility of reduced insurance
premiums. Improved employee morale may result when employees feel that the workplace is safer
and they are contributing to the environmental effort.

Why do companies struggle to achieve ISO 14000 certification ?

Even though the company has obtained the ISO 14000 certificate, it still faces obstacles in its
application. These constraints include lack of top management commitment, lack of employee
participation and awareness of the environment, motivation and socialization by management
about ISO 14000, and high certification costs.
And also because they are not fulfilling the requirements to get ISO 14000. The five requirements
of ISO 14000 include: formation of a corporate environmental policy and commitment to an EMS,
development of a plan for implementation, implementation and operation of the EMS, monitoring
and possible corrective action, and top management review and continuous improvement.
Basically, the corporation must say what it is going to do, how it is going to do it, who is going to
do it, and by when it is going to do it. More concretely, the corporation must designate
responsibility for achieving objectives and targets at each relevant function and level, provide the
means for fulfilling the objectives and targets, and designate a time frame within which they will
be achieved.
The ISO 14000 standards are designed to achieve a full integration of environmental and business
management and enable companies to take a more proactive approach towards managing their
environmental issues, taking these issues beyond compliance.

Describing a company that has successfully obtained ISO 14000

A systematic approach to environmental management is at the heart of a formal assessment process
such as ISO 14000. The standard was designed to achieve a full integration of environmental and
business management and enable companies to take a more proactive approach towards managing
environmental issues.
Certificates issued worldwide are estimated at more than 30,000, and there are now companies in
over 50 countries that have endorsed the ISO 14000 standard. By the end of 2001, there were over
1,500 registered sites in the U.S. alone. Since the fall of 1999, Ford Motor Company has told all
of its suppliers with manufacturing facilities to get ISO 14000 certified. This requirement will
affect over 5,000 of Ford’s production and non-production suppliers. Rival General Motors says
that by the year 2002, all suppliers will have to conform to ISO 14000 requirements.
Furthermore, according to the Environmental Protection Agency (EPA), an organization convicted
of a noncompliance is entitled to a reduced penalty if it can show that it had an effective
environmental management system in place (e.g., ISO 14000) at the time of the violation. ISO
14000 is rapidly becoming the nationally and internationally accepted environmental standard.