2005
DOI: 10.1002/pam.20136
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Covenants with weak swords: ISO 14001 and facilities' environmental performance

Abstract: Voluntary environmental programs are codes of progressive environmental conduct that firms pledge to adopt. This paper investigates whether ISO 14001, a voluntary program with a weak sword-a weak monitoring and sanctioning mechanism-can mitigate shirking and improve participants' environmental performance. Sponsored by the International Organization for Standardization (ISO), ISO 14001 is the most widely adopted voluntary environmental program in the world. Our analysis of over 3,000 facilities regulated as ma… Show more

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Cited by 362 publications
(279 citation statements)
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“…On the other hand, Dalhstrom et al (2003) claim that neither ISO 14001 nor EMAS environmental management standards managed to improve law observance among the surveyed organizations. Potoski and Prakash (2005) as well as Dasgupta et al (2000) arrived at opposite conclusions when surveying businesses in Mexico and US; they decided that businesses undergoing third-party audits and enjoying compliance certificates (e.g. ISO 14001) better adhered to the natural environment-related law.…”
Section: Empirical Evidencementioning
confidence: 99%
“…On the other hand, Dalhstrom et al (2003) claim that neither ISO 14001 nor EMAS environmental management standards managed to improve law observance among the surveyed organizations. Potoski and Prakash (2005) as well as Dasgupta et al (2000) arrived at opposite conclusions when surveying businesses in Mexico and US; they decided that businesses undergoing third-party audits and enjoying compliance certificates (e.g. ISO 14001) better adhered to the natural environment-related law.…”
Section: Empirical Evidencementioning
confidence: 99%
“…An industry-based distribution of ISO14001 certifications is presented in Table- Anton et al, 2004;Comoglio and Botta, 2012;Ilomaki and Melanen, 2001;Melnyk et al, 2003;Morrow and Rondinelli, 2002). Important internal drivers were found to relate mainly to an improved corporate image, marketing advantages or improved relations with stakeholders (Hillary, 2004;Poksinska et al, 2002;Potoski and Prakash, 2005;Zorpas, 2010). For larger firms such as the S&P 500 companies studied by Anton et al…”
Section: Iso14001 In Indiamentioning
confidence: 99%
“…Because the longest-running applications of IR have been in environmental management, many of the empirical studies of the IR's effectiveness examine firms' environmental practices (Esty 2004, Stephan 2002, Potoski & Prakash 2005, Renshaw 2006, Tietenberg & Wheeler 2001, Dranove & Ginger 2010. These studies generally conclude that both mandatory and voluntary public disclosure of information have triggered positive changes in corporate behaviour through a variety of mechanisms.…”
Section: Empirical Evidence That Information Regulation Workmentioning
confidence: 99%