How to convince the Top Management to Implement ISO 14001?

Previuosly, our company has the intuation to implement ISO 14001. Anyway, it's has been rejected by the top management with the reason that it does not show significant gain for the company. Now, I again try to implement the EMS in our company. The top management asked same question. What is our benefit to get the EMS certification? Does it increase our revenue? What is the solid data you can provide to show the benefit of the EMS implementation?
I could answer these question easily, but wihtout solid data support. Please help. Thanks.

Re: How to convince the top management on implementing ISO 14001?

Certification itself adds no significant value. Implement an EMS in a way that reduces risk and management will support you.

Re: How to convince the top management on implementing ISO 14001?

Duke Okes said:

Certification itself adds no significant value. Implement an EMS in a way that reduces risk and management will support you.

Click to expand...

Not entirely correct. I know of a company that lost about 40% of it's value during its sale because their cert was suspended.

Re: How to convince the top management on implementing ISO 14001?

Marcus CLF said:

Previuosly, our company has the intuation to implement ISO 14001. Anyway, it's has been rejected by the top management with the reason that it does not show significant gain for the company. Now, I again try to implement the EMS in our company. The top management asked same question. What is our benefit to get the EMS certification? Does it increase our revenue? What is the solid data you can provide to show the benefit of the EMS implementation?
I could answer these question easily, but wihtout solid data support. Please help. Thanks.

Click to expand...

Hi

If the top management is not committed to the EMS and if it does not initiate the EMS process, I doubt if the system will be a success in your company. It is like a faith; if the top management does not have faith, and someone else has to convince it to establish an EMS, I doubt if the EMS will be effective in such an organization.

In the next level, peer pressure and customer requirements do influence the top management to go for an EMS; whether they like it or not, these requirements become business imperatives and the top managment falls in line. Look for such opportunities.

Sub-ordinates convincing top management to go for ISO-14001 may sound nice - we do have initial successes; but these examples have almost been failures in the long run.

With best wishes,

Ramakrishnan

The devil's advocate

Randy said:

Not entirely correct. I know of a company that lost about 40% of it's value during its sale because their cert was suspended.

Click to expand...

Are you saying that having a certification and losing it causes financial trouble?

Better not have one in the first place. No risk of losing it then

Re: How to convince the top management on implementing ISO 14001?

You could refer to Environmental Management Systems (EMS) - very informative.

As pointed by others, the management should be fully supporting this system or else it would be a waste.

Alternatively, you could have all the requirements of EMS in place first without certification. Let the system run for some period of time and then when the management see the fruits of the system, you could approach to them again for getting accreditated to ISO 14001.

All the best in your endeavours

Re: How to convince the top management on implementing ISO 14001?

Management speaks the language of money. To make a convincing argument, you must become fluent in that language and use it to press your case.

A well functioning EMS can lead to the following profits:

1. Attracting new customers. This requires you know that environmental control is important to them. Many European organizations favor suppliers who are environmentally conscious. Some even require ISO 14001. Some U.S. companies are now following that lead.

2. Reduced costs of waste disposal. This is the case when disposing of hazardous waste, ad even regular waste, costs money. A good EMS can help with the methodical swapping of nasty chemicals with adequate non-toxic substitutes. If disposing of cardboard, paper and wood from shipping containers costs money and there are potential buyers for it, the profit is direct as sales. Otherwise it is reducing costs of disposal.

3. Avoiding fines and lawsuits. This is only the case where fines and lawsuits are a risk of polluting and exposing people to hazardous materials.

If any of these apply to you, you can use one of the quality cost calculators this site keeps (do a search--there are at least two available) to list specific cost and profit benefits to your management. Then they get to make an informed decision. That is all you can do.

I hope this helps!

Re: How to convince the top management on implementing ISO 14001?

Jennifer Kirley said:

Management speaks the language of money. To make a convincing argument, you must become fluent in that language and use it to press your case.

A well functioning EMS can lead to the following profits:

1. Attracting new customers. This requires you know that environmental control is important to them. Many European organizations favor suppliers who are environmentally conscious. Some even require ISO 14001. Some U.S. companies are now following that lead.

2. Reduced costs of waste disposal. This is the case when disposing of hazardous waste, ad even regular waste, costs money. A good EMS can help with the methodical swapping of nasty chemicals with adequate non-toxic substitutes. If disposing of cardboard, paper and wood from shipping containers costs money and there are potential buyers for it, the profit is direct as sales. Otherwise it is reducing costs of disposal.

3. Avoiding fines and lawsuits. This is only the case where fines and lawsuits are a risk of polluting and exposing people to hazardous materials.

If any of these apply to you, you can use one of the quality cost calculators this site keeps (do a search--there are at least two available) to list specific cost and profit benefits to your management. Then they get to make an informed decision. That is all you can do.

I hope this helps!

Click to expand...

Very nice list, Jennifer. I used to hesitate to promise financial returns. I used to just push for a zero cost implementation. However, many of my clients are seeing $40,000+ savings, year over year. Some are seeing $100,000+ savings. If you have improvement opportunities, this program can be very beneficial both environmentally and financially.

And, besides, it is just the right thing to do. We all must become better corporate citizens. We all have an obligation to take better care of the planet. What is happening now in China and elsewhere environmentally is just horribly wrong. If we don't do the right thing, the politicians will eventually take it out of our hands.

And, if we can do the right thing, and save money, why shouldn't we? "Reduce - Reuse - Recycle" is a great start.

Re: How to convince the top management on implementing ISO 14001?

Marcus CLF said:

Please help. Thanks.

Click to expand...

See this link for a report from UNEP about linking Environmental, Social and Governance issues to Company Value.

Re: The devil's advocate

potdar said:

Are you saying that having a certification and losing it causes financial trouble?

Better not have one in the first place. No risk of losing it then

Click to expand...

Not at all.

I'm saying that this certification was in place because of a customer requirement for it. This particular customer represented a majority of the cash flow for the organization. The organization did not put the EMS in place to to have a good public image, prevent anything or comply with whatever...these were secondary....the primary reason was customer demand.

The organization was in the process of being sold off by its higher corporation. Suspension of the EMS certification and potential loss of its principle source of business resulted in a de-valuation of the organization in the eyes of potential buyers which resulted in all kinds of screaming, shouting, he said-she said activities.

What you and many, many others quite often fail to understand and appreciate is there is potential for business loss or gain (total value) that can come out of holding a 3rd party certification. It's there and it's real.