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Effect of Management Systems Iso 9000 and Iso 14000 on Enterprises’ Awareness of Sustainability Priorities

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Effect of Management Systems Iso 9000 and Iso 14000 on Enterprises’ Awareness of Sustainability Priorities EM_02_13_zlom(4) 4.6.2013 8:46 Stránka 66 Ekonomika a management View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by DSpace at University of West Bohemia EFFECT OF MANAGEMENT SYSTEMS ISO 9000 AND ISO 14000 ON ENTERPRISES’ AWARENESS OF SUSTAINABILITY PRIORITIES Adam Pawliczek, Radomír Piszczur Introduction publication in 1987, the ISO 9000 standards have undergone three revision cycles and have Reinforcement of sustainable (long term focused) had a great impact on the implementation of behavior of enterprises is often connected with international trade and quality management investment into and implementation of manage- systems by organizations throughout the world. ment standards leading to improvement of It is widely acknowledged that proper quality organization performance. Implementation of management improves business, often having ISO 9000 and ISO 14000 management a positive effect on investment, market share, systems brings about questions that need to be sales growth, sales margins, competitive answered in order to tune up enterprise advantage, and avoidance of litigation. The performance concerning quality and environ- quality principles in ISO 9000:2000 are also mental activities possibly measured by indicator sound, according to Wade [27] and also to parameters. Increasing of management aware- Barnes [1], who says that "ISO 9000 guidelines ness of specific questions of sustainability will provide a comprehensive model for quality necessarily bring apparent positive results that management systems that can make any authors describe in work parallel to this paper. company competitive." Implementing ISO often Primary goal of this study is to discover if gives the following advantages [17], [9]: application of ISO 9000 and/or ISO 14000 Creates a more efficient, effective operation. management systems as sophisticated modern Increases customer satisfaction and management methodic complexes has positive retention. effect on awareness of an owner or top Reduces audits. management of enterprise’s sustainability/CSR Enhances marketing. (corporate social responsibility) priorities. The Improves employee’s motivation, awareness, paper also characterizes morphologically which and morale. companies are more engaged into ISO Promotes international trade. implementation and which are less engaged. Increases profit. Reduces waste and increases productivity. 1. Theory and Hypotheses Represents the common tool for standardization. 1.1 ISO 9000 Quality Management Aims of ISO 9000 are quite basic – to give System Standard confidence in the organization’s ability in order The ISO 9000 family of international quality to provide consistently conforming products to management standards and guidelines has its customers. The way in which the enterprise earned a global reputation as a basis for manages its business activities in order to establishing effective and efficient quality achieve this objective differs apparently and management systems. Figure 1 describes ISO depends very much on its nature and type 9000 process approach. Since their initial (most of all economic sector, size, legal form, 66 EM_02_13_zlom(4) 4.6.2013 8:46 Stránka 67 Business Administration and Management Fig. 1: The ISO 9000 Process Approach Source: own based on www.iso.org and others) and ISO provides systematic Plan: establish the objectives and processes activity setting to meet company goals and necessary to deliver results in accordance requirements. with the organization's environmental policy. Do: implement the processes. 1.2 ISO 14000 Environmental Check: monitor and measure processes Management System Standard towards environmental policy, objectives, Organizations of all kinds are increasingly targets, legal and other requirements, and concerned with achieving and demonstrating report the results. sound environmental performance by controlling Act: take actions to improve continually the impacts of their activities, products and performance of the environmental services on the environment, consistent with management system. their environmental policy and objectives. They International Standards covering do so in the context of increasingly stringent environmental management are intended to legislation, the development of economic provide organizations with the elements of an policies, norms and other measures that foster effective environmental management system environmental protection, and increased (EMS) that can be integrated with other concern expressed by interested parties about management requirements and systems and environmental matters and sustainable help organizations achieve environmental and development. The most representative EMS economic goals. The basis of the approach is ISO 14000 International Standard is based on shown in figure 2. The success of the system the methodology known as Plan-Do-Check-Act depends on commitment from all levels and (PDCA). PDCA can be briefly described as functions of the organization, and especially follows [17], [10]. from top management. 67 EM_02_13_zlom(4) 4.6.2013 8:46 Stránka 68 Ekonomika a management Fig. 2: Environmental Management System Model by ISO 14000 Source: own based on www.iso.org 1.3 Elasticity, Adaptability and be examined in five important aspects [23], Enterprise Performance in [19]: Sustainability Context Economic aspects (E). Elasticity of management, entrepreneurship Social aspect (S). adaptability and stability are closely intercon- Environmental aspect (N). nected concepts. Elasticity of management is Technological aspect (T). described in literature in four dimensions as: (1) Legislative and political (L). reactive, (2) adaptive, (3) defensive, and (4) creative attributes of the strategy of an 1.4 Sustainability Priorities observed firm [25]. Elasticity of enterprise of Entrepreneurships management, as ability to react adequately at European foundation for management deve- emerging conditions, is reflection and root of lopment (EFMD) recommends enterprises to adaptability as enterprise’s ability to survive pursue four groups of priorities (research questions consistently changing conditions. Progressive H1-H7) of sustainable development [23]: stability is understood as adaptability so strong, Priority focused on employees and social that it enables the enterprise not only to survive, aspect. but thank to continuous improvement of Priority focused on environment. processes it also becomes more robust and Priority focused on natural resources and achieve better sustainable results that can be their costs – economical aspect. observed on selected criteria. Kovaºová conclu- Priority focused on product quality and des that entrepreneurship performance and technological aspect. effectiveness is directly connected with establi- shing its sustainable competitiveness [13]. Observing these priorities, four hypotheses Sustainability concept with the accent on were formulated. First two hypotheses are small and medium businesses (SMEs) should descriptive and next two concern sustainability 68 EM_02_13_zlom(4) 4.6.2013 8:46 Stránka 69 Business Administration and Management priorities and influence of ISO management Questionnaire was focused on seven areas systems on them. of interest (11 of 61 questions evaluated): HYP1: Most enterprises that implemented Enterprise identification (4 of 10 questions ISO 14000 implemented also ISO 9000. evaluated). HYP2: Bigger enterprises pay more Enterprise’s strategic management (6 ques- attention to implementation of ISO 9000 tions). and/or ISO 14000 than the smaller ones. Economic and financial trends of business, HYP3: Businesses priorities are primary risk management (11 questions). focused on quality. Personal politics of company (7 questions). HYP4: Application of ISO 9000 and/or ISO Production, services and innovations (8 14000 management systems has positive questions). enhancing and balancing effect on sustai- Grants and subsidies (4 questions). nability priorities of entrepreneurships. Energetic and material savings and appli- cation of renewable sources (8 questions). 2. Original Research and Its Sustainability priorities of enterprises (7 of 7 Methodology questions evaluated). Methodic used during creation of this paper is described in this chapter. After preliminary 2.2 Selected and Evaluated research and inspiration from relevant scientific Questions (Criteria) literature there were hypotheses formulated. There were evaluated following questions/ Hypothesis was subsequently evaluated by /criteria. Numbering of questions correspond data analysis of the questionnaire research the one used in the questionnaire. Each part characterized below. had space for possible comment or further narrative information about questions asked. 2.1 Questionnaire Research Enterprise identification: Questionnaire research was realized during A2: Legal form of enterprise (self-employed spring semester 2012 by students of Business entrepreneur, liability limited company, Entrepreneurship Faculty in Karvina, Silesian public liability company, other); University in Opava (Czech Republic). 722 com- A5: Major branch of economic activity accor- panies active in Czech and Slovak Republic in ding NACE classification (A – U codes); time period 2009–2011 were subjects of A7: Average number of employees interest (SMEs are creating 89 % of sample (0, 1–10, 11–50, 51–100, 101–250, more group in accordance with number of employees’ than 250); criterion). Interview protocol included controlled A8: Average
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