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Environmental
Challenges in implementing management
a functional ISO 14001 system
environmental
779
management system
Received 13 July 2010
Cory Searcy Revised 21 March 2011
Department of Mechanical and Industrial Engineering, Ryerson University, Accepted 17 May 2011
Toronto, Canada
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Oguz Morali
Environmental Applied Science and Management, Ryerson University,
Toronto, Canada
Stanislav Karapetrovic
Department of Mechanical Engineering, University of Alberta,
Edmonton, Canada
Kristine Wichuk and Daryl McCartney
Department of Civil and Environmental Engineering, University of Alberta,
Edmonton, Canada
Sheldon McLeod
SLMcLeod Consulting, Winnipeg, Canada, and
Don Fraser
DevRo Consulting, London, Canada
Abstract
Purpose – The purpose of this paper is to present the key findings of a colloquium on ISO 14001. The
colloquium focused on three key areas: critical loops and synergies among management system
elements, the full spectrum of management system auditing, and integrating management systems.
Design/methodology/approach – A total of 40 Canadian experts on environmental management
systems from a wide variety of sectors participated in the colloquium.
Findings – The colloquium provided insights into implementation issues around the three key areas
noted above. The colloquium focused on discussing issues associated with corrective and preventive
action, objectives and targets, internal and external auditing, and integrating change into management
systems. The issues are presented in detail in the paper.
Originality/value – The participants in the colloquium believed that the findings will be of interest
to both practitioners and academics in environmental management systems. The findings will also be
of interest to practitioners and academics in quality and other standardized management systems.
Keywords Environmental management systems, ISO 14001, Auditing,
Integrated management systems, Management system standards, Management techniques, Canada
International Journal of Quality
Paper type Research paper & Reliability Management
Vol. 29 No. 7, 2012
pp. 779-796
q Emerald Group Publishing Limited
An earlier version of this paper was presented at the 14th International Conference on ISO 9000 0265-671X
and Total Quality Management (ICIT) held in Scranton, Pennsylvania, USA in April 2010. DOI 10.1108/02656711211258526
IJQRM 1. Introduction
Management system standards (MSSs) have been developed to help address stakeholder
29,7 needs with respect to quality (e.g. based on the ISO 9001 standard), the environment
(e.g. ISO 14001), safety (e.g. OHSAS 18001), and social accountability (e.g. SA 8000),
among others. However, many questions remain with respect to the effective
implementation of these standards. Examples include establishing objectives and
780 targets linked to the business planning process, developing an effective auditing
program that builds on the strengths of both internal and external audits, and effectively
integrating the organization’s management systems (MSs) (Beckmerhagen et al., 2003;
McDonald et al., 2003; Wasche and Sciortino, 2007).
This paper seeks to explore the key challenges associated with implementing one of
the world’s most popular MSSs: ISO 14001 for environmental management systems
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(EMSs). ISO 14001 has been the subject of considerable research. Much of the earlier
literature focused on the motivations for implementing the standard (Morrow and
Rondinelli, 2002; Rondinelli and Vastag, 2000). More recently, many empirical studies
have been conducted that focus on the impacts of the standard (Poksinska et al., 2003;
Schylander and Martinuzzi, 2007; Turk, 2009) and on the integration of an ISO 14001
EMS into organizational MSs (Bernardo et al., 2009; Karapetrovic and Casadesus,
2009). These important contributions notwithstanding, there is a need for further
research on the challenges in implementing a functional ISO 14001 EMS.
In recognition of these challenges, a colloquium focusing on implementing ISO 14001
in Canada was held. There have been few papers that specifically focus on the impact of
the ISO 14001 standard in Canada (Yiridoe et al., 2003; Berthelot et al., 2003; Bronson and
Noble, 2006; Barla, 2007). The colloquium was organized to share knowledge and
experiences and to develop perspectives on key issues related to ISO 14001. Building on
the challenges described above, the focus of the colloquium was on three key areas:
(1) critical loops and synergies among MS elements;
(2) the full spectrum of MS auditing; and
(3) integrating MSs.
To address these issues, 40 Canadian experts on EMSs were invited to participate in
the colloquium. The participants were drawn from a broad range of sectors, including
registrars, consultancies, electrical utilities, consumer organizations, industry
associations, mining, government, standards bodies, oil and gas industries, academic
institutions, waste management, and water and wastewater management.
The purpose of this paper is to present the key findings of the colloquium. The
remainder of the paper is organized into four sections. First, a review of literature on
ISO 14001, auditing of MSs, and integration of MSs is presented. Second, a description
of the methodology used in the research is provided. These sections provide the context
needed for the next section, which focuses on the findings of the colloquium. Finally,
the paper finishes with a brief summary, conclusion, and recommendations for further
research. It is anticipated that the findings will be of interest to both practitioners and
academics in environmental, quality and other standardized MSs.
2. Literature survey
The literature survey is organized into three sections. The first section provides a brief
review of the key literature published on ISO 14001. The second section focuses
on the key challenges associated with auditing a standardized MS. The third section Environmental
centers on a review of literature on integrated management systems (IMSs). In all management
cases, focus is on literature published since the 1996 release of the original version of
the ISO 14001 standard. system
Much of the research on integrated audits has focused on the integrated audits
of quality, health and safety, and EMSs. For example, Karapetrovic and Willborn
(1998a) presented differences in the audit standards available at the time and identified
several best audit practices for integrated audits. Karapetrovic and Willborn (2000a)
introduced the concept of a generic audit based on quality, environmental, and
accounting audit principles. Kraus and Grosskopf (2008) depict several different types
of integrated audits and suggest some implementation guidelines. The literature
highlights that the level of integration and implementation of MS audits varies greatly
(Bernardo et al., 2010).
A number of benefits associated with integrating MS audits have been highlighted
in the literature, including increased operational efficiencies, establishment of auditor
competence for different MS standards, and cost savings as a result of optimized
resource allocation (Karapetrovic and Willborn, 2000a; Douglas and Glen, 2000; Zutshi
and Sohal, 2005; Salomone, 2008; Bernardo et al., 2010). Moreover, harmonization of
audits may facilitate the alignment of internal systems and lead to a more effective use
of existing MSSs (Beckmerhagen et al., 2003). Beckmerhagen et al. (2003) discuss how
audits can provide an excellent basis for MS integration efforts by generating
important findings, insights, and recommendations.
3. Methodology
The colloquium was organized by a committee of two university professors and three
private consultants. Details on the participants are presented in Table I. The details were
gathered from questionnaires completed at the colloquium. As Table I illustrates, the
participants were specifically selected to ensure a broad range of perspectives.
The majority of the participants were EMS managers or EMS coordinators. These
individuals represented organizations from a number of different sectors, including
electric utilities, mining, oil and gas, water utilities, consumer organizations, and
municipal governments. Consultants, auditors, registrars, standards developers, and
academics focusing on EMS also participated in the colloquium.
The colloquium focused on discussions around the three main topics listed in Table II.
The topics were briefly introduced to the participants in a package provided in advance
of the colloquium. For each of the three main topics, there were multiple sub-topics
to help focus the discussion. At the start of each sub-topic, two “seeders” took
approximately 5 minutes to share some preliminary thoughts on the topic. After seeding,
attendees took part in small group discussions with five or six participants per table.
Topic Description
Topic 1. Critical The management system (MS) model is represented as a series of discreet elements. In reality, the elements are highly
loops and synergies interrelated, and should not be viewed as, nor expected to act as, mutually exclusive. Two of the elements (non-conformities
among management (NCs) and corrective and preventive actions (CAPAs), on one hand, and objectives, targets and programs, on the other) have
system elements a number of connections and synergies that are not well recognized, nor employed to the maximum advantage for risk
control
At the outset, neither of these elements is typically developed and implemented as adequately and effectively as each can be.
As a result, many organizations are failing to get the benefits of a properly designed and implemented NC and CAPA
process
The initial task, in this session, will be to explore this issue, and then subsequently explore the critical loops and synergies
between the two elements
Topic 2. The full Based on ISO 19011 (Quality and EMS Auditing), CSA-Z773 (Compliance Auditing), and the developing ISO 17021-2 (third-
spectrum of party audits), internal and external auditing has a significant suite of activities, approaches, and results that can be done,
management system and ideally lead to full value added to the client and the auditee. Is the full spectrum of these potentials understood and
auditing employed? The suspicion is that some auditors and clients/auditees neither understand nor employ the full spectrum. What
exactly is the full spectrum, how can auditors (first and third party), clients, and auditees be made more aware and expect to
employ and gain full value from the MS audits?
Topic 3. Integrating This issue was considered at a previous colloquium and was emphasized at several recent environmental conferences and
management workshops. Is there a higher level of integrating MSs to be considered to enable an organization to manage business risks
systems both effectively and efficiently? This session will explore the potential of a higher level of issues and approaches in addition
to those recognized in the quote below. These “higher levels” of integration may include such ideas as corporate social
responsibility and change management
ISO 14001 has always recognized the potential of integrating MSs: “The International Standard does not include
requirements specific to other management systems, such as those for quality, occupational health and safety financial or
risk management, though its elements can be aligned or integrated with those other management systems. It is possible for
an organization to adapt its existing management system(s) in order to establish an environmental management system that
conforms to the requirements of this International Standard.”
How well has the above quote from the standard been acknowledged, considered, and implemented? Is it EMS-centric? This
topic is also a timely one, as an ISO Handbook on The Integrated Use of Management System Standards was recently
publisheda
Note: aThis handbook was published in July 2008 (ISO, 2008)
at the colloquium
system
785
Table II.
IJQRM Each table was assigned specific questions related to the topic, in order to keep the
discussion on track. A recorder was present at each table to capture the main points
29,7 coming from the discussion. After about an hour of small group discussions, each table
presented highlights to all colloquium participants. A short plenary discussion followed.
The key points from the plenary discussions were also recorded.
786 4. Findings
This section presents the key findings of the small group and plenary discussions on
the topics highlighted in Table II. It is important to acknowledge that consensus was
not obtained, nor sought, around every key issue.
The key findings from the discussions are summarized in Table III.
4.1.1 Non-conformities and corrective and preventive action. A wide variety of
feedback was received on the keys to a successful NC and CAPA process, the most
common weaknesses in these areas, and the importance of root cause analysis in the
investigation of NCs. Throughout the discussion, the participants noted that many
organizations are not taking full advantage of the NC and CAPA element in ISO 14001
due to an underlying focus on “the negatives” rather than “the positives”. Part of the
reason for this may be the facts that the standard is very non-prescriptive in these
areas, that there is no clear distinction between a major and a minor NC in the
standard, and that there is considerable variation in the way organizations deal with
these issues both formally and informally. Another challenge is that it is rare for
organizations to lose registration to ISO 14001 over NCs, which can undermine the
commitment to the system. Nonetheless, the experts emphasized that the true value of
these elements is the opportunity their identification allows to improve the system.
First-party (internal) The objectives, scope, and expectations of the audit must be clarified in
auditing advance
Proper training of internal auditors is essential
Audits should be used as learning tools
Integrated audits should be explored where practical
Third-party There are frequently large inconsistencies between auditors auditing the same
Table IV. (registrar) auditing system
Key points related to the Improved communication between auditors and auditees is needed
full spectrum of Internal audits reports should not overly influence the external audits
management system Internal and external audits should be coordinated so as to minimize audit
auditing fatigue
4.2.2 Third-party (registrar) auditing. The discussions focused on weaknesses in Environmental
third-party audits and potential improvements to them. As with the internal audits, the
participants felt that there is often poor presentation and/or quality of the audit
management
findings. Large inconsistencies between auditors auditing the same system, even on system
major findings, are not uncommon. This raises questions regarding the competency of
some auditors. One other challenge noted was that many registrars/auditors are not
geographically close to their clients. This can inhibit the building of relationships 789
between clients and auditors.
Improved communication between the auditors and auditees was one of the key
improvements suggested by the participants. To help improve consistency, the
participants felt that the auditors themselves should be periodically audited. A single
regulated body of auditors may help eliminate the differences in the quality of
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registrations. There was some debate on whether the auditor needed experience in the
organization’s industry sector. As with the internal audits, there was debate on
whether recommendations should be included in the audit report. Although they could
add value, it was noted that consulting is not the job of the auditor and their role is to
identify compliance, or a lack thereof, with the standard.
The participants felt that the internal audits should function independently of the
external audit process. However, it was noted that internal audits can be good
preparatory exercises for external audits and that there could be value in having an
internal auditor shadow the third-party auditor. The participants felt that, although
senior management tends to pay more attention to external audits than to internal audits,
most people within the company tend to prefer being audited internally and feel that they
get more useful information. It was noted that the external auditing process is supposed
to take into account the internal auditing process, but some participants felt that the
internal reports should not be provided until the end of the external audit so that
the external auditor will not be biased by the internal findings. Finally, it was suggested
that the organization plan internal and external audits so as to minimize audit fatigue.
General issues The EMS should be integrated with other MSs where practical
There are limitations to integration that should be kept in mind
Environmental issues could potentially be buried in an IMS
Auditors are not yet fully equipped to deal with an IMS
Integrating change Change management is a critical component of any IMS
management and corporate Change management is often unstructured and reactive Table V.
social responsibility into Effective change management requires engaging key stakeholders Key points related to
management systems Transparent decision-making is a key to CSR integrating management
CSR can be a key link in an IMS systems
IJQRM they rarely get looked at. Alignment of the EMS with other MSs and the organization’s
business processes is therefore important. When integrating, the commonalities between
29,7 the systems should be used to reduce confusion and unnecessary redundancies. However, it
is recognized that there may be limitations to completely integrating systems. For example,
certain aspects of some systems may not fit well into an integrated system. It could be a
challenge to get buy-in from all involved and identifying responsibilities could become
790 problematic. One key issue is that it is possible that critical components of individual
systems could be buried within “the bigger picture”. To have an effective integrated system,
it is essential that senior management sees environmental issues as equal to other issues.
Another consideration is that registrars and auditors are not yet fully equipped to deal with
integrated systems. Although this is not an excuse to avoid integrated systems, it may add
challenges to internal and external audits. Recommendations for the process of integration
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included establishing an integration team, starting with common elements between the
systems, treating specific aspects of different systems differently where necessary, and
incorporating integration issues into training.
4.3.2 Integrating change management and CSR into management systems. The
focus herein was on the value, pitfalls, and keys to a successful integration of change
management and CSR. The participants noted that change management is a critical
component for maintaining a good system and that it is essential in knowledge
preservation. However, change management is typically not seen as an inherent part of an
ISO 14001 system. Often, there is no official change management process, just informal
actions and a heavy reliance on reactive measures. One view expressed by the participants
is that the greater the degree of the integration of systems, the more structure is needed for
change management. Moreover, effective change management involves embedding
critical stakeholders, particularly the employees, in the process, as well as organizing the
planning component of ISO 14001 along the lines of other business systems.
Transparent, engaged decision making is at the root of CSR. The participants noted
that public interest is often the main driver for CSR, but that this interest is typically
low until a “big issue” arises. The lack of consistent CSR standards and “the baggage”
associated with the terms “CSR” and “sustainability” can also be challenges in
implementing CSR in an organization. To implement CSR internally, an understanding
of the organization’s key stakeholders, the social issues involved, and incentives are
needed. The participants noted that CSR can be a link in an overarching MS. Although
the existence of separate standards has institutionalized the concept of separate MSs in
many ways, CSR inherently incorporates quality, environmental, safety, and economic
issues and the effect of these on stakeholders.
5. Conclusions
The colloquium offered a variety of insights into the practical challenges of implementing
ISO 14001. The challenges were explored in detail under three main topics:
(1) critical loops and synergies among MS elements;
(2) the full spectrum of MS auditing; and
(3) integrating management systems.
In each of these areas, a number of issues were discussed by the participants.
The discussions of the critical loops and synergies among MS elements focused on
two sub-topics:
(1) non-conformities (NCs) and corrective and preventive actions (CAPAs); and Environmental
(2) objectives, targets, and environmental programs. management
The discussions on these topics highlighted a number of key points, including that system
there is considerable variation in terms of how organizations address NCs, the true
value in NCs and CAPAs are the opportunity they provide for improving the EMS,
continual improvement of the EMS heavily relies on these EMS elements, stakeholders’ 791
and the auditors’ perspectives must be considered when developing these elements,
and these elements must be linked to explicit metrics and to the organization’s core
management processes. Several key recommendations for implementing a functional
ISO 14001 EMS can be derived from the comments provided by the participants. For
example, to ensure that NCs are addressed, responsibility for a root cause analysis
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should be assigned to a specific person with appropriate training. Where practical, NCs
should also be addressed in the organization’s business plan. Objectives, targets, and
programs must be tailored to the unique context of the organization. To increase the
chance of success, organizations should focus on a small number of core objectives,
targets, and programs that are updated as necessary. In any case, it is essential that
these elements are linked to the organization’s strategic plan.
The discussions of the full spectrum of MSs auditing also focused on two sub-topics,
namely:
(1) first-party auditing; and
(2) third-party auditing.
The key points raised during these discussions included that the objectives, scope,
and expectations of the audit must be clarified in advance, the inclusion of
“recommendations for improvement” in an audit report has its benefits and drawbacks,
there are frequently large inconsistencies between auditors auditing the same system,
improved communication between auditors and auditees is needed, and internal and
external audits should be coordinated so as to minimize audit fatigue. These comments
provide the basis for several additional recommendations on implementing a functional
ISO 14001 EMS. For instance, internal auditors must be trained to enhance the
consistency and quality of the audits. Internal audits should focus on issues that
can actually lead to system improvements rather than overemphasising minutiae.
For external audits, it is critical that organizations focus on developing open channels of
communication with the external auditors. This will help provide needed clarity to
expectations for the EMS.
The discussions of the third key topic, integrating management systems, centered
on (1) general issues in integrating management systems (MSs) and (2) on integrating
change management and CSR into MSs. The key points discussed by the participants
included that the EMS should be integrated with other MSs where practical, there are
limitations to integrating MSs that should be kept in mind, auditors are not yet fully
equipped to deal with an IMS, change management is a critical component of any IMS,
transparent decision-making is a key to CSR, and CSR can be a key link in an IMS. Key
recommendations for implementing a functional ISO 14001 EMS that is integrated with
other MSs include building on the elements common to the systems being integrated
and incorporating integration issues in employee training. The process of managing
change within the EMS must be structured where practical to avoid an overreliance
IJQRM on reactive measures. Finally, organizations that have implemented CSR programs
29,7 should leverage those programs in the implementation of an IMS.
The discussions at the colloquium reinforced several of the points made in the
literature. For example, the paper supports the fact that the level of integration and
implementation of MS audits varies greatly. However, the colloquium also addressed
several issues that have not been adequately addressed in previous publications. For
792 example, the paper addresses the challenges of integrating an ISO 14001 EMS within an
IMS, provides practical advice to addressing NCs and CAPAs, and highlights the notion
of applying research on change management in the context of an EMS. In addition to the
contributions to the literature on EMS, the findings from the colloquium may have
relevance to practitioners and academics working on other standardized MSs. Although
there are certainly many differences in the requirements of other standardized MSs, such
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as ISO 9001 and OHSAS 18001, the process of implementing these standards share many
similarities with implementing an ISO 14001 EMS. For example, all MSSs require the
implementation of systems to address NCs, CAPAs, and objectives, targets, and
programs. Likewise, they all require internal audits and provide an opportunity for
third-party registration. The discussions in this paper provide insight into how
challenges associated with these issues may be addressed. The paper also reveals many
of the opportunities and challenges of integrating these MSSs with each other.
In most organizations, successful implementation of an ISO 14001 EMS will require
an identification of challenges and opportunities in the areas highlighted by the
colloquium. However, while the colloquium provided some insight into how these
challenges and opportunities may be addressed, it is acknowledged that there is a need
for further research on ISO 14001, particularly as it relates to areas for improvement. For
example, future research could focus on the specific updates that should be made to the
definitions and clauses in ISO 14001. As one example, there is a need to clarify the
distinction between a minor NC and a major NC. There is also a need for further research
on many of the recommendations offered by the participants in the colloquium. For
example, there is a need for further research on developing metrics linked to the EMS,
tying an EMS to organizational strategic plans, determining the competencies needed
for internal and external auditors, conducting integrated audits, establishing
methodologies for implementing an IMS, incorporating change management within
an EMS, and exploring the influence of CSR programs on EMSs. In any case, the results
from this colloquium should provide a starting point for future research on ISO 14001.
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