Unit 3: Social Responsibility of Entrepreneurs

Lesson 3.4
Environmental Management System

Contents
Introduction 1

Learning Objectives 2

Quick Look 3

Learn the Basics 4

The Environmental Management System (EMS) 4
Framework and Key Elements of EMS 7
Environmental Policy 8
Planning 9
Implementation and Operation 10
Checking and Corrective Action 10
Management Review 11

Case Study 13

Keep in Mind 14

Try This 16

Practice Your Skills 17

Challenge Yourself 19

Photo Credits 20

Bibliography 20
Unit 3: Social Responsibility of Entrepreneurs

Lesson 3.4

Environmental Management System

Introduction

We directly experience the effects of various environmental problems caused by human

activities. You might feel that the summer months are getting warmer, the rains are heavier,
or storms are becoming more destructive. The news about floods and landslides is more
frequent.

These are just some of the effects of global warming and climate change resulting from
decades of abuse of environmental resources. According to some experts, we can not
resolve these problems in a short period. We have to invest money, time, and effort to
rehabilitate what has been lost or destroyed. More importantly, environmental
management should be integrated in all human activities.

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Many advocates challenge businesses to turn away from destructive and wasteful business
operations and commit to sustainable management of resources. They urge corporations to
set aside the interest for profit to give way to the well-being of future generations.
International, national, and local guidelines have been created to guide businesses in this
mission. This lesson will teach you about frameworks in the environmental management
system, its key elements, purpose, and benefits.

Learning Objectives DepEd Competency

At the end of this lesson, you should be able to Observe and promote policies and practices in
do the following: environmental management
(ABM_ESR12-IVi-l-3.3).
● Identify the elements and stages of
environmental management systems.
● Design an environmental management
plan.
● Recommend actions to promote policies
and practices in environmental
management.

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Quick Look

Role Playing: Impact and Solutions

Divide the class into 4 to 5 groups. Each group will perform a short skit presenting a real-life
scenario that illustrates the impact of business practices on the environment. The short act
should present the following information:
● What is the business’s nature?
● What were the environmental problems caused by its operation?
● What solutions can you propose to resolve the issue?

Consider the following scenario as your reference:

A small manufacturing company operates in a residential area. After several years of
conducting business activities, the community residents started to experience skin and eye
irritation. The frequency of lung-related diseases and problems also increased. It was found
out that the factory had no proper waste disposal system and that their by-product gasses
are dangerous to people’s health. The solution is to temporarily suspend the factory’s
operations and conduct an assessment of the company’s environmental management
system. Also, they need to relocate their factory to a less populated area.

Questions to Ponder
1. Why do you think some businesses conduct activities that harm the environment?
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2. Which business malpractice do you think is the most alarming among the
presentations?
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3. Do you agree that a business should also be responsible for protecting the
environment? Why or why not?
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Learn the Basics

One of the main goals of a business is to gain profit. However, many companies have
pursued profit maximization at the expense of the environment. It has caused health
problems, disasters, and calamities, significantly affecting people’s property, infrastructures,
and lives. Due to this dire situation, we need to set guidelines that businesses should follow
to avoid these circumstances.

An environmental management system (EMS) is a vital instrument for controlling and

reducing the impact of business activities on environmental elements. It is a framework that
assists business organizations in achieving their environmental goals.

EMS is done by conducting regular reviews, evaluations, and improvements to the

company’s environmental performance. The notion of EMS is that constant analysis and
evaluation will uncover possibilities for improvements and alternatives toward sustainable
use of natural resources.

Essential Question

How can businesses benefit directly from having an effective and efficient
environmental management system?

The Environmental Management System (EMS)

The environmental management system (EMS) is a set of guidelines and practices that
organizations follow to avoid and minimize their environmental impacts while increasing its

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operational efficiency. It is imperative for businesses to protect the environment as part of

practicing fairness and performing stewardship. Recall that stewardship aims to achieve
sustainability by taking care of the business’s resources: its capital, its people, and the
environment. Good environmental management displays fairness because the benefits of
business activities are equitably distributed to the current and succeeding generations.

Every company is required to design their own EMS in accordance with existing national and
local laws. The government has the obligation to ensure that all businesses implement an
EMS.

Closer Look

The Government’s Role in EMS

Mrs. Gonzales is an owner of a beach resort in a popular tourist spot. Her
resort received a major complaint from the local community about
improper waste disposal and excessive use of plastic materials, like
plastic cups, plastic bags, and plastic bottles. The malpractices of the
beach resort would greatly affect the sea and the community if those
would not stop.

The local government fined her an amount and obliged her to create an
environmental management system (EMS) that would show the actions of
the resort management about the complaint. They agreed on several
actions and environmental policies that the beach resort must do. They
needed to set up a sufficient number of trash bins, reduce the use of
plastic materials, and implement a waste management system.

The local government gave the resort owner one month to resolve the
environmental problems caused by her resort. Otherwise, the authorities
will order the suspension of their business operations.

The environmental management system (EMS) helps a business organization follow

regulatory requirements systematically and cost-effectively. This approach is also an
extension of the social responsibility of a business to the people and environment. It

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reduces the risk to the employees and public from the environmental disasters that might
occur due to malpractices of the business operations. This EMS allows a business to review
their organization’s environmental policies. It also analyzes if there are any environmental
impacts on the business operation and can set environmental targets and objectives to
resolve the problems.

Figure 1. EMS helps companies assess the environmental impact of their operations.

Every firm should have an EMS representing the regulations and laws that apply to their
particular organization. The EMS addresses environmental problems by enacting policies
with explicit environmental objectives and targets and developing strategies to guarantee
that the firm complies with applicable laws. For the EMS to properly identify the essential
steps, an organization must be aware of all areas of its environmental impact. Effective
planning should contain a reference to the corporate policy’s objectives and a thorough
grasp of the legal obligations.

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Check Your Progress

How important are the roles of the government and businesses in making
environmental management systems work?
_________________________________________________________________________________
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Framework and Key Elements of EMS

The International Organization for Standardization (ISO) released a standard framework
for EMS. The ISO is an international non-governmental organization that develops and
publishes standards in almost all technical and nontechnical fields. It is composed of
delegates of national standards organizations of member countries. The Philippines is a full
member of the ISO.

The ISO 14001 is the international standard for environmental management systems. It
defines EMS as “part of the management system used to manage environmental aspects,
fulfill compliance obligations, and address risks and opportunities.”

Figure 1 illustrates the EMS cycle based on the Plan-Do-Check-Act (PDCA) approach for
continuous improvement. It shows five major key elements in the cycle. These are
environmental policy, planning, implementation and operation, checking and corrective
action, and management review.

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Figure 2. EMS is a continuous cycle.

Environmental Policy
Every business has an environmental obligation. The first step is to set environmental policy
as the foundation of the proposed environmental management system. It is the
commitment of a business organization to society to protect the environment. For example,
one of the policies of a chemical factory is effective and responsible waste management and
disposal.

Closer Look

A Construction Company’s Environmental Policy

XYZ Construction Company is aware of the environmental impacts that
result from the consumption and waste production of their business
activities. Thus, the environmental policy of the company is to improve
resource efficiency, save energy, and work with the communities. They
are committed to follow the local, national, and international standards of
environmental management.

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Planning
The most crucial part of the process is the planning stage. This element of EMS first
determines the different aspects of business operations that negatively affect people and/or
the environment, such as various pollutants and hazardous wastes.

Once identifying the environmental aspects is done, a business organization sets its
objectives and targets. An objective is the general environmental goal of an organization,
like minimizing the use of chemical X. A target is a specified goal that is based on the
objective, for example, to reduce the use of chemical X by 20% by January 2025.

The final step in planning is designating responsibilities, creating a timeline, and outlining
the defined steps in meeting the targets.

Closer Look

A Construction Company’s Environmental Planning

XYZ Construction Company identified the aspects of business operations
that negatively impact the environment. Some of those identified are the
huge amount of electricity and fuel consumption, extraction of raw
materials such as sand and rocks, and carbon dioxide emissions from
cement production.

The objectives of XYZ Construction Company’s environmental plan from

2020 to 2022 are:
● Increase the use of alternative fuels by 30%
● Plant 25,000 trees to contribute to the reduction of carbon
footprint
● Conduct projects to rehabilitate quarry sites

The company created an environmental plan. The responsibilities of

head offices and operating units were outlined. The funding
requirements were included in the financial plan.

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Implementation and Operation

The most important part is the implementation and operation. The management follows
through with an action plan and necessary resources, such as financial, human resources,
materials, etc. It starts with proper training and orientation of the employees for their
awareness of the proposed EMS. Then it is followed by implementing the designed
procedures, communication channels, and documentation.

Closer Look

Implementation of Environmental Plan

XYZ Construction Company released the environmental plan to all its
operating units. The operating units were required to draft their local
environmental system and initiatives. The managers were required to
report periodically on the measures they implemented to ensure
sustainability.

Checking and Corrective Action

The management monitors and evaluates whether their operations have met the targets
and objectives. To do this, a rubric should be developed to set the criteria and their
corresponding weight. In this stage, a company would see their EMS’s positive and negative
sides. If a company did not meet the target, then they would note some necessary
corrective actions.

Closer Look

Checking Performance and Correcting Actions

After 3 years of implementing the environmental plan, the following were
the results:
● The use of alternative fuels was only at 15%. Some local operating
units had difficulty accessing alternative fuel sources.
● There were more than 35,000 trees planted. The cooperation of
local communities was instrumental to this success.

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● Local operating units conducted initiatives for rehabilitating the

quarry sites. However, due to the variety of environmental projects
done, the measure of success could not be determined.

The corporation noted that the cooperation with local communities was a
key element to the success of the second objective. However, accessing
cheap alternative fuel sources is still a challenge. Moreover, clear
guidelines on conducting and assessing rehabilitation projects should be
created to guide the local initiatives.

Management Review
The last step in the EMS framework is the management review. Here, the top management
reviews the evaluation results to know whether the EMS is effective or not. Moreover, they
determine whether the environmental policy is aligned with the vision and core values of
the company.

Based on the results of management review, the original plan undergoes some revision to
add the corrective actions, modifications, or alternatives. As a result, a new, improved, and
more effective EMS rises from the process. The cycle would start again from planning to
review until the EMS meets its most ideal outcomes.

Closer Look

New Environmental Plan

The management of XYZ Corporation reviewed the results of the
evaluation. They made revisions and improvements to the environmental
management system based on the strong and weak points of the
previous plan. At the start of 2023, a new Environmental Management
Plan will be launched to cover the years 2023 to 2025.

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Check Your Progress

Why are environmental management systems designed as a cycle?

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Benefits of EMS
This EMS has greatly helped the environment sustain its natural resources and maintain a
harmonious living environment. EMS improves the environmental performance and
productivity of a business. It prevents any kinds of pollution that mainly affects the
community. This system is also an avenue to enhance employee awareness of their
responsibilities and environmental issues that need to be resolved.

Running an efficient EMS will assist you with the following:

● Increasing resource efficiency and minimizing wasteful spending - Rules and
processes will be put in place to assist you in managing waste and resources more
efficiently. This can help you save money on raw materials and operational expenses.
● Improved regulatory compliance - EMS will assist you in becoming legally
compliant, lowering the danger of fines and negative press.
● Lighter regulation - Even though an EMS is not required by law, demonstrating your
commitment to environmental management may result in fewer site inspections or
lower fines from environmental regulators.
● Sales and marketing - Big corporations and government agencies may only do
business with companies who have an EMS. It might be critical for tendering success
and achieving supply-chain needs.
● Increasing business reputation - Greater understanding and management of your
environmental consequences can help you enhance public relations. Running an EMS
will also assist you in proving your company’s environmental credentials.
● Finance - You may have an easier time attracting funding from banks and other
financial institutions. Investors are increasingly interested in seeing firms reduce
their environmental effects and demonstrate an understanding of the risks and
possibilities linked with environmental challenges.

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Many organizations opt to create an environmental report to showcase their environmental

accomplishments to interested stakeholders. An EMS can be a great tool for producing and
collecting data for such a report.

Check Your Progress

Why does a business organization need to have an EMS?

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Case Study

Electrical and Electronic Sector EMS

Siemens is a multinational engineering company that produces a wide
range of services and goods, such as traffic lights, gas turbines,
superconducting magnets in medical scanners, wind generators,
automated factories, and electrical home appliances such as kettles and
refrigerators. Siemens has established several joint ventures. It is the
world’s biggest producer of electrical appliances, such as toasters, washing
machines, refrigerators, mixers, and others. Nokia-Siemens Network is a
prominent provider of telecommunications equipment across the world.

Siemens has a long history of addressing the environment in its activities,

and it already established an environmental protection office in 1971. In
environmentally important organizational units, the corporation has
implemented environmental management systems based on the
international standard ISO 14001. The relevant units are identified based
on their resource consumption, their waste creation, and the presence of
equipment that requires authorization. Each division determines whether
to pursue ISO 14001 external certification for its environmental

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management or participate in the European Union’s Eco-Management and

Audit Scheme (EMAS). Internal specialists must, however, evaluate the
environmental management system. New organizational units have three
years to fulfill the Siemens environmental management standards
completely.

Environmental Auditing and Environmental Management

Systems
SOAS University of London, “CS2 ELECTRICAL AND ELECTRONIC
SECTOR,” SOAS.UK.CO (SOAS University of London),
https://www.soas.ac.uk/cedep-demos/000_P508_EAEMS_K3736-
Demo/module/pdfs/p508_case_studies.pdf, last accessed on
March 31, 2022.

Keep in Mind

● The environmental management system (EMS) is a set of guidelines and practices

followed by business organizations to avoid and reduce the environmental impacts
of their operations. It also aims to increase operational efficiency.
● The International Organization for Standardization (IS0) 14001 is the international
standard for certifying environmental management systems. It defines EMS as “part
of the management system used to manage environmental aspects, fulfill
compliance obligations, and address risks and opportunities.”
● There are five key steps in the environmental management cycle.

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● All firms should have an EMS stating the regulations and laws that apply to their
industry and particular industry and organization. The EMS addresses environmental
problems by enacting policies with explicit environmental objectives and targets. It
helps develop strategies It helps develop strategies to improve environmental
performance and productivity.and improve the environmental performance and
productivity of a business.

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Try This

A. Sequencing. Read the items below and determine the proper sequence of the
environmental management system cycle.

________________ 1. The company sets the objectives of the EMS.

________________ 2. The company sets its environmental policy.

________________ 3. The company takes action to implement the EMS.

________________ 4. The company examines the results of evaluation to determine if

the EMS was effective.

________________ 5. The company monitors if the EMS has met the targets and
objectives.

B. Matching Type. Match the descriptions in column A with the words in column B. Put
the letter of your answer on the blank before the number.

Column A Column B

_____________ 1. determining the aspects that a. Checking and

negatively impact the corrective action
environment

_____________ 2. examining the results and b. Environmental policy

improving the EMS

_____________ 3. following through with an c. Implementation and

action plan and allocating operation
resources

_____________ 4. creating the foundation of EMS d. Management review

_____________ 5. assessing the EMS’s positive e. Planning

and negative aspects

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Practice Your Skills

Environmental Management Action Plan

Assume that you are a hotel owner. You were instructed by the local government unit to
submit an environmental management action plan. Use the following questions to create
your action plan.

1. What are your company’s environmental policies?

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2. What are the objectives and specific targets for your EMS?
Objectives:
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Targets:
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3. What are the different procedures in the implementation of your EMS?

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4. How would you evaluate the effectiveness of your EMS?

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5. What would you do with the results of the evaluation of your EMS?
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Challenge Yourself

Short-Response Essay. Answer the following questions.

1. How can businesses benefit from having an effective and efficient EMS?
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2. What would happen if a business had no environmental policy?

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3. What actions do you plan to take after learning about environmental management
systems?
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Photo Credits
The devastating effects of Super Typhoon Odette, by Carl Kho is free to use under the
Unsplash license via Unsplash.

File:Toledo Power Company (Toledo, Philippines) - Flickr.jpg, by Ahia is licensed under CC BY

via Wikimedia Commons.

Bibliography
14000Store. “ISO 14001 Summary.” 2021.
https://14000store.com/articles/iso-14000-info-iso-14001-summary/. Last accessed
on January 02, 2022.

ASQ. “What is ISO 14001: 2015 -Environmental Management Systems?”. 2015.

https://asq.org/quality-resources/iso-14001. Last accessed on January 02, 2022.

Stockfis, D. “Environmental Policy”. 2021.

https://www.conceptchemicals.com/environmental-policy#mainmenu. Last
accessed on January 02, 2022.

US EPA. “Learn About Environmental Management Systems.” September 28, 2021.

https://www.epa.gov/ems/learn-about-environmental-management-systems#ISO-14
001. Last accessed on January 02, 2022.

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