| Since 1996 when ISO 14001 was established, policy makers have encouraged the adoption of ISO 14001-based environmental management systems (EMS) through multiple voluntary environmental initiatives (VEI). These programs include the EPA's Performance Track, Star Track and EMSs for Municipalities, and the EPA/Multi-state Working Group on EMSs' Pilot Program. In addition, state VEIs such as Oregon's Green Permits Program and Virginia's Environmental Excellence Program encourage EMS adoption. These programs are based on the premise that organizations that adopt EMSs may better achieve environmental protection. To date, however, we know very little about the factors that influence firms' decisions to adopt an ISO 14001-certified EMS.; Previous studies have generally considered external factors that motivate firms' environmental decisions, although not ISO 14001. In general, these studies evaluate the external factors that motivate an organization's certification decisions. However, multiple internal organizational factors may also influence certification decisions. As such, a deeper understanding of these prior capabilities may be central to understanding the rationales for ISO 14001-certification.; This study uses an integrative approach to explore both the external and internal factors that comprise firms' adoption decisions. By employing a hazard model, this research predicts empirically which firms are quicker to certify their EMSs to ISO 14001 and what factors influence them most.; The results indicate that early adopters were influenced to certify to ISO 14001 because they endured greater external scrutiny. Early adopters received greater negative environmental press, had more environmental violations and had greater environmental fines than non-adopters. Moreover, early adopters were the dirtiest firms in the cleanest manufacturing sectors. These firms appear to be “signaling green” by providing environmental information in an effort to deflect attention from their tarnished environmental image.; On the other hand, early adopters of ISO 14001 may have a genuine interest in polishing their environmental record in that they had greater experience with management systems and pollution prevention programs. Both proficiencies assist firms in achieving higher levels of environmental management that may improve environmental performance over time. |
