Developing a methodology for analysis of benefits and shortcomings of ISO 14001 registration: Lessons from experience of a large machinery manufacturer

The decision-making process of implementing an Environmental Management System according to the ISO 14001 registration is a critical task for a number of reasons. The first is that most of the benefit and cost attributes are intangible by their nature and are difficult to measure. Second, the strategic decision has a relevant `political' dimension, since it requires a multidisciplinary support and convergence from different functions/departments within a company. Third, the analysis of the pros and cons is highly firm- and situation-specific and thus requires a versatile and flexible approach. This paper illustrates the formulation of a decision support methodology for multi-attribute analysis of ISO 14001 implementation which involves developing a framework of benefits and costs and structuring them hierarchically for the successive use of the Analytic Hierarchy Process (AHP). After presenting the theoretical foundations of the AHP and the research model that has been built for ISO 14001 implementation, an application of the methodology that has been carried out at one large food machinery manufacturer is illustrated.