تاثیر سیستم های مدیریت زیست محیطی بر عملکرد مالی در صنایع مد و منسوجات
|کد مقاله||سال انتشار||مقاله انگلیسی||ترجمه فارسی||تعداد کلمات|
|6482||2012||7 صفحه PDF||سفارش دهید||محاسبه نشده|
Publisher : Elsevier - Science Direct (الزویر - ساینس دایرکت)
Journal : International Journal of Production Economics, Volume 135, Issue 2, February 2012, Pages 561–567
With rising environmental concerns from consumers and stakeholder groups, environmental management has become an important responsibility for today's fashion and textiles manufacturers. The production of fashion and textiles related products often requires high levels of energy and water consumption, and emits large quantities of pollutants to the environment. Therefore, the adoption of environmental management systems (EMSs) is important and could have a significant impact on these firms' operational performance. This study presents empirical evidence on the performance impact of EMS adoption in the fashion and textiles related industries (FTIs). Although EMSs have emerged as a passport to business in the FTIs, their actual impacts on firms' financial performance have not been explored. We reveal that the adoption of ISO 14000, the most popular EMS, improves manufacturers' profitability in the FTIs over a three-year period as measured by return-on-assets (ROA). Based on our sample, we find that profitability improvement started during the implementation stage and continued at least one year after the firm obtained ISO 14000 certification. We also find that profitability improvement is mainly due to improvement in cost efficiency, measured by return-on-sales (ROS). Specifically, certified firms improved up to 2.9% in ROA and 3.3% in ROS over the three-year period since they implemented ISO 14000. We conclude that there is a positive impact of EMS adoption on firms' financial performance in the FTIs.
The market of eco-fashion is growing briskly in recent years. The retail sales of products using organic cotton increased by four times from 2006 to 2009, reaching US$4.3 billion worldwide in 2009 (Organic Exchange, 2010). These figures show that customers have growing preferences for environmentally friendly fashion products. With rising concerns over product sustainability, buyers of major fashion brands have paid great attention to their suppliers' environmental performance. Suppliers' environmental management systems (EMSs) have become one of the criteria in buyers' green purchasing strategies (Boiral and Sala, 1998, Hamner, 2006 and Meyer, 2001). Some firms of the U.S. apparel industry (e.g., Levi-Strauss, Nike, Gap, and Eddie Bauer) even develop their own standards for environmental compliance and conduct their own audits to determine the level of compliance of their suppliers (Hamner, 2006). However, not every fashion buyer is able to develop their own environmental standards. Instead, most of them rely on internationally recognized EMSs and third-party verifications to assess their suppliers' environmental performance. A number of EMSs have been introduced to the manufacturing industry since the 1990s, e.g., the Green Dragon Environmental Management Standard developed by environmental groups in the U.K. and the Eco-Management and Audit Scheme (EMAS) developed by the European Union. There are industry-specific EMSs developed for the apparel and textiles industries, e.g., the Global Recycling Standard (GRS) for textiles and clothing developed by the Control Union. However, the above-mentioned EMSs lack international recognition and the level of customer acceptance varies across manufacturing sectors. Among the popular EMSs introduced to the manufacturing industry, ISO 14000, which is developed by International Organization of Standardization (ISO) in 1996, is the most popular and highly recognized EMS in the world (Corbett and Kirsch, 2001). ISO 14000 is a set of management processes and procedures requiring firms to identify, measure, and control their environmental impacts (Bansal and Hunter, 2003). With the aim of improving the environmental performance of a firm, compliance with the standard is audited and certified by an independent, third-party certification body (Jiang and Bansal, 2003). The number of ISO 14000 certified firms or business divisions has grown rapidly in recent years. From 2006 to 2008, the number of ISO 14000 certified firms or business divisions increased by 47% (ISO, 2009). In 2008, 188,815 firms or business divisions in 155 countries had adopted ISO 14000 (ISO, 2009). Despite the growing number of firms adopting EMSs, there are mixed results regarding their benefits in the literature. Previous studies on EMSs, which are mainly based on case studies or survey research, reveal contradicting results in the relationships between firms' environmental management practice and their financial performance. More importantly, the level of EMS adoption and its impact on the fashion and textiles industries (FTIs) have not been investigated. This study attempts to fill this research gap by estimating the impact of EMS adoption on fashion and textiles related firms' financial performance. The rest of the paper is organized as follows: in Section 2 we review research on the impact of EMSs and their adoption in the FTIs. In 3 and 4 we discuss the development of the hypotheses, and present the research methodology and data collection procedure, respectively. We discuss the results in Section 5, and summarize the main findings, conclude the paper, and suggest future research topics in Section 6.
نتیجه گیری انگلیسی
This study investigates the impact of EMS adoption on fashion and textiles firms financial performance by providing empirical evidence of the impact ISO 14000 adoption in the FTIs. Based on 61 publicly-listed and 14000 certified textiles or textiles related firms in the U.S., we find that ISO 14000 adoption has a significant positive impact on ROA and ROS. Depending on the methods used to estimate abnormal performance, the median abnormal improvement in ROA in certified firms ranged from 1.2% to 2.9% over non-certified firms over a three-year period. The median of firm size of the sample firms in year −2 was US$1,070.7 million. In other words, certified firms earned up to US$31.05 million additional profits more than their non-certified competitors. As ISO 14000 is the most commonly used EMSs in the FTIs; the results suggest that EMSs adopting fashion or textile related firms become more profitable in the fashion supply chain. The median abnormal improvement in ROS ranged from 1.0% to 3.3% over the three-year period. EMSs adopting firms in the fashion supply chain are more cost-efficient in their production processes, which leads to a better ROS than their non-certified competitors. Compared with the results of SOA, the abnormal change in ROS apparently contributes more to the abnormal change in ROA in the three-year period. This observation also provides empirical evidence against critics who argue that EMS adoption is only for marketing purposes without an actual impact on firms' operations. The results also contradict the general believe that the primary benefits of being environmentally friendly in operations is improving sales performance. In fact, the most important benefit of adopting an EMS is to improve firms' profitability through the cost-saving pathway. Therefore, practitioners in the FTIs should not only consider improving sales performance as the primary driver of EMS adoption. They should also place a greater emphasis on how to reap financial benefits from the cost-saving pathway of EMS adoption, as the FTIs are characterized by small profit margins. The results suggest that adopting EMSs or adopting an environmentally friendly operation strategy is a wise choice, which yields immediate yet long-lasting positive impact on firms' profit margins. Based on the theoretical development in Section 3 and the empirical results, we develop an environmental cost-saving model of fashion and textiles firms to illustrate the major impacts of EMS adoption (Fig. 1). This study is the first exploratory empirical work that focuses on EMS adoption in the fashion supply chain and its impact on firms' financial performance. As ISO 14000 is an international standard that is adopted in similar way in different countries, the findings are generally applicable to most markets. However, we are aware that the benefits could be contingent to a number of external factors, such as government regulation, market structure, position in the supply chain, customer pressure, etc. These potential contingency factors are limitations of this study and they should be addressed in future research. First, this study only includes fashion and textiles related firms in the manufacturing industry, which locates the upstream of the fashion supply chain, so we cannot compare our results in the FTIs directly with those in other industries, such as fashion retailing and wholesaling. Second, we only include ISO 14000 adopting firms in our sample, while there are other less popular and commonly used EMSs. The impacts of other EMSs might be different from that found in the adoption ISO 14000. Comparing the impacts of various EMSs in the same operational context is an interesting future research direction. Third, the environmental cost-saving model is developed based on previous empirical works and the findings in the current study. However, the linkages (i.e., the connection between environmental performance and cost-saving) in the model should be further corroborated by either firm- or plant-level environmental performance data (e.g., pollution fines and amounts of toxics release of each plant) in future research. Forth, we only include U.S. publicly-listed textile related firms in the fashion supply chain. However, most fashion supply chains involve a large number of small- and medium-sized suppliers that are not listed, and suppliers from developing countries such as China and India. The performance impact of EMSs on fashion and textiles firms in developing countries might not be the same as that in the U.S. The textiles firms in developing countries might adopt the standard simply for legitimacy purposes as required by their customers in developed countries. Therefore, a replication of the current study in the context of a developing country could provide a clearer picture of the impact of EMSs in the fashion supply chain. Finally, this study only explores the impact of EMSs on firms' financial performance. Further studies could focus on environmental performance and supply chain performance to provide additional evidence of the usefulness of environment certification in the fashion supply chain.