Economics of Environment Management System: A Quality Cost Perspective

There is a growing need for industries to become accountable for their actions towards the environment. In order to make it possible, it is required to develop comprehensive, integrated and progressive environmental policies. These environmental policies would maintain dynamic environmental equilibrium. Today there is requirement by the National and International bodies to have standardised environmental management systems (EMS). These systems would keep the records of all environmental issues pertaining to the organisation. The EMS is made simple through the introduction of the ISO 14000 series. ISO 14000 provides guidelines on how to successfully manage and reduce environmental impacts through management functions, while at the same time allowing for high levels of socioeconomic growth and dedication to sustainable development. The implementation of EMS through ISO 14000 series would involve the expenditure. Every organisation is interested in economic aspects before the implementation of any system. They want that the system should provide the financial benefits, which will motivate to keep going on. This paper discusses economic aspects for the implementation of ISO 14000 an EMS tool in any organization with the help of cost of environment concept. The paper presents the concept of quality cost being applied to justify the implementation of EMS.