The Effects of Environmental Management System towards Company Financial Performance in Southern Region of Peninsular Malaysia

Environmental concern and issues has been rising rapidly in the current industry. This has caused Malaysian firms now to put their focus on environmental issue and green technology. However, besides on focusing on produce more green product, firms should also focus on how to manage. Environmental Management System (EMS) is the suitable tool for an organization to manage their environmental issues and improve environmental impacts. This study presents evidence of company’s performance which certified with ISO ۱۴۰۰۱. Despite the resources needed for EMS is high, there are few benefits include improving firm's production performance and reducing cost which will leads to enhance overall performance. Three companies certified with ISO ۱۴۰۰۱ were interviewed to obtain the response and opinions on the effects of implementing EMS within their organizations. Results shown that organization implemented EMS received many benefits and improvement. Although the cost of implementing EMS is high, the research still obtain positive results from companies with EMS. Based on the results received, it can conclude that EMS is the tool for organization to manage and overcome environmental issues and improve environmental performance. At the same time, companies are able to improve their overall performance other than only environmental. It is hope that this study able to encourage more Malaysia firms to implement EMS.

Keywords:

Environmental Management System , Effects , Performance , Implementation