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A new‐institutionalist perspective on ISO 14000 and Responsible Care

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  • Aseem Prakash

Abstract

This paper examines why US firms are lukewarm towards ISO 14000 while the US chemical industry has enthusiastically adopted Responsible Care. It also briefly explores why European and Asian firms are eagerly adopting ISO 14000. Employing a new‐institutionalist framework it argues that firms have incentives to adopt beyond‐compliance voluntary programs only if they perceive excludable benefits exceeding excludable costs. Institutions, the central conceptual pillar in a new‐institutionalist framework, are important in shaping perceptions of benefits and costs and the extent of their excludability. US regulators can encourage adoption of ISO 14000 by granting attorney–client privileges and enhancing levels of regulatory relief. Firms, in turn, need to appreciate the political constraints of the EPA on this issue. They could relax these constraints by addressing the apprehensions of EPA’s key constituents. Copyright © 1999 John Wiley & Sons, Ltd and ERP Environment.

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  • Aseem Prakash, 1999. "A new‐institutionalist perspective on ISO 14000 and Responsible Care," Business Strategy and the Environment, Wiley Blackwell, vol. 8(6), pages 322-335, November.
    • Handle: RePEc:bla:bstrat:v:8:y:1999:i:6:p:322-335
    DOI: 10.1002/(SICI)1099-0836(199911/12)8:63.0.CO;2-H
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    Cited by:

    1. Debbie Harrison & Geoff Easton, 2002. "Collective action in the face of international environmental regulation," Business Strategy and the Environment, Wiley Blackwell, vol. 11(3), pages 143-153, May.
    2. Aseem Prakash, 2001. "Why do firms adopt ‘beyond‐compliance’ environmental policies?," Business Strategy and the Environment, Wiley Blackwell, vol. 10(5), pages 286-299, September.

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