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Effect of Ecological, Economic and Social Factors on the Implementation of ISO 14001 Environmental Management System in Heavy Industries in Indonesia

Author

Listed:
  • Ridwan Mahzun

    (Universitas Riau, Pekanbaru, Jl. Pattimura No. 9, Pekanbaru, Riau 28131, Indonesia)

  • Thamrin Thamrin

    (Universitas Riau, Pekanbaru, Jl. Pattimura No. 9, Pekanbaru, Riau 28131, Indonesia)

  • Bahruddin Bahruddin

    (Universitas Riau, Pekanbaru, Jl. Pattimura No. 9, Pekanbaru, Riau 28131, Indonesia)

  • Nofrizal Nofrizal

    (Universitas Riau, Pekanbaru, Jl. Pattimura No. 9, Pekanbaru, Riau 28131, Indonesia)

Abstract

This study originally tried to examine the influence of ecological, economic and social factors on the implementation of an environmental management system by taking a case study in heavy industry from a shipyard in Batam Indonesia with reference to ISO 14001: 2015 Environmental Management System (EMS) standards. EMS is a framework that helps companies to manage the environmental impacts that arise from their activities. According to Law No. 32/2009, EMS includes policies on the arrangement, utilization, development, maintenance, recovery, supervision and control of the environment. The method used is Structural Equation Modeling (SEM), with a survey method by distributing questionnaires to respondents who know the work of the shipyard industry and the implementation of environmental management systems in this heavy industry. The study results show that economic and social factors have a positive effect on the application of ISO 14001 environmental management systems in Heavy Industries in Indonesia. These findings indicate the importance of applying ISO 14001 in heavy industry, in particular, and the importance of considering various ecological, social and economic conditions of the company in such implementation.

Suggested Citation

  • Ridwan Mahzun & Thamrin Thamrin & Bahruddin Bahruddin & Nofrizal Nofrizal, 2020. "Effect of Ecological, Economic and Social Factors on the Implementation of ISO 14001 Environmental Management System in Heavy Industries in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 469-475.
    • Handle: RePEc:eco:journ2:2020-06-61
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    Citations

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    Cited by:

    1. Seyedvahid Vakili & Alessandro Schönborn & Aykut I. Ölçer, 2022. "Application of the transdisciplinary shipyard energy management framework by employing a fuzzy multiple attribute group decision making technique toward a sustainable shipyard: case study for a Bangla," Journal of Shipping and Trade, Springer, vol. 7(1), pages 1-28, December.

    More about this item

    Keywords

    ecology; social factors; environmental management systems; heavy industry; Indonesia.;
    All these keywords.

    JEL classification:

    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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