A standard, in everyday language, is a measure used as a basis for comparison against which something may be assessed. In this general sense, most organizations have standards that describe various attributes or characteristics that a product must have for reasons of quality, or safety.. There are standards for accounting, engineering, manufacturing, occupational health and safety, environmental protection, human resource management, collective bargaining, and employment equity.
Many of these standards are internal to an organization. They have been developed to improve and promote consistency, efficiency or competitive advantage. Many however, are external. These fall into two broad categories: those that are mandatory and regulated by government, and those that are voluntary and developed and managed by the private-sector. Whereas regulatory standards are mandated by legislation, private – sector voluntary standards represent a type of self-regulating activity. The violation of a regulatory standard might lead to fines or litigation; the violation of an industry standard could lead to loss of certification and business opportunity.
A great share of the blame for present-day man-made or anthropogenic climate change is directed at industries creating intense pressure on them to reduce their carbon emissions. Governments of all countries have set up regulatory authorities to administer regulatory standards and norms. These standards have been referred to as ‘green standards.’
Green standards are exemplified by The U.S. Environmental Protection Agency (EPA or sometimes USEPA). EPA is charged with protecting human health and the environment, by writing and enforcing regulations based on laws passed by Congress. It has the primary responsibility for setting and enforcing national standards under a variety of environmental laws. EPA enforcement powers include fines, sanctions, and other measures.
Similarly the governments of many countries have appointed ministries or agencies to monitor and protect the environment. Brazil, Canada, Denmark, Hong Kong, Germany, India, Indonesia, Ireland, Isle of Man, Israel, Israel, Mexico, Netherlands… the list of such countries is extensive
The most well-known and internationally followed standard followed by the Private Sector, world-wide is the ISO 14000 standard. Adherence to ISO 14000 is voluntary. It integrates the environmental management systems of companies that trade with each other in all corners of the world.
ISO 14000 helps companies focus attention on environmental issues, and brings them into the main stream of corporate decision-making. This has the effect of establishing a common reference for communicating about environmental management issues between organizations and their customers, regulators, the public and other stakeholders. Adherence to ISO 14000 standards creates employee and customer satisfaction that they are working for an environmentally responsible organization and gives the company competitive advantage. However the ISO process has not fully involved all countries or levels of business. Some consumer and environmental organizations are sceptical of the voluntary standards it seeks to implement.
There is considerable debate whether environmental standards should apply equally to developing countries as they do to developed countries, considering that developed countries have developed themselves without such constraints. Principle 11 of the 1992 Rio Declaration on Environment and Development is categorical that environmental standards, objectives and priorities do need to reflect the particular environmental and developmental context to which they apply. In other words, environmental standards applied by some countries could be inappropriate. They could cause unwarranted economic and social cost to others, particularly developing countries, by hindering exports. Small and medium sized enterprises (SME) are especially vulnerable.
Notwithstanding the shortcomings environmental standards are here to stay. Consumers, governments and companies up and down the supply chain are all seeking ways to reduce their environmental impact and increase their long-run sustainability. Commenting on ISO 14000, Arthur J. Hanson, President and CEO of International Institute for Sustainable Development writes, “From a decade from now we may recognize these standards as one of the most significant international initiatives for sustainable development.”
