Environmental auditing and third party certification of management practices: Firms’ motives, audit orientations, and satisfaction with certification

Daniel Indarto Prajogo, Pavel Castka, Daphne Yiu, Andy C L Yeung, Kee-Hung Lai

Research output: Contribution to journalArticleResearchpeer-review

10 Citations (Scopus)

Abstract

In this study, we investigate the interplay between motives for certification, audit orientations and firms’ benefits and satisfaction with ISO 14001 certification. We demonstrate that firms’ motive for certification is an important determinant in firms’ satisfaction. Firms with internal motivations (such as improvements in their environmental performance) require audits that foster continuous improvement and tend to report greater benefits and satisfaction with the third party certification compared to those that are driven by external motives (such as to match competitors’actions). Our findings show that only an improvement orientation towards auditing would lead to clients’ satisfaction with ISO 14001. In contrast, external motives for pursuing ISO 14001 certification make firms less focused on environmental improvement through the standard, and, thus, less satisfied with the certification. Our research demonstrates how different motives for seeking certification lead to different satisfaction levels with voluntary standards in an environmental management context.
Original languageEnglish
Pages (from-to)202-210
Number of pages9
JournalInternational Journal of Auditing
Volume20
Issue number2
DOIs
Publication statusPublished - 2016

Keywords

  • Auditing
  • environmental management system (EMS)
  • ISO 14001 certification
  • motives for certification
  • satisfaction with certification

Cite this

@article{adda2cd6f74a4365abcca065ecf03ebd,
title = "Environmental auditing and third party certification of management practices: Firms’ motives, audit orientations, and satisfaction with certification",
abstract = "In this study, we investigate the interplay between motives for certification, audit orientations and firms’ benefits and satisfaction with ISO 14001 certification. We demonstrate that firms’ motive for certification is an important determinant in firms’ satisfaction. Firms with internal motivations (such as improvements in their environmental performance) require audits that foster continuous improvement and tend to report greater benefits and satisfaction with the third party certification compared to those that are driven by external motives (such as to match competitors’actions). Our findings show that only an improvement orientation towards auditing would lead to clients’ satisfaction with ISO 14001. In contrast, external motives for pursuing ISO 14001 certification make firms less focused on environmental improvement through the standard, and, thus, less satisfied with the certification. Our research demonstrates how different motives for seeking certification lead to different satisfaction levels with voluntary standards in an environmental management context.",
keywords = "Auditing, environmental management system (EMS), ISO 14001 certification, motives for certification, satisfaction with certification",
author = "Prajogo, {Daniel Indarto} and Pavel Castka and Daphne Yiu and Yeung, {Andy C L} and Kee-Hung Lai",
year = "2016",
doi = "10.1111/ijau.12068",
language = "English",
volume = "20",
pages = "202--210",
journal = "International Journal of Auditing",
issn = "1090-6738",
publisher = "Wiley-Blackwell",
number = "2",

}

Environmental auditing and third party certification of management practices : Firms’ motives, audit orientations, and satisfaction with certification. / Prajogo, Daniel Indarto; Castka, Pavel; Yiu, Daphne; Yeung, Andy C L; Lai, Kee-Hung.

In: International Journal of Auditing, Vol. 20, No. 2, 2016, p. 202-210.

Research output: Contribution to journalArticleResearchpeer-review

TY - JOUR

T1 - Environmental auditing and third party certification of management practices

T2 - Firms’ motives, audit orientations, and satisfaction with certification

AU - Prajogo, Daniel Indarto

AU - Castka, Pavel

AU - Yiu, Daphne

AU - Yeung, Andy C L

AU - Lai, Kee-Hung

PY - 2016

Y1 - 2016

N2 - In this study, we investigate the interplay between motives for certification, audit orientations and firms’ benefits and satisfaction with ISO 14001 certification. We demonstrate that firms’ motive for certification is an important determinant in firms’ satisfaction. Firms with internal motivations (such as improvements in their environmental performance) require audits that foster continuous improvement and tend to report greater benefits and satisfaction with the third party certification compared to those that are driven by external motives (such as to match competitors’actions). Our findings show that only an improvement orientation towards auditing would lead to clients’ satisfaction with ISO 14001. In contrast, external motives for pursuing ISO 14001 certification make firms less focused on environmental improvement through the standard, and, thus, less satisfied with the certification. Our research demonstrates how different motives for seeking certification lead to different satisfaction levels with voluntary standards in an environmental management context.

AB - In this study, we investigate the interplay between motives for certification, audit orientations and firms’ benefits and satisfaction with ISO 14001 certification. We demonstrate that firms’ motive for certification is an important determinant in firms’ satisfaction. Firms with internal motivations (such as improvements in their environmental performance) require audits that foster continuous improvement and tend to report greater benefits and satisfaction with the third party certification compared to those that are driven by external motives (such as to match competitors’actions). Our findings show that only an improvement orientation towards auditing would lead to clients’ satisfaction with ISO 14001. In contrast, external motives for pursuing ISO 14001 certification make firms less focused on environmental improvement through the standard, and, thus, less satisfied with the certification. Our research demonstrates how different motives for seeking certification lead to different satisfaction levels with voluntary standards in an environmental management context.

KW - Auditing

KW - environmental management system (EMS)

KW - ISO 14001 certification

KW - motives for certification

KW - satisfaction with certification

U2 - 10.1111/ijau.12068

DO - 10.1111/ijau.12068

M3 - Article

VL - 20

SP - 202

EP - 210

JO - International Journal of Auditing

JF - International Journal of Auditing

SN - 1090-6738

IS - 2

ER -