Implementing environmental certification in Italy: managerial and competitive implications for firms

Environmental damage caused by industrial activity and the scarcity of natural resources has induced governments to introduce more binding environmental regulations. However, there are problems with the introduction of the command and control approach, and with inducing industry to implement voluntary systems, such as national or international environmental certification schemes (ISO 14000, EMAS or BS 7750). Many authors have described the requirements of different certification schemes, the potential problems related with their adoption, and their potential impact on a firm's competitiveness. However, there are few empirical studies that analyse effectively the main consequences for firms, arising from the adoption of environmental certification. This paper identifies, through an empirical study, the Italian situation and, in particular (i) why a firm operating in Italy should adopt environmental certification, (ii) the firms that do certify, (iii) the implications for firms, and (iv) the effects on competitiveness arising from its introduction.