ABSTRACT

Supply chain auditing has emerged as a powerful tool for providing corporate buyers with comprehensive environmental information on the products, components, or materials they produce. From an international perspective, firms are increasingly finding that better management practices can play a key role in addressing many corporate environment problems and pressures that arise around the globe. A commitment to environmental performance reporting is a strong response to these pressures, but in practice, it is often one of the last elements to be put into place. The pressure of formal management control practices such as an environmental management system (EMS) is also a strong indication of environmental performance and commitment. Some firms choose to set up self-designed EMSs. By doing so, companies can tailor the individual company requirements and problems. Other companies adapt standardized environment management standards. Companies that maintain high standards for environmental management typically guard themselves against being victimized by shortfalls in the environmental performance of their suppliers and contractors.