Paper presented at the Annual Meetings for the Rural Sociological Society, Toronto, Ontario, Canada, Aug. 12-16, 1997 and the North American Farming systems Research and Extension Association Conference "Food and Natural Resource Systems: integrating Diversity, Action, and People", Nov. 2-5.

Abstract

In the early 1990s the International Organization for Standardization (ISO) began instituting a set of international standards for environmental management under the ISO 14000 series. The intent was to provide assurance to consumers that the goods from ISO 14000 compliant firms meet a set of basic requirements with respect to the environmental impact from their production. By 1997, ISO 14000 compliance has become a concern for manufacturing and resource sector industries and there is some interest in how ISO 14000 could be adopted to agricultural production. As noted in the literature, the establishment of internationally recognized standards such as ISO 14000 supports the increasing trend to remove the regulatory function of the state, to reduce trade barriers, and to have market forces create pressure for change. As such, they generate a number of questions and issues for agricultural production in North America some of which are addressed in this paper. Of particular concern are the potential implications for agricultural structure, the rural community, and improving conditions in the environment.

INTRODUCTION

As part of the preparations for the 1992 United Nations conference on Environment and Development in Rio de Janeiro, Brazil, the Business Council for Sustainable Development and ISO (International Organization for Standardization) explored the possibility of developing international environment standards (Hortensius and Barthel, 1997). The result has been the launching of the ISO 14000 series. This initiative, which covers a wide range of environmental issues (including life cycle analysis and eco-labelling), was conceived as an industry response to a host of potentially inconsistent environmental standards and to the perception that government and existing industry standards were too bureaucratic and burdensome (BEC, 1996).

The appearance of ISO 14000 on the world stage is consistent with the pressure for conformity and standardization that accompanies the domination of global interests in the modern era. Salter and Salter (1997) refer to the organization needed to support this trend as the "new infrastructure". The authors suggest that new agencies and institutions such as standards bodies which, in effect, blend state and private concerns, are being created. They also point out, that standards and standards setting bodies are gaining importance in the new infrastructure yet they are not well known in the academic literature, particularly political economy. Consequently, one of the objectives of this paper is to examine issues surrounding standards through an exploration of ISO 14000, with special attention paid to the possible consequences for North American agriculture if such a scheme is implemented in that sector.

Information and data have been collected through a research project sponsored by the Ontario Federation of Agriculture (OFA), the Ontario Farm Environmental Coalition (OFEC) and the Farming Systems Research Project at the University of Guelph . Both OFA and OFEC, are mainstream agricultural organization concerned about future constraints and opportunities facing the farming community. Their interest in ISO 14000 is driven by their involvement in developing and promoting the Ontario Environmental Farm Plan (EFP) . OFA and other agricultural organizations want to know if, and how, the EFP fits into ISO 14000; what benefits there are to ISO 14000 registration; and most importantly, what will be the costs.

Given that several environmental management systems (EMS) for agriculture exist throughout the continent , and that, in general North American farms operate under similar market conditions, the answers to questions about the consequences of international standards for environmental management systems will be of interest to a broad audience. However, before these can be discussed it is necessary to review some background information on ISO 14000.

WHAT IS ISO 14000?

Industrialization and its attendant mass production which have fostered standardization at an increasing rate, create pressure not only for parts and final products, but also for the actions of workers, to be uniform and predictable. After World War I and largely driven by engineers, the necessity for establishing uniformity in industrial production was recognized with the creation of the International Federation of the National Standardizing Associations (ISA). The definition of standards in this context is: "documented agreements containing technical specifications or other precise criteria to be used consistently as rules, guidelines, or definitions of characteristics, to ensure that materials, products, processes, and services are fit for their purpose".

By the late 20th century, standards associations exist in most industrialized countries to oversee and promote the establishment of national standards. Many of them also contribute to international bodies focused on standardization such as ISO (International Organization for Standardization) which was established in 1946/47. Officially, its main purpose is to encourage and assist the international exchange and transfer of goods and services thereby enhancing technological, economic, and scientific activity throughout the world. Non-harmonized standards are viewed as technical barriers to trade. Given this mandate, it is not surprising that ISO draws criticism from those concerned about the entrenched power of transnational corporations and the nations associated with them.

Background Information: ISO 9000 and 14000

Although ISO began with a primary focus on production features (for example the thickness of pipes), by the 1980s, it also started to encompass "softer" issues such as the processes involved in different management systems (Gleckman and Krut, 1997). To date, the most widely known of the ISO efforts is ISO 9000, a series of guidelines and standards for quality management that is designed to focus on meeting customer requirements. With the increasing emphasis on contracting out elements of production and on "just in time" supply schedules, the need for quality assured inputs also continues to increase. Response to ISO 9000 has been overwhelming in terms of the growing number of firms seeking registration (Croy, 1995; Mehta and Wilcock, 1996). Many view it as a "ticket' to do business as more and more customers require that their suppliers have ISO 9000 registration. For example in the agri-food sector, CIDA (Canadian International Development Agency) now requires that the flour it purchases for distribution come from organizations that have an ISO 9000 registration. The same requirement is being considered for the distributors of grains and seeds.

ISO 14000 is similar to 9000 in that it is directed at the management systems within organizations and it is being heralded as a "must" for future business (Fayre, 1996). With 14000, the key concern is not on product or service quality, but on the environmental impacts an organization has in the course of doing business. This distinction leads to other key differences between 9000 and 14000 namely the move from the "private" domain of operating businesses efficiently to the "public" realm of environmental performance. Whereas the consequences of quality management are viewed primarily within the business of competitive markets, the consequences from environmental performance have implications beyond industrial relations (Gleckman and Krut, 1997).

Begley (1996) notes that the ISO 14000 Environmental Management System model will move organizations from the "command and control" system of regulation to one that is a more market-driven and business-centred. James Seif, secretary of Pennsylvania's Department of Environmental Protection goes on to suggest that ISO 14000 will lead to the privatization of environmental regulation and claims that his agency would forgo fines and penalties for any companies voluntarily reporting violations that surface during ISO audits (Begley, 1996).

The Basics of ISO 14000

ISO 14000 is a series of standards and guidelines that can be grouped into three broad categories and smaller sub-topics (See Figure 1) (Hortensius and Barthel, 1997) [Figure 1 not available via world wide web]. Some of the standards included in this synopsis have been published but many are still in the development stage. The first and "cornerstone" standard, ISO 14001, is considered to be a "blueprint" for a firm's environmental management system and was formally published in the fall of 1996. It is the only specification standard in the 14000 series and as such is a prescriptive document against which an organization will be measured for registration. Several major North American organizations have completed or are in the process of registering to ISO 14001 .

ISO 14001: SPECIFICATIONS FOR ENVIRONMENTAL MANAGEMENT SYSTEMS

As noted in Figure 1, there are several components in the ISO 14000 series. Each covers a specific aspect associated with environmental management. Of particular importance for this paper is ISO 14001, the only series that includes performance standards which must be met for an organization to gain registration. Also significant for future markets are the life cycle analysis and eco-labelling initiatives.

ISO 14001 is usually depicted as having 5 separate elements or principles including: Commitment and Policy; Planning; Implementation; Measurement and Evaluation; and Review and Improvement (CSA, 1997; MGMT Alliances Inc., 1995). Each facility must have an environmental policy statement "appropriate to itself". This must contain a commitment to comply with applicable laws and regulations, with "other requirements to which the organization subscribes", and to "continual improvement and the prevention of pollution". The policy statement is used to design and implement the EMS as well as forming the basis for its monitoring and continual improvement. As critics of ISO 14000 point out, if the policy statement is weak, it is still acceptable, thereby bringing into question the ability of the standard to bring about real improvements in environmental conditions.

Organizations must have a planning dimension so that environmental aspects and legal and voluntary obligations can be assessed, objectives and targets can be set, and a program (or programs) to achieve the targets and objectives can be developed. An organization needs to review their operations, activities, products and services to identify which may have an interaction with the environment. This identification of the environmental aspects includes those which occur during normal business operations, abnormal conditions, incidents and future activities. When the aspects are identified, the organization needs to determine which aspects have, or can have, a significant impact on the environment. The organization must identify and have access to legal and other requirements which apply to the organization's environmental aspects.

Environmental objectives and targets need to be developed, documented and communicated throughout the organization. Objectives are long term goals, such as "We will reduce solid waste to landfill", and targets are short term goals, such as "We will reduce non­hazardous waste by 50% and reduce hazardous waste by 80% this year". Targets will generally vary throughout the various functions in an organization depending on the activities, products or services. One or more management programs are needed by the organization for achieving objectives and targets. These programs assign responsibility throughout the organization for achieving objectives and targets, and specify the means and time frame by which they will be achieved.

There must also be a management system for implementation in place that includes defining and documenting the roles, responsibilities, and authorities of personnel whose activities have, or may have, an impact (directly or indirectly) on the environment. The organization must provide adequate resources for the implementation and maintenance of the EMS.

The organization's EMS involves measurement and evaluation. Characteristics of operations and activities which can have a significant impact on the environment need to be monitored and measured regularly. Records of monitoring and measurement information are required to track performance, to prove that operating controls were effective and to demonstrate conformance with objectives and targets. Monitoring and measurements results need to be compared to the legal and other requirements to determine compliance. Any equipment used for monitoring and measurement must be capable of the accuracy required and calibrated on a regular basis.

Audits of the EMS are required on a periodic basis to provide assurance to the organization of implementation, to determine if the EMS is operating as planned, to provide information for management review and to determine the capability of the EMS in achieving the organizations environmental objectives and targets.

Besides reviewing the audits, management must be aware of the continuing suitability of the environmental management system in relation to changing conditions and information. For instance, they must address changes in legislation, alterations in the expectations and requirements of stakeholders, advances in science and technology, any lessons learned from environmental incidents and the concerns of relevant interested parties.

Once a firm or organization has implemented an EMS along these lines and wishes to attain ISO 14001 registration, a "third-party" auditor is called upon to review the EMS and determine if it meets the specifications of ISO 14001. This is accomplished through reference to all the records relating to the EMS that have been identified, collected, stored, and maintained by the organization. These include: proof that there is conformance to legal requirements, training records, EMS audit results, management review records, and the results of monitoring and measurement.

Although the costs incurred for such audits (which must be done a often as the registrar deems necessary) are very hard to estimate given the variety in both size and intricacy of organizations, there is a great deal of apprehension over the expensive nature of ISO 14000 registration, especially when the economic benefits are largely unknown. Experience with ISO 9000 indicates that the process is very costly. Organizations that have gone through registering to the ISO 9000 series are viewed as having an advantage for ISO 14000 because many aspects of the management system will have been put in place.

CONCERNS ABOUT ISO 14000

Although ISO 14000 is heralded by some as the great solution to environmental problems world-wide and as an effective way to ensure environmentally responsible production, there are many misconceptions about just what it is and how it works. For instance, ISO is not the organization that issues a certificate acknowledging compliance with ISO standards. This service is provided by organizations independent of, but accredited by, ISO. To date, in Canada there is only one firm so qualified: QMI (Quality Management Institute) an affiliate of the Canadian Standards Association (CSA). Consequently, the suggestion that ISO 14000 is an international standard is questioned (BEC, 1996)

Another possible misunderstanding is that a label with ISO 14000 does not signify a "green" or "environmentally friendly" product or service . ISO certification only means that the organization has followed the prescribed steps for implementing an EMS. The objective is to give the customers/consumers some confidence that the organization they are dealing with is in control of the way it produces goods and services. However, it may be unlikely that consumers would be aware of this distinction.

As noted in the introductory comments, the implementation of ISO 14000 moves that organization away from technical engineering standards to the sphere of public policy. Therefore, concerns are raised about the power industry has to institute international trade standards without meaningful involvement from the public or government institutions (BEC, 1996). That power may be felt in developing nations where the financial resources to implement EMSs are less likely to exist, thereby disadvantaging those countries in global competition for new markets (UNCTAD, 1996).

ISO 14000 AND THE AGRICULTURAL SECTOR IN NORTH AMERICA

Whenever environmental issues are raised, agriculture is often targeted as a primary problem due to its tendencies for habitat destruction, soil erosion, and chemical pollution. Consequently, potential developments in the area of standards and regulations for environmental management are of great concern to the agricultural industry. They are very aware of the need for good public relations in the area of environmental health and perceive the adoption of credible EMSs as one way to assuage a negative public image. In general, the more farm operations that adopt such systems, the better the public relations agriculture will have with customers and consumers. It is thought that a consequence from improved relations could be a lessening of pressure for government rules and regulations regarding farming practices. This possibility has been an important selling feature of ISO 14001 in the United States where (as noted earlier) the Environmental Protection Agency looks favourably on firms that have ISO 14001 registration.

Recent food safety and food quality issues (eg. Bovine growth hormone, BSE, outbreaks of E Coli, etc.) have led to interest in various Quality Assurance programs and initiatives that have relevance for environmental conditions. In North America, the adoption of H.A.C.C.P. (Hazard Analysis Critical Control Points) is now a requirement for most food manufacturers and increasingly for dairy, poultry, pork, and beef operations. For instance, the United States, through the FDA, recently passed legislation requiring any exporters of "seafood related entities" to have HACCP implemented in their establishments by Dec. 1997 (Smith, 1997). The HACCP system is designed to limit the opportunity for toxins to enter the production process and thereby reduce the chances of food contamination and its negative consequences for human health.

The linkages between human and environmental health (eg. pesticide residues on crops, run-off from manure storage systems, etc.) make environmental management on the farm a key factor in programs such as HACCP and others related to food quality. Thus, a recent initiatives by the Ontario pork and poultry producers designed to develop and implement a total Quality Assurance Program includes an EMS with standards similar to ISO 14001. In the case of the pork producers, this has been made necessary to satisfy Japanese importers who require strict quality assurance for their raw product supply.

As the amount of food destined for the export market increases world-wide (Morris, 1997), there may be more pressure brought to bear on producers to provide some internationally recognized assurance that their commodities meet recognized standards for human and environmental health. In North America there is some evidence that farm operators' access to insurance, financial capital, and government programs might also depend on their compliance with certain environmental standards such as those embodied in ISO 14001.

Another issue that leads agricultural leaders to consider the value of ISO 14000 is the potential demand from food manufacturers for product inputs that meet internationally known environmental standards. This is related to the topic of eco-labelling which is becoming increasingly important for consumers' markets where food allergies and sensitivities as well as political choices are important concerns. (Example of food Passports from GB). If food processors and/or retailers sell goods labelled "environmentally friendly", they may have to document that the source for primary elements, such as agricultural products, is one where recognized environmental standards have been met. Registration to ISO 14001 is touted as being one reliable way to do that.

With the rise in law suits over environmental infractions, registration to ISO 14001 is being presented as evidence supporting an argument of "due diligence". Due diligence is demonstrated when proactive measures have been taken to avoid the commission of an offence. Today, due diligence defence is the only defence acceptable under environmental legislation (Saskatchewan Wheat Pool, 1994). In general, organizations that are sued for damages stemming from environmental "accidents" have been viewed more favourably by the courts if they have a recognized EMS in place.

CONCLUSION: SOME POSSIBLE CONSEQUENCES FOR AGRICULTURAL SECTOR FROM ADOPTION OF ISO 14000

The foregoing section has a number of points that highlight the driving factors behind the North American agriculture sector's interest in international EMSs such as ISO 14001. However, it is clear from the review of ISO 14000 that it is a program that could also have negative consequences for certain segments of the industry. Included in the drawbacks are: the possible furthering of power wielded by "global" interests to the detriment of national/regional control over agricultural output; entrenching the divide in North American agriculture between the small number of highly productive corporate enterprises and the larger number of medium and small family operations; the denial of access to financial capital, services (eg. insurance), and future government programs; the potential to stall or interfere with more effective environmental initiatives currently under way (eg. organic and alternative agriculture initiatives, EFP).

Much of the anxiety for farm operators and their representative organizations is due to the speed with which ISO has been introduced and accepted by the international "community". Several concerns have been raised by the farming community in Ontario which are relevant to all farm operators on the continent. They cite: the potential costs it will add to farming enterprises; the fact that there are no obvious economic (or for that matter environmental) benefits to offset that cost; the inability to control or influence new regulations; the negative effect it may have on small to medium "family" run operations; the potential negative exposure of farming activity to a critical and uninformed public; and the inability of most agricultural producers to be fully aware or informed about the complexities of such initiatives (OATI, 1997). At the same time farm operators who view themselves as progressive, view ISO 14000 as a potential economic opportunity requiring substantial preparation and some risk on their part. Consequently they are looking to their organizations and state agencies to provide information and assistance.

Each of the points made in the preceding paragraphs could foster a variety of changes (or enhance established trends) in agriculture and rural communities throughout the continent. Judgments about these consequences will vary with the perspective held just as views from the Ontario farm community are both positive and negative. For instance those who support a more traditional approach to farming and rural communities will conclude ISO 14000 is going to bring yet more stress to the beleaguered industry and the families and individuals struggling to maintain themselves. On the other hand, opinions founded on a post-industrial vision might view the presence of ISO 14000 as a potentially re-vitalizing element for agricultural production and the communities connected to it.

As the Environmental Management System of choice, the ISO 14000 initiative is creating a great deal of interest and apprehension in all industrial sectors including North American Agriculture. In many ways, interest in ISO 14000 indicates that a new element has entered the field of business competition, primarily but not confined to, the global context. The presence of the new infrastructure enhances, and is enhanced by, initiatives such as ISO 14000. Various players are currently jockeying for position by developing management systems that can readily be registered to ISO 14001 as soon as it is embraced widely and becomes a competitive advantage or a necessary "ticket" to do business. The catalyst to start things off may occur when the environment returns to the top of the public and therefore the political agenda. At that time ISO 14000 will undoubtedly be championed by the state and major industrial interests eager to demonstrate their acumen and dedication to environmental matters. Until then, there is little that can be done outside hypothesizing about the potential consequences and raising the awareness of those with interests in the North American agriculture sector.

References

Begley, R. 1996. "Is ISO 14000 Worth It?" pg. 50-55, Journal of Business Strategy, (September/October)

Bell, C. 1997. "The ISO 14001 Environmental Management Systems Standard: One American's View" pages 61-92 in C. Sheldon (ed), ISO 14000 and Beyond. Greenleaf Publishing, Sheffield, England.

BEC (Benchmark Environmnental Consulting). 1996. ISO 14001, An Uncommon Perspective. European Environmnetal Bureau and Benchmark Environmental Consulting, Portland, Maine.

Birchard, B. 1997. "If you Measure, It will Come" pages 34-35 in Tomorrow (March/April)

CSA (Canadian Standards Association). 1996. The ISO 14000 Essentials, A practical guide to implementing the ISO 14000 Standards. CSA, Etobicoke, Ontario

--- 1997. "Introduction to Environmental Management Systems, focusing on the ISO 14000 series". Seminar held at Westin Harbour Castle, Toronto, Ontario, April 24

Croy, C. 1995. "ISO Turns Green" pg. 982-1004, Inform 6(9) September.

Davis, V. A. and K. Frizzell. 1996. "Standard Progress" pg. 34-35, CA Magazine (June/July)

Fayre, D. 1996. Inside ISO 14000: The Competitive Advantage of Environmental Management. St. Lucie Press.

Gleckman, H. and R. Krut. 1997. "Neither international nor standard: The Limits of ISO 14001 as an Instrument of Global Corporate Environmental Management" pages 45-60 in C. Sheldon (ed), ISO 14000 and Beyond. Greenleaf Publishing, Sheffield, England.

Globe and Mail.June 23/97. Canadians put environmnet first.

Aug. 5/97. Ontario farmers keen for beans.

Graham, T. 1997. "HACCP Information Presentation" Presentation for the HACCP Conference sponsored by the Agricultural Adaptation Council, Holiday Inn, Guelph, Ontario, Jan 16/97

Hillary, R. 1997. Environmental Management Standards: What do SMEs think?" pages 333-354 in C. Sheldon (ed), ISO 14000 and Beyond. Greenleaf Publishing, Sheffield, England.

Hortensus, D. and M. Barthel. 1997. "Beyond ISO 14000: An Introduction to the ISO 14000 Series" pages 19-44 in C. Sheldon (ed), ISO 14000 and Beyond. Greenleaf Publishing, Sheffield, England.

Kuhre, W. Lee. 1995. ISO 14001 Certification: Environmental Management Systems. Prentice Hall PTR, Upper Saddle River, N.J.

Mehta, S. and A. Wilcock. 1996. "Quality System Standards in the Canadian Food and Beverage Industry", in Quality Management Journal 4(1): 72-93

MGMT Alliances Inc. 1995. "The ISO 14001 Pizza"(WWW ref)

OATI (Ontario Agricultural Training Institute). 1997. Summary Report (draft) of Breakout Groups. Environmental Management systems and Food Quality Assurance; An Introductory Workshop. OMAFRA, July 8.

Saskatchewan Wheat Pool. 1994. The farm Environmental Assessment Guide. Saskatchewan Wheat Pool, Saskatoon.

Sheldon, C. (ed). 1997 ISO 14000 and Beyond. Greenleaf Publishing, Sheffield, England

Smith, E. 1997 (July 28). Lean Trimmings. (NMA National Media Announcement?)

Spencer-Cooke, A. 1997. "Charting the Course from Environmnetal Management to Sustainability" pages 243-262 in C. Sheldon (ed), ISO 14000 and Beyond. Greenleaf Publishing, Sheffield, England.

Surgeoner, G. 1997. Update on the Environmental Farm Plan. A report given to the Annual Meeting for Stakeholders in the Ontario Farm Environmental Farm Coalition. Holiday Inn, Guelph, Ontario, August 11.

UNCTAD (United Nations Conference on Trade and Development). 1996. ISO 14001 International Environmental Management Systems Standards: Five Key Questions for Developing Country Officials. (draft copy) United Nations, Geneva.