ISO 14001 and AA1000 Regulations Paper Example

Paper Type:  Essay
Pages:  5
Wordcount:  1222 Words
Date:  2022-12-04

ISO 14001 is the international standards that try to highlight the requirements that need to be adhered to achieve an environmental system that is effective (Dentch, 2016). It provides a particular procedure or framework that an organization should follow to be able to conserve the environment while it carries out its activities. The ISO 14001 provides an organization with a platform upon which it can partake in its environmental responsibilities by ensuring that it positively contributes to sustainable management of the environment which will benefit it and other third-party groups. The ISO 14001 is not specific to any organization, and it can, therefore, be used by any company regardless of its size, nature of products and services, so long as it tries to conserve and ensure a sustainable environment. The ISO 14001requirements can be applied in part or as a whole to improve the surrounding.

Trust banner

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

AA100 is a procedure used for evaluation, plan, performance, and communication of high-quality stakeholder performance (Eweje, 2014). It illustrates the dedication to stakeholder obligation, how to ascertain the need and stretch of the stakeholder engagement, how to blend stakeholder engagement with the administration, the strategies and operations and the processes that will lead to the generation of high-quality outcomes and engagement. The best way to apply AA1000 into your organization is by implementing a stakeholder engagement management system. The implementation of AA100 is an added competitive advantage to any organization that intends to compete effectively, improve value and the performance of the organization. In my essay below am going to evaluate how ISO 14001 and AA1000 rules offer protection to stakeholders. How these laws and statements influence how investors perceive the long-term survival of an organization that they want to invest? Examples of parts in the Kingdom of Saudi Arabia where this reporting happens, and describe how the rules affect potential investors, immediate stakeholders, and the sustainability of the organization?

Firstly, ISO 14001 and AA1000 regulations provide a lot of protection to the stakeholders, for example, the companies can enjoy increased profits and decreased cost of doing business, this s due to the fact that a company that integrates ISO14001 and AA1000 will have a substantial competitive advantage over other companies that do not have these two regulations (Lu & Abeysekera, 2015). Also, these regulations will make it possible for the organization to reduce its environmental liability costs and the fines that come with not having the rules in place. When employees are involved in the regulation, they will have to improve their performance to meet those that have been put down in ISO 14001 and AA1000, and this will generally improve operational effectiveness.

The external stakeholders, for example, customers, suppliers, and communities can enjoy the sound and sustainable environment that is fostered by the two regulations. Additionally, the ISO 14001 and AA1000 provides a base upon which both internal and external stakeholders both benefit from the provisions. They inform the communities on what to expect from the organizations in their surroundings and what is the responsibility of those organizations towards the environment (Massa, Farneti, & Scappini, 2015). With this awareness, the society will be able to hold the organization responsible if they carry out any activity that will put the organization at risk or negatively affect the health of the people in the community.

Secondly, how do these laws and statements affect the way investors perceive the long-term survival of a business that they want to invest? An organization that has these two regulations will go a long way in ensuring that many investors are interested in the organization. An organization that is ISO certified will attract more investors due to the many benefits that they will gain from it; the first advantage that will attract the investors is the increased financial gains and reduced liabilities. When the two regulations govern an organization, it can avoid the environmental fines that will suffer if it does not support a sustainable environment, and this will mean more profits. Also, an organization that positively contributes to the setting of a community will gain some trust and enjoy customer loyalty which will transform into more sales and increased profits. Increased profits, environmental sustainability, and customer loyalty will go a long way in convincing the investors that the company is worth investing.

Thirdly, in the Saudi Arabia Kingdom, several parts are involved in the reporting of ISO 14001 and AA1000. These areas include; solar energy, tourism and the related services of the industry, carrying out repairs and maintaining concrete, management of the environment, measurement of petroleum and products that are related to it. Also, the performance of thermal systems and how reliable and durable they should be, geomatics which is information of geographic, management of environment for concrete and concrete structures, reinforcement of plastic pipes and their fittings and visibility. These are some of the areas that Saudi Arabia engages in the Middle East. The Kingdom being a member of ISO has enabled to Kingdom to participate in sustainable environment management (Poussing, 2018).

Fourthly, explain how these rules impact potential investors, immediate stakeholders, and the sustainability of the company. The ISO 14001 and AA1000 have over the years had a positive impact on the future of investors but providing a stable base upon which the company can effectively conserve the environment, improve its value and efficiencies and also reducing the production and administration costs. These benefits secure the future of investors by making sure that the company can compete effectively, have a competitive edge over other companies and above all, they ensure that the company survives in the industry. These regulations also impact the future of local stakeholders by providing a sustainable environment where the customers and the community are not negatively affected by the activities that the organization engages. Also, these regulations have a positive impact in the sustainability of the organization because they provide the organization with a competitive advantage over other companies in the industry and also helps the organization to reduce its cost by eliminating environmental liabilities.


In conclusion, ISO 14001 and AA1000 are both regulations that any organization the intends to survive in this era should adopt, having a sustainable environment and stakeholder involvement in the activities of the organization goes a long way in ensuring that the company can survive and compete effectively with other rival companies in the industry. Also, a company that integrates these regulations will enjoy the benefits of having a good relationship with the local stakeholders and improving their production efficiency. I would suggest that all organizations that want to cut their costs, liabilities, and fines to try and become members of ISO.


Dentch, M. P. (2016). The ISO 14001:2015 Implementation Handbook: Using the Process Approach to Build an Environmental Management System. ASQ Quality Press.

Eweje, G. (2014). Corporate Social Responsibility and Sustainability: Emerging Trends in Developing Economies. West Yorkshire, England: Emerald Group Publishing.

Lu, Y., & Abeysekera, I. (2015). What Do Stakeholders Care About? Investigating Corporate Social and Environmental Disclosure in China. Journal of Business Ethics, 144(1), 169-184. doi:10.1007/s10551-015-2844-5

Massa, L., Farneti, F., & Scappini, B. (2015). Developing a sustainability report in a small to medium enterprise: process and consequences. Meditari Accountancy Research, 23(1), 62-91. doi:10.1108/medar-02-2014-0030

Poussing, N. (2018). Does corporate social responsibility encourage sustainable innovation adoption? Empirical evidence from Luxembourg. Corporate Social Responsibility and Environmental Management. doi:10.1002/csr.1712

Shin, K. (2014). Corporate Social Responsibility Reporting in China. Berlin, Germany: Springer Science & Business Media.

Cite this page

ISO 14001 and AA1000 Regulations Paper Example. (2022, Dec 04). Retrieved from

Free essays can be submitted by anyone,

so we do not vouch for their quality

Want a quality guarantee?
Order from one of our vetted writers instead

If you are the original author of this essay and no longer wish to have it published on the ProEssays website, please click below to request its removal:

didn't find image

Liked this essay sample but need an original one?

Hire a professional with VAST experience and 25% off!

24/7 online support

NO plagiarism