Abstract
Chapter 10 examines the relationship between the diffusion of the quality management standard, ISO 9001, and the adoption of the environmental management standard, ISO 14001, in Vietnam and Malaysia. It shows that businesses in both countries that received requests from customers about their usage of chemical substances were also more likely to have adopted ISO 9001. If these requests from customers arise from Product Related Environmental Regulation on Chemicals (PRERCs), this suggests that PRERCs promote the diffusion of ISO 9001 in developing countries. In addition, given that businesses that have adopted ISO 9001 are more likely to adopt ISO 14001, then PRERCs also indirectly promote the diffusion of ISO 14001 in developing countries. This link may have important implications for the pollution haven hypothesis.
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Notes
- 1.
The idea of a value chain is closely associated with that of a supply chain. The supply chain is the network created among different companies producing, handling, and distributing a specific product. A supply chain focuses on the cost and efficiency of the supply of components and raw materials from various suppliers to the final customer, whereas a value chain incorporates the idea of value being created throughout the transactions between different companies (OECD 2013a).
- 2.
Offshoring refers to the purchase of intermediates from outside specialist providers abroad, which include both independent suppliers and foreign affiliates.
- 3.
MNE is a company that has its facilities and other assets in at least one country other than its home country. In other words, MNEs are characterized by multinationality; they are headquartered in their home country and invest in other countries. Sometimes, there are several conditions for multinationality, such as a minimum number of countries they operate in and business activities in foreign countries above a certain size. However, there are various problems with such restrictive conditions (Jones 2004).
- 4.
In 2014, Toyota the number of first-tier suppliers is about 5000 and that of second- or higher-tier suppliers is above 30,000 (Teikoku Databank).
- 5.
For further details, see Toyota HP 2017 (http://www.toyota-global.com/company/vision_philosophy/globalizing_and_localizing_manufacturing/).
- 6.
- 7.
For further details of these surveys, see Chapter 7.
- 8.
For about 25 years, from 1970 to 1995, ASEAN’s GDP grew at an average annual rate of 7.0% (see ASEAN HP http://www.asean.org/asean/about-asean/history/item/economic-achievement).
- 9.
ASEAN Foreign Direct Investment Statistics Database. Table 25: FDI net inflows, intra- and extra-ASEAN (http://www.asean.org/images/2015/June/FDI_tables/Table%2025.pdf).
- 10.
In ASEAN countries, Malaysia set up the first EPZ near Penang’s Bayan Lepas airport in 1972.
- 11.
Another interpretation is that ISO 9001 is a precursor to ISO 14001 because about 90% of the ISO 14,001 adopters also have ISO 9001.
- 12.
From another viewpoint, however, the decision to ISO 14001 certification is not dependent upon ISO 9001, companies with 14001 certification would have adopted ISO 9001 previously.
- 13.
The prohibited substances are heavy metals, such as lead, mercury, cadmium, and hexavalent chromium, and flame retardants such as polybrominated biphenyls and polybrominated diphenyl ethers.
- 14.
Because only 8.5% of the sample from Vietnam was ISO 14001-certified, in absolute numbers, 6.4% of the “total” sample was ISO 14001 certified and received requests about chemicals from their customers.
- 15.
For example, Arimura and Yamamoto (2014) list the assistance programs provided by Japanese local governments to promote the adoption of ISO 14001 certificates.
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Iguchi, H., Arimura, T.H. (2017). Diffusion of Quality and Environmental Management Systems Through Global Value Chains: Cases of Malaysia and Vietnam. In: Michida, E., Humphrey, J., Nabeshima, K. (eds) Regulations and International Trade. IDE-JETRO Series. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-55041-1_11
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