Environmental Quality Cost Theory

2.1.4 Environmental quality cost theory by Hansen and Mowen (2000)

According to Hansen and Mowen (2000) environmental quality cost Theory states that a zero environmental damage point (ZEDP) is attained when the environmental cost is maintained at the barest minimum, but with maximum positive impact on the people and the ecosystem. It further suggests that before environmental cost information can be obtained and put into usage, then environmental costs must be defined. Environmental quality model is the ideal state of zero-damage to the environment, which is in consonance with environmental quality management (EQM) which also gives a situation of a zero-defect state of total quality management. The theory of environmental quality cost agrees

It could be seen as the measurement, analysis, scrutinizing and evaluation of all organizational inputs and carrying out a measurement of such input on the outputs from the organizations ' production process. Therefore, In order to implement cleaner production, the just-in-time (JIT) model, and eco-efficiency improvements, environmental audit can therefore be an effective environmental risk management tool used in assessing companies ' compliance with environmental laws, regulations and standards. This subsequently would assists companies to avoid the risk of loss of reputation, prosecution and fines arising from possible breaches of underlying environmental regulations and

3. Data-documentation: To document all aspects of audit to assess progress at a further date and to verify environmental performance to staff, regulators and the general community.

4. Periodic audits: To assess the impacts of new or changed legislation on operations and to assess whether internal targets for environmental efficiency are being met" (Howes 2002:15) Environmental management systems: ISO 14000 and EMAS

An environmental management system is a broad term for any system used by an entity to monitor and manage the impact that its products and operations have on the environment. The aims of a management system might be to: minimize the negative impact of operations on the environment (damage to air, water or land), comply with environmental laws and regulations, and make continual improvements in either of the above areas. An environmental management system includes an environmental information system. Information is needed to: monitor compliance with environmental laws and regulations, and/or monitor the implementation of the company 's own environmental