Since EMS first became formalized, researchers have studied the effects. Some argued that companies located in areas where regulations were strict would gain a competitive edge over those in areas where regulations were weak. Being forced to innovate in response to environmental regulations would yield advantages, it was argued, a world where creativity and innovation are ever more crucial. Some predicted that advantages would be gained in greater efficiency, less waste, broader social approval, and ultimately, better performance. The predictions proved true when companies found correlation between environmental compliance and financial success as measured by stock performance.
Companies save money through improving operations and reducing waste.
They also found significant benefits in avoiding penalties, reducing litigation risks, decreasing liability insurance rates, and increasing public good will and shareholder value. However, just instituting an EMS is not all it takes. The key to gaining a competitive edge lies in how the system is developed. An active commitment by managers at every level, from the CEO down, to making the EMS successful Such an EMS ought to be an integral part of the business from initial planning through year-end accounting. In many companies where this has been accomplished, the responsibility for environmental management has migrated from the maintenance level upward to the corporate management level.