Standards for Management Systems
What is the importance of management standards
Ensures consistency, helps align sustainability efforts, and builds credibility with stakeholders.
Which system does this match with? “Structured & Documented but slow to adapt”
Formal System
What is the second step of the innovation process?
Suggest new processes or product ideas
Name the two essential components of management systems
Commitment & Capabilities
True or false: policy, performance, and shareholder needs & desires are part of the management system
False
What is the description of ISO 14001?
Environmental Management Systems
What is an example of an informal system?
Values, beliefs, motivation, ethical climate, cultural traditions.
How does the dual approach benefit companies?
Manage risk and seize competitive opportunities
True or false: Microsoft and Nvidia were the ones that did the real-life commitment initiative
False
Who determines success at the operational level?
Employees
When does ISO review ISO14000?
Every 5-10 years
How do informal systems fail?
Informal systems fail when there are no clear rules that guide action.
What are the consequences of failing to comply with standards?
Reputational damage, civil or criminal penalties, risk of contractual breach, etc.
Who said this quote? “Unless commitment is made, there are only promises and hopes… but no plans”
Peter F. Drucker
Management systems are essential because they allow everyone to…
“Work towards the same goal”
The description “Social Responsibility: Guidance on social and environmental responsibilities” fits with which ISO?
ISO 26000
According to Deloitte, what is needed to make formal systems work?
Formal policies and procedures must be integrated into the company culture to build trust, motivation, and buy-in.
True or False: Compliance alone is enough to drive competitive advantage.
False — compliance is the minimum; innovation drives differentiation and value creation.
Give an example of how a company might connect commitment and capability to manage both compliance and innovation
Example: Microsoft uses internal carbon fees to hold managers accountable (commitment) and funds training and tools to help them reduce emissions (capability).
Management systems are the link between?
Policy and Performance
What would happen if management systems did not have standards?
Results would vary too widely between organizations, efforts wouldn’t align globally, resources could be wasted, and stakeholders would have less trust in companies’ sustainability claims.
What lesson did Unilever’s case study teach about combining formal and informal systems?
That scaling back formal goals can break trust and motivation, showing that formal targets and informal culture must work together for success.
How does Johnson Matthey’s case show innovation in practice?
They identify inefficiencies, sponsor PhDs, and collaborate with stakeholders to realize value from knowledge.
Which level of management is responsible for translating long-term sustainability goals into daily actions that ensure both compliance and innovation?
Tactical / Mid-level managers — they create annual plans and assign responsibilities to bridge strategy and operations.
What are the three types of management systems?
Social, Environmental, and Economic