of their suppliers, and (2) that they require suppliers to undertake measures which ensure the environmental quality of their products and processes. Accordingly, we asked facilities: ‘‘Does your facility regularly assess the environmental performance of its suppliers?’’ and ‘‘Does your facility require its suppliers to undertake environmental measures?’’ From the responses, we construct ASSESS and REQUIRE, respectively. As Table 1 shows, 40.7% of the facilities assess their suppliers, and 39.2% require their suppliers to undertake environmental measures.
Table 2 shows stark differences in ASSESS and REQUIRE across ISO 14001 adopters. Specifically, facilities with ISO 14001 are 22.5% more likely to assess the environmental performance of their suppliers and 46.9% more likely to require that their suppliers undertake environmental measures. These differences are suggestive of the effects of ISO 14001, though one should not interpret them as causal.