Sustainable development represents an obligation for all participants on global, regional and national levels. Organizations need to follow up on all environmental issues relevant to their operations and are expected to implement environmental protection measures and to create environmental management policies according to a series of strategic goals. The need for continuous improvement and education are the keys to achieve high demands of doing business in modern society. Management systems offer a certain framework which helps organizations to identify, manage, monitor and control their environmental performance by following the standards. Each organization will define its own system, adjust it to its needs and the type of business, define requirements to set and achieve the goals as well as the funding method. The objective of this thesis is to find out what are the advantages and disadvantages of management system implementation. Croatia’s leading hospitality company Valamar Riviera is taken as an example to analyze environmental performance and measures which the company takes to incorporate environmental issues into business management, to gain a long term competitive advantage, to improve company's reputation and the confidence of stakeholders, to educate and engage employees and to follow regulatory requirements.