Standards, certification, testing, inspection and accreditation, help businesses to reduce costs, increase productivity and access new markets.
The examples below cite tangible financial data to evidence the cost savings achieved whether through resource efficiency or meeting regulation at lower cost, the value of accessing new markets , or savings achieved through recognition from organisations such as insurers, regulators or purchasers. These benefits have an impact on the overall company performance of businesses that have used standards or accredited services.
Independent Vascular Services (IVS) Ltd specialises in the provision of high quality, comprehensive vascular services to both NHS and private sector hospitals in England, UK. In 2014 IVS became the UK’s first vascular laboratory to gain UKAS accreditation under the Improving Quality in Physiological Services (IQIPS) scheme. IVS used feedback (or non-conformities) comments from the […]
Ricardo plc is a global engineering and environmental consultancy, specialising in the transport and energy sectors. The combination of two EU directives make it mandatory for organisations assessing the interoperability and safety of rail systems within the European rail sector to be accredited by a recognised national accreditation body, such as UKAS. Ricardo Certification holds […]
ArcelorMittal Saldanha Works is part of the South African steel industry, producing Hot Rolled Coil (HRC) steel products in Saldanha Bay, located on the West Coast of South Africa. Rising electricity and energy prices combined with the global and South African economic downturn have impacted on the plant’s competitiveness, while at the same time the […]
Darigold, a dairy and food processing company based in the United States, implemented an energy management system across their business which enabled them to make huge cost savings and reduce their greenhouse gas emissions. Despite energy cost volatility and constantly changing utility rates, Darigold’s energy strategy has resulted in a 21% energy intensity reduction (BTU/lb) […]
NTUC Fairprice, a supermarket chain based in Singapore, estimated the total benefit of implementing standards in its procurement, warehousing / distribution and retail functions to be SGD 13.6 million (USD 10 million) over a ten year period. Further information is available on the ISO website.
Colombian plastics company, Gerfor, which focuses on the manufacturing of PVC pipes and accessories, attributed 47% of total sales revenues to contracts for which compliance with standards (primarily ISO 9001) was considered essential to winning the sale. The company also reduced PVC resin inspection and analysis time from four hours to 15 minutes by following […]
Festo Brasil is an industrial automation business supplying sectors such as automotive, food, packaging, plastics, and electronics, as well as substantial interest in petrochemical, sugar and alcohol sectors. Impact of standards on total earnings before interest and taxes of Festo Brasil, totalled BRL 4.37 million, corresponding to 1.9% of company turnover. Further information is available […]
Danper is a large agro-exporter company in Peru, with total revenues of USD 88 million in 2010, derived almost entirely from exports to the USA, Europe and other markets. Asparagus and artichokes are by far the most important produce, and its business comprises of three major lines; preserved good, (77% of sales), fresh produce (21%) […]
Botswana brick manufacturer Lobatse Clay Works produces in excess of 30 million units per year. It employs 175 people including six temporary workers and interns. It has revenues in excess of 64 million Botswana Pula (BWP), equivalent to about USD 9.73m. The company estimated standards as having a positive impact of 4.96% on earnings before […]
German electricity switchgear supplier Siemens cites cumulated benefits on earnings before interest and taxes from using standards of between 1.1 % to 2.8 %. High-voltage switchgear and control gear is mainly used for power transmission and medium-voltage switchgear for power distribution. Siemens produces a wide variety of switchgear and control gear, which are all of a […]
Nanotron Technologies, a German information and communications technology company, achieved 14 % cost savings and 19 % increase in sales revenue by using standards, equivalent to almost 33 % of overall annual sales revenue. Further details is available on the ISO website.
A 0.43 % contribution to total revenue by using standards was reported by Indonesian precast concrete manufacturer, PT Wijaya Karya (WIKA). This equates to IDR 1.05 billion (USD 115 000) (annually), and close to 6 % of the annual EBIT. WIKA BETON is one of the subsidiaries of PT Wijaya Karya (Persero) – Tbk (WIKA), […]
PathLab Medical Laboratories Ltd is a privately owned, multidisciplinary laboratory based in Hong Kong. The laboratory was one of the earlier private sector laboratory to gain accreditation to ISO 15189. While the laboratory has been trading for over 40 years, the award of accreditation provided a step-change in revenue. Although the driver for accreditation was […]
St Marys Cement, a division of Votorantim Cimentos, a Brazilian company and one of world’s top 10 cement producers, implemented ISO 50001 to improve the management of its energy consumption. In the first full year after ISO 50001 certification, one of its plants was able to produce 117,840 equivalent tons more product than during the previous year […]
The Abu Dhabi National Oil Company (ADNOC) is a state-owned oil and gas company that manages, produces and preserves Abu Dhabi’s hydrocarbon resource. ADNOC has received significant benefit from adopting accredited certification to ISO 50001 in 2014. To date, its energy performance has improved 6% from the 2014 baseline. In terms of energy, this is […]
Nissan Motor Company, a leading multinational car manufacturer, has adopted accredited certification to ISO 50001 at all three of its U.S. plants, saving close to 1,600 billion Btu of primary energy and $9.4 million in energy costs annually. Data from two certified sites show that about two-thirds of the energy savings were achieved with no capital investment, […]
Conematic Heating Systems, a privately owned company employing about 20 people, is a supplier of home heating technology, supplying advanced heating appliances to the North American domestic market. As a small company with only large competitors in the heating industry, scalability is imperative if Conematic is to accelerate production and compete with larger competitors. ISO 9001 provides […]
The 2017 Good Governance Report, published by the Institute of Director’s (IOD) flagship corporate governance publication which ranks the UK’s largest listed companies based on their corporate governance performance, now uses accredited certification to ISO 9001 as one of the data sources. The IOD supports, represents and set standards for business leaders in the UK. […]
This article, written by Basak Manders and Henk J. de Vries from the Rotterdam School of Management Erasmus University, summarises key results from 42 scientific studies showing that implementing ISO 9001 does enhance financial performance. The researchers looked at financial indicators such as return on assets, sales, investment and equity, and profit margin, profitability, increased […]
The authors investigate how the participation within formal standardization is related to the performance of 1561 German companies. A Cobb-Douglas production function is estimated in order to use the Solow-residuals as indicator for the firm performance. Participation within formal standardization is measured by the number of committee seats at the German Institute for Standardization (DIN). The results […]
The aim of this study was to evaluate the impact of accreditation programmes on the quality of healthcare services. A systematic review of literature concludes that there is consistent evidence that shows that accreditation programs improve the process of care provided by healthcare services. There is considerable evidence to show that accreditation programs improve clinical […]
The authors examine how third party certification with quality management standards and mutual recognition of certification through international agreements of accreditation bodies creates trust between trading partners and increases bilateral trade. They focus on the food, beverage and tobacco industry and use augmented gravity models for the 2000-2008 period. Their results show that quality management […]
Using a new database on standards in China, the authors estimate the impact of voluntary and mandatory standards–either harmonized to international norms or purely domestic–on Chinese food exports. The dataset covers seven Chinese products over the period 1992–2008. The authors find that standards have a positive effect on China’s export performance, as the benefits to […]
Drawing on data provided by a survey of North American managers, their attitudes toward EMS and ISO 14001, this study assesses the relative effects of having a formal but uncertified EMS compared to having a formal, certified system. The results strongly demonstrate that firms in possession of a formal EMS perceive impacts well beyond pollution […]
The authors base their paper on data from a global company survey of certified companies carried out by the International Accreditation Forum (IAF) in 2010/11. They use multivariate Probit and ordered Probit models to analyze how company internal and external factors influence the perception of benefits from accredited certification. Benefits from accredited certification are divided […]
UKAS, the UK accreditation body, carried out a survey to capture feedback on the value of accreditation for organisations in established technical sectors. The survey aimed to gain insight into the reasons for maintaining accreditation, to identify the positive outcomes that are realised through accreditation, and to investigate the value of selected elements of the […]
Research based on 131 Spanish companies of various sizes across the industrial, construction and service sectors, found that 79% agreed ISO 18001 certification for Occupational Health & Safety makes it easier to comply with legal obligations. Furthermore, 78% agreed it improved internal organisation and documentation systems and 67% felt it improved their corporate image. The report concludes […]
Research based on over 300 Taiwanese companies across the manufacturing and service industries concluded “after summarizing the empirical results, we arrive at the following statement: ISO accreditation can enhance the business performance of an enterprise” (Wu & Chen, 2012). The Balanced Scorecard and Activity Based Costing methods were used to compare performance between companies that […]
Research conducted in Brazil on 44 ISO 9000 certified companies over a 12 year period demonstrated that QMS certification has a direct link to increased sales revenue, reduced cost of goods sold and increased asset turnover ratio. The nature of the companies surveyed also enables the report to conclude that a variety of organisations can […]
A study of businesses in Denmark, 734 of whom were certified to ISO 9001 and 644 of whom weren’t showed that in the year of certification, those certified they had a 20% higher rate of return. Two years later this differential had risen to 35%. A full copy of the research is available here.
A study of companies in Luxembourg certified to ISO 9001 increases the probability to be innovative of about 25% for small firms and of 15% for the largest firms. A copy of the report is available here.
A study based on 105 responses of Spanish ISO 20000 (IT Service Management) certified firms (Cots, Casadeus and Marimom, 2016) by applying SEM, a multivariate statistical technique that is widely used in the literature, showed that certification contributed to significant benefits such as the marketing proposition, company reputation, the ability to satisfy existing and future […]
Research based on a sample of 211 US listed manufacturing firms with OHSAS 18001 certification (Lo, Pagell, Fana, Wiengarten and Yeung, 2014) concluded that certification leads to significant increases in performance on safety, as well as sales growth, labour productivity and profitability. A copy of the report is available here.
A comprehensive literature review of 82 scientific studies relating to ISO 9001 and ISO 14001 (Tari, Molina-Azorin and Heras, 2012) concludes that both management system standards provide clear benefits on operational. people and customer performance. Download a copy of the review.
Research carried out with managers from North America (Melnyk, Sroufw and Calantone, 2003) found that firms that have gone through Environmental Management Systems certification experience a greater impact on performance that firms that have not. A copy of the report is available here.
The results of a survey in Australia and New Zealand manufacturing and service companies showed a positive and significant relationship between certification practices (implementation, organisational commitment, and planning) and operational performance (Feng, Terziovski and Samson, 2008). A full copy of the report is available here.
A study of 288 ISO 9001 certified Spanish companies found that 65% of companies obtained very high levels of internal and external benefits (Casadesus and Gimenez, 2000). A full copy of the report is available here.
The effects of ISO 14001 certification on financial performance were investigated by tracking the financials of publicly traded US firms between 1996 and 2005 (De Jong, Paulraj and Blome, 2014). The results demonstrated that ISO 14001 certification shows a significant financial improvement, especially in the long term. A full copy of the report is available […]
The financial performance of companies with and without ISO 14001 environmental management system certification was investigated using data on 552 publicly traded Brazilian companies between 1996 and 2008 (Ferron et al. 2012). The results indicated that firms with accredited certification to ISO 14001 tended to be more profitable than those without certification. A full copy of […]
70 companies listed on the Singapore Stock Exchange were examined to investigate the association between ISO 9001 certification and financial performance (Sharma, 2005). The research concluded that ISO 9001 certification is associated with significant improvements in profit margin, growth in sales, and earnings per share. These improvements are driven largely through operational efficiencies following the […]
The financial impact of ISO 9001 certification was investigated by tracking the financial performance from 1987 to 1997 of all publicly traded ISO 9001 certification firms in the US (Corbett, Montes-Sancho and Kirsch, 2005). Results confirmed that ISO 9001 certification leads to significant improvements in financial performance, that are also sustained after the initial certification […]
Research carried out by Harvard Business school (Levine and Tofel, 2010) among 1000 organisations, 500 with and 500 without Quality Management Systems implemented and certified, found that ISO 9001 certified organisations had a 9% higher turnover (and higher profit), higher salary levels, and in combination with ISO 14001, produced less waste and fewer incidents. A […]
A survey of more than 500 Spanish companies with ISO 9001 certification (Prado-Roman et al, 2016) concluded that more than 80% reported an increase in customer satisfaction and loyalty, and a reduction in complaints and product defects. A full copy of the report is available here.
Survey responses from 126 Spanish ISO 9001 certified construction companies (Prado-Roman et al, 2016) showed that: 74% agree that ISO 9001 is highly or extremely relevant for organisational process improvements 86% consider that ISO 9001 is highly or extremely relevant to achieve commercial success 74% consider that ISO 9001 is relevant for financial success 98% […]
The organisational impact due to ISO 9001 certification was researched with a sample of 95 Brazilian cardboard companies (Prates, Alckmin and Viera, 2014) and concluded that ‘ISO 9001 certification has a positive and significant effect on production, purchasing, human resources and marketing performance’. A full copy of the report is available here.
The relationships between management practice prescribed by ISO 9001 and both quality outputs and business performance, were tested with data gathering in 2007 from 418 Australian ISO 9001 registered manufacturing plants, using advanced statistical techniques (Singh, 2008). The results support the existence of positive relationships between the implementation of ISO 9001 management practices and most […]
The effect of ISO 9001 certification in innovation performance were investigated with 220 survey responses from Australian companies of different sectors (Terziovsky and Guerrero, 2014). The conclusions support the view that ‘ISO 9001 certification has a positive impact on process innovation performance measures such as restructuring, and to apply the internal customer concept. ISO 9001 […]
Customer research carried out by BSI, the UK Standards body, (BSI voice of the customer survey 2012 to 2015) has shown that as a result of implementing and gaining ISO 9001 certification: 50.6% of businesses attract new customers 50.6% report improvements in products or services 60.8% report an increase in trust in their business 61.8% of […]
A study was conducted by Monash University’s Department of Management in the Faculty of Business and Economics, aimed to investigate the perceptions of Australian and New Zealand businesses with respect to the drivers for the adoption of the ISO 14001 environmental system standard. The report concluded that the benefits of accredited certification to this standard included […]
A study, conducted by Monash University’s Department of Management in the Faculty of Business and Economics, aimed to identify the operational and performance benefits of adopting ISO 9001 in Australia and New Zealand. Data for the study was collected by means of a questionnaire survey with 300 responses received from Australian businesses and 239 from […]
A survey was carried out in 2016 by UKAS, the UK accreditation body, to capture feedback on the value of accreditation for conformity assessment bodies that have stable scopes in established technical sectors. It confirmed that these businesses derive both internal and external commercial benefit from their accredited status: 93% of respondents agree that accreditation […]
To gain insight into the impact of ISO 9001 certification on businesses, the Certification and Accreditation Administration (CNCA) and UNIDO jointly conducted a survey into the effectiveness of ISO 9000 quality management system certification in China. The results showed that: 43% said that the most important reason was to gain market access or to respond […]
Economic research carried out by the New Zealand Institute of Economic Research (NZIER), a specialist consulting firm, reveals that accreditation facilitates $27.6 billion of New Zealand exports – over 56% of total exported goods. Exporters need to be known and recognised overseas as delivering high-quality, safe good and services to market. IANZ, the New Zealand […]
This publication is intended to assist businesses and individuals to demonstrate the tangible benefits that standards bring to organisations – and, more generally, to citizens and society, by: Highlighting how standards create value for the organizations that use them, and how we calculate the value of standards, and Providing factsheets of case studies that quantify […]
This video, produced by CEN/CENELEC, shows how standards can help SMEs. The video can be viewed on YouTube.
This ISO publication sets out how standards provide solutions and achieve benefits for almost all sectors, including agriculture, construction, mechanical engineering, manufacturing, distribution, transport, healthcare, ICT, the environment, and energy. The publication includes external data that demonstrates the impact of standards on certain industries: According to the Canberra-based Centre of International Economics, a sampling of […]
As a small to medium-sized enterprise (SME) looking to expand your business, this ISO brochure shows you how ISO International Standards can enhance your business as they have done for thousands of other small enterprises before you.