In an increasingly globalized world, it can be very tricky for companies to remain compliant with the rules and regulations of different countries. In short, that’s what ISO (International Organization of Standardization) certificates are for. ISO is a non-governmental institution, which means it isn’t bound by the regulations of this or that country.
Instead, they develop globally accepted safety and quality standards by banding together multiple national standardization institutions. ISO certificates aren’t mandatory, but they are always desirable. Here’s how they work and why they’re so important for businesses of all sizes.
Hard-Fought Trust
Obtaining an ISO certificate isn’t easy. It takes quite a lot of effort, time, and, in some cases, huge changes from the applying company. In fact, companies need to meet so many safety and quality standards that ISO certificates have become an unmistakable sign of trustworthiness. After all, a business must be really solid to survive its demanding application process.
For instance, businesses pursuing ISO 9001 certificates must have top-notch quality management systems in place. It involves establishing internal audits for quality control and, above all, a well-trained staff, as the company will also undergo third-party audits. Auditors will go through the company’s documentation, a step that can be complicated and time-consuming.
Additionally, different industries may need different certifications. For instance, companies that work with digital technologies like AI or IT-related services would have to go for ISO/IEC 22989 or 42201. Meanwhile, companies from the food industry apply mostly to ISO 22000, though there are other related certificates. In fact, there are thousands of certificates covering every industry branch imaginable.
The Price of Excellence
Acquiring a certification isn’t cheap, but the cost varies depending on the company’s size. Typically, small companies pay between USD 10,000 and USD 15,000 for them; for big ones, it can cost much more. Auditors charge around USD 1,300 per day of work.
Besides, each project requires individual certificates and a new application process. That’s why companies usually invest in specialized staff training before kickstarting their applications. However, this process isn’t a one-time thing: certificates have expiration dates and must be renewed every three years, which involves a new round of audits and fees.
Key Benefits
Trustworthiness is a competitive advantage for any business (including small ones), but it’s mandatory for companies with bigger ambitions. In this case, they must ensure they comply with different national regulations. Instead of getting lost in a maze of multiple jurisdictions, they can just standardize their operations and practices to cater to much wider markets.
Indeed, such certificates push companies to raise their bar. So, meeting such standards always results in improved efficiency, cost savings, better risk management, and product quality. Increased competitiveness, consumer satisfaction and a stronger reputation are merely consequences of this process.
Additionally, these certifications can create new opportunities and increase company valuation in the market. For instance, many investors require them before producing their wallets. After all, investors need to know whether their money is going to a solid business with real growth prospects.
