Certification bodies and other standards organisations promote certification with promises of increased economic profits, improved customer perception, and distinction from competitors. However, with over 300,000 ISO 14001 and one million ISO 9001 certified companies worldwide, what are the real and measurable benefits of certification?
Throughout 2016, Global-Mark surveyed its broad range of clients to determine what they believe the most valuable aspects of certification are, with consistent systems and continuous improvement voted the most valued.
Global-Mark’s accrediting body JAS-ANZ (Joint Accreditation System of Australia and New Zealand ) recently held a Conformity Assessment Workshop, with Marcus Long (IAF CMC Deputy Chair & IIOC) presenting examples of Conformity Assessment Success. While information to date is fairly limited and challenging to capture, research in whether the implementation of management systems and certification has led to positive outcomes for organisations locally and internationally is an important responsibility of the conformity assessment industry. Below are some interesting case studies of certification success.
An empirical study analysed the effects of ISO 9001 compliance on Spanish companies’ economic performance on 400 certified companies and 400 non-certified companies.
A case study conducted in 1999 attempting to understand the value of certification to Australian businesses outlines perceived internal advantages of ISO 9001 certification noted by staff and managers of an Australian engineering consultancy organisation:
- Work practice – processes are improved and efficient, procedures are documented, responsibilities are clear, objectives are provided
- Quality of services – quality and consistency of services are improved, results are recorded
- Culture of the organisation – capacity to manage quality is improved, staff awareness about the organisation and its processes is increased, all employees are involved
- Certification – motivates staff, brings independent and fresh eyes, makes organisations more attractive to work for
The study determines that “the relevance of the quality system to the business is essential for it to be effective. A quality system designed only to satisfy the demands of ISO 9001 and the external assessors will be of little value to the business.” (Parratt and Holian, 1999)
Italy’s National Governmental Institute for Insurance against Accidents at Work (INAIL) recognises the value of occupational health and safety management system implementation in workplaces and provides up to a 28% discount on insurance premium for OHSAS 18001 certified organisations. Consequently, the number of companies certified has increased to 4,500 and workplace accidents have dropped by 27% in their economy.
In the Journal of Industrial Engineering and Management, 2012, studies on the benefits of ISO 9001 certification are collated and analysed. Conclusions on the most prevalent benefits of ISO 9001 certification are:
- Improved customer satisfaction and fewer complaints
- Improved management of staff
- Improved efficiency
- Improved documentation and employee understanding of tasks
- Improved business image
- Improved service or product quality (internal processes are more controlled)
The paper concludes; “when a firm really applies the quality system underlying the standard, and there is a real commitment to quality and to the environment, that is, when the standards are interiorized, there is an increased possibility of attaining the benefits listed.” (Tari, Molina-Azorin, and Heras, 2012)
A study on the economic impact and effectiveness of ISO 9001 certification in China found that 98% of surveyed purchasers are satisfied by the quality of ISO 9001 certified organisations’ products and 93% viewed certification as a principal factor for supplier selection, while 98% of surveyed businesses perceived ISO 9001 certification as a worthwhile investment, irrespective of the expense.
Global-Mark recognises that a company benefits most from certification when the principles of the standards are employed to direct business and continuous improvement in a meaningful way. Similarly, going into every audit, our Client Managers seek to ensure that certification for our clients adds value to their organisation and processes, and as always, results in a better and more reliable service or product for their client or community.
References
Heras, I., Casadesús, M., Ochao, C., (2001), ‘Effects of ISO 9000 certification on companies’ profitability: an empirical study’, Integrated Management: Proceedings of the 6th International Conference on ISO 9000 and TQM
Long, M. (2017). Conformity Assessment as a Business Tool.
Istituto nazionale Assicurazione Infortuni sul Lavoro (n.d.), Safety at workplace, Italy, viewed 20 April 2017, <https://www.inail.it/cs/internet/multi/english/functions-and-services/safety-at-workplace.html>
International Laboratory Accreditation Program 2016, Workshop Demonstrates the Value of Standards and Accreditation in the Insurance Sector, viewed 20 April 2017, <http://ilac.org/latest_ilac_news/workshop-demonstrates-the-value-of-standards-and-accreditation-in-the-insurance-sector/>
Parratt, E. and Holian, R. 1999, ISO 9000 certification: Is It Worth It?, Research Development Unit, RMIT, [Melbourne, Vic], pp. 8-17
Tari, J., Molina-Azorin, J. and Heras, I. 2012, ‘Benefits of the ISO 9001 and ISO 14001 standards: A literature review’, Journal of Industrial Engineering and Management, December 2012, vol. 5, no. 2, pp. 298-311
United Nations Industrial Development Organization 2015, ISO 9001 Relevance and Impact in China, UNIDO, Vienna, viewed 20 April 2017, <https://www.unido.org/fileadmin/user_media_upgrade/What_we_do/Topics/Quality_and_compliance/ISO_9001_Quality_Management_System_China_ENG.pdf>
