Raising awareness of the benefits of certification and assurance services
2000 study of Danish companies, 734 certified and 644 of similar size but not certified.
In the year prior to certification, the firms who would become certified had a 20% higher rate of return than those who would not be certified.
Two years after certification, the rate of return of the certified companies had risen to 35% above those not certified.
Source: Haversjo, T., (2000) ‘The financial effects of ISO 9000
registration for Danish companies’, Managerial Auditing Journal, Volume 15
2007 study of 695 publicly listed US manufacturing companies certified to ISO 9001.
With operating cycle, this was reduced on average by 5.28 days one year after certification, falling to 11 days three years after certification.
On inventory days, these were 3.68 days less one year after registration, falling to 8.75 days three years after certification.
Source: Lo, C.K.Y., Yeung, A.C. L., Cheng, T.C.E., (2007), ‘Impact of ISO 9000 on Time-based
Performance: An Event Study’, ’World Academy of Science, Engineering and Technology, 30
Analysis of over 3,000 facilities regulated as major sources under the U.S. Clean Air Act suggests that ISO 14001 certified facilities reduce their pollution emissions more than non-certified facilities.
Matthew Potoski, Iowa State University; Aseem Prakash, (Potoski), University of Washington (2005), ‘Covenants with weak swords: ISO 14001 and facilities’ environmental performance’, Journal of Policy Analysis and Management, Volume 24, Issue 4, pp 745- 769
2005 study of 3700 US facilities regulated under the Clean Air Act, compared those certified to ISO 14001 against those not.
On average, the certified companies spent 7% less days on regulatory compliance than those not certified.
Source: Potoski, M., Prakash, A. (2005), ‘Green clubs and voluntary
governance: ISO 14001 and firms’ regulatory compliance’, American Journal of Political Science, Vol. 49; Issue 2
From Feb 1990 to Jan 2000, $100,000 invested in the S&P500 would have yielded $423,795.
If the same $100,000 had been invested in a sample of 212 ISO 9000 certified companies, the yield would have been $814,335.
Source: Rajan, Tamini (2003), ‘Payoff to ISO 9000 Registration’, The
Journal of Investing, Vol. 12, No.1
2001 five year study of companies in the Basque region of Spain showed companies certified to ISO 9000 had return on assets employed between 24% and 48% higher than non-certified companies after the five years.
Source: Heras, I., Casadesús, M., Dick, G.P.M., (2002), ‘ISO 9000 certification and
the bottom line: A comparative study of the profitability of the Basque region
companies’, Managerial Auditing Journal, Vol. 17, Iss.1
2002 study of 166 Korean companies comparing rate of environmental regulatory violation between 28 companies certified to ISO 14001 and 138 companies with no certification.
In 1998, rates of regulatory violation were 3.5% & 11.6% for certified & non-certified companies.
In 1999, rates of regulatory violation were 1% & 8.5% for certified & non-certified companies.
Source: Kwon, D.M., Seo, M.S., Seo, Y.C., (2002), ‘A study of compliance with environmental
regulations of ISO 14001 certified companies in Korea’, Journal of Environmental Management, Volume 65, Part 4
Accredited certification indisputably demonstrates compliance to a management system standard. Leading international certification bodies – such as our members – provide rigorous auditing services to organizations seeking demonstration of their compliance to certain standards, schemes or other documents.
To give customers and stakeholders greater assurance, the competence and impartiality of IIOC members has been assessed and confirmed by independent accreditation bodies. They are assessed against strict criteria that conform to internationally recognised standards. Once verified, the certification body becomes accredited.
This system of independent accreditation – itself based on standards produced separately by ISO and managed by the IAF – enables government, businesses, consumers and others to have confidence in certifications provided by an accredited certification body.
IAF have further explanation of why using an accredited certification body delivers benefits in one of their key publications Why use an accredited certification body.
To illustrate the benefits of accredited certification, the following pages look at:
Over 70 papers produced by universities around the world and published in a wide range of leading journals are introduced to illustrate the many benefits of certification, from financial betterment, raising overall company performance and quality improvement to environmental delivery. Read more →
With IIOC members certifying a huge range of companies around the world, case studies provide illustrations of the benefits they can gain from accredited certification. Read more →
As a tool, accredited certification to management systems standards can give regulators, government departments, local authorities and a range of other public bodies, the opportunity to deliver their public policy commitments. Read more →
Leading organisations ISO and IAF set out what organisations can expect to gain from accredited certification. Read more →
A generic examination of the value of standards, with studies from a number of leading economies on the macro-economic value delivered by standards. Read more →