What is ISO Certification?

The Types of ISO Certification and Why You Need One?

One must have surely seen a company or business boast about being ISO certified. But what is it? ISO stands for International Organisation for Standardisation. This is an independent organisation that aims at providing particular standards in terms of quality, safety, and efficacy of a product or service of businesses.

With a gradual boom in the economy, businesses are facing an increased amount of competition. Therefore the quality of the goods and services can't be overlooked if one has to survive in the market. Therefore ISO certification goes a step further in providing credibility to a brand or business so that it can be trusted by the customers.

Types of ISO Certifications

An entrepreneur needs to understand what kind of goods and services he is supplying to the market. The various types of ISO Certifications are listed below-

• ISO 9001:2008- Quality Management System
• OHSAS 18001 – Occupational Health & Safety Management System
• ISO 37001 – Anti-bribery management systems
• ISO 31000 – Risk Management
• ISO 27001 – Information Security Management System
• ISO 10002 – Compliant Management System
• ISO 14001:2015 – Environmental Management System
• ISO 26000 – Social Responsibility
• ISO 28000 – Security Management
• ISO 22008 – Food Safety Management
• SA 8000 – Social accountability
• EnMS EN 16001 ISO 50001 – Energy Management
• SO/IEC 17025 – Testing and calibration laboratories
• SO 13485 – Medical devices
• ISO 639 – Language codes
• ISO 4217 – Currency codes
• ISO 3166 – Country codes
• ISO 8601 – Date and time format
• ISO 20121 – Sustainable events
• SO/IEC 27001 – Information security management

Why is ISO Certification Important for a Company?

Earlier, we explained to you the meaning of ISO certification and listed the types of certifications. But what if a person thinks otherwise. Regardless of all these, a person may feel that they can operate a company without an ISO certification since it is not compulsory. So here are some reasons that are convincing enough to make people understand the need for an ISO certification.

1. Recognition

A business or company gets worldwide recognition. This helps to boost the professional status of a company amongst the market researchers apart from the one belonging to the Indian market.

2. Credibility

Since the International Organisation for Standardisation is an organisation that provides particular standards for various business types globally: the credibility of a business or company boosts up eventually after an ISO certification.

3. Guaranteed Safety of Products and Services

Once a company gets an ISO certification, the quality is bound to be satisfactory and competent. This also ensures the safety of the product sold by a company. For example, let's take a company that makes pressure cookers. Now we all know that this is such a product that it must be handled carefully, else it can result in mishaps and accidents. Therefore if such a company gets an ISO certification, the quality and safety of the products stay uncompromised.

4. Improved Revenues

Building trust among your customers is the very first step of kick-starting a business. Business owners try every possible way to gain customer trust, but they must keep in mind that trust can only be gained if the quality of the product and services is top-notch. Hence if a company gets an ISO certification, the customers keep coming back, and one can easily price the products. And earn better revenue for the business. This revenue will also help the business to grow further.

5. Improved Consistency

The most important of all the ISO certifications are the ISO 9001. This certification helps to increase the control of your business processes. Therefore, the more control one has over their business; the more consistent a business becomes in delivering a product. Improved consistency means the quality of the product delivered is the same every time customers buy the product or services.

6. Customer Retention

One of the significant aspects that increase customers’ number is when they find a globally accepted tag labeled on a product. By producing more quality products will help you to retain customers and gain new ones simultaneously. This eventually leads to customer satisfaction and retention.

7. Effortless Marketing Technique

By getting an ISO certification for your company, you add more value to your business as well as your products. This aspect serves as a marketing tool for your product too. You easily gain attention from global buyers by showcasing international quality recognition.

8. Inter-country Trade Possible

As ISO is an internationally recognised organisation, inter-country trades have become more effortless. ISO certification helps international buyers and traders to have belief in your business and the products. With few documentation processes, International trading becomes legal as well.

9. Professional culture development

Professional culture is bound to develop in a company that has a globally recognised certification. All the company staff, including the authorities, management, and workers, are bound to maintain a professional culture in the company. And following certain principles and ethics helps the company to be at par with various globally recognised companies, making them eligible for international business.

10. Boost in Staff Management

The Quality management Certification, i.e. ISO 9001, expects a company to hold training and development programs for the company's staff. It also contributes necessary devices and equipment for the staff to carry out their jobs efficiently. This will result in the employees becoming more aware of their job, and the training will help them improve their skills. Hence making them eligible for better work in the company.

11. Reduction of Extra Consumption

After obtaining an ISO certification, an entrepreneur becomes more informed about the resources being used. The employees will also understand and prioritise, the resources crucial for the business and use them judiciously. This will help in increasing the revenues by cutting down the extra expenditures.

12. Improved Operations

Once a company obtains ISO certification, the employees of the company will become empowered eventually. Their profile will have added value to it, as they work for an ISO-certified company or business. This will help the employees work better, and the business’s operations will gradually be enhanced.

Pre-requisites to ISO certification in India

Although an ISO certification is vital for a business's growth, there are some aspects needed before getting an ISO certification. The pre-requisites are as follows-

1. Choosing the type of ISO certification for your business

Before going for an ISO certification, a business owner must decide the type of ISO certification needed.

According to the business, there are many types of certification; as stated earlier, one can choose single or multiple certifications.

2. Choosing an ISO certifying body

It must be understood that the ISO itself does not certify the companies. External bodies do the certification, therefore it is crucial to choose a recognised and ethical body for certification. These bodies are known as ISO registrars.

So these were some reasons why a company needs an ISO certification and some pre-requisites to obtain one.

Also Read:

1) What is CRM? Does it Help Small Businesses?
2) What is the Marketplace Business Model? How to Pick the Best One.
3) What is Financial Planning? Objectives and Components of a Successful Financial Plan
4) All About Different Types Of Working Capital

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FAQs

Q. Which companies should get ISO 9001 certification?

Ans.  A wide variety of businesses, including construction companies, medical device manufacturers, electronics companies, etc., should get ISO 9001 certification. Since quality management systems apply to almost all types of business models. This is applicable for both big and small businesses.

Q. What is the cost of ISO 9001?

Ans. The cost of ISO 9001 certification depends on various factors such as the size of the business, duration of the audit, and the extent up to which the company can fulfil the requirements of ISO 9001 certification.

Q. What is the validity of an ISO certification?

Ans. The validity of most ISO certificates is for 3 years. However, some certificates need annual renewal.

Q. How to verify that a company is ISO certified?

Ans. To verify that a company is ISO certified a person can go to the registrar's online list of ISO-certified companies. Search for terms such as "ISO registrars" in the company's documents. If the information matches, then the business is ISO certified.

Q. Does ISO certification give protection against fraud?

Ans. No, ISO certification doesn't give protection against fraud. Although this certification deals with various business aspects, it doesn’t protect against fraud. For fraud protection, one has to refer to the consumer protection act, only if they have been cheated.