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Benefits of Standards

Organisations benefit from being certified to international standards in a number of ways.

1 The trade and commercial benefits are fairly obvious as they establish immediate credibility with trading partners and demonstrate competency. In many instances suppliers may be required to be certified to participate in a supply chain or engage in contract tendering.

2 Recently, there has been increasing demand for certification for internal reasons or good corporate governance. Legislative and compliance issues in many fields and the implications for directors and management have increased the onus on companies to identify and manage business risks of this type. One solution is to implement a recognized management system which will systematically capture and address the concerns.

3 Some businesses may also be in a position to negotiate reductions in insurance premiums as a direct result of having a certified system in place which identifies and manages the business risks.

At the international level, standards are becoming a pillar of the new global trade system. As barriers to trade and investment are eliminated and information technologies continue to evolve, standardization is taking on an increasingly important role in global affairs. At the same time, new international agreements are setting out guidelines for an expanding range of issues including,quality, health & safety, the environment and the protection of privacy.
The use of international standards helps to reduce trade barriers.

There is potential for standardization to reduce the costs of regulation, facilitate internal and external trade and technology transfer and enhance the competitiveness of an organisation.

Technological advances and the globalisation of economies have given rise to a range of new issues. Recently, standardization processes and products have been applied increasingly to areas such as genetically modified foods and the electronic marketplace.

In the international arena, standardization is becoming an increasingly important tool for competitiveness, across all industrial sectors from manufacturing to IT and communication.

International standards are powerful tools, providing a mechanism for meeting the quality, environmental and health & safety obligations of both producers and consumers of goods and services.

Evidence is emerging that some multinational companies are making compliance with international standards a requirement for their suppliers.


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