Standards: Unlocking economic growth

Oliver Naidoo, MD of leading SANAS-accredited certification body JC Auditors, says that while implementing standards in individual businesses offers clear advantages, on a larger scale it can significantly alter the trajectory of a country’s development.

“When comparing South Africa to countries we compete against in the global economy, it’s evident that our adoption of international standards remains limited. Although a subtle shift and an increase in numbers is noticeable, we still have considerable ground to cover,” Naidoo points out.

The core purpose of international standards is to facilitate global trade by ensuring consistent quality and performance across all countries. It compels companies to be more accountable and, importantly – because standards necessitate audits – it requires companies to continually measure and monitor their performance. This allows them to identify and rectify abnormalities far more swiftly than would be possible without a standard.

“This, in turn, enables companies to maintain consistent quality and performance, fostering improved transparency while driving innovation. Adherence to standards signifies a dedication to good governance, which forms the cornerstone for any business aspiring to compete on the global stage,” Naidoo expands.

“Any business striving to attain world-class status must operate at a higher level,” he explains. “To achieve this, it’s necessary to re-think how business is conducted, and standards play a crucial role in encouraging precisely that mindset shift.”

Selecting which standards to implement depends on one’s objectives. Each standard addresses specific aspects of operations and provides distinct benefits. ISO 9001 focuses on managing risks to meet customer requirements and enhance quality, while ISO 45001 emphasises protecting people at work by effectively managing risks, and ISO 14001 is geared towards environmental protection. Despite being international in scope, all standards must also adhere to the laws and regulations of individual countries. 

Naidoo says that when standards are implemented correctly, they yield immediate benefits. Companies experience better brand reputation, increased operational efficiency and cost-effectiveness, improved safety measures, and effective risk mitigation – all enhancing profitability. 

“Standards play a crucial role in improving supply chains. They make a difference in the first mile, the last mile, and every mile in between,” he stresses.