International Standards for Organizations (ISO) is a worldwide conglomeration that promotes establishment of manufacturing standards. The ISO establishes quality standards as tools for organizations to demonstrate their dedication to quality and their proficiency in meeting quality and safety objectives. According to the ISO:

ISO International Standards ensure that products and services are safe, reliable and of good quality. For business, they are strategic tools that reduce costs by minimizing waste and errors and increasing productivity. They help companies to access new markets, level the playing field for developing countries and facilitate free and fair global trade.

The ISO is recognized internationally in most of the industrialized world, including 160 countries. And, although ISO certification is not necessarily a requirement to participate in global trade, companies find it very difficult to compete if they do not achieve ISO certification. Companies can achieve ISO certification through one of three methods:

1. First Party certification – firms audit themselves to ISO standards.
2. Second Party certification – customers audit their suppliers.
3. Third Party certification – qualified agencies perform the auditing.

For this activity, respond to the following:

• Why would a company be less competitive if it did not achieve ISO certification?
• Explain how achieving ISO certification would enable a company to achieve optimum development.

A minimum of one reference is required.

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