What Does ISO Stand for in Business Management?


Article by: by Luanne Kelchner https://smallbusiness.chron.com/iso-stand-business-management-48677.htmlđź“·

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Business organizations use standards to regulate manufacturing, quality and business practices in companies around the world. When businesses use the same practices, production controls, quality standards and management techniques, products and business processes conform, creating reliability. The International Organization for Standardization is the largest publisher of standards in the world.


International Organization for Standardization The name ISO comes from the Greek word “isos,” which means equal. The name used for the standards organization is the same in all countries. ISO consists of standards institutes in 164 countries that work together to create industry standards. Some standards institutes are part of their countries' governments while others are private organizations. Businesses seek registration with ISO voluntarily and third-party organizations ensure compliance with the standards. The member organizations in ISO work together to develop solutions for business and ensure methods and techniques meet the needs of the public.


Types of Standards ISO has developed more than 19,000 standards in a variety of areas. Standards include guidelines for health care technology, environmental health and safety, mechanical systems, electronics, engineering disciplines, logistics and distribution, energy and food technology. The standards institutes create about 1,000 new standards every year.

Management and Leadership Standards In addition to technical standards for products, ISO creates standards for business organization, management and quality. Management and leadership standards include ISO 26000, which provides guidance to businesses on operating a socially responsible company. ISO 31000 is a guideline for risk management and ISO 9001 focuses on quality management. ISO 9001 and ISO 14001, the standard for an environmental management system, provide a framework for good management practice that businesses can use in other areas of business.


Benefits of ISO Registration ISO creates standards to meet the needs of the public, but it also benefits the businesses that meet the standards. Companies that use ISO standards to guide their business practices and meet the registration requirements provide assurance to consumers and other businesses that products and services are in compliance with industry standards. Business and management standards offer companies methods and techniques that are efficient and safe.


New businesses can use the standards and practices to ensure their products will meet with acceptance in their industry. Some businesses require vendors to comply with ISO standards. Meeting ISO registration requirements can be a marketing tool for companies that provide services and products to other businesses.

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