Impact of ISO Regulations on Stakeholders

The report highlights the impact of ISO regulations on stakeholders, including future investors, local stakeholders, and government. It discusses how ISO standards protect stakeholders through ISO 14001 and AA1000 regulations, using examples from the Kingdom of Saudi Arabia. The report concludes that ISO standards help businesses operate ethically, making trade easier among nations while ensuring product quality and safety.

Impact of ISO Regulations
on Stakeholders

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Way in which ISO standards impact the future investors, local stakeholders and government. .1
Protecting stakeholders through ISO 14001 and AA1000 regulations........................................2
Example of international standards in the Kingdom of Saudi Arabia.........................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
In the present report, the impact of ISO regulation on stakeholders of firms will be
highlighted along with the way in which these stakeholders can be protected through using ISO
14001 and AA1000 regulations. Also, example of international standards in the Kingdom of
Saudi Arabia will be studied in the report.
Way in which ISO standards impact the future investors, local stakeholders and government
Stakeholders get highly impacted by ISO regulations as it assists them in keeping their
health and safety. Presently, there are many CEO’s who are implementing ISO standards in their
firms so as to deal with the occupational health and safety management systems.
Society is one of the most important stakeholders of organization that get influenced by
ISO standards. It is because; running business with following the international standards make
the society ensure about quality, reliability and safety of a product which ultimately increases the
goodwill of firms through enhancement in their satisfaction level (Sustainability Excellence,
2014). For example: ISO standards on medical packaging and toy safety.
Government is also the major stakeholder which gets highly affected by ISO regulations
as according to these international standards, public policies are developed by taking the help of
expert opinions. Integrating ISO standards in the national regulations plays a significant role for
the government as through this, it enjoys the advantage of free import and export among nations.
For investors, ISO regulations prove to be helpful in making decision that whether to
invest in a firm or not as the firms that are following the international standards are safe and
secure to invest (Vágási and Ransburg, 2014). Thus, investors invest their huge amount of
money on only the shares of those firms that are running business with fulfilling the ISO
standards.
1

Protecting stakeholders through ISO 14001 and AA1000 regulations
ISO 14001 environmental management system (EMS) is the international standard that
most of the organizations in the present scenario are using for keeping the environment safe by
the way of making different environmental strategies. With the help of this, firms easily identify
and the environmental risks that can harm them and keep the people of society safe (Introduction
to ISO 14001, 2015). Thus, ISO 14001 leads to sustainable performance of companies which
results in increased goodwill as well as gaining a competitive edge over others.
Apart from that, ISO standard AA1000 assists corporations to improve their
accountability and overall performance through getting better with social and ethical accounting
as well as with auditing and reporting (AA1000 STAKEHOLDER ENGAGEMENT STANDARD
2011, 2008). AA1000 plays a significant role in the performance management and accountability
of a firm through making the employees professionally trained with the specialized application
of core standard.
Example of international standards in the Kingdom of Saudi Arabia
20, 500 standards are being followed by Saudi Arabian Standards Organization (SASO).
Presently, it is dealing with hundreds of international standards that are at their drafting stage of
development. Nowadays, SASO is following ISO 9000 that is approved by Quality Assurance
Department and thus, it is considered as the approved standard for the nation, Saudi Arabia
(Saudi Arabia Overview the Saudi Arabian Standards, 2016). This international standard is
helping the nation to trade with other countries like American industries.
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CONCLUSION
It can be accessed from the report that ISO standards help businesses to operate and run
in an ethical manner. Through following international standards, trade of firms has become easy
among nations as well as it has ensured the quality and safety of products.
3

REFERENCES
AA1000 STAKEHOLDER ENGAGEMENT STANDARD 2011. 2008. [Online]. Available
through: <http://www.accountability.org/images/content/3/6/362/AA1000SES
%202010%20PRINT.PDF>. [Accessed on 19th April 2016].
Introduction to ISO 14001. 2015. [PDF]. Available through:
<http://www.iso.org/iso/introduction_to_iso_14001.pdf >. [Accessed on 19th April 2016].
Saudi Arabia Overview the Saudi Arabian Standards. 2016. [PDF]. Concepts and standards for
the corporate internalization of sustainable development. Available through:
<http://www.agora.mfa.gr/agora/images/docs/radE566FSaudi%20Arabia-SASO.pdf>.
[Accessed on 19th April 2016].
Sustainability Excellence. 2014. [Online]. Available through:
<http://www.sustainabilityexcellence.com/Senior%20Sustainability%20Advisor
%20JD.pdf. [Accessed on 19th April 2016].
Vágási, M and Ransburg, B., 2014. [PDF]. Concepts and standards for the corporate
internalization of sustainable development. Available through:
<http://www.pp.bme.hu/so/article/viewFile/1623/941>. [Accessed on 19th April 2016].
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