Do Enterprises In Developing Countries Benefit From Iso Standard Conformities Or Are They A Barrier

In coming years, developing countries will face intense competition which they have not experienced before

. For developing countries that do not currently have meaningful export quantities, it will become even more difficult to enter or to remain in world markets. Major international buyers are unlikely to source from a country where only a few companies serve the world market.

ISO Standards are considered to be one of the ways of promoting social development and environmental sustainability in global value chains. An enterprise could decide to adhere to a very ambitious code of conduct and use this to its advantage in negotiations with a retail competitor, but most companies in developing countries do not have much tangible information available on what is facing them.

ISO Standards can provide producers who are trying to enter into business with major buyers and retailers, with invaluable tools to make them contenders. When trading with global buyers, on top of national and regional standards and technical regulations, a business now needs to comply with the internationally recognised standards that are, for the most part, imposed on them by larger retailers.

In some cases, there can be too many codes of conduct and standards to adhere to; some contain a diverse range of stipulations which can be incompatible, this is where trade barriers may arise. Having said that, many standards and codes of conduct do contain a number of common elements, such as quality assurance, workers rights and environmental management.

ISO Standards can help SMEs in developing countries as they are generally established to guarantee the quality and safety of the products but also often ensure decent working conditions in the factories. This is seen as a positive development, encouraging SMEs in developing countries to implement sustainable and (corporate) socially responsible policies in the workplace.

by: Emma

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