The Effects Of ISO 9000 Standards On Financial Performance Of Manufacturing Companies Listed In Indonesia Stock Exchange

Abstract

The arguments are based on Demming and Juran theories about costs of quality, when the products are lessdefective then the costs of quality become lesser. ISO 9000 standards control so many aspects in the company,from the supplierss relation until customers's satisfaction. ISO 9000 contains procedures that control the wholesystem of the company, to know the effect of ISO 9000 towards company's financial performance is considerablyimportant. We have found that ISO 9001/2/3:1994 certifications gave quite big contribution toward companiessproduction processes, we analysed it through financial statement ratios of ISO companies in Indonesia.Nevertheless, it didnt works on ISO 9000:2000 companies, some revisions have made it different.