ISO 9000 is a highly successful international quality management system established by the international standards organization. In addition to helping in the design of a quality assurance system, ISO 9000 also imposes many obligations and responsibilities on the part of business organizations.

ISO certification can protect organizations against corporate vicarious liability. Vicarious liability refers to the legal responsibility (liability) of an employer for the actions, crimes or injuries committed by one of its employees in the performance of its duties. Crimes that fall within the scope of vicarious liability include fraud and theft, defamation, breach of trust and data protection, and discrimination based on race and gender.

ISO 9000’s subsidiary responsibility processes help companies reduce risk. The extent of liability depends on the relationship between the nature of the employment and the crime that has been committed. When the two are sufficiently connected, the employer can be held liable.

Common forms of indirect liability include indirect liability of employers, indirect liability of directors, and corporate liability. Consider, for example, directors? responsibility. In this case, a car owner is vicariously liable for the reckless and negligent driving of the driver. The owner is the principal and the driver is his employee. Laws have been reluctant to extend this liability to owners of other types of personal property. For example, the owner of an aircraft is not vicariously liable for the misdeeds of a pilot.

A business can operate only through the actions and deeds of its employees and agents. Therefore, it is important to decide to what extent vicarious liability will be applied to hold a company liable for the frauds of its directors or other officers. ISO 9000 certification provides a clear description of such situations.