Beyond compliance: The impact of ISO 45001 on corporate efficiency and profitability in Southern Africa – a resource-based view

Purpose: This study investigates the financial implications of adopting the ISO 45001 Occupational Health and Safety (OH&S) management standard within the Southern African region. Specifically, it examines whether certification leads to improved revenues, efficiency, and profitability, and how these outcomes are moderated by prior OHSAS 18001 certification and industry sustainability sensitivity. Methodology: The research employs a quantitative approach using a sample of 98 publicly listed companies in Southern Africa that achieved ISO 45001 certification between 2022 and 2024. An extended event study method was used to analyze abnormal performance, complemented by a Weighted Least Squares (WLS) regression to identify moderating contextual factors. Results: The empirical analysis reveals that ISO 45001 certification positively impacts corporate efficiency and return on assets (ROA) but has no statistically significant effect on revenue growth. Furthermore, the positive impact is diminished for firms with prior OHSAS 18001 certification and those operating in sustainability-sensitive sectors. The theoretical contribution: The study contributes to the Resource-Based View (RBV) and Signaling Theory by demonstrating that in developing markets, OH&S standards function primarily as internal resources for operational efficiency rather than external market signals for revenue generation. Practical implications: The findings suggest that managers in Southern Africa should view ISO 45001 as a tool for cost reduction and process optimization. For policymakers, the study provides economic justification for enforcing safety standards, linking employee welfare (SDG 3 and 8) directly to corporate financial health. Sustainable Development Goals (SDGs): SDG 3: Good Health and Well-being; SDG 8: Decent Work and Economic Growth