Standards describe how a thing does and should work. It is extremely important especially in software, because the thing can be used by many people for different perposes. For example, there are several engines for JavaScript including V8, JavaScriptCore, Rhino, etc, and if there is no standard for the language, developers and users cannot feel ensured when doing something with it.
Standards bodies, in the same manner, do a key role to form a standards and are essential in everywhere including both software and hardware.