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TRADE ASSOCIATIONS AND BUSINESS SELF‐REGULATION THROUGH VOLUNTARY CODES OF PRACTICE
Author(s) -
PICKERING J. F.,
COUSINS D. C.
Publication year - 1982
Publication title -
journal of consumer studies and home economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.775
H-Index - 71
eISSN - 1470-6431
pISSN - 0309-3891
DOI - 10.1111/j.1470-6431.1982.tb00607.x
Subject(s) - business , competition (biology) , set (abstract data type) , code of practice , independence (probability theory) , code (set theory) , work (physics) , trade barrier , mediation , international trade , law , political science , computer science , statistics , mathematics , mechanical engineering , ecology , engineering , engineering ethics , biology , programming language
The encouragement contained in the Fair Trading Act 1973 for the development of voluntary Codes of Practice has created an important new role for trade associations in a number of trades. It has been the responsibility of trade associations to establish the content of the Codes and appropriate mediation and conciliation services. In addition, they have promoted the Codes, monitored their effects, and enforced their provisions where necessary. It appears that the additional costs incurred by most trade associations in this work have not been unduly large. In return they have benefited through an increase in their role and standing both inside and outside the trade. There appears also to have been a greater cohesiveness within the trade. However, where the impact of Codes of Practice has been less than hopeful, it appears that failure to set and enforce high standards, often arising from a lack of resources and independence on the part of the trade association, was an important factor. Thus successful Codes of Practice require strong and effective trade associations, and trade associations also benefit from a successful Code of Practice. However, it is also important to ensure that Codes of Practice are not used as a means of reducing, in various ways, the extent of competition in a trade.