The Consumer Council has issued a Good Corporate Citizen's Guide in a drive to promote industry self-regulation, corporate quality and consumer confidence.
Officiating the launch of the Good Corporate Citizen's Guide today (March 15) was the Secretary for Economic Development and Labour, the Hon. Stephen IP Shu-kwan, in a ceremony bearing witness to a joint show of support from businesses.
Describing the launching of the Guide a milestone in consumer protection, Mr. IP stressed that it is important for business operators to adopt good business practices and have a sense of responsibility to their clients. "Indeed, good business practices, such as those outlined in the ' Good Corporate Citizens' Guide ', will enhance consumer confidence which would in turn generate more business," he added.
The Guide has already gained widespread acceptance of the business community including a select group of 22 chambers of commerce, trade associations and professional bodies which came forward in solidarity to pledge their support to a new era of corporate social responsibility.
Together they represent a cross section of trades in the provision of goods and services from basic daily necessities in food, clothing and shelter to life enhancement items in electronic products, jewellery and beauty care.
In general, the conduct of these businesses is not covered by specific statutory requirements but relies largely on voluntary self-discipline.
Good corporate citizenship, the Guide expounds, recognizes that businesses have a responsibility to respect the individuals, the community, and the environment in a way that when devising or implementing any rightful business strategy they will abide by laws and regulations, and adhere to high ethical standards.
The Council believes that when businesses apply high standard of service, they ensure that "not only will the business succeed in its endeavours, but also that the community as a whole will benefit from the positive effect this has on maintaining dynamism in the economy".
Further, although the Good Corporate Citizen Guide is drawn up from a consumer perspective, the Council is confident that the aspirations of both consumers and businesses are "not incompatible but interconnected".
The Guide contains a set of 12 basic principles upon which businesses are encouraged to observe, adopt and incorporate in their own codes of practice. Briefly:
1. Advertising and Marketing
All advertising and marketing materials should be truthful, fair and reasonable in providing customers with adequate information on which to base purchasing decisions.
2. Price Indication
Consumers should be provided with complete and truthful information on the real overall price of the goods or services, which is usually a vital factor in consumer choice.
3. Contracts
All provisions in contracts, verbally or in writing, must be fair and reasonable.
4. Quality of Goods or Services
Businesses should observe high standards in their goods and services, and have a policy that guarantees all goods or services provided are of a merchantable quality, and fit for the purpose.
5. Safety of Goods or Services
They should ensure that the goods or services they supply are safe.
6. Sustainable Development
Good corporate citizens should subscribe to sustainable development objective of the environment in their conduct of business.
7. Electronic Commerce
Traders engaged in electronic commerce should ensure their conduct is in accordance with internationally acceptable standards (for example, the OECD guidelines for Consumer Protection in the Context of Electronic Commerce).
8. Privacy
Good corporate citizens will respect the privacy of their customers, and observe appropriate privacy legislation and relevant guidelines.
9. Equal Opportunity
To promote a fair and inclusive society, they should have equal opportunities principles into all aspects of their organizations and operation.
10. Anti-Corruption
A corporate system control against corruption should be established.
11. Fair Competition
There is a need to ensure that competition is not only maintained at a high level, but that it is fair and seen to be fair. Conduct between competitors or by dominant market participants that restrict competition should not be tolerated.
12. Complaints Handling
Last but not least, to remain successful, a good corporate citizen should have mechanisms established to effectively and efficiently handle consumer complaints.
To assist trade associations in considering what should be incorporated into their existing, if any, rules and codes of conduct, the Council has also prepared suggested rules addressing some of the principles set out in the Guide.
The suggested rules focus specifically on the areas of trade practices, complaints handling, and fair competition. Further rules and other documents taking account of changing circumstances may be issued as the need arises. The Council is presently contemplating a paper on the Rights and Responsibilities of Consumers.
The launch of the Good Corporate Citizen's Guide was officiated by the Secretary for Economic Development and Labour, the Hon. Stephen IP Shu-kwan. In addition, the Chairman of the Consumer Council, Professor Andrew CHAN Chi-fai, delivered the opening address, and the Council's Vice Chairman, Mr. Larry KWOK Lam-kwong, outlined the Guide during the launch ceremony.
Full details of the Good Corporate Citizen's Guide and the suggested rules on trade practices are available on the Consumer Council website www.consumer.org.hk .
A list of organizations supporting the Good Corporate Citizen's Guide :
Australia Chamber of Commerce in Hong Kong
Chinese General Chamber of Commerce
Federation of Beauty Industry (Hong Kong)
Federation of Hong Kong Industries
French Chamber of Commerce, Hong Kong
HK & Kowloon Electrical Appliances Merchants Association Ltd.
Hong Kong Association of Property Management Companies Ltd.
Hong Kong Chinese Medicine Merchants Association
Hong Kong Federation of Restaurants & Related Trades
Hong Kong General Chamber of Commerce
Hong Kong Jewellers' & Goldsmiths' Association Ltd.
Po Sau Tong Ginseng & Antler Association HK Ltd.
Radio Association of Hong Kong
Singapore Chamber of Commerce (Hong Kong)
The American Chamber of Commerce in Hong Kong
The British Chamber of Commerce in Hong Kong
The Cosmetic & Perfumery Association of HK Ltd.
The Federation of Hong Kong Watch Trades & Industries Ltd.
The Hong Kong Institute of Directors
The Hong Kong Management Association
The Indian Chamber of Commerce in Hong Kong
The Laundry Association of Hong Kong Ltd.