2.7: Codes of Practice

Better payment

What’s the point?

You CAN gain in reputation and buying power when you commit to prompt payment.

Why?

• Suppliers will be keen to work with you.
• You avoid costly late payment charges or compensation claims.
• You save on fire fighting and strained relationships.
• You approach suppliers and customers on confident terms and build their confidence in you.

Extra benefit to your business:

• Your suppliers’ incentive for reliability will enable you to give reliable service to customers and help you to improve your terms.
• Closer cooperation with your suppliers can lead to wider benefits like suggestions for more efficient delivery patterns, or new insight into alternatives for components or supplies.
• Customers with concern for efficiency and responsibility in business practice will reward your commitment.
  Developing Skills

Developing Skills

What’s the point?

You CAN increase your company’s competitiveness and strengthen its bottom line by developing the competence of all your staff.

Why?

• You will help to avoid claims of unlawful discrimination from staff or customers.
• You will have access to the widest range of potential and ability in your staff.
• Extra benefit to your business:

Extra benefit to you business:

• You can avoid undervaluing, under-using or losing staff

Health And Safety

What’s the point?

You CAN reduce risks and protect your bottom line by ensuring staff are safe, healthy and not unduly stressed.

Why?

• There will be fewer accidents in your business and less sickness/absenteeism.
• The risk of your business being sued or prosecuted will decrease.
• Healthy, safe employees will be more productive.
• Many companies require their suppliers to have good performance in health and safety.
• Insurance may be cheaper.

Extra benefit to your business:

• Your staff will feel more valued, be more motivated and more productive.
• Where staff is unwell, they should take less time to recover and return to work sooner.
• High calibre potential staff will want to work for you.
• Customers will be attracted to you because if you care about your staff, they will believe that you also care about the quality of the goods and services you provide.

Managing Resources

What’s the point?

You CAN cut costs, and contribute directly to your bottom line, by making better use of resources such as raw materials, energy and water. Gain by reducing your use of materials, energy and water

Why?

• Reducing resource use brings immediate cost savings and increases profitability.20% saving in energy consumption – easily achieved by many businesses – can have the same positive effect as a 5% increase in sales
• Water bills and effluent costs will be reduced.

Extra benefit to your business:

• Ineffective use of resources generates unnecessary waste which must be disposed of.
• Extra benefit to your business:
• You will boost your commercial reputation.
• By ‘thinking green’ your business will become more attractive to customers.
• More and more investors also favor ‘sustainable’ companies or organizations.
• You will be ready for the legislative challenges of the future.

Marketing with a cause

What’s the point?

You CAN build better relationships with your customers and employees by supporting a social cause. Improve reputation by supporting a good social cause.

Why?

• Giving relevant skills or time can contribute to real social change.
• You can choose a social cause that is relevant to your business or sector.
• Encouraging your customers and suppliers to work with you gives a new dimension to your relationships.
• Developing a cause-related marketing programme to help others can boost your bottom line.

Extra benefit to your business:

• Supporting a good social cause is motivational for staff at all levels.
• By seeking mutual benefit you can boost your staff development programme.
• You can help increase sales and customer loyalty.

Minimizing waste

What’s the point?

You CAN increase your profits by reducing your waste and seeking opportunities to recycle waste materials. Profit from cutting waste and recycling.

Why?

• By making the best use of raw materials you will improve efficiency and reduce waste.
• By cutting the use of consumables like paper you can save money.
• Recycling reduces disposal costs, and in some instances, it can generate income.
• You can reduce your annual landfill tax payments.

Extra benefit to your business:

• You will boost your business reputation.
• Your business will be more attractive to customers who also ‘think green’.
• You can gain support and commitment from employees.
• You can meet the needs of a wider range of customers as larger companies insist on environmental management by their suppliers.

Diversity

What’s the point?

You CAN achieve good practice in your business and improve performance by learning from the experiences of other similar organisations.

Why?

• By helping people gain skills they will increase their strengths and contribution
• You will encourage them to work ‘smarter’ and more cost-effectively
• Staff can be encouraged to share their learning with others

Extra benefit to your business:

• Staff will be more motivated knowing that you are interested in their careers
• Employees will not want to leave and high calibre people will want to work for you
• Customers will be attracted to you because they will see you are committed to quality
• It will be easier to manage change commitment.
  

Volunteering

What’s the point?

• Set up an employee volunteering scheme

Extra benefit to your business:

• Employees value the company more if they enjoy your interest and support.
• More people and organisations will know about your company.
• You will attract and keep staff that is committed and enthusiastic.
• Staff development will be low cost to you and integrated with community benefits.
  Sharing good practices
• Improve your business by learning and sharing with others

Know the Law

Whats the point?

You CAN improve management and minimise risk by making sure you are up to date with any laws that affect your company.

Why?

• By complying with existing law fully you’ll be quick to adapt to new regulations because you’ll be able to see what’s coming.
• Being one step ahead means you won’t find out about new responsibilities from your customers or staff or at moments of crisis.
• Investing in staff training and having someone keeping up with developments will help make sure you can make changes quickly.

Extra benefit to your business:

• You reduce the risk of time consuming legal challenge or costly fines or penalties.
• You can plan and budget for investments to meet legal requirements – you won’t face heavy one-off costs at the last minute.
• A reputation for proper working and sales practices will attract customers and staff.

Sharing good practices

What’s the point?

You CAN achieve good practice in your business and improve performance by learning from the experiences of other similar organisations. Improve your business by learning and sharing with others.

Why?

• Other companies have been on the journey you are on and are willing to share their experience and success.
• There are many good practice models and the odds are that following some of their principles could help you achieve your business objectives.
• You can help other companies on their own journeys when you share your experience with them

Extra benefit to your business:

• Other companies’ good practice standards are a shortcut to developing your own.
• Some of the organisations creating standards or endorsing good practice have business networks where you can meet and learn from others.
• Promoting your own good practice can improve your reputation and help to secure customers.