Good trade practices
A guide for businesses operating in the retail sector.
Good trade practices should accompany retailers in offering and selling goods and services to consumers, in concluding agreements and contracts, in ordering and purchasing from suppliers, and so on. Retailers increasingly need to build and maintain a positive image in the eyes of consumers, partners, competitors and society at large, because this is what their success depends on. Consistent regard for good practices is the foundation of a retailer's long-term work.
The authors of this guide are convinced that this Good Trade Practice guide will be a helpful tool for every retailer.
The Good Trade Practice guide for businesses operating in retail contains two documents — codes of conduct: one for retailer–consumer interaction and one for retailer–supplier interaction.
While in other countries codes of conduct are not typically combined into a single document, the working group set up by the Estonian Merchants' Association takes the view that the activities of a retail merchant involve both consumers and suppliers, and that to achieve the best results the merchant must take account of good practices in a comprehensive way.
The Good Trade Practice guide was prepared with the support of the Ministry of Economic Affairs and Communications.
Basic principles of trade
The Merchants' Association's Good Trade Practice was adopted by the General Meeting of the Merchants' Association on 7 October 1998 and updated on 31 January 2008, with the aim of articulating the principles that members of the Merchants' Association follow in their activities and that establish the basis for mutual understanding between trade companies, fair and free competition, ethical conduct in business relations, and the safeguarding of the good reputation of the trade sector. That document has been one of the foundations for drawing up the Good Trade Practice guide.
The Merchants' Association expects that every trade company operating in Estonia follows the principles set out below, adherence to which is the key prerequisite for admission to the Association.
Regulation of trade-company activities
In organising their activities, trade companies act in accordance with statutes, other legislation, the trade company's internal rules and the contracts concluded by the trade company. Trade companies do everything possible to ensure that, within the scope of their duties, their employees are aware of the acts and documents referred to above.
Communication between trade companies
In their business relations, trade companies follow the principles of correctness, honesty and mutual respect. This means that companies fulfil the obligations arising from the written or oral agreements they have concluded and refrain from expressing any opinion or information that could lead third parties to draw unwarranted negative conclusions.
Business conflicts between members of the Estonian Merchants' Association are always sought to be resolved through negotiation.
Competition between trade companies
Trade companies adhere to the principle of fair competition in their business relations. In outpacing competitors, increasing their market share and winning new customers, trade companies use only lawful and ethically acceptable means.
In the media and in commercial advertising, trade companies disclose only truthful information and do not disparage competitors.
Trade companies do not change the prices of goods and services on the basis of agreements between themselves.
The quality of the goods sold and the services provided by trade companies
Trade companies disclose only truthful information about their goods and services.
At trade companies' points of sale, the availability of accurate information about the prices, characteristics and use of the goods and services on offer is ensured.
Trade companies have, in line with the company's needs, drawn up and approved internal procedural rules, statutes for organisational units and job descriptions that ensure the quality of goods and services and their alignment with customer expectations.
Trade companies have established procedural rules for handling customer complaints, and all employees involved in customer service are aware of these rules.
A trade company's relations with customers
The relationship between the customer and the trade company is based on mutual honesty, respect and trust.
Trade companies are customer-centric in their activities. The staff of trade companies are oriented toward ensuring and increasing customer satisfaction and toward generating and maintaining customer loyalty.
The customer-service staff of trade companies are competent to provide customers with the consultations they request about the company's goods and services. This means that the customer-service staff of trade companies have received the necessary training, covering knowledge of goods and services, the basic rules of good service, knowledge of safety requirements, and other technical skills and knowledge needed to work in the relevant role.
Trade-company staff must not, by their actions or inaction, directly or indirectly compromise the trust between the customer and the trade company.
Trade-company staff
Trade-company staff have completed professional training that gives them the knowledge and skills required by the applicable occupational standard and by the requirements set out in legislation. Both in hiring and in promoting an employee, the merchant proceeds from how the employee's skills, knowledge and personal qualities match the occupational standard and the rules established by the merchant.
The staff of trade companies are oriented toward ensuring and increasing customer satisfaction and toward generating and maintaining customer loyalty.
Trade companies do everything possible to ensure employee satisfaction with the working environment and the motivation system. Every employee is an individual who needs recognition, training and suitable workwear.
Persons working in a trade company must not accept gifts in material or monetary form that could, under law or ethical norms, be regarded as corruption.
