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What is an industry code of practice and what are the aims of such codes?

An industrial code of practice is set of enforceable rules and regulation and standard measure which put in place of regulate the industrial conduct. Its main purpose is to improve industrial standard by providing low cost and flexible form of regulation and protect intended between business and customer.

Industrial codes of conduct are two types first one is mandatory which means compulsory enforceable which protect the consumer from the business and it is bound by code and the second one is voluntary code which is self-regulated code of practice and flexible.

The aims of these codes are:

  • Protect consumer from business and provide a safeguard.
  • Resolve consumer complaints.
  • Improve management and awareness regarding health & safety issue.
  • Improve the industry standard.
  • Providing customer benefit beyond the minimum standard.

Some examples of the Industry Code of Practice

The Motor Industry Code of Practice for New Cars was one of the first industry codes incorporated in any industry. This code was introduced in 2004 in the UK and almost 98.9% of cars were covered by this code. In 2009, the code was replaced by Motor Codes. The Code commits car manufacturers to deliver a high level of satisfaction as a principle element of their business.
The Motor Industry Code of Practice for Service and Repair is another code of practice in automobile industry of the UK.

Another example of industry code of practice is industry code of practice for dairy producers and purchasers, introduced in 2012.

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