Business and Marketing

What is an industry code of practice?

Industry Code of Practice

An industrial code of practice is a set of enforceable rules and regulations and standard measures put in place to regulate industrial conduct.

Its main purpose is to improve industrial standards by providing a low-cost and flexible form of regulation and protection intended between business and customer.

Code of practice is usually the result of voluntary collaborations between the Government, industry and the public sector. Code of practices is published in the same way as other laws and often contains a summary of the content of the code.

What is Covered Under the Industry Code of Practice?

Industry codes of practice cover areas like the safety of equipment, the working environment, or health and safety, and are developed by the Industry Codes of Practice Committee, established by a code of practice working party.

There are two types of industrial codes of conduct. The first is mandatory, which means compulsory and enforceable, which protects the consumer from the business and is bound by the code; the second is voluntary, which is a self-regulated and flexible code of practice.

The aims of these codes are:

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

The purpose of an industry code of practice is to inform the industry of the general principles they should follow to be a safe workplace. These general principles are called “best practises.”

An industry code of practice is the written document published by a specific industry as a guide to best practice, often setting out specific trade rules or providing advice to users. Industry codes of practice may not be legal requirements. However, they often form the basis for regulations or standards to ensure the safety or quality of products and services, and they serve to set the standards within an industry.

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 covers almost 98.9% of cars. In 2009, the code was replaced by Motor Codes. The Code commits car manufacturers to delivering a high level of satisfaction as a principal element of their business.
  • The Motor Industry Code of Practice for Service and Repair is another code of practice in the automobile industry of the UK.

Why is an industry code of practice important?

An industry code of practice is one of the best and easiest ways to inform employers, employees, and consumers about important and current legislation and industry standards. It is also a source of information for consumers of goods and services and for consumers of the government. Consumers of any organisation are very important.

An industry code of practice has been developed in order to give advice, guidance and direction to the industry, facilitate effective consultation and negotiation with the relevant Government and enable the industry to develop appropriate responses to relevant issues.

Anyone considering a decision about a particular activity or environmental issue should use an industry code of practice. It provides a means of ensuring consistency in the actions taken and the reasons for those actions.

How do industry codes of practice differ from codes of practice?

A Code of Practice is a document that outlines the general principles which a group of people use to make decisions and is typically adopted by a group of people in a particular industry. Codes of Practice are generally developed by committees of people who are representatives from the relevant industry. Codes of practice are generally issued by a governing body and can be developed by the government or industry.


A code of practice is a document or set of documents produced by an organisation in an industry or sector that aims to improve standards, raise awareness or make recommendations on a subject of common concern to that industry or sector.

In general, an industry code of practice applies to a particular industry or group of industries within which it is intended to operate, and which have a common set of interests. It is usually published in the industry’s own interest.

The code of practice aims to set out a common understanding for members to adopt to increase the integrity and reliability of their product/service and reduce incidents of non-compliance with legislation and good practice.

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