Importance of CFBP

The CFBP is the brainchild of several leading industrialists who recognized the imperative need for business and industry to regulate itself:

The relevance of the CFBP could not be greater than it is today, especially in the prevailing climate in the country. Indeed, it was a crucial time to reiterate the importance of fair business practices. This is not because an attempt at fair business practices had become the norm but because there was a more pragmatic and immediate reason. The perception of being well governed, fair and ethical has become a definite differentiator in increasing public confidence and trust.

Many companies are lagging behind in their ability to deal with consumers and have tended to take consumers for granted or misuse situations to get as much as they can out of them. There is a need for a greater consciousness to ensure happy, long term relationships with customers.

Companies have realized that service has become a key differentiator and that, irrespective of how good a product is, service after a sale makes the difference between good or adverse word-of-mouth publicity. As a result, service levels have consequently increased. Consumers have also become more demanding because competition has increased and have sought to make companies accountable for lapses in service and performance. Resolution of disputes between consumers and companies has become more crucial today.

The way companies deal with policy makers has come under scrutiny too. While it is the job of individual companies or company associations to push for policies or funding that is good for their respective industries, how much they push and how far they should go has been questioned as it has led to some serious problems. To speak and convince or show data is good but often companies have gone beyond and tried to influence policy by pushing, bending and ultimately breaking the rules.

In the past, board meetings were a time to have a cup of tea, chat and see a presentation, with not too many questions being asked. Today board meetings are more serious affairs with presentations not just by the CEO but other team members. Investors read all the documents and ask difficult questions on every issue including policies, compliance and what the company has done for society. Companies with good governance have been rewarded as the market recognized that they were going to be successful in the long run and invested in them.In the light of the above, it is imperative that the movement of fair business practices and safeguarding of consumer rights should be given even greater impetus.