"Business Fair Play" Program

IPED′s activities also include promotion of Business Ethics and Corporate Governance. Since 1998, together with the Polish Chamber of Commerce, the "Business Fair Play" Certification Programme is organised. The purpose of the programme is to promote ethics in business activities, understood as a set of standards of behaviour in the mutual relations of entrepreneurs with business partners, customers, employees, and shareholders, as well as the local community, local government and state authorities. It also supports the development of companies by promoting reliable and fair businesses, operating in accordance with the law and ethical principles. Within the programme, a framework of over 600 companies is certified each year.

1. Objectives of the Programme
2. Criteria imposed on businesses participating in the programme
3. Verification procedure
4. Development of the Programme
5. Motives for accessing the programme and renewing participation in the subsequent years
6. Benefits for firms consequential to participation in the programme

1. Objectives of the Programme

In January 2008 the XIth edition of the programme started. The "Business Fair Play" certificates were awarded for the first time in 1998, though the idea of this programme has a long tradition. It refers to the competition for the members of chambers of commerce, the "Business Fair Play Award" announced in 1992 by the Polish Chamber of Commerce. Its completely new regulations, introduced by the "Institute for Private Enterprise and Democracy" Foundation of the Polish Chamber of Commerce, accepted a formula open to all enterprise sectors. The competition became a certification programme. Business support and promotion institutions, organisations of employers as well as clubs and associations of entrepreneurs throughout Poland - constituting the team of regional programme administrators - were invited to cooperate in the implementation of the programme.

The purpose of the programme is to promote ethics in business activities, understood as a set of standards of behaviour in the mutual relations of entrepreneurs with business partners, customers, employees, and shareholders, as well as the local community, local government and state authorities. It also supports the development of companies by promoting reliable and fair businesses, operating in accordance with the law and ethical principles.

In many voivodeships, honorary patronage is provided by the representatives of regional authorities.

2. Criteria to be met by businesses participating in the programme

The enterprises may participate in the programme, if they:

• have conducted business activities during the whole calendar year preceding the year in which the particular edition of the programme is taking place;
• are based in Poland;
• have submitted a written declaration on the accession to the programme within the specified deadline (up to May 31st, 2008 for the 11th edition).

The verification of a business takes into account such parameters as the ability to solve problems, adherence to deadlines for meeting liabilities, methods of providing services to customers and of cooperating with suppliers, recommendations of business partners, working conditions and human relations, care for the natural environment, charitable activities, etc.

The certificate is awarded to those firms which have proven appropriate relationships and reliability in their contacts with:

• customers
• suppliers and other business partners
• employees
• competitors
• state administration
• local community.

3. Verification procedure

A single edition of the programme lasts a full calendar year and is implemented in two stages. During the first stage, companies apply for their participation within the deadline provided in the regulations. Then, entrepreneurs receive a questionnaire to complete (companies which obtained a certificate in the previous edition fill in a simplified questionnaire), containing such questions as:

• Has the enterprise had arrears: in the repayment of credits towards banks, payment of liabilities to business partners, payment of employee wages, towards the Tax Administration, Social Insurance Institution (ZUS)?
• Have any court disputes been conducted (with customers, suppliers, employees and others)?
• Does the company participate actively in charitable campaigns or events?
• How does it motivate its employees?

Those and other questions are in a more detailed form in the questionnaire and the responses are awarded points. The documents are verified by Regional Commissions which are composed of representatives of voivodship offices, Marshal′s offices, banks, employers′ organisations, labour inspectors, labour offices, tax offices and the Social Insurance Institution (ZUS). The work of individual commissions is coordinated by Regional Administrators. The Regional Commissions prepare proposals of nominations for the second stage, which are eventually approved by the National Commission. An enterprise which receives a minimum of 72 points of on 100 possible is nominated to participate the second stage.

The second stage belongs to the organisers who verify the compliance of the information provided by the company with the reality during their visits. The audit visits to all companies participating in the second stage are conducted in cooperation with the regional administrators and representatives of the institutions mentioned above. Additionally, the participants′ recommendations attached to the documentation are also verified. A company may be disqualified from the participation in the programme on the basis of a justified protest of a competitor, a customer or an employee of the company. After each visit a report for the Presidium is prepared. The members of the Presidium make final decisions on the awarding of certificates, distinctions and special awards. The Presidium is composed of outstanding representatives of the Parliament, the state administration and government agencies, enterprises and non-governmental organizations.

The official announcement of the results takes place during a formal gala (usually in December). Firms which have met the above mentioned conditions receive the "Business Fair Play" certificates. The best of them receive main awards in the form of statuettes handed by one of the members of the Presidium. The firms which successfully completed the verification procedure in three subsequent editions of the programme are awarded a so-called Gold Certificate. Enterprises which have received the certificate in five, six, seven, eight, nine or ten subsequent editions shall receive a special award (respectively: Golden Statuette, Brown Laurel, Silver Laurel, Golden Laurel, Platinum Laurel, Platinum Statuette).

With regards to the interpretation of the provisions and requirements contained in the rules and regulations, decisions are made by the National Commission which also reserves itself the right to withdraw or suspend the right to use the "Business Fair Play" title if a company behaves in a manner unworthy of a reliable entrepreneur.

4. Development of the Programme

In January 2008 the 11th edition of the programme started. Each year the group of entrepreneurs wanting to confirm their own credibility is numerous. Over a period of nine years, 4016 certificates were awarded. Over 720 firms from all of Poland applied for the 9th edition. 653 firms received the certificate. The largest number of winners of the 9th edition came from, Silesia (15,8%), Wielkopolskie (15,3%) and Podkarpackie (11%) regions, however, taking into account the ratio of awarded companies to the number of enterprises registered in the particular voivodship - Podkarpackie is the leader. The winners of the programme are firms from the whole Poland, of various sizes and representing many different industries. Previously, the most of participants were involved in production or services for the construction industry. Firms - winners of the 9th edition - employed altogether over 120,000 workers and offered attractive wages. We observe that since the second edition (1998) the average wage offered by the winners exceeds the average gross monthly wage in the economy. Besides good financial conditions offered to their employees, Fair Play Enterprises allocate part of their profits to donations - for social goals, as well as for culture, education and sports. The 1999 - 2006 laureates provided almost 389 million zloty to various organisations and institutions. In the 9th edition the average donation per enterprise amounted to ca. 92,000 zloty.

5. Motives for acceding the programme and renewing participation in the subsequent years

During the direct meetings with representatives of the Fair Play Enterprises we ask about the motives for their participation in the programme. The most frequent answers are the following statements:

• Increasing the credibility of the company
• Obtaining an objective evaluation of the enterprise
• Promotion
• Integration of employees
• Facilitation of business contacts and negotiations.

By applying for a certificate, enterprises wish to obtain something which would distinguish them among other firms present in the market and attract the attention of customers, business partners as well as the media.

6. Benefits for firms from the participation in the programme

When organising the programme, we anticipated the benefits for its winners. The observations of the representatives of firms which have obtained the "Business Fair Play" certificate confirm our assumptions. The winners of the programme decided that the most important effects of the participation included:

• Obtaining of the reliability certificate
• Promotion (media, bulletins, CDs)
• Meetings with regional government and local self-government
• More trust from customers
• More trust from business partners (including banks, organisers of public tenders etc.)
• Verification of the relationships in the company by its managing board
• Integration of employees
• Special projects for programme winners only.

In our opinion, the presentation of a large number of reliable firms concentrated around the programme makes it possible to improve the image of Polish enterprises and encourage them to act ethically. Enterprises participating in the programme, by respecting ethical values in their everyday activities, perform well in the market. This confirms the thesis that ethics and business go well together. Companies which were awarded the title of "Business Fair Play" are at the same time ones which enjoy economic successes, develop well, invest both in modern equipment and in human capital. In the long-term strategy, the reliability and fair attitude helps the company to stay in the market and to develop.

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