The Rotary Balita no. 780 (September 15, 1955)

This is a specimen code of standards of correct practice which is a composite of actual sections from existing codes, for the Rotarian and his Trade Association.

Preamble:
The proprietor, manager or executive authority
(Excerpts from the standards of correct practice of the NATIONAL RESTAURANT ASSOCIATION)
Since the actualization of correct standardization of business practices depends solely on the person in executive control, this section deals with certain essential factors deemed necessary in making this code effective in the Restaurant Industry.
1. The head of the business, be he proprietor, manager or executive officer (if it be a corporation), shall study and learn the standards here set forth and shall instruct all employees as to the standards of correct practices governing their activities in the operation of the business.
2. He shall see that the Code of Business Practices of the National Restaurant Association is made available to all new employees, particularly apprentices.
3. He shall make periodic examinations of every department of the business to ascertain whether the Standards of the National Restaurant Association are faithfully carried out by his associate junior executives and all other employees.
4. He shall consider his business an honorable occupation affording him a distinct opportunity to serve his fellowmen.
5. He shall so conduct his business that his practices will add honor to the entire restaurant industry.
6. He shall keep informed on new and progressive restaurant ideas through subscription to leading restaurant magazines.
7. He shall cooperate actively with others in aiding the advancement of the restaurant industry as a whole.

SECTION 1. Rules of conduct governing the relation of the employer with the employees.
(Excerpts from the standards of correct practice of the NATIONAL RESTAURANT ASSOCIATION)
Employers shall not advocate, or aid and assist others, in any movement which seeks as its object any other than square dealings with employees.
1. The employer shall study and analyze all matters affecting his employees, so that, through the information and exact knowledge so gained, he may deal equitably and impartially in making and keeping them efficient, well, happy, contented and satisfied.
2. The employer shall educate his employees in the technical and practical phases of the restaurant business.
3. The employer shall study and know the individual abilities of his employees, so that he may place them in the positions for which they are best fitted, and justly promote them as opportunity offers. All promotions or advancements shall be made solely on the basis of merit.
4. The employer shall study the interests of boys and apprentices and spare no reasonable effort to make them finished workmen and good 100 percent American citizens.
5. Employees have an inalienable right to take up all questions arising as to hours, wages, conditions or grievances with department heads, with privilege of presenting facts on which an agreement can be made to employer direct.

Wages and hours

6. A fair wage for a fair day's work shall be the governing thought in arriving at the rate of pay for all employees, having also due regard for general living conditions, appropriate recreational activities, probable savings and the service rendered.
7. Wages, hours, etc., cannot be uniform in the restaurant business, but shall be adjusted separately for each type of work-cooks, waiters, mechanical help, etc. Straight hour shifts shall be the aim, but on account of the three peak loads at breakfast, lunch and dinner, requiring the entire force of employees, the split watch can never be absolutely eliminated. Employees on split hours shall be rotated.
8. The employer shall give his employees appropriate vacations with pay, based on length of
service.
9. The employer shall not criticize employees, or try to belittle them before guests or fellow employees.
10. The employer shall express appreciation for work which represents the wholehearted interest of his employees.
11. The employer shall not require payment of arbitrary fines and penalties, exorbitant prices for uniforms or appurtenances, and shall prohibit employees from making payments to other employees for services or advantages which are their natural right.

Working conditions

12. The employer shall provide healthful surroundings, both physical and moral.
13. The employer shall provide his employees with sanitary conveniences of which the descriptive adjective "sanitary" is not a misnomer and the noun "conveniences" is not a joke. The arrangement for sanitary conveniences shall provide separate rooms for male and female, white and colored.
14. The employer shall provide proper and practical safety devices and safety methods for the prevention of accidents.
15. The employer shall provide labor-saving devices to lessen the drudgery in the restaurant business.

SECTION 2. Rules of conduct governing the craftsman's relations with those from whom he makes purchases.
(Excerpts from The Code of Ethics of the NATIONAL ASSOCIATION OF HAT MANUFACTURERS)

We accept the principle that those from whom we buy are rendering to us a service, and through us, a service to the entire community.
Our members shall render every courtesy to salesmen or representatives desiring to sell a commodity or a service in which the member is interested.
They shall, if they make rules as to the time and place of seeing salesmen, observe such rules as carefully as they expect salesmen to observe them.
They shall keep appointments with salesmen and facilitate the conduct of their business so as to avoid needlessly wasting the salesmen's time.
They shall observe truth and honesty in all their interviews with salesmen, and make no misleading statements in an effort to secure lower prices.
They shall not reveal prices quoted to them without the consent of the one making the quotation.
They shall, if quotations are sought under given conditions, and later if it is found advisable to change the conditions of purchase, give to all salesmen who have made quotations an equal opportunity to change their quotations in accordance with the changed conditions, if the latter so desire.

Terms and discounts

They shall fix terms of payment and place of delivery by mutual consent at the time of purchase, and will carry out the letter and spirit of these terms.
They shall take only those discounts which are provided for at the time of purchase, and only when
payment is made within the discount time limits specified. When they request extensions which are granted without interest being charged therefor, they shall not take discount for anticipation of payment.
They shall not attempt to make an arbitrary adjustment or settlement of differences not in accordance with written or verbal agreement made.
They shall not attempt to obtain redress in adjustment by threat to discontinue business relations.
They shall vigorously discourage the misbranding of the merchandise they buy.
Neither they nor their employees acting as pur. chasing agents shall accept any gratuity, commission or unethical indirect profit for their personal gain in connection with purchases they may make.
They shall be willing at all times, through an efficient but disinterested medium, to arbitrate any difference arising between themselves and those from whom they buy.

SECTION 3. Rules of conduct governing the craftsman's relations with his fellow craftsmen.
(Excerpts from the Code of Standards of Correct Practice of the NATIONAL ASSOCIATION OF AMUSEMENT PARKS)

The following rules of conduct are provided to promote fair and equitable competition, to establish and maintain intimate, cordial and friendly relations and to advance the amusement industry, through cooperation for the benefit of each and all.
The members shall actively support their National Association, enter heartily into all of its. activities, and strive to actualize its objects and purposes. They shall maintain cordial, friendly and helpful relations with one another. They shall endeavor by example to lead others, both within and without the association, to higher ideals of business conduct, and to more satisfying service to the public.
The members shall abstain from making false or disparaging statements or circulating harmful rumors concerning another's business, personal, or financial standing.
The members shall welcome an inspection of their properties by their fellow amusement men, assist them with suggestions, plans, costs and receipt figures insofar as is reasonable, so that all may attain greater operating efficiency and reduction of costs.

Playing fair with competitors

The members shall abstain from simulating the new idea of another, whether it be protected by patent or not, without the consent of the originator, and shall proffer to others similar consent for the use of their helpful original ideas where the use will not be directly harmful to their own business.
The members shall seek to further the success of a fellow amusement man by recommending to him not only good devices, but good employees and good concessionaires.
No member shall directly or indirectly offer a license or employment to a concessionaire or employee of another without first consulting the present licensee or employer.
Where two or more competitive enterprises are located in the same community, great good and no harm can be done by even a closer spirit of cooperative harmony than when a distance intervenes. Such cooperation may be exemplified by combining advertising and publicity campaigns, by conferring on the use of directly competitive concessions, by assisting each other in protecting business from unfair discrimination by legal enactments, transportation lines, etc.

SECTION 4. Rules of conduct governing the craftsman's relations with professional men whose professions are interlocked with the craft.
(Excerpts from the Code of Ethics of the NATIONAL ASSOCIATION OF RETAIL DRUGGISTS)

(The Pharmacists use the word "should" in expressing their rules of conduct. Most Codes adopted during the last five years use the word "shall," as being more forceful.)
The Pharmacist, even when urgently requested so to do, should always refuse to prescribe or attempt diagnosis. He should, under such circumstances, refer applicants for medical aid to a reputable, legally qualified physician. In cases of extreme emergency, as in accident or sudden illness on the street, in which persons are brought to him pending the arrival of a physician, such prompt action should be taken to prevent suffering as is dictated by humanitarian impulses and guided by scientific knowledge and common sense.
The Pharmacist should not under any circumstances substitute one article for another or one make of an article for another in a prescription, without the consent of the physician who wrote it. No change should be made in a physician's prescription except such as is essentially warranted by correct pharmaceutical procedure, nor any that will interfere with the obvious intent of the prescriber, as regards therapeutic action.

Follow directions explicitly
He should follow the physician's directions explicitly in the matter of refilling prescriptions, copying the formula upon the label or giving a copy of the prescription to the patient. He should not add any extra directions or caution or poison labels without due regard for the wishes of the prescriber, providing the safety of the patient is not jeopardized.
Whenever there is doubt as to the interpretation of the physician's prescription or directions, he should invariably confer with the physician in order to avoid a possible mistake or an unpleasant situation.
He should never discuss the therapeutic effect of a physician's prescription with a patron nor disclose details of composition which the physician has withheld, suggesting to the patient that such details can be properly discussed with the prescriber only.
Where an obvious error or omission in a prescription is detected by the pharmacist, he should protect the interests of his patron and also the reputation of the physician by conferring confidentially upon the subject, using the utmost caution and delicacy in handling such an important matter.

SECTION 5. Rules of conduct covering the craftsman's relations with the general public and with the government.
(Excerpts from the Code of Ethics of the INTERNATIONAL ASSOCIATION OF GARMENT MANUFACTURERS)

It is an improper practice to engage in any movement which is obviously contrary to law or public welfare.
The manufacturer shall have a lively interest in all that relates to the civic welfare of his community, and to join and support the local civic and commercial associations. He should participate in those movements for public betterment in which his special training, knowledge and experience qualify him to act.
The manufacturer should welcome every opportunity to disseminate practical and useful information relative to the Garment business in order to provide the public with a correct understanding of this industry, and also to refute untrue, unfair, or exaggerated statements regarding the industry, appearing in the public press or elsewhere.
The manufacturer shall inform himself on the provision and decision in regard to all tax matters so that his report will comply with both the letter and spirit of the law, and be found correct by Government inspectors.
The manufacturer owes it to himself and to the industry as a whole to be informed concerning the local, state, and national laws regarding the Garment manufacturing business, and shall always cooperate with the proper authorities in the enforcement of such existing laws.
The manufacturer shall also interest himself in all proposed legislation affecting the clothing industry, study its provisions, justice and fairness, and take measures in connection with others to see that the best interest and welfare of the industry is safeguarded.

SECTION 6. Rules of conduct governing the craftsman's relations with his customers or clients.
(Excerpts from the Code of Motor Trading Ethics of the BRITISH INSTITUTE OF MOTOR TRADERS)

Garage owners shall create confidence with the object of purchasing public by deserving it. The rules of conduct under this article is to make satisfied customers. The customer should be educated in the matter of economical running of his vehicle; be told of useful tools and accessories; and his safety at all times be guarded in every possible manner.
The garage owner shall have an orderly and inviting place of business. It shall be kept clean and absolutely sanitary. It shall be open for service to the public at all reasonable hours, depending upon its situation and local demands.
It is unethical to refuse service to any motorist owing to matters of personal convenience. Calls for help should be answered quickly. It is nevertheless quite proper for the garage owner to ensure that payment for the service will be forthcoming before answering such a call.
Garage owners shall take advantage of no man's ignorance, and shall see that employees are truthful and straightforward, and that they do not misrepresent or overcharge the confiding. Treat the keen and confiding buyer alike.
Those who come into contact with the buying public shall not be mere ordertakers. They shall offer suggestions and the benefit of their experience to customers, so that sales will be made wisely.
One price for all There shall be one price for all. The price fixed by the manufacturer and controlled by him shall not be deviated from in the slightest, either directly or by subterfuge. In the case of nonprotected articles or goods, the garage owner shall fix his own price, governed by buying conditions and overhead charges, and when that price is fixed, it shall not be varied according to the paying probabilities of the customer.
The garage owner shall not take unfair advantage of purchasers in times of great demand, short supplies, or other emergencies.
Equal, courteous, polite, attentive service shall be given to all customers, whether they are large or small purchasers. When tipping is customary, the garage owner shall see that non-tipping customers receive the same courteous, polite, attentive service as those who do tip.
The garage owner shall adopt some rational and efficient cost system so that he may secure a just and fair percentage for all business done. In figuring the cost, he must not only include labor and materials, but also the proportionate cost of wear and tear of plant and equipment, interest on capital or borrowed money, and all other expenses which arise out of the operation of the business.
The custom of giving out-of-the-ordinary service, or giving extra without charge, is not good practice. A fair remuneration shall be charged for such transactions.
In the matter of customers' complaints, the garage owner shall freely admit errors, make adjustments cheerfully, and give the customer the benefit of the doubt.

Accurate representation

The display of articles which differ from those actually on sale is unethical.
The garage owner shall be accurate in his written or oral words, whether they be in letters, part of sales talk, or general conversation with patrons and others. Accuracy is not only the absence of actual misstatement, but also the presence of any facts which will prevent the hearer or reader taking a wrong inference or making an incorrect deduction.
Any willful misrepresentation as to market conditions or supply, to create a demand or justify prices charged, is unethical.
Advertisements which are false, or which have a tendency to mislead, or which do not convey the whole truth, or which do not conform to business integrity, are unethical. The garage owner should not advertise in an undignified or ultra-sensational manner.
The giving of prizes, premiums, souvenirs, or any other gifts as an inducement to trade is unwise. It lowers the standing of the business. Sales should be made on the basis of quality, intrinsic value, and service.

SECTION 7. Rules of conduct governing the making and executing of contracts.
(Excerpts from the Code of Ethics of the ASSOCIATED KNIT UNDERWEAR MANUFACTURERS OF AMERICA)

Contracts shall be made so that all of the parties to the contract shall be mutually benefited.
A contract shall be simple in offer and acceptance, sufficiently formal to be valid, with the consideration concisely expressed and an object unquestionably legal. It should avoid obscure language and the so-called "joker" clauses.
The terms of the contract shall be carried out according to the spirit as well as the letter of the agreement.
The word-of-mouth contract is as valid as the written contract, and must be faithfully carried out.
Members shall always uphold the honor and integrity of their industry by faithful performance of all of the provisions of the contracts, both written and verbal, which they make, or which are made by authorized agents in their employ.
It is unethical to cover possible oversight or errors in either contracts or specifications by indefinite clause or clauses which are capable of two interpretations.

SECTION 8. Wrong practices.
(Excerpts from the Trade Practice Rules for the PISTON RING INDUSTRY)

The practice of coercing the purchase of one or more products as a prerequisite to the purchase of one or more other products, where the effect may be to substantially lessen competition or tend to create a monopoly or to unreasonably restrain trade, is an unfair trade practice.
It is an unfair trade practice for any member of the industry to purchase or otherwise acquire from a distributor or dealer the stock of a competitor or competitors of such industry member, to make loans to a distributor or dealer, or to guarantee a distributor or dealer increased profits as compared with profits previously obtained in the handling of competitive products, when such acts or practices are done:
(1) upon any express or implied condition, agreement, or understanding, that the distributor or dealer will discontinue handling competitive products and will handle such member's products exclusively; or
(2) as an inducement to the distributor or dealer to discontinue handling competitive products and to handle such member's products exclusively, and where the effect of such acts or practices may be to substantially lessen competition, or tend to create a monopoly, or to unreasonably restrain trade.

Commercial Bribery

It is an unfair trade practice for a member of the industry, directly or indirectly, to give, or offer to give, or permit or cause to be given, money or anything of value, whether in the guise of premiums or otherwise, to agents, employees, or representatives of customers or prospective customers, or to agents, employees, or representatives of competitors' customers or prospective customers, without the knowledge of their employers or principals, as an inducement to influence their employers or principals to purchase or contract to purchase piston rings manufactured or sold by such industry member or the maker of such gift or offer, or to influence such employers or principals to refrain from dealing in the piston rings of competitors or from dealing or contracting to deal with competitors.

Selling Below Cost

The practice of selling piston rings below the seller's cost with the intent and with the effect of injuring a competitor and where the effect may be substantially to lessen competition or tend to create a monopoly or unreasonably restrain trade is an unfair trade practice. All elements recognized by good accounting practice as proper elements of such cost shall be included in determining cost under this rule. The costs, however, which are referred to in the rule, are actual costs of the respective seller and not some other figure or average costs in the industry determined by an industry cost survey or otherwise.

CONCLUDING SECTION—General provisions respecting the code and the obligation to observe it.

(Excerpts from the Code of Ethics of the NATIONAL WHOLESALE MEN'S FURNISHINGS ASSOCIATION)

Members of the National Wholesale Men's Furnishings Association, shall at all times seek to elevate the standards of the furnishings and hat industries by practicing the high standards that are set forth in this code, and in inspiring all other members of the industry to do likewise.
Each member who conducts his business so that his own honor will never be besmirched by his own act or omission will aid in maintaining the honor of the entire furnishings and hat industries.
The adoption of this Code by the National Wholesale Men's Furnishings Association places an obligation on all its members to sincere and faithful performance of the rules of conduct so set down.