In most countries, protection of rights, extending business opportunities, and community developments are the major concerns of a trade association. The Chambers of commerce is the globally known association of traders. Trade associations are non-profit-making organizations that particularly voice the demands and complaints of the traders to the public and protect the members against infringement of their legal rights. Members of a trade association work together to serve the common interests within the domain of business operation.
Apart from safeguarding their vested interests, such associations encourage collaboration with the companies and focus on the standardization of their industry. Trade associations take part in public relation activities such as advertising, lobbying, publishing, political donations, and education. Trade associations depend on the type of products, nature of business, and geographical locations. Such associations may be functional at the regional, national, or even international level. Corporates, industries, or the government can provide them with the financial and infrastructural resources required. The associations mainly deal with tax rates and policies, infrastructural setups, proper implementation of labor laws, import-export issues, unhealthy competition, and the development of business opportunities within a particular periphery of trade, commerce, and industry. Even in determining sales, output, and technology, such bodies play a major role.
Non-profit motive – Workersâ€™ associations work purely without any commercial motive and are born to serve traders and workers.
Voluntary Nature – Any corporate organization of a similar nature of the business can join and exit an association at any point in time.
Name – Such associations are named after products or services provided by the business houses who are their members.
Non-interference – Employersâ€™ associations or trade associations provide complete liberty to their members regarding their policies and programs. There is no interference in matters of business.
Mission – It is a platform to discuss, exchange, and exercise the rights and privileges of the workers. It is a corporate body that is formed primarily to stand for the workers and put forth their complaints, and provide them relief from the deadly clutches of the employers.
Promoting business through leveraging demands and executing labor legislative laws.
Training and educating members for effective participation in their business affairs.
To curtail unnecessary and unfair competition.
To keep members updated with the necessary market information such as changes in demands, preference patterns, price fluctuations, consumersâ€™ expectations, and market opportunities to exist and expand.
To ensure coordination and cooperation among members.
To settle disputes among members and determine a code of ethics to maintain a peaceful and ethical business ambiance.
To act as a liaison between the government and traders to ensure fast redressal of grievances.
To conduct seminars and conferences to discuss international business, budget, and new legislation.
To conduct research and advertisements to promote business.
Trade associations protect and promote the interests of their members. Issues pertaining to infrastructural development, channelization of sales, output, price determination, high input costs, cheap imports, wages are addressed by them and forwarded to the government for early and effective redressal.
Trade associations are reliable platforms for free interaction among the members. In this forum, they can discuss matters of common interest, share knowledge of business, talk about the adoption of various policies of standardization, implementation of the latest technology, etc. Such discussions among members develop a cordial relationship among them, which helps in a healthy and conducive business environment.
They involve in the innovation and development of technology and strategy of individual business firms. Hence firms do not have to spend their resource to undertake such experimentations. Their fruits of research are of high value to their members.
They may sponsor delegates to understand the potentiality and profitability of the business.
They act as an instrument in squaring up any differences, disputes, and litigations among the members.
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