The "Vendors Code of Ethics", as published by NAFCA

 Among the qualities that make NAFCA unique and valuable are the “rules of the road” that NAFCA members agree to abide by. In a previous post I went through the Consumer Bill of Rights published by NAFCA. This post is an analysis of the Vendors Code of Ethics, designed to protect consumers and contractors from unscrupulous business practices.

All vendors agree to the following:

1. I agree to follow the “Country of Origin” laws for my products.

2. I agree to carry product liability insurance for my product in any country that I sell my product in.
3. I agree to honor intellectual properties or patents of other companies.
4. I agree to be fair in all negotiations.
5. I agree to recognize and correct any defects in any product I produce.
6. I agree to promote the North American Fence Contractors Association.
7. I agree to deliver any goods promised.
8. I agree to allow inspections of my place of business.
9. I agree to allow any of my products to be tested for quality and quantity.

Regarding #1. There are many issues that play into the “Country of Origin” debate. Some of them play into other points in this list. The fact is, the United States government has set laws and rules regarding the importation of goods into the U.S. NAFCA vendors agree to abide by the law of the land.

#2. As a consumer or contractor, I want this protection. If there is monetary loss, or injury or death attributable to inferior product or workmanship, the courts will be used as a remedy to the injured party. Typically, in the absence of product liability insurance, the person with the deepest pockets ends up paying the bulk of the damages. In reference to #1, manufacturers who export to the U.S. often forgo liability insurance to save money, and avoid underwriters demanding better quality. While this results in lower prices to the contractor, the liability then shifts to the contractor.

#3. Counterfeit goods lower the value of all similar goods. If I make the finest quality patented fork, and someone copies it and sells it for less, it drives down the price I can charge for my fork, which, in turn, gives me incentive to lower my quality so I can compete on price. There are laws against stealing intellectual property and infringing on patents. NAFCA member vendors agree to abide by those laws.

#4. This requires little explanation. Open communication and honest dealing are the goal.

#5. Another principle of sound business. It does no one any good to have their name attached to faulty or defective goods, and NAFCA members look at defects as an opportunity for improvement.

#6. In order to help others in the fence industry prosper, NAFCA members are always looking for new contractors who can benefit from being a NAFCA member.

#7. A no-brainer. Anything less is theft.

#8 Transparency is the goal here. NAFCA members are proud of their businesses and agree to inspections for the purpose of holding one another accountable.

#9. A must for honest and fair dealing, counts and quality must be monitored. In the event of a discrepancy or complaint, vendors have the opportunity to apply #5 here and remedy the fault.

The point behind having a Vendors Code of Ethics is to hold up the trust relationship that must exist for business to grow, and allow accountability to standards agreed upon from the start. By agreeing to a published standard, vendors are affirming their belief in and support for sound business practices that are designed to ensure fair and honest treatment for all parties.