Chamber of commerce
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A chamber of commerce (also referred to in some circles as a board of trade) is a form of business network. Business owners in towns and cities form these local societies to advocate on behalf of the business community. Local businesses are members, and they elect an board of directors or executive council to set policy for the chamber. The board or council then hires a President, CEO or Executive Director to run the organization.
Generally, chambers of commerce serve the following purposes:
- Creating a Strong Local Economy
- Promoting the Community
- Providing Networking Opportunities
- Speaking with Government on behalf of Business
- Political Action, such as getting pro-business candidates elected to office
In some areas, Chambers may serve other purposes, such as arbitrating disputes between business or serving as a "Better Business Bureau," but this is not generally the case.
The first chambers of commerce were founded in 1599 in continental Europe (Marseille, France and Brugge, Belgium). The world's oldest English-speaking chamber of commerce is that of Glasgow, Scotland, that was established in 1783.
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[edit] Characteristics
Membership in an individual chamber in an area can range from a few dozen to well over 300,000 (as is the case with the Paris Chamber of Commerce and Industry). Some chamber organizations in China report even larger membership numbers. Chambers of commerce can range in size from a single city or town chamber, to a county chamber, to a regional chamber, up to an international chamber of commerce.
Chambers do not operate in the same manner as the Better Business Bureau in that, while the BBB has the authority to bind its members under a formal operations doctrine (and, thus, can remove them if complaints arise regarding their services), the local chamber membership is strictly voluntary. In addition, Chambers represent the interests of all businesses, while the BBB represents the interests of the general public.
Chambers of commerce also can include economic development corporations or groups (though the latter can sometimes be a formal branch of a local government, the groups work together and may in some cases share office facilities) as well as tourism and visitors bureaus.
Some chambers have joined state, national, and even international bodies (such as EUROCHAMBRES, the International Chamber of Commerce (ICC) and Worldchambers). In the majority of countries, the use of the term "chamber of commerce" is regulated by federal law, though this is not the case in the US. Currently, there are about 13,000 chambers registered in the official Worldchambers Network registry, and the chamber of commerce network is the largest business network globally.
[edit] Chamber models
There are basically two chamber business membership models worldwide, 'compulsory / public law' or 'continental / private law'.
[edit] Compulsory/Public law chambers
Under the compulsory or public law model, companies of a certain areas are obliged to become members of the chamber. This model is common in European Union countries (France, Germany, Italy, Spain). The main tasks of the chamber are foreign trade promotion, training, and general services to companies. The chambers also have a consultive function; this means the chambers must be consulted whenever a new law related to industry or commerce is proposed.
[edit] Continental/Private law chambers
Under the private model, which exists in English-speaking countries like USA, Canada or the UK, companies are not obligated to become chamber members. However, companies often become members to develop their business contacts and, regarding the local chambers (the most common level of organization), to demonstrate a commitment to the local economy. Though governments are not required to consult chambers on proposed laws, the chambers are often contacted given their local influence and membership numbers.
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