What is a Trade Association

These are associations formed by membership of companies that are working in the same area of industry. These companies benefit from trade association with respect to promote common areas of interest, improvements if any in the areas of quality and safety standards, technical improvements etc. These things can take place by appropriate means like publishing the guidelines to be followed, codes of principles documentation of technical standards etc so that all the companies may follow these procedures.

This trade association can have regular meetings and seminars by inviting companies who are members of the association. This helps the member companies to update and take home information to improve their business. This also facilitates a forum for discussion of various issues and how to bring about new trends in the industry. Thus it provides a platform for bringing all the members in getting new trends to improve business.

Membership to such trade associations are generally given only to organizations that are dynamic in the related industry type. Usually it is accepted by application and perusal of the same along with a nominal process fees. Since trade associations are non profitable group the process fees collected is used for the running of the association. Membership to renowned trade association is definitely a plus point to any organization. Since the other comes to know the definite area in which the company is operating.

Trade associations operate very strictly when it comes to its operation. They formulate an internal policy and procedure that needs to be followed by the member companies. Generally the trade associations have committees which comprises of experts selected from the member companies itself.   The company that is highly specialized will head the trade association followed by others.

Let’s see what the objectives of trade associations are.

  • In order to provide a forum or meeting place for the members to represent themselves.
  • It helps in developing general opinions on certain issues.
  • It facilitates in taking forward these opinions to relevant authorities.

A good trade association is one that:

  • Frequently checks the members work and gets opinion from its customers.
  • Helps in having a proper channel for lodging complaints
  • It also should take a look at that the member companies are following the written procedures.
  • If the procedures are not followed the association should also have proper set rules to expel them from the association.
  • It has to check the companies that come for registration, for example check their previous work and their records in the industry.
  •  Periodically check whether the members are following the code of conduct.

There are other trade associations also who do not follow all these; hence they may allow any company to join them. But these companies may not get the required help when a problem arises. Hence the companies that wish to join trade associations should check whether they are registered as per government rules and regulations.   

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