Chamber of commerce
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A chamber of commerce, or board of trade, is a business network, a local organization of businesses whose goal is to further the interests of businesses. Business owners in towns and cities form these local societies to advocate for the business community. Local businesses are members, and they elect a board of directors or executive council to set policy for the chamber.
A chamber of commerce may be a voluntary or a mandatory association of business firms belonging to different trades and industries. They serve as spokespeople and representatives of a business community.<ref>Template:Cite journal</ref> They differ from country to country.
In some countries, a chamber of commerce is distinguished from a Chamber of Trade which represents the interests of tradespeople and artisans rather than industry, for example the French Template:Ill (CMA), the chamber of trades and artisans.
History
The first chamber of commerce was the Marseille Chamber of Commerce, founded in 1599 in Marseille, France, as the "Chambre de Commerce".<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>André-Pierre Nouvion, Origine et histoire des juridictions consulaires et des Chambres de Commerce et d'Industrie Françaises, 2002</ref> The Royal Barcelona Board of Trade was established in 1758.<ref>Template:Cite web</ref>
The world's oldest English-speaking chamber of commerce and oldest chamber of commerce in North America is the Halifax Chamber of Commerce, founded in Halifax, Nova Scotia in 1750.<ref>Template:Cite web</ref><ref>Template:Cite web</ref>
The Glasgow Chamber of Commerce was founded in 1783.<ref>[1] Template:Webarchive</ref> However, Hull Chamber of Commerce is the United Kingdom's oldest, followed by those of Leeds and of Belfast in present-day Northern Ireland.<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref>
As a non-governmental institution, a chamber of commerce has no direct role in the writing and passage of laws and regulations that affect businesses. It can, however, lobby in an attempt to get laws passed that are favorable to businesses.<ref>Template:Cite web</ref>
The United States Chamber of Commerce has a long history of anti-union lobbying and union busting in the United States at the local and federal level.<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref>
Characteristics
Membership in an individual chamber can range from a few dozen to well over 800,000, as is the case with the Paris Île-de-France Regional Chamber of Commerce and Industry.<ref>Template:Cite web</ref> Some chamber organizations in China report even larger membership numbers. Chambers of commerce can range in scope from individual neighborhoods within a city or town up to an international chamber of commerce.<ref>Template:Cite web</ref>
In the United States, 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 operation doctrine (and, thus, can remove them if complaints arise regarding their services), the local chamber membership is either voluntary or required by law.<ref>Template:Cite web</ref>Template:Irrelevant citation Some chambers are partially funded by local government, others are non-profit, and some are a combination of the two.<ref>Template:Cite web</ref>
Some chambers have joined state, national (such as the United States Chamber of Commerce and the British Chambers of Commerce) and even international bodies (such as Eurochambres, the International Chamber of Commerce (ICC), and Worldchambers).<ref>Template:Cite web</ref>
Chamber models
Community, city and regional chambers
Chambers of commerce in the United States can be considered community, city, regional, state, or nationwide (United States Chamber of Commerce). City Chambers work on the local level to bring the business community together to develop strong local networks, which can result in a business-to-business exchange. In most cases, city Chambers work with their local government, such as their mayor, their city council, and local representatives to develop pro-business initiatives.<ref name="Weir2007_121"/> There are also bilateral chambers of commerce that link the business environments of two countries (e.g. Romanian-American Chamber of Commerce, Moldovan–American Chamber of Commerce).
Community chambers
Community chambers of commerce startedTemplate:When? in the UK and later spread to in the US, becoming city chambers of commerce as communities developed and became larger. Community chambers of commerce are smaller and mostTemplate:Quantify have a limit on numbers of members.<ref> Template:Cite web </ref>
City chambers
City chambers of commerce have a long history in the US. The Charleston Chamber of Commerce is one of the oldest, dating back to colonial 1773.<ref>Template:Cite web</ref> That same year, Boston's Chamber of Commerce organized a seminal tax protest: The Boston Tea Party.<ref>Template:Cite web</ref>
In 2005 there were 2,800 chambers of commerce in the United States and 102 chambers representing U.S. businesses overseas.<ref name="Weir2007_121">Template:Cite book</ref> According to the Association for Chamber of Commerce Executives (ACCE), there are approximately 3,000 chambers of commerce with at least one staff person and "thousands more established as strictly volunteer entities".<ref>Template:Cite web</ref>
State chambers
State chambers of commerce are much different from local and regional chambers of commerce, as they work on state and sometimes federal issues impacting the business community. Just as the local chamber is critical to the local business community, state chambers serve a unique function, serving as a third-party voice on important business legislation that impacts the business community and is critical in shaping legislation in their respective state. State Chambers work with their Governor, state representatives, state senators, US congressional leaders, and US Senators. In comparison with state trade associations, which serve as a voice and resource to a particular industry, state chambers are looked to as a respected voice, representing the entire business community to enhance and advocate for a better business environment.
National and international chambers
Addressing the national or international need for information is the key service that these chambers of commerce provide. These services are in most cases at no fee or cost to their members; some of them offer personal and/or business services at a very low fee (like memberships to other associations such as the NRA).
Compulsory or public-law chambers
Under the compulsory or public law model, enterprises of certain sizes, types, or sectors are obliged to become members of the chamber. This model is common in European Union countries (e.g. France,<ref>André-Pierre Nouvion, Chambres de commerce et d'industrie - Encyclopédie juridique Dalloz - Répertoire de droit commercial, 2005</ref> Germany, Italy, Spain, Austria), as well as Japan and Indonesia. The main tasks of the chambers are foreign trade promotion, vocational training, regional economic development, and general services to their members. The chambers were given responsibilities of public administration in various fields by the state which they exercise in order management. The chambers also have a consultative function; this means the chambers must be consulted whenever a new law related to industry or commerce is proposed.<ref>Template:Cite web</ref>
In Germany, the chambers of commerce and industry (IHK - Industrie- und Handelskammer) and the chambers of skilled crafts (HwK - Handwerkskammer) are public statutory bodies with self-administration under the inspectorate of the state ministry of economy. Enterprises are members by law according to the chamber act (IHK-Gesetz) of 1956. Because of this, such chambers are much bigger than chambers under private law. IHK Munich, the biggest German chamber of commerce, has 350,000 member companies.<ref>Template:Cite web</ref> Germany also has compulsory chambers for "free occupations" such as architects, dentists, engineers, lawyers, notaries, physicians, and pharmacists.
Continental/private law chambers
Under the private model, which exists in English-speaking countries like the United States and the United Kingdom, companies are not obligated to become chamber members.<ref>Template:Cite web</ref> 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.
Multilateral chambers
A multilateral chamber is formed of companies and sometimes individuals from different countries with a common business interest towards or in a specific country. It can further be active in representing the interests of local and foreign investors in that specific country, achieved through promotion and proactivity regarding the general business environment. Multilateral chambers of commerce are independent entities strengthening business relations and interactions between all economic players, and their members may benefit from a broad range of activities that enhance the visibility and reputation of their business.
Surveys
In many countries, Chambers of Commerce are a source of private-sector information. The information is usually gathered by surveying Chamber members. The British Chambers of Commerce Quarterly Economic Survey is an example of a Chambers of Commerce survey that is used by official governmental departments as a guide to the performance of the economy.<ref>Template:Usurped. BCC. 2014. Retrieved on 16 June 2014.</ref>
See also
- British Chambers of Commerce
- Template:Lang (Italy)
- Chamber of Commerce and Factories (Suriname)
- European Federation of Bilateral Chambers of Commerce
- Federation of Pakistan Chambers of Commerce & Industry
- Finnish-Russian Chamber of Commerce FRCC
- International Chamber of Commerce
- National Negro Business League
- Non-governmental organization
- Trade group
- Trade union
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Further reading
- Herring, E. Pendleton (1931). "Chambres de Commerce: Their Legal Status and Political Significance". American Political Science Review. 25 (3): 689–699.