The Prophet.com survey of corporate reputation winners and losers in the US for 2010/2011 saw a strong shift towards ethical behaviour, fairness, and openness featuring as primary drivers of reputation above economic performance.
The report stated that people expect 'businesses to do more and to walk the responsibility talk as that is what will make or break a reputation.' This growing global trend has been recognised by South African Association of the Flavour & Fragrance Industry (SAAFFI).
'We believe that organisations that follow high ethical standards will better serve their stakeholders and will be greatly valued as business partners,' said Michael Gristwood, executive director of SAAFFI.
As a result, SAAFFI developed its own Code of Practice that is adopted and signed by every member of the association on an annual basis. This Code of Practice is based on the codes of practice of the International Organization of the Flavour Industry (IOFI) and the International Fragrance Association (IFRA). It encompasses a wide range of business practices, with the addition of ethical aspects to protect intellectual property within the industry and ensure a good reputation at every level.
The code consists of six chapters dealing with various facets – basic standards of Good Manufacturing Practice; abiding by rules and requirements established by IOFI and IFRA as far as what substances and materials may be used and at what concentrations; labelling and advertising; the importance of confidentiality in protecting the intellectual property of members; and ethics in the areas of applications, ingredients and commercial aspects.
Gristwood added, 'a relatively small and specialised industry such as SA's flavour and fragrance industry could be severely compromised if companies disregard competitors' intellectual property and encourage staff members to share information from previous employers.' SAAFFI encourages its members to employ from outside the industry whenever possible to help protect the confidentiality of customers.
Ryan Ponquett, CEO of FlavourCraft and member of SAAFFI, said the code 'is extremely valuable to the industry as companies that have signed it and do not comply with it, can be held accountable. Once a company makes a commitment to uphold the standards of the code, they put their reputations at risk if they don't behave as they have agreed to. The code gives customers and other industry participants a comeback. It also enables us to sanitise the industry if members default on it; SAAFFI can choose to cancel a membership to ensure that the industry remains in good standing.'
Another SAAFFI member, Sharon Bolel of Sharon Bolel Chemical Marketing agreed. 'Our Code of Practice is vital for ensuring our industry's good reputation internationally, even though we're relatively small. The annual signing of the Code of Practice is a re-affirmation of our commitment that individual companies have high standards of ethics. Only companies that fully understand what this signing represents are welcomed as members of SAAFFI and I believe this is standing our industry in good stead locally and globally.'
A policy of self-policing is strongly encouraged among SAAFFI members, said Gristwood. 'It is impossible for the association to fully monitor activities within the industry, but at the same time, we are able to take steps and institute investigations when a breach of the Code of Practice is identified.'
'SAAFFI members take great pride in our Code of Practice, which goes a long way towards clarifying the standards we adhere to. We believe our code is a powerful motivator for customers to use SAAFFI members for their flavour and fragrance needs,' stated Gristwood. The Code of Practice is on the SAAFFI website, which also highlights employment opportunities both for people looking for work as well as for employers looking for employees.
SAAFFI has also made a name for itself over the years as an organisation that focuses strongly on training and education for its members, as well as for companies related to the flavour and fragrance industry. It runs regular seminars and workshops, as well as Precise Short Training Courses that give attendees practical knowledge of and insight to the subjects covered. These courses are given by specialists in the respective fields and interaction with the presenter is encouraged.
'Our commitment to education and training is two-pronged. Firstly, it is essential for an association to ensure that its members stay up to date with developments and trends that affect them. Secondly, by its nature, the flavour and fragrance industry is prone to excessive secrecy – mainly because it's not possible to patent a smell or a taste, the intellectual knowledge and lifeblood of the industry. This tends to create a 'black box scenario', which in turn leads to a lack of knowledge of the activities, strengths, creativity and capabilities of the industry. It behoves SAAFFI to attempt to overcome this lack of awareness by encouraging transparency and sharing information where relevant,' explained Gristwood.
Subjects covered so far include essential oils, sweeteners, colourings, regulatory and definitions, the flavour brief, the fragrance brief, beverage emulsions, product safety and security, basic QC and traceability, numeracy in the workplace, an overview of HACCP, and flavourings and the new labelling regulations.
