In order to regulate theoretical and practical achievements of professional development, building and upgrading of responsibilities to consumers and general public, to realize goals of modern advertising, sponsoring and sale promotion, and to prevent tentative misconduct, the executive marketing director of the Tobacco Factory of Sarajevo (hereinafter: “FDS”) sets forth the following:

 

CODE OF ETHICS OF FDS MARKETING AND SALE DEPARTMENT

 

1. GENERAL PROVISIONS

 

Article 1

The code of advertising rules (hereinafter: “Code”) represents minimum standards of ethics to comply with in advertising practice, sponsorship, sale promotion, and other forms of marketing and sale communication with unified working criteria for all employees of FDS Marketing and Sale Department.

 

2. RIGHTS AND DUTIES OF PARTICIPANTS IN MARKETING COMMUNICATION PROCESS

 

Article 2

Participants in the process of marketing exchange shall expect that:

1. Products and services offered are safe and serve its anticipated purpose;

2. Information about products and services are not inaccurate;

3. All participants meet their respective obligations, financial and other, in good faith.

4. They have to accept foreseen internal methods of rightful regulation and/or correction of appeals and objections regarding orders.

 

It is reasonable to expect that the aforementioned will include, however not limit, the following responsibilities of the marketing personnel:

 

In the field of product development and management:

• to discover all possible risks regarding product applications or services,

• to identify all substitutes of a product which may materially modify the product or impact customer's purchase decision,

• to identify additional/irregular/unnecessary costs for the company;

 

In the field of promotion:

• to avoid inaccurate statements in advertising messages,

• to avoid manipulations and wrong sale tactics,

• to avoid sale promotions containing misconduct and manipulation;

 

In the field of distribution:

• not to manipulate with product availability in use and exploitation,

• not to use compulsion in marketing distribution channels,

• not to overuse salesman's influence on occasion of choosing a product;

 

In the pricing field:

• to practice establishment of correct/realistic prices,

• to point out the price on any occasion;

 

In the field of marketing research:

• to ban sale and distribution of products and product information in a research stage,

• to maintain research integrity and avoid providing false and inaccurate data about research,

• to equally treat external clients and suppliers.

 

3. ORGANIZATION RELATIONS

 

Article 3

Employees in the Marketing and Sales Department shall care how their behavior can influence opinions of others in organization. They shall not deny, encourage or use compulsion to sustain unethical conduct in their relations with others, such as other employees, suppliers and customers:

1. To use confidentiality and anonymity in professional relations by focusing attention to privileged relations;

2. To meet duties and responsibilities in contracts and mutual agreements in timely manner;

3. To avoid appropriation of other person's work entirely or in part, representing it as his/her own labor, or reap benefits without author's or owner's consent;

4. To avoid manipulations in order to take advantage in a situation to maximize personal benefits by damaging or harming any other organization in an unfair manner.

 

4. RESPONSIBILITIES OF MARKETING AND SALES DEPARTMENT EMPLOYEES

 

Article 4

Marketing and sales department employees shall accept responsibility for consequences of their activities and do their best in ensuring that their decisions, recommendations and actions identify, serve to, and satisfy all relevant publics: consumers, customers, organizations and society. Professional employment agreement of Marketing and Sales Department must be led by:

1. Basic rules of business ethics: nobody shall be harmed consciously;

2. Compliance with laws and regulations;

3. Accurate presentation of employee's education background, training and experience;

4. Active implementation, practicing and promotion of this Code of Ethics.

 

5. INTEGRITY AND FAIRNESS

 

Article 5

Employees of the Marketing and Sales Department shall keep integrity, honor, and dignity of the profession:

1. To be honest in serving customers, clients, employees, suppliers, distributors and publics;

2. Never participate in a conflict with intention to support interest of parties in conflict;

3. Establishment of equal commissions, including payment and receipt of usual and/or legal compensations in a marketing exchange.

 

6. CODE OF ADVERTISING ETHICS

 

Decency

Article 6

Advertising shall not contain statements or a visual presentation which may contradict decency according to commonly accepted code of conducts.

 

Loyalty

Article 7

Advertising shall be conceived not to misuse trust or use lack of experience or know-how of “consumers”.

 

Article 8

1. Advertising, except in exceptional and justified cases, shall not allow the use of feeling of fear of a tentative “consumer”.

2. Advertising shall not allow the use of superstitions.

3. Advertising shall not contain any indirect or direct support to violence.

4. Advertising shall not encourage any sort of discrimination based on race, religion or gender differences.

 

Authenticity

Article 9

1. Advertising shall not include any statement or visual presentation which may by its nature, directly or indirectly, mislead the “consumer” by omitting, ambiguity or exaggeration, especially with regard to:

a) the product specifics, such as: kind, composition, and manufacture date, purpose, use options, quantity, trade and geographical origin;

b) product value and total price to be paid;

c) other payment conditions, i.e. sale by rental, leasing, installment payments and sale on credit;

d) deliveries, exchanges, returns, repairs, and maintenance;

e) guaranty conditions;

f) copyrights and industrial property rights, such as: patents, trademarks, drawings and models, brands;

g) official awards and acknowledgments, medal, acknowledgement and certificate awards;

h) volume of contributions and assets gained by charity actions.

 

2. Advertising shall properly use research results or quotes citing technology and academic papers. Statistical data shall not be presented and construed in a way to exaggerate their real value. Technical notions shall be properly used and construed, while the use of quasi-scientific vocabulary or words without real meaning is not allowed.

 

Comparisons

Article 10

If an advertising message involves comparisons, a consumer shall not be misled by its nature, and loyal competition principles must be adhered to. Elements of a comparison shall be based on objective, truthful facts which are chosen on loyalty basis.

 

Confirmations

Article 11

Advertising actions shall not reproduce or quote any confirmation or recommendation which is not truthful and related to the experience of a person giving such confirmation or recommendation. The use of a confirmation, statement or recommendation which is obsolete or inapplicable for any other reasons shall be forbidden.

 

Gossiping

Article 12

Any defiance of other companies, business activities, or business trade professions or products that can cause disdain, irony, or any other kind of inappropriate relation to a subject or object of such gossiping, shall be forbidden.

 

Private life protection

Article 13

Advertising shall neither represent nor refer to any person without his/her prior consent notwithstanding their public or private activities. Advertising shall neither present nor refer to personal assets in a way that assumes the consent from a person in question exists, except for cases where a prior consent was obtained.

 

Exploitation of a brand

Article 14

1. Advertising shall not use the name or acronym of another enterprise, company, or institution in an unjustified manner.

2. Advertising shall not inappropriately make use of a name related to another person or firm, trademark or logo of another enterprise or any other product, including the name of “goodwill” – which another company has already gained by an advertising campaign.

 

Imitation

Article 15

Any imitation of text formatting, slogans, visual presentations, music, sound effects, etc. is forbidden, including other advertising messages that can cause deceit or confusion.

 

When an advertiser, active on an international level, launches an original advertising campaign in one or more countries, then the other advertisers shall not inappropriately imitate such a campaign in third countries where the former may also work, if such imitating prevents the former advertiser to expand its campaign to third countries in a reasonable time period.

 

Advertisement identification

Article 16

Advertising shall be clearly distinguished as such, notwithstanding the form it appears or public information media used for its distribution; when an advertising message is broadcasted in a media which already contains information programs or editor’s articles, it shall be presented in a way that immediately demonstrates its advertising character.

 

Security issue treatment

Article 17

Except for messages that have proven educational or social character, no other advertising message shall include any other visual presentation, or any other description of hazardous practices or situations in which security of another person is jeopardized.

 

Children and Youth

Article 18

1. Advertising actions shall not use natural credulity of children or lack of experience of young people, or misuse their loyalty feelings.

2. Advertising actions shall not contain any statement or visual presentation that may cause mental, moral or physical harm to children or youth.

 

Liability

Article 19

1. An advertising media, expert or advertising agency, editor, owner, or media director are obligated to comply with the code of conduct contained in this Code:

a) an advertising media shall accept liability for its actions;

b) an expert or advertising agency shall take all necessary precaution measures in its work with advertising message and act in a way that an advertising media can meet its own responsibilities;

c) an editor, media owner broadcasting the advertising message, or media director who directs such message, shall take all precaution measures on occasion of accepting a phrased advertising message and its presentation to the public.

 

2. All persons employed in a company, association or institution from one of three categories mentioned in previous paragraphs and who participate in programming, creating, publishing or transmission of an advertising message, shall have certain level of responsibility depending on their position to ensure compliance with regulations of this Code and shall act accordingly.

 

Article 20

Responsibility for compliance with rules of this Code shall encompass all elements – the core and form – of advertising, including confirmations, statements, and visual presentations which are made by others. Failure to comply with rules of the Code shall not be justified even if the core or form of advertising message was entirely or partially made by someone else.

 

Article 21

Advertisement that represents violation of provisions of this Code cannot be justified by a fact that the consumer was subsequently provided with truthful information.

 

Article 22

Any description, statement or advertising illustration concerning verifiable facts shall also contain elements of verification. Advertising media shall be prepared to submit evidence based on such facts, to any self-control body which is in charge of application of this Code.

 

Article 23

No advertising media, expert or advertising agent, publisher, owner or director of respective media shall participate in publishing of any advertising message which is assessed as inacceptable by a self-control body in charge of application of this Code.

 

7. SPONSORSHIP CODE OF ETHICS

 

Clarity and Accuracy

Article 24

Sponsorship and similar communications shall be subject to principles of clarity and accuracy including respect to all persons and organizations participating in the sponsorship and all rights and other privileges granted to the sponsor.

 

Autonomy and Self-determination

Article 25

Sponsorship shall respect the autonomy and self-determination of sponsoring parties, their activities and properties, ensuring that both parties meet goals arising from their sponsorship agreement. Exceptionally, where intellectual and creative properties make an integral part of a sponsorship agreement, creative freedom of the sponsoring party shall be respected.

 

Imitation and deceit

Article 26

The sponsor and the sponsored party and all other parties included in the sponsorship shall avoid imitation of presenting other sponsorships, where such imitation may lead to deceit or create confusion, even if is related to a non-competing product, company or event.

 

Sponsorship Parties

Article 27

Parties to a sponsorship agreement shall thoughtfully protect inherent articles, sport, cultural, and other sponsored activities and shall avoid misconduct that may harm identity, dignity, and reputation of both parties. No party shall blur, deform or defy the image of the other party, or jeopardize goodwill or clear distinguishing features which have already been gained.

 

Sponsorship Audience

Article 28

The audience shall be clearly informed about existence of sponsorship with attention to specific events, activities or persons. Sponsor’s message shall not intentionally insult religious, political or social convictions or professional ethics of the audience. The above mentioned shall neither mean limitations for the sponsor to ensure support for avant-garde or tentatively controversial art and cultural activities, nor encourage the sponsor to censor a sponsored message of the given event.

 

Artistic or Historical Object

Article 29

The sponsorship shall never be managed in a manner that blemishes any artistic or historical objects. The sponsorship that is meant to protect, maintain or restore to the initial stage a cultural, artistic or historical ownership, or their diffusions, shall respect the public interest therefor.

 

Multiple Sponsorship

Article 30

Where activities and events seek or allow for more sponsors, individual agreements shall clearly emphasize (inform all sponsors about) all rights, limitations, and obligations of single sponsors. The sponsored party shall be aware of importance of maintaining the proper balance between sponsors, paying respect to exclusivity of any individual sponsor in its category / business activity. Exceptionally, every member of the executive committee or sponsor shall comply with the defined sponsorship areas, or assigned communication tasks in a conscious way, without interference that may harm the balance between the roles of each sponsor. The sponsored party shall inform all tentative future sponsors about sponsors participating in the sponsorship. The sponsored party shall not accept new sponsors without consent of the existing sponsors bound by a sponsorship agreement.

 

TV, radio and cinema sponsorship

Article 31

Contents and schedule of sponsored programs shall not be influenced by the sponsor in a way that cancels responsibility, autonomy and editor’s independence of the program editor or producer. Also, attention shall be paid to avoid misunderstanding between the sponsorship of the respective event or activity and TV, radio and cinema broadcasting of that event or activity.

 

Environmental sponsorship

Article 32

The sponsored parties shall also consider possible environmental pollution as a result of planning, organizing, and implementing sponsor activities. Any sponsored message which is entirely or partially based on positive (or reduction of negative) environmental pollution shall be replaced to appear beneficial.

 

8. CODE OF ETHICS OF SALES PROMOTION

 

Honesty

Article 33

All promotional actions shall be conceived in a way not to allow the misuse of trust or in any other way take advantage of lack of experience or know-how of the “user” or the “intermediary”.

 

Offer conditions

Article 34

All sale promotion actions shall be conceived to allow and facilitate clear assessment of the offer conditions by the “user”. Particular attention should be paid not to overestimate the value of “additional benefits”, while the promotion action shall not disguise the price of the “main product”.

 

Presentation

Article 35

No sale promotion action shall be presented in a false form.

 

Promotion Implementation

Article 36

All sale promotion actions shall be implemented when appropriate funds and sufficient control are in place. Any precaution measure shall be undertaken to avoid “users” complain on occasion of obtaining a complete offer.

 

Initiation shall particularly ensure that:

a) “additional benefits” are available in sufficient quantities to facilitate response to demand in a reasonable and short time period. In case of an inevitable delay, “users” have to be informed in a timely manner, and simultaneously necessary measures shall be taken in order to make publicity quoted in the offer appear more objective;

b) damaged and defected items or inappropriate services are exchanged or that their “user” is adequately financially reimbursed; the costs incurred in such cases shall be immediately reimbursed upon request;

c) each complaint concerning goods or services is efficiently and appropriately recorded, treated and resolved.

 

Protection of private life

Article 37

Any sale promotion action shall respect private life of each individual or merchant, and shall not represent the source and reason for personal inconveniences and unnecessary conflicts for anybody.

 

Security

Article 38

Any sale promotion actions shall be conceived and implemented in a way that provide normal security conditions in terms that both “intermediaries” and “users”, as well as other persons involved in the promotion, are not exposed to any kind of risk. Any use of goods or services which are subject of the promotion, shall include tentative warnings related to the security.

 

Children and Youth

Article 39

A sale promotion action shall not be focused on children and youth younger than 18 years.

 

Relations with other employees

Article 40

Conditions of any sale promotion action shall be conceived and implemented in the manner that respects loyal relations between employees and their employers.

 

Offer presentation to “users”

Article 41

The presentation of the offer shall create the opportunity for the “user” to take into account all details concerning promotional offer before taking decision on purchase of the “main product”.

 

The presentation shall particularly ensure precise conditions regarding:

a) use, or obtaining of promoted offer, e.g. conditions for obtaining presents or bonuses, or prerequisites to participate in bids;

b) time period established for obtaining a promotional offer, e.g. end date of the bid;

c) any limitations concerning geographical zone, quantity of items for promotion and quantity of “additional benefits”, as well as any other quantity restriction. In case of a specific restriction of any mentioned quantities, measures taken for purpose of replacement by other appropriate products shall be noted;

d) evidences about purchase which may be required;

e) value of every voucher or stamp offered;

f) all costs, including transportation, delivery and mailing costs, and payment conditions;

g) full name and address of “initiators”;

h) addresses to which complaints shall be sent (in case it is different than the address under point g) above)

 

Presentation of the offer to intermediaries

Article 42

Any sale promotion actions shall be presented to “intermediaries” in a way that will facilitate proper assessment of the value of the service or other expected contributions from their side, what makes their own contribution to the promotion.

 

“Initiator” shall precisely establish the following, in particular:

a) method and conditions of organization and implementation of promotional action, including the action calendar and tentatively time demarcations;

b) methods and media through which the promotional action shall be presented to distributors and the public;

c) conditions of participation;

d) financial conditions of the “intermediary” participation;

e) any specific administrative intervention by the “intermediary”, if reasonably expected.

 

Article 43

The external package containing items which are subject of the promotional action, shall clearly draw attention to its contents, bearing the end date or time demarcation of the offer, so that the “intermediary” is able to conduct control over necessary product inventory.

 

Special duties of the “initiator”

Article 44

Any sale promotion action shall be organized and implemented to consider legitimate interest of the “intermediary” in an effective manner.

 

Article 45

The „Initiator” shall always obtain prior consent of the “intermediary” or its responsible manager, in case of he/she want to, in particular:

a) invite employees of the “intermediary” to provide their services in the framework of the promotional action;

b) offer these employees financial and other reward for their assistance, or for any other contribution to the sale related to the promotional action.

 

In case promotion is done through public communication media, or when such prior agreement cannot be obtained, it shall be clearly noted that employees must obtain consent by their employer to participate in the promotion.

 

Article 46

All products, including “additional benefits” as well as all other material related to the promotional action have to be delivered to the “intermediary” in a reasonable time period, depending on time limitations of the promotional offer validity.

 

Article 47

Any sale promotion actions requiring active cooperation of the “intermediary” or its employees shall be conceived not to incur damage to agreed obligations already existing between the “intermediary” and “users”.

 

Special obligations of the “intermediary”

 

Article 48

Any sale promotion action containing special responsibility of the “intermediary” shall be implemented on their side so well that no misunderstanding occur concerning conditions, value, limitations, or availability of items or services that are the subject of the offer in that promotion.

 

Article 49

Each sale promotion action accepted by the “intermediary” shall be conducted in loyal and fair, most favorable manner together with its employees.

 

The “intermediary” shall accept elements of the plan and conditions for implementation of the promotional action established by the “initiator”. The “Intermediary” shall not enter any changes in already concluded arrangements, e.g. by changing the date of the promotion period without a prior consent of the “initiator”.

 

Loyal competition

Article 50

Any sale promotion action must be conceived in a way that includes loyalty towards competitors and other traders on the market of products and services which are subject of the promotion.

 

Article 51

Any sale promotion action which includes comparison with another product, if such a comparison is allowed, shall not create a false image about quality and appropriate value of the product being compared.

 

Liability

Article 52

1. Primary liability for implementation of promotional actions regardless of the character or contents of such actions shall always be borne by the “initiator”.

2. Anybody who participates in creating the concepts, organization or implementation of the action shall be liable to the extent proportional to his/her role and place in the promotion, compliance with the provisions of this Code in relations to “intermediaries”, “users” and all other stakeholders, as well as those who can become these, concerning the sales promotion action.

3. In that way, in addition to the “initiator”, the Code shall be also complied with by:

a) every practical person or consultant in the field of marketing, advertising agency, or sale promotion agency, or their subcontractors that give certain contribution to the sale promotion action;

b) any “intermediary” who participates in the promotional activities;

c) any supplier of “additional benefits” included in the sale promotion action.

 

Article 53

The evidence of verifiable facts which is necessary for the sale promotion action to comply with provisions of this Code shall be available if required by the contracted self-control bodies in terms of implementation of this Code.

 

Article 54

No “initiator”, “intermediary”, practicing person in the field of marketing, consultant, or representative, editor, owner or entrepreneur in public information media shall participate in implementation of a promotion which is assessed as unacceptable by competent “self-control” institution, in charge of implementation of this Code.

 

9. FINAL PROVISIONS

 

Article 55

This Code shall enter into force as of the date of its adoption.

 

 

 

Sarajevo, 1 October 2010

 

FDS Executive Marketing Director

Džejna Bajramović