Chamber of commerce
Encyclopedia
A chamber of commerce (also referred to in some circles as a board of trade) is a form of business network, e.g., 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 on behalf of the business community. Local businesses are members, and they elect a board of directors or executive council to set policy for the chamber. The board or council then hires a President, CEO or Executive Director, plus staffing appropriate to size, to run the organization.
The first chamber of commerce was founded in -1599 in Marseille, France. It would be followed 65 years later by another official chamber of commerce, probably in Brugge, Belgium.
The world's oldest English-speaking chamber of commerce is that of New York City
, which was established in 1768. The largest chamber of commerce in the United Kingdom is Greater Manchester Chamber of Commerce with more than 5,000 members. The oldest known existing chamber in the English-speaking world with continuous records is the Glasgow Chamber of Commerce, which was founded in 1783. However, Leeds Chamber of Commerce is the UK's oldest, followed by Belfast
, Northern Ireland
.
). 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.
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 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 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), Worldchambers or the American Chamber of Commerce Executives). 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. This network is informal, with each local chamber incorporated and operating separately, rather than as a chapter of a national or state chamber.
). Local 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, local Chambers work with their local government, such as their mayor, their city council and local representatives to develop pro-business initiatives.
of certain sizes, types, or sectors are obliged to become members of the chamber. This model is common in European Union
countries (France
, Germany
, Italy
, Spain
), but also in Japan
. 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.
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. Germany also has compulsory chambers for "free occupations" such as architects, dentists, engineers, lawyers, notaries, physicians and pharmacists.
or the UK, but as well in Sweden
, Finland
, Norway
and Denmark
, 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.
The first chamber of commerce was founded in -1599 in Marseille, France. It would be followed 65 years later by another official chamber of commerce, probably in Brugge, Belgium.
The world's oldest English-speaking chamber of commerce is that of New York City
Chamber of Commerce of the State of New York
The New York Chamber of Commerce, founded in 1768 by twenty New York City merchants, was the first commercial organization of its kind in the country. Attracting the participation of a number of New York's most influential business leaders, such as John Jacob Astor, Peter Cooper, and J...
, which was established in 1768. The largest chamber of commerce in the United Kingdom is Greater Manchester Chamber of Commerce with more than 5,000 members. The oldest known existing chamber in the English-speaking world with continuous records is the Glasgow Chamber of Commerce, which was founded in 1783. However, Leeds Chamber of Commerce is the UK's oldest, followed by Belfast
Belfast
Belfast is the capital of and largest city in Northern Ireland. By population, it is the 14th biggest city in the United Kingdom and second biggest on the island of Ireland . It is the seat of the devolved government and legislative Northern Ireland Assembly...
, Northern Ireland
Northern Ireland
Northern Ireland is one of the four countries of the United Kingdom. Situated in the north-east of the island of Ireland, it shares a border with the Republic of Ireland to the south and west...
.
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 IndustryParis Chamber of Commerce
The Paris Chamber of Commerce is a Chamber of Commerce of the Paris region. It defends the interests of 310,000 corporations of the Paris, Hauts-de-Seine, Seine-Saint-Denis, and Val-de-Marne départements that create 20% of France's GDP.The CCIP was created on February 25, 1803 by Napoléon...
). 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.
In the United States, chambers do not operate in the same manner as the Better Business Bureau
Better Business Bureau
The Better Business Bureau , founded in 1912, is a corporation consisting of several private business franchises of local BBB organizations based in the United States and Canada, which work through their parent corporation, the Council of Better Business Bureaus .The Better Business Bureau, through...
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 businesses, while the BBB represents the interests of the general public. Chambers of commerce also can include economic development
Economic development
Economic development generally refers to the sustained, concerted actions of policymakers and communities that promote the standard of living and economic health of a specific area...
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
Eurochambres
EUROCHAMBRES is the Association of European Chambers of Commerce and Industry. The association is one of the largest business representative organisation in Brussels, representing over 20 million companies through its network of 2000 Chambers of Commerce and Industry...
, the International Chamber of Commerce
International Chamber of Commerce
The International Chamber of Commerce is the largest, most representative business organization in the world. Its hundreds of thousands of member companies in over 130 countries have interests spanning every sector of private enterprise....
(ICC), Worldchambers or the American Chamber of Commerce Executives). 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. This network is informal, with each local chamber incorporated and operating separately, rather than as a chapter of a national or state chamber.
Local and regional chambers
Chambers of commerce in the US can be considered local, regional, state, or nationwide (US Chamber of CommerceUnited States Chamber of Commerce
The United States Chamber of Commerce is an American lobbying group representing the interests of many businesses and trade associations. It is not an agency of the United States government....
). Local 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, local Chambers work with their local government, such as their mayor, their city council and local representatives to develop pro-business initiatives.
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 impact the business community and are critical in shaping legislation in their respective state. State Chamber's 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.Compulsory/public law chambers
Under the compulsory or public law model, enterprisesBusiness
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
of certain sizes, types, or sectors are obliged to become members of the chamber. This model is common in European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
countries (France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
, Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
, Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
, Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
), but also in Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
. 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.
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. 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 USA, CanadaCanada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
or the UK, but as well in Sweden
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
, Finland
Finland
Finland , officially the Republic of Finland, is a Nordic country situated in the Fennoscandian region of Northern Europe. It is bordered by Sweden in the west, Norway in the north and Russia in the east, while Estonia lies to its south across the Gulf of Finland.Around 5.4 million people reside...
, Norway
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...
and Denmark
Denmark
Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...
, 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.
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.See also
- Business association
- LobbyingLobbyingLobbying is the act of attempting to influence decisions made by officials in the government, most often legislators or members of regulatory agencies. Lobbying is done by various people or groups, from private-sector individuals or corporations, fellow legislators or government officials, or...
- Non-governmental organizationNon-governmental organizationA non-governmental organization is a legally constituted organization created by natural or legal persons that operates independently from any government. The term originated from the United Nations , and is normally used to refer to organizations that do not form part of the government and are...
- Trade group
- Trade unionTrade unionA trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...
- United States Chamber of CommerceUnited States Chamber of CommerceThe United States Chamber of Commerce is an American lobbying group representing the interests of many businesses and trade associations. It is not an agency of the United States government....