Launch of Enhanced Code of Conduct

Petaling Jaya, 18 June 2009.

The Direct Selling Association of Malaysia (DSAM) today launched an enhanced version of its Code of Conduct, a set of guidelines advocating the practice of ethical direct selling by its member companies and consumer protection.

The Code of Conduct, which is in line with the World Federation of Direct Selling Associations’ (WFDSA) Code of Conduct was first launched in 1998. DSAM’s 55 member companies who comprise listed, multi-national and local direct selling companies are principally required to abide by the Code to be members of DSAM.

To better reflect the changing times, DSAM made enhancements to the original Code of Conduct to provide a better framework in four areas, namely, conduct towards consumers, conduct towards direct sellers, conduct between direct selling companies and code enforcement.

Speaking at the launch today, Paul Yee, President of DSAM said: “With these enhancements, the responsibilities will weigh heavier on the member companies, and yet, when we embrace this as part of our operational fabric, it will augur well for the industry’s reputation and long-term growth.

“When we demonstrate that ethics and business can go hand-in-hand, we hope that this will be the catalyst for the rest of the industry players to recognize the importance of having a Code such as ours.”

The Code of Conduct requires DSAM member companies to exhibit a level of ethical behaviour and integrity that exceeds even legal requirements. More importantly, the Code complements the Direct Selling Act. Whilst the Code will require greater accountability in the way DSAM member companies and their direct sellers conduct themselves, it will provide better protection and assurances to consumers that these companies are not only legitimate, but bound by ethical practices.

The Code of Conduct is independently administered by a Code Administrator, Tan Sri Dr Sulaiman Mahbob.

Added Yee: “DSAM’s enhanced Code of Conduct will definitely set the bar higher in terms of transparency and professionalism among member companies. This will result in better opportunities for the Direct Sellers which will eventually translate into greater consumer protection and confidence.”

Members of the public can obtain free copies of the Code from the DSAM Secretariat. Alternatively, they can view the contents of the Code at DSAM’s website