Confindustria has championed the Responsible Payment Code (Codice Pagamenti Responsabili – CPR), an Assolombarda initiative to pro mote ethical payment behaviour in Italy.
The Code intends to develop:
Transparency and efficiency: Signatories to the Code adopt quicker and more transparent payment practices and undertake to pay their suppliers according to the initial contract terms. The campaign addresses businesses, public administrations, and non-profit organizations.
Protection for small businesses: Confindustria knows what problems SMEs face when payments are not made as agreed. Many are forced to delay paying their own suppliers, creating a vicious circle that soon spirals out of control.
The CPR has the ambitious aim of reversing this negative feedback loop with a virtuous circle. To achieve it, a solid group of businesses will need to take a leadership role so that others will soon follow.
CPR is a proven system, modelled after the Prompt Payment Code in the UK, which is strongly supported by the British government and the Confederation of British Industry (CBI).
The CPR is a Code of Conduct based on a few simple pillars:
The Code sets no deadlines itself but requires signatories to respect the terms agreed with suppliers. As a guideline, it references the European Union Late Payments Directive (2011/7/EU), recommending that the period for payment in commercial transactions should not exceed 60 calendar days.
Improved reputation, greater competitiveness: Confindustria believes that ethical payment practices will boost the reputation and competiveness of Italian businesses both in Italy and abroad. Reasonable contract terms respected by the parties enable businesses to improve their financial management and cut costs. Prompt payers directly benefit their suppliers while gaining in return from better prices and enhanced levels of service, thus becoming more competitive.