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The
BBC became the first organisation to achieve the ISO 9001:2001 standard
for its fair trading practices.
BBC
commercial activities and Fair Trading
In performing its commercial role, BBC Worldwide
is fully subject to domestic and European Competition Law in the
same way as any other British company. The Competition Act 1998
significantly strengthens the powers of the regulatory authorities
to enforce fair trading.
In
addition to these statutory provisions, and unlike its competitors,
the BBC is subject to further requirements to trade fairly, arising
from its Royal Charter and accompanying Agreement. These requirements,
to which BBC Worldwide is also subject, are published as the BBC's
Fair Trading Commitment.
This
Fair Trading Commitment requires BBC Worldwide to:
engage
in commercial activities which are consistent with, and support
the BBC's role as a public service broadcaster;
pay fair charges for any goods
or services received from other parts of the BBC;
charge prices which are a fair
reflection of both costs incurred and market practice.
Annual
Statement on the BBC's compliance with the Fair Trading Commitment
The Governors consider that the policies contained
in the BBC's Fair Trading Commitment are consistent with the requirements
of the Royal Charter and the accompanying Agreement. Through the
Fair Trading Compliance Committee, they have gained reasonable assurance
that the framework of controls and procedures designed to ensure
that these policies are applied throughout the BBC has been operating
effectively throughout the year.
The
BBC has appointed external Fair Trading auditors, Ernst and Young,
who have also issued an opinion which concludes that nothing has
come to their attention that indicates that the BBC has not complied
with the requirements of its Fair Trading Commitment during the
year ended 31 March 2001.
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