Establishing trust between the parties involved in a business, especially the buyers and the sellers, is the key to successful business. Keeping the significance of ‘trust’ in view, the Better Business Bureau (or BBB) was founded in 1912 to make the marketplace more effective and fair by means of promoting trust. The need for creating the Better Business Bureau stemmed from a trial initiated against various business firms, including the Coca-Cola Company, in 1906. While the trial failed to prove the charges against the firms, Coca-Cola’s sales manager S.C. Dobbs embarked on a mission of fair advertisement in business. The ramifications of Dobbs’ efforts resulted in the establishment of the Better Business Bureau.
By its organizational structure, the Better Business Bureau is a network of local BBBs, based in the United States and Canada. Each of these local bureaus is controlled by a board of directors, though the requisites of all BBBs are continuously monitored by the Council of Better Business Bureaus (CBBB). The CBBB is in turn run by local BBB leaders along with leaders and experts from big corporations and other important institutions of the society.
The Better Business Bureau has two main functions: increasing business reliability, mainly though the prevention of frauds and promotion of fair advertisement; and resolving disputes between various parties involved in business. Besides, the BBB also promotes awareness and education on ethics in business while also publishing nationwide reports on charities. The content of BBB information, available online in the form of text documents and audio-visual media, is of great interest to business owners, consumers, charities, and donors.
Few organizations and local bodies evade criticism of one kind or another and the Better Business Bureau is no exception. The main concern of BBB’s critics has been the organization’s claim of impartiality in settling disputes, especially when the complaints are against businesses. After all, the BBBs are mainly funded by these very businesses and may have all the reason to favor their own accredited businesses against any complaints. While the Better Business Bureau has an association with law-enforcement agencies, some critics doubt the independence of the BBB in processing complaints against businesses and/or the BBB staff. Nevertheless, consumers are entitled to file a compliant with the Federal Trade Commission in case of any problem.