The Commission for Racial Equality today emphasised that being positive about racial equality makes good business sense. Addressing the annual Federation of Small Businesses conference in Blackpool, CRE Chair, Trevor Phillips, stressed the CRE's desire to help small businesses all over Britain become more competitive and prosperous. He said: "we understand that, despite good intentions, racial equality often comes a long way down the list of priorities for smaller businesses. But, in today's increasingly competitive global market customers are expecting and demanding more, and good racial equality practices can give you that all important competitive edge.

'Thousands of public bodies regularly award contracts to small businesses. Now, by law, they have to ensure that their contractors take racial equality seriously. So whether you're a small catering, domestic services or building and maintenance company, getting it right on racial equality really does pay off. '

However, he also warned small companies that failing to adhere to race relations legislation could have a negative impact on their business: 'We recognise that smaller businesses face particular challenges, especially in the form of limited resources and time pressures. But the last thing any of us want is for you to fall foul of the Race Relations Act and be subjected to costly legal proceedings.'

Mr Phillips went on to announce a new guide to help smaller businesses weed out racial discrimination and promote equality of opportunity. He told delegates: 'We've devised a new CD-ROM to help smaller businesses adopt ways of working that avoid unlawful discrimination, and ensure equal opportunities and fair treatment for everyone, employees and customers alike.'

The interactive guide, entitled 'Racial Equality and the Smaller Business - A Practical Guide', covers important aspects of employment and customer services, such as recruitment and complaints, and explains the law on racial discrimination and harassment, with real-life case study examples. It provides practical advice and recommendations on how to adopt effective and appropriate practices in the workplace which are not onerous or complex. In addition, it features an FAQs section and sample policies and procedures which businesses can adapt to their own particular circumstances. Although the focus of the guide is on racial equality, its principles can be used to develop polices and procedures for other equality areas.

The CD-ROM runs on Windows and Macintosh operating systems. You can also download the guide directly from this website as an Acrobat (pdf) file. To find out more about the guide click here.