Unit 4

Corporate Compliance and

Consumer rights
Chapter Outline

– Corporate compliance
– Government laws and regulation in Nepal
– Role of ministry of commerce and supply in corporate compliance
– Introduction to Consumer right
– Consumer right acts in Nepal Relevance with ethics.
 Concept of corporate compliance

– Environmental mismanagement, sexual harassment, questionable

lobbying and tax offences are provoking sharp public reactions.
– Compliance means that a company adheres to the applicable rules and
laws. This includes both country specific laws and requirements from
the regulatory authorities as well as internal company directives
– Corporate compliance is the process of making sure that company and
employees follow the laws, regulations, standards, and ethical practices
that apply to the organization
– A corporate compliance specifies an organization’s policies, procedures,
and actions within a process to help prevent and detect violations of laws
and regulations
– Effective corporate compliance will cover both internal policies and rules
and federal and state laws.
– Enforcing compliance in corporate policy will help company prevent and
detect violations of rules. This can save organization from fines and
lawsuits.
 Why is compliance important for
companies?

Compliance is no longer just an option for companies, it is a requirement. Importance of

compliance on several levels can be presented as follows:
– Violations can be detected and prevented at an early stage
– The company complies with the law
– Directors and employees are protected from fines or prosecution
– The company enjoys a positive reputation
– The company becomes more attractive to new employees, business partners and
investors
Government laws and regulation in
Nepal
1. General Business Legislations
1. Private firm registration act, 1958
2. Partnership act, 1964
3. Company act, 2006
4. Industrial Enterprise act, 2016
2. Labour related legislations
Bonus Act, 1974,
Labour act, 2017,
Trade union act, 1992,
Foreign employment act, 1992,
Child labour act, 2000,
Industrial training act, 1982
3. Finance and Investment related legislations
Foreign Investment and technology transfer act, 1992,
Foreign exchange act, 1961
Income tax act, 2002
Value added tax, 1997
4. Consumer Protection legislations
Black market and other social crime punishment act, 1977
Food act, 1966
Consumer protection act, 1988
Role of ministry of commerce and
supply in corporate compliance
– Establish and enforce standards for business practices.
– Set standards to regulate fair competitive practices to promote a level playing
field in all trades
– Monitoring and regulating prices of essential goods.
– Promote and enforce labour and employment relations, foreign employee
employment and occupational safety and health standards
– Manage and enforce the statutory obligations of the registries of companies
and other legal entities
– Protect the rights of Intellectual Property holders
Introduction to Consumer right

– Right to Safety
– Right to Be Informed
– Right to Choose
– Right to Be Heard
– Right to Satisfaction of Basic Needs
– The Right to Redress
– Right to Consumer Education
– Right to a Healthy Environment
Consumer right acts in Nepal
Relevance with ethics

– Individual Assignment

– Review “The Consumer Protection Act, 2075 (2018)”

– And find out the content of rights relevance with the ethics
 Cases to be studied

1. United states vs. paramount pictures (Roll 1 to 5)

2. Satyam computer India (Roll 6 to 10)
3. Union carbide Bhopal disaster (Roll 11 to 15)
4. 2008 HP spying (Roll 16 to 20)
5. 2008 Siemens Scandal (Roll 21 to 25)
6. Exxon Over porting of oil Reserves (Roll 26 to 30)
7. Fries tone Fries and Rubber Company for use of child labor. (Roll 31 to 35)
8. Tented milk Scandal in China (Roll 36 to all)