CASE SUMMARY
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Nepal’s Federation of Nepalese Chamber of Commerce & Industry Anti-Corruption Project
Country: Nepal
Sector: Multi-sector
Initiative Type:  Principle Based Initiative

Detailed Information :

Nepal

Year: 2004

Project Phase: Completed

Participants: Federation of Nepalese Chamber of Commerce(FNCCI), Government of Nepal, Civil Society and other stakeholders

Scope:

  • As the first major initiative to target business related corruption in Nepal, FNCCI implemented a range of anti-corruption measures, including a business code of conduct, and the Corporate Ethics Forum (CEF) to reduce corruption in Nepal and an awareness raising campaign.

Key Facts:

Objectives

  • Build the capacity of FNCCI to take up activities that help reduce corruption, including support for the CEF’s anti-corruption awareness campaign
  • Develop a Business Code Conduct
  • Establish a Complaints Hearing Unit
  • Disseminate information on combating corruption
  • Facilitate dialogue amongst government officials, business persons, and civil society representatives to add momentum to the anti-corruption movement

Description

  • The FNCCI Anti-Corruption Project is the first major initiative to target business related corruption in Nepal launched by Federation of Nepalese Chamber of Commerce and Industry (FNCCI).
  • It aimed to raise awareness against corruption and for corporate social responsibility in the business community.
  • It established a Complaints Hearing Unit, developed a business code of conduct and facilitated dialogues between all stakeholders on corruption related issues.

. Key Learning:

  • The most important achievement of the FACP was to raise public awareness about corruption issues.
  • Reports on business ethics and anti-corruption issues in FNCCI’s publications have to be released in a regular basis.

Mechanisms:

  • Cost: £196,204
  • FNCCI established a “Complaints Hearing Unit” ( CHU) which aimed enabling anyone to lodge complaints. Any citizen, organization, or other stakeholder can lodge complaints with this unit for bribery, unauthorized or unnecessary delays in making a decision, delays in payment, inappropriate repair work, unwarranted call for donations or contributions, failure to give invoices, etc.
  • As a first initiative under its Anti-Corruption Program FNCCI formed the Corporate Ethics Forum. It is made up of 11 members and is chaired by the FNCCI president
  • The Corporate Ethics Forum drafted FNCCI’s Business Code of Conduct. In drafting the Code consultations were held with a wide range of business and civil society representatives. The Corporate Ethics Forums monitors the effective implementation of the Code of Conduct.

Benefits:

  • 10 business ethics and corporate social responsibility programs run in 6 districts for 639 businesspersons.
  • 14 business ethics advocacy sessions run in 9 districts for 422 businesspersons.
  • Discussion sessions held with MBA students about business ethics.
  • An 18-point code of conduct agreed on by FNCCI membership.
  • 33 code orientation sessions attended by 2182 businesspersons in 30 Districts.
  • Complaint hearing unit established in November 2005; but no complaints received yet.
  • 9 seminar discussion sessions on business-related corruption conducted in 3 districts with 496 participants from Government of Nepal, civil society and other stakeholders.
  • 5 discussion forums run to orientate small enterprises on business ethics.
  • Studies completed on customs, income tax and VAT, excise, and informal and unauthorized trade with India.
  • Study tours run to Southeast Asia business anti-corruption initiatives.
  • Thousands of brochures, posters, and copies of the newsletter distributed.
  • Virus TV serial broadcast with anti-corruption messages related to business ethics.
  • Books on business directives and anti-corruption published.

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