Business Environment and Management

a) Business ethics in Nepal

Meaning: Business ethics refers to the moral principles, values and standards of conduct that guide business activities — honesty, fairness, transparency, accountability, and respect for consumers, employees, society and the environment. In Nepal, business ethics is shaped by a mix of religious-cultural values (Hindu dharma, Buddhist ahimsa), legal provisions and modern corporate governance norms.

Legal and institutional framework in Nepal:

• Companies Act, 2063 (2006) — provisions on directors' duties, disclosure, audit and prevention of fraudulent conduct.
• Consumer Protection Act, 2075 (2018) — protects consumers against adulterated goods, misleading advertisements and unfair trade practices.
• Labour Act, 2074 (2017) — minimum wages, safe working conditions, social security.
• Environment Protection Act, 2076 (2019) — environmental responsibility of industries.
• Competition Promotion and Market Protection Act, 2063 (2007) — checks monopolistic and restrictive trade practices.
• Good governance bodies — Commission for the Investigation of Abuse of Authority (CIAA), Office of the Auditor General, National Vigilance Centre, and the Financial Comptroller General Office.

Prevailing ethical issues in Nepal:

• Tax evasion and under-invoicing in imports; widespread informal (unregistered) business.
• Adulteration of food, medicines and petroleum products; fake and substandard goods.
• Bribery and rent-seeking in licensing, tendering and customs; political patronage in contracts.
• Poor labour practices — low wages, absence of contracts, unsafe workplaces, child labour in some sectors.
• Environmental degradation, haphazard dumping of industrial waste, encroachment of public land.
• Insider trading and weak enforcement in the securities market; non-performing loans and wilful default in banking.

Importance: Ethical business builds investor and consumer trust, reduces transaction and litigation costs, attracts foreign investment, improves access to international markets (buyer codes of conduct, GSP/EU compliance), and supports sustainable and inclusive growth.

Ways to promote business ethics in Nepal:

1. Strict and impartial enforcement of existing laws with credible penalties.
2. Effective corporate governance — independent directors, audit committees, whistle-blower protection.
3. Mandatory CSR and ethical codes in professional bodies (FNCCI, CNI, ICAN, NBA).
4. Ethical education in business curricula and continuous employee training.
5. Consumer awareness, media scrutiny and social auditing.
6. Simplification of procedures and e-governance to reduce discretion and opportunities for bribery.

Conclusion: Nepal has an adequate legal framework but a large gap in enforcement. Business ethics will improve only when legal deterrence, corporate self-regulation and social awareness advance together.

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b) Role of marketing department in Nepal Airlines

Introduction: Nepal Airlines Corporation (NAC), established in 2013 BS (1958 AD) under the Nepal Airlines Corporation Act, 2019 BS, is the national flag carrier. Its Marketing Department is the commercial nerve centre that links the airline's capacity with passenger and cargo demand in a highly competitive market dominated by private and foreign carriers.

Key roles and functions:

1. Market research and demand forecasting — studies route-wise traffic, seasonality (trekking season, Dashain–Tihar, pilgrimage and labour migration to Gulf/Malaysia), competitor fares and load factors to guide scheduling and capacity deployment.

2. Product and network planning — recommends new routes, frequency changes and aircraft deployment (domestic STOL sectors, regional and long-haul destinations) based on commercial viability.

3. Pricing and revenue management — sets fare classes, promotional fares, group and corporate fares, and yield management to maximise revenue per available seat kilometre (RASK) while remaining competitive.

4. Distribution and sales — manages ticket offices, appointed travel agents (IATA and non-IATA), Global Distribution System (GDS) participation, online booking and city sales counters; controls agency commission and incentive schemes.

5. Promotion and branding — advertising, participation in travel fairs, digital and social media campaigns, loyalty programmes, and promotion of Nepal as a destination in coordination with Nepal Tourism Board.

6. Customer relationship and service quality — handles reservations, complaints, refunds and frequent-flyer relations; feeds customer feedback to operations for service improvement.

7. Cargo and charter marketing — promotes belly-hold cargo, charter flights, pilgrimage and labour charter services, an important revenue source for NAC.

8. Corporate and institutional sales — contracts with government offices, embassies, INGOs, trekking agencies and corporate houses.

9. Interline and code-share coordination — negotiates interline agreements, prorate and special prorate agreements (SPA) with other airlines to widen market reach.

10. Revenue accounting support and MIS — monitors sales reports, agent remittances and route profitability to support management decisions.

Challenges: intense competition from private domestic operators and foreign carriers, limited fleet and route rights, price-sensitive market, high seasonality, and dependence on government policy.

Conclusion: The Marketing Department of Nepal Airlines is vital for commercial sustainability — it identifies profitable markets, sells available capacity, builds brand image and protects the national carrier's market share. Its effectiveness directly determines NAC's load factor, yield and financial performance.