Business Ethics Assignment

Laws And Regulations

By:
1. Name: Fauzi Refnaldi (2310522054)
2. M. Angga Ramadhani (2310523015)

Department Of Management
University Of Andalas
2023/2024
 A. Identify the regulations/laws that govern each respective field in
Indonesia.
In Indonesia, businesses are governed by various regulations and laws aimed at creating a
fair, orderly, and sustainable business environment. These regulations cover a wide range of
aspects, from company establishment to consumer protection, and regulate various sectors of the
economy. With a robust regulatory framework, businesses in Indonesia are expected to develop
sustainably in accordance with applicable legal principles.

a. Regulations of Competition
In Indonesia, competition is regulated by several laws and regulations, including:

1. Law Number 5 of 1999 concerning Prohibition of Monopolistic Practices and Unfair

Business Competition (Competition Law). This law prohibits monopolistic practices, cartel
practices, and unfair business competition.
2. Law Number 8 of 1999 concerning Consumer Protection. Although not specifically
regulating competition, this law provides protection to consumers from unfair or
detrimental business practices.
3. Government Regulation Number 57 of 2010 concerning Control of Monopolistic Practices
and Unfair Business Competition. This regulation provides further details on the
implementation of the Competition Law.
4. The Business Competition Supervisory Commission (KPPU) is the agency responsible for
enforcing the Competition Law in Indonesia. They have internal regulations and
procedures for handling cases of competition law violations.
5. Regulation of the Minister of Trade Number 53/M-DAG/PER/8/2012 concerning
Guidelines for the Determination of Unfair Business Competition Practices. This
regulation provides guidelines for identifying and determining unfair business competition
practices.
6. Regulation of the Minister of Trade Number 21/M-DAG/PER/3/2014 concerning
Prohibition of Certain Types of Business Practices in the Trade Sector. This regulation
prohibits certain types of business practices that may distort competition in the trade sector.
7. Regulation of the Minister of Trade Number 71/M-DAG/PER/9/2015 concerning
Assessment of Merger or Consolidation of Business Entities in Order to Maintain Healthy
Business Competition. This regulation outlines the procedures for assessing mergers or
consolidations of business entities to ensure they do not harm competition.
8. Regulation of the Minister of Trade Number 82/M-DAG/PER/12/2012 concerning
Guidelines for the Determination of Merger or Consolidation of Business Entities in Order
to Maintain Healthy Business Competition. This regulation provides guidelines for
determining whether a merger or consolidation of business entities complies with
competition laws.
 b. Regulations of Protection Of Consumers
In Indonesia, consumer protection is governed by several laws and regulations, including:

1. Law Number 8 of 1999 concerning Consumer Protection.

2. Law Number 32 of 1997 concerning Trade.
3. Law Number 19 of 2014 concerning Consumer Protection.
4. Government Regulation Number 99 of 2016 concerning Consumer Dispute
Resolution.
5. Government Regulation Number 40 of 1996 concerning Taxable Goods and/or
Value-Added Taxable Goods Which Are Not Subject to Income Tax Which Are in
the Form of Taxable Imports.
6. Government Regulation Number 44 of 1995 concerning Consumer Protection.
7. Government Regulation Number 46 of 2017 concerning the Implementation of
Testing and Inspection of Products and/or Services in the Context of Consumer
Protection.

c. Regulations of Protection Of Natural Environment

In Indonesia, environmental protection is governed by various regulations and laws, including:
1. Law Number 32 of 2009 concerning Environmental Protection and Management.
2. Law Number 23 of 2014 concerning Regional Governments, which regulates the
authority of local governments in environmental protection at the local level.
3. Law Number 5 of 1990 concerning the Conservation of Biological Resources and
Ecosystems.
4. Law Number 41 of 1999 concerning Forestry.
5. Government Regulation Number 27 of 2012 concerning Environmental Permits.
6. Government Regulation Number 45 of 2004 concerning Protected Forest
Management.
7. Government Regulation Number 47 of 2016 concerning Forest Area Management.
8. Government Regulation Number 61 of 2014 concerning Domestic Wastewater
Management.
9. Government Regulation Number 101 of 2014 concerning the Management of
Hazardous and Toxic Waste.
10. Government Regulation Number 71 of 2014 concerning Forest and Land Damage
Control Management.
11. Government Regulation Number 99 of 2012 concerning Air Pollution Control.
12. Government Regulation Number 101 of 2014 concerning the Management of
Hazardous and Toxic Waste.
13. Government Regulation Number 57 of 2016 concerning Spatial Planning.
 14. Government Regulation Number 59 of 2007 concerning Water Quality
Management and Pollution Control.
15. Government Regulation Number 82 of 2001 concerning Water Quality
Management and Pollution Control for Activities and/or Businesses.
16. Government Regulation Number 40 of 1996 concerning Coastal and Small Islands
Management.
17. Government Regulation Number 27 of 2013 concerning the Implementation of
Protected Area Management.
18. Government Regulation Number 106 of 2015 concerning the Implementation of
Watershed Management.
19. Government Regulation Number 45 of 2016 concerning the Management of
Hazardous and Toxic Waste.
20. Government Regulation Number 99 of 2016 concerning Pollution Control and/or
Environmental Damage Due to Mining Activities.
21. Minister of Environment and Forestry Regulation Number
P.20/Menlhk/Setjen/Kum.1/3/2018 concerning Guidelines for the Preparation of
the National Action Plan for Greenhouse Gas Emission Reduction (RAN-GRK).

d. Regulations of Promotion Of Equity And Safety

Several regulations governing equity and safety promotion in Indonesia include:
1. Law Number 13 of 2003 concerning Manpower, which regulates the protection of
workers, including safety and occupational health.
2. Law Number 8 of 1999 concerning Consumer Protection, which regulates
consumer rights, including honest, fair, and non-deceptive promotion.
3. Government Regulation Number 74 of 2001 on the Implementation of Law Number
8 of 1999 concerning Consumer Protection, which provides more detailed
provisions regarding permissible and prohibited promotional practices.
4. Government Regulation Number 50 of 2012 concerning the Implementation of
Occupational Safety and Health Management Systems, which regulates the
procedures for implementing occupational safety and health management systems
in workplaces.
5. Minister of Health Regulation Number 42 of 2013 concerning Occupational Safety
and Health in the Workplace, which provides guidance on efforts to create a safe
and healthy work environment.
6. Law Number 40 of 2007 concerning Limited Liability Companies, which regulates
a company’s responsibility for employee workplace safety and related parties
involved in company activities.
 7. Law Number 32 of 2009 concerning Environmental Protection and Management,
which establishes a company’s obligation to ensure a safe and healthy work
environment for employees.
8. Minister of Manpower and Transmigration Regulation Number 5 of 2018
concerning Occupational Safety and Health in Construction Workplaces, which
provides specific guidelines for maintaining safety and health in the construction
sector.
9. Minister of Manpower Regulation Number 2 of 2020 concerning the Provision of
Occupational Safety and Health Incentives, which provides incentives for
companies with good occupational safety and health programs.

e. Regulations of Incentives To Compliance

In Indonesia, there are several regulations and laws governing incentives for compliance,
including:

1. Law Number 7 of 2017 concerning General Elections: This law provides incentives
for political parties and legislative candidates who comply with the rules and
regulations applicable in the context of general elections.
2. Law Number 36 of 2008 concerning Income Tax: This law provides incentives in
the form of tax facilities for taxpayers who fulfill their tax obligations accurately
and timely.
3. Government Regulation Number 46 of 2013 concerning the Provision of Public
Services: This regulation governs incentives for government agencies that succeed
in providing good and efficient public services.
4. Law Number 25 of 2009 concerning Public Services: This law also provides
incentives for government agencies that successfully improve the quality of public
services according to established standards.
5. Government Regulation Number 13 of 2018 concerning the Implementation of
Financial Management of Public Service Agencies: This regulation provides
incentives for public service agencies that achieve good and transparent financial
performance.
6. Law Number 32 of 2009 concerning Environmental Protection and Management:
This law provides incentives for companies or individuals engaged in
environmentally friendly business practices.

B. Case study regarding violations of laws/regulations in Indonesia.

Keracunan HIT, Setiawan Lapor ke Polda Metro Jaya
Jakarta – Korban keracunan obat antinyamuk HIT, Setiawan (19), melapor ke Polda Metro
Jaya. Dia melaporkan PT Megasari Makmur Gunung Putri sebagai produsen HIT.Setiawan saat
melapor diwakili oleh Ketua LBH Kesehatan Iskandar Sitorus di Polda Metro Jaya, Sabtu
(17/6/2006).”Dia tidak bisa datang karena masih trauma dengan polisi atas kejadian perampokan
di rumah majikannya,” ujar Iskandar.Dikatakan dia, Setiawan ketahuan keracunan HIT ketika pada
11 Juni pukul 20.00 WIB merasa pusing, mual, dan muntah-muntah setelah menghirup obat
antinyamuk HIT yang telah disemprotkan di ruang tempat dia bekerja.Akibat kondisi tubuh
Setiawan lemah dan muntah-muntah terus, akhirnya dibawa ke klinik. Tim dokter mengatakan
Setiawan mengalami suspect keracunan akibat menghirup obat antinyamuk HIT 2,1A.Setiawan
melalui LBH Kesehatan akan menuntut produsen obat antinyamuk HIT dengan menggunakan
pasal 82 ayat 2 tentang pengamanan gas adiktif dengan sanksi hukuman 5 tahun penjara.”Kejadian
ini sudah menyangkut tindak pidana, maka harus melalui jalur hukum,” tandasnya.Setiawan saat
ini masih terbaring lemah dan istirahat di rumah majikannya Kompleks Billy Moon, Jalan Kelapa
Hijau IV, Blok 01 Nomor 12, Kalimalang, Jakarta Timur. Hal ini di indikasi karena adanya
kelalaian dari pt mega sari makmur yang menggunakan zat terlarang yang tidak seharusnya dipakai
di obat nyamuk
Source: (https://news.detik.com/berita/d-618077/keracunan-hit-setiawan-lapor-ke-polda-metro-
jaya)

C. Identify the regulations/laws that govern each respective field in

Regional/Global.
In the global arena, businesses operate within a complex web of laws and regulations
aimed at fostering fair competition, ensuring consumer protection, and promoting sustainability.
These regulations span diverse aspects, encompassing everything from corporate governance to
environmental standards, and they govern various industries and sectors worldwide. With a
comprehensive regulatory framework, businesses on a global scale are expected to thrive
sustainably while adhering to the relevant legal principles.

1. Regulations of Competition
There are several regulations governing competition at the regional/global level:

1. Sherman Antitrust Act (US): This law, applied in the United States, prohibits
monopoly practices and unfair competition restrictions.
2. Clayton Antitrust Act (US): Consolidating US antitrust laws, it prohibits
discriminatory pricing, exclusive contracts, and harmful mergers.
3. European Union Antitrust Regulation: Regulates competition in the European
Union and prohibits monopoly practices and cartels.
4. Competition and Consumer Act (Australia): Governs competition in Australia and
prevents practices detrimental to competition.
5. Malaysian Competition Act: Ensures healthy competition and prohibits anti-
competitive practices.
 6. Singapore Competition Act: Prohibits anti-competitive practices and protects
consumers.
7. Competition Regulation (Canada): Regulates competition in Canada and prohibits
monopoly practices.
8. Competition Regulation (Japan): Prohibits monopoly practices and regulates
competition in Japan.
9. South Korean Competition Regulation: Prohibits monopoly practices and
promotes healthy competition in South Korea.
10. Brazilian Competition Regulation: Governs competition in Brazil and prohibits
monopoly practices.
11. Indian Competition Regulation: Governs competition in India and prohibits
monopoly and anti-competitive practices.
12. South African Competition Regulation: Prevents anti-competitive practices in
South Africa and protects healthy competition.
13. Chinese Competition Regulation: Regulates competition in China and prevents
monopoly practices.
14. Russian Competition Regulation: Regulates competition in Russia and prevents
monopoly and anti-competitive practices.
15. Mexican Competition Regulation: Prohibits monopoly and anti-competitive
practices in Mexico and promotes healthy competition.

2. Regulations of Consumer Protection

Here are several regulations or laws governing consumer protection at the regional or global level:

1. Directive 2011/83/EU (EU Consumer Rights Directive): Regulates consumer rights in the
European Union, including rights to information, withdrawal from contracts, and
protection against unfair business practices.
2. Consumer Protection Act 1987 (United Kingdom): Provides protection for consumers in
the UK from unsafe products and grants rights to compensation claims.
3. Consumer Protection Act, 1986 (India): Provides protection to consumers in India from
unfair trade practices and defective products.
4. Consumer Protection Law No. 8 of 2008 (Indonesia): Regulates consumer rights in
Indonesia, including rights to information, protection against unfair business practices, and
the right to claim compensation.
5. Consumer Rights Act 2015 (United Kingdom): Consolidates and updates consumer
protection laws in the UK, including rights to refunds, repairs, and replacements.
6. Fair Packaging and Labeling Act (United States): Ensures that product labels provide clear
and accurate information to consumers, including information about ingredients, weight,
and manufacturers.
 7. General Data Protection Regulation (GDPR): Although not specifically for consumer
protection, the GDPR regulates the protection of consumers’ personal data in the EU, which
is also part of modern consumer rights.
8. The Competition and Consumer Act 2010 (Australia): Regulates unfair business practices,
prohibits deception and misleading conduct, and provides a framework for consumer
dispute resolution.
9. Consumer Protection (Distance Selling) Regulations 2000 (United Kingdom): Provides
specific protection for consumers purchasing goods or services remotely, such as online or
by phone.
10. Consumer Protection (Fair Trading) Act 1986 (New Zealand): Regulates unfair trading
practices and provides a framework for consumer protection in New Zealand.

3. Regulations of Protection Of Natural Environment

Here are the identified regulations/laws governing environmental protection at regional and global
levels:
1. United Nations Framework Convention on Climate Change (UNFCCC) – Establishes a
framework for international cooperation to combat climate change.
2. Kyoto Protocol – Regulates the reduction of greenhouse gas emissions.
3. Paris Agreement 2015 – Aims to limit the global temperature rise to below 2 degrees
Celsius.
4. Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and
Their Disposal – Addresses the management and disposal of hazardous wastes.
5. Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous
Chemicals and Pesticides in International Trade – Regulates international trade of certain
hazardous chemicals and pesticides.
6. Stockholm Convention on Persistent Organic Pollutants (POPs) – Addresses the control
and elimination of persistent organic pollutants.
7. Montreal Protocol on Substances that Deplete the Ozone Layer – Addresses substances
harmful to the ozone layer.
8. Bern Convention on the Conservation of European Wildlife and Natural Habitats – Focuses
on conserving biodiversity in Europe.
9. Bonn Convention on the Conservation of Migratory Species of Wild Animals – Aims to
conserve migratory species.
10. Ramsar Convention on Wetlands of International Importance – Focuses on the
conservation and sustainable use of wetlands.
11. Rio Convention on Biological Diversity – Aims to conserve biodiversity and ensure its
sustainable use.
 12. Carpathian Protocol on Conservation and Sustainable Use of Biological and Landscape
Diversity in the Carpathians – Focuses on conserving the Carpathian Mountains’
biodiversity.
13. Copenhagen Agreement on the Protection of the Arctic Marine Environment – Addresses
environmental protection in the Arctic marine environment.
14. OSPAR Agreement on the Protection of the Marine Environment of the North-East Atlantic
– Focuses on protecting the marine environment of the North-East Atlantic.
15. HELCOM Agreement on the Protection of the Marine Environment of the Baltic Sea Area
– Addresses environmental protection in the Baltic Sea.
16. London Convention on the Prevention of Marine Pollution by Dumping of Wastes and
Other Matter – Addresses marine pollution from dumping.
17. MARPOL Agreement on Pollution Prevention from Ships – Addresses pollution from
ships.
18. Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of
Benefits Arising from their Utilization – Focuses on access to genetic resources and
benefit-sharing.
19. Escazú Agreement on Access to Information, Public Participation in Decision-making and
Access to Justice in Environmental Matters in Latin America and the Caribbean – Focuses
on environmental governance in Latin America and the Caribbean.
20. Paris Agreement 2015 on the Conservation and Sustainable Use of Marine Biological
Diversity of Areas Beyond National Jurisdiction – Focuses on conserving marine
biodiversity beyond national jurisdiction.

4. Regulations of Promotion Of Equity and Safety

At both regional and global levels, there are several regulations and laws governing the promotion
of equity and safety. Here are some examples:
1. International Covenant on Civil and Political Rights (ICCPR): The ICCPR is an
international human rights treaty that articulates fundamental civil and political rights. One
aspect is equality before the law and the right to personal security.
2. Convention on the Rights of the Child (CRC): The CRC outlines children’s rights,
including protection from violence, exploitation, and discrimination. Its aim is to ensure
equal treatment for all children.
3. International Labour Organization (ILO) Convention on Workers’ Rights: This convention
delineates workers’ rights, including the right to safety and health in the workplace and
equality of treatment at work.
4. Paris Agreement: This international agreement aims to address global climate change. One
of its principles is climate justice, recognizing the differing roles and responsibilities
among countries in addressing climate change.
 5. International Health Regulations: This agreement provides a framework for addressing the
spread of potentially dangerous diseases globally. Its goal is to ensure a fair and effective
response to public health threats.
6. European Union Product Safety Regulation: The EU has stringent regulations regarding
product safety marketed within its territory, including requirements for equal accessibility
for all consumers.

5. Regulations of Incentives To Compliance

Several regulations and laws governing incentives for compliance at regional or global levels
include:

1. Paris Agreement on Climate Change: This agreement entails incentives for countries
adhering to their carbon emission reduction targets.
2. General Data Protection Regulation (GDPR) of the European Union: The GDPR provides
incentives for companies complying with data protection regulations by imposing penalties
for violators and benefits for compliant entities.
3. Global Business Ethics Codes: Many organizations and industries have global business
ethics codes that incentivize members to adhere to high standards of ethical behavior and
business practices.
4. Global Environmental Protection Regulations: Organizations such as the United Nations
(UN) and the European Union have environmental regulations that provide incentives for
companies and countries complying with established environmental standards.
5. Free Trade Agreements: Free trade agreements often include incentives for countries
adhering to international trade standards and human rights.
6. Global Financial Market Regulations: Regulations like Basel III for banking or the Dodd-
Frank Act in the United States provide incentives for financial institutions complying with
stringent compliance requirements.
7. Professional Codes of Ethics: Various professions have codes of ethics governing the
conduct of their members and providing incentives for compliance with these ethical
standards.

D. Case study regarding violations of laws/regulations in Regional/Global.

Balenciaga is sexualising children

Sometimes the hardest thing about discerning what is real or fake on the internet is that the
truth can be so absurd and unbelievable. For example, if you came
across this advertisement on Twitter, featuring a young child holding a teddy bear in
bondage gear, you would be forgiven for assuming you were being trolled. Yet this is a
real campaign by Balenciaga, the high-end fashion line with over 11 million followers on
Instagram.The more you look, the worse it gets. This picture features a young girl holding
a toy wearing fishnets, restraints and a padlock, with bruised purple and blue eyes
(Balenciaga have been called out before for glamourising domestic violence, after they
painted black eyes and a bloody nose on a model). This picture focuses on a girl lying down
on a sofa surrounded by empty wine glasses, while this photo includes tape with the letters
BAAL: a pagan God who demanded child sacrifice. This picture shows documents from
the court case Ashcroft v Free Speech Coalition, a controversial ruling that struck down a
portion of the Child Pornography Protection Act after it deemed that online child
pornography is protected free speech.Stranger still is the muted response on social media.
Where are the boycotts? Why did Instagram let the campaign run? Kim Kardashian, one
of the brand’s ambassadors, has been noticeably silent, which is ironic given her quickness
to condemn anti-Semitism after her ex-husband Kanye West was dropped
by Balenciaga last month. Balenciaga issued an ‘apology’ on their Instagram stories
(which conveniently delete themselves after 24 hours) but the company has since
deactivated its Instagram altogether. The brand already left Twitter after Musk’s takeover,
and since they didn’t elaborate on their reasons for doing so, many have re-evaluated this
decision in light of Musk’s promise to crack down on content that involves child sexual
exploitation.

Balenciaga’s ‘apology’ may try to lay the blame with the set designers, but the reality is
that the campaign will have been viewed by dozens if not hundreds of employees, and
would never have been signed off without consent from high levels. There are plenty of
photos and campaigns still running with disturbing set choices — for example, several
photographs include a copy of Michael Borreman’s book Fire From The Sun, a collection
of portraits of naked toddlers with “sinister overtones and insinuations of
violence.”Perhaps it is all part of a sinister PR strategy — controversy drives coverage,
which drives consumption. Perhaps this is just another example of a fashion house shock
tactics: after all, who can forget Bennetton’s long history of using graphic images, such as
a newborn baby complete with an umbilical cord, or the Pope kissing an Egyptian
imam? Yet this may also be a part of a wider social trend in which sexual
violence is glorified, fetishes are normalised, where #KinkTok has over 12 billion views,
and brands can continue to push boundaries without real consequences. Kanye
West claims to have lost $2billion in a day for his anti-Semitic comments, while basketball
star Kyrie Irving was suspended for 8 games for his links to a film with anti-Semitic
material. How much will Balenciaga pay for their latest shoot?

Source: (https://unherd.com/newsroom/why-is-balenciaga-sexualising-children/)