Legal and Ethical Issues

Write a Report

There some legal and ethical issues relating to the use of Business information for every Business
organization have to encountered. In this task you are required to prepare a report and obtain as
much information as possible to clarify these issues.

1. Explain the legal and ethical issues in relation to the use of business
information through any business organization and how they comply with
their legal obligations (P5)

2. Explain some operational issues that related to business information. The

operational issues can be how they protect their own business information,
the health and safety issues, staff training and development of new
systems (P6)

3. Analyze further the legal, ethical and operational issues in relation to the
use of business information based on your answeres in question 3(a) and
3(b) using appropriate examples (M2)

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Legal and ethical issues in relation to the use of business information (P5)

Every organization they have own policies and regulation that has been manage by
management.
All employee or staff must follow all the rules that has mentioned inside the contract.

Business
A business is a legal entity that operates in producing goods and services to consumers.
It is a commercial activity for a livelihood and earning profits.
Or,
We can say that it refers to the selling and buying of goods and services, between the
seller and the consumer.
Legal Issues

Legal Issues usually consists of checking for libelous or false statements before the copy
goes to print. This is an especially important step to ensure that publishers don’t commit
libel by printing inaccurate or falsified facts or statements about people or events.

Legal Issues in Business

There are a multitude of legal issues to think about when it comes to starting or running
a business. Everything from the business name to its structure to its operation has legal
implications.

There are lots of issues which will come and there are given below:

 Organizational
 Bankruptcy
 Business & Corporate
 Computers & Technology
 Labor & Employment

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  Administrative Law
 Commercial Law
 Communications Law
 Constitutional Law
 Contracts
 Environmental Law
 Intellectual Property
 Legal
 Tax Law
 Insurance Law
 Mediation & Arbitration
 Securities

Legal Issues
Data Protection Act 1998

Many businesses stores and use people's information but however, the data protection
act prevents business from misusing people’s information. The information held by
people must be:

 Obtained fairly and lawfully

 Only used for the purpose that it was collected for
 Accurate and up to date
 Not kept for longer than necessary
 Processed in line with your rights
 Subject to procedures to prevent unlawful processing, accidental loss,
destruction and damage to personal data.

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Freedom of information act 2000

The freedom of information only came in full effect in 2005. It gives individuals and
businesses with the right to request information held by a public authority. The public
authority must tell the applicant requesting the information whether they have it or not.
They must supply the information within 20 working days if they have the information
within the requested format. However, there are some exemptions to this act. For
example, if the cost of information requested exceeds an appropriate limit, then the
public authority may decide whether a greater public interest is being served by denying
the request or supplying the information.

The computer misuses act 1990

The computer misuses act 1990 is a law that legislates certain activities regarding
computers. such as hacking into people's computer to retrieve certain information, or
helping a person to gain access to information that is on someone else's computer.
The computer misuse act is split into three sections and makes illegal:

 Unauthorized access to computer material

 Unauthorized to access computer systems with intent to commit another offence
 Unauthorized modification of computer material

The Privacy and Electronic Communications Regulations 2003


 The Privacy and Electronic Communications Regulations 2003 is a law in the United
Kingdom which prohibits companies and sole traders if apparent to transmit automated
recorded messages which is primarily used for direct marketing purposes, via telephone
without prior consent of the subscriber 


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Ethical Issues
Codes of practice exist in organisations maintain business ethics on:

 Use of email
 Internet
 Whistle-blowing
 Organisational policies
 Information ownership

Emails
Businesses can use email to give standard information to a large group of people.
However, businesses can't use emails to send large dpcuments/attachments to a large
group of people.

Internet
Many businesses have codes of practice that prevents people in the organisation from
using the internet for wrong purposes such as watching pornographic videos etc

Whistle blowing
A whistle blower is an employee who raises concern about a business practice either
to a management witthin the company or to an outside organisation.

Organisational policies
Organsation policies to ensure that their businesses practices with information can be
done more ethically. for example, managing information and a just and fair manner.

Information ownership
This explains that people should be responsible for the information they have. for
example, if you create information every day, then you should be accountable for the
information you create.

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Explain the operational issues in relation to the use of business information(P6)

Operational Issues
Businesses has store and manage countless pieces information and in some cases,
some information are important than others. To make sure that the information is
managed appropriately, different procedures are put in place such as:

1. Security of information
2. Backups
3. Health and safety
4. Organisational policies
5. Business continuance plans

Security of information

Businesses need to make sure that their information are protected and secured. They
can do this by storing information on IT systems that will enable them to access the
information anytime they want. It is important for businesses to have the right

information when needed, because it helps make good decisions. Therefore, if a

business doesn't take care of their information properly, it may lead to bad decision
making.

Backups
Backups minimises the losses of important information. so many businesses use back
ups to prevent information from being lost. some businesses create information every
hour in order to be on the safe side. This means that if the information is destroyed or
damaged, a copy is available so the business can continue as little disruption as

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possible.

Health and safety

Although computer equipment in itself is unlikely to be dangerous but businesses still
make sure that workers aren't using computer equipment through out the day. For
example, staying on the computer for the whole day maybe bad for the eye sight. Bad
posture, incorrect positioning of equipment and susceptibility to repitive strain injury are
health and safety risks that employers are legally required to take seriously.

Organisational policies
Organisational policies that relate the use of business information can help make sure
that the decisions made are not affecting staff in any way.

Business continuance plans

These are the plans that a businesses sets in order to make sure that the business is
capable of surving a worst case scenario. One plan that business may make is to create
back up for information they have, in order to prevent the losses of imoportant
information.

Costs
Most businesses would like to implement the above policies but there are always costs
involved. When deciding what policies to adopt and what measures to take, businesses
need to consider the implementation and maintenance costs versus the benefits to the
organisation. Some key considerations are:

Additional resources needed - would the business need to purchase new equipment or
employ additional staff

Cost of development: is the solution already available (off the shelf) or will they need to
develop it themselves (bespoke)

Increasing sophistication - As there becomes a greater reliance on technology, and that

technology becomes more and more advanced, there must be training for the
employees on how to use it. If this is not done then the equipment or technology
becomes less effective

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Analyze the legal, ethical and operational issues in relation to the use of business
information, using appropriate examples (M2)

 Legal Issues:

These are laws and regulations that businesses and everyone in the country must follow.
Sarah Bonnell School accept by the Data Protection Act when dealing with their staff and
students personal data. This is very important for a business, as people want their data
to remain private. Sarah Bonnell School has a policy regarding this act whereby they
make sure that all their staff and student information is safe and secure. This is a big
advantage to Sarah Bonnell School as they would gain the trust of all the individuals that
work or study at Sarah Bonnell. By following this act, other potential students of Sarah
Bonnell School know that when they give their information to Sarah Bonnell School, it will
be protected. This is also great for parents and guardians of student at Sarah Bonnell as
they know they their children’s personal information will not be tampered with and instead
be kept safe. However, when complying with the law, Sarah Bonnell School must ensure
that they are following the law accurately. They must ensure that they only gather the
information that they need from their staff and students. Under the Data Protection Act,
Sarah Bonnell must only keep the information that is necessary for the business or this
would mean that they can potentially be take legal action if anyone found out. They must
make sure that the information they gather is kept up to date and also that theinformation
is disposed when the business is no longer in need the information.

 Ethical Issues:

These issues regarding Sarah Bonnell are the health and safety actions that they take
when operating their business. There are many benefits for Sarah Bonnell School
satisfying ethical practises. Sarah Bonnell School always shows equality amongst their
staff and their students. Sarah Bonnell would have satisfied employees through following
these practises. If any staff or student experienced any unsuitable or unfair behaviour

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from another member of staff or student, a higher authority of Sarah Bonnell School would
be required to deal with the situation and come up with a solution to the problem as quickly
as possible. This would make staff and students feel safe as they would know that the
situation is being put under control. Both staff and students of Sarah Bonnell School are
told earlier of the policy that they must follow when using the internet and e-mail. The
policy is to ensure that students at Sarah Bonnell School are behaving appropriately when
using the internet and e-mail services or they will be punished by either being banned
from using electronic equipment from the school site.

 Operational Issues:

These issues of Sarah Bonnell School include problems that may affect the way in which
the business is run. Sarah Bonnell has backups so that students and staff’s information
are kept safe at all times. It is essential that Sarah Bonnell has backup storage for
students and staff as if anything happened to their files and documents, it would be easy
to retain all their past information. This is an advantage for Sarah Bonnell as they are able
to get copies of information if the original copies cannot be found. Sarah Bonnell has
antivirus software that they use on their computers in order to assure that their system is
not at risk of crashing and being hacked into. Other operational issues that concern Sarah
Bonnell regard their employees. Employees must take lunch breaks throughout their day
of teaching; this is so that their staffs have time to prepare for future lessons, relax and
refresh themselves before they start teaching again

How does a big organisation make sure they’re behaving ethically? ( M2)

Firstly, the problems that Easy jet may face regarding ethics with relation to business
information may be that their information that is displayed to the public may be unethical
in the sense that they may o end people, they must constantly keep up to date with what
their targeted demographic favours and what repulses them. They must make sure their
business information is correct, the salary they provide for their employees is fair and that
their products and information does not o end anyone, like Sainsbury’s advertisement.

Easyjet would incorporate a code of conduct for all employees to follow. A code of conduct

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is intended to be a central guide and reference for users in support of day-to-day decision

making. It is meant to clarify an organization's mission, values and principles, linking them
with standards of professional conduct. As a reference, it can be used to locate relevant
documents, services and other resources related to ethics within the organization.

A code is an open disclosure of the way an organization operates. It provides visible

guidelines for behavior. A well-written and thoughtful code also serves as an important
communication vehicle that "reflects the covenant that an organization has made to
uphold its most important values, dealing with such matters as its commitment to
employees, its standards for doing business and its relationship with the community.

Many companies have auditors and inspectors, like Coulsdon college would have Ofsted
to monitor the grounds to make sure everything is in order and nothing is in violation.
Easy jet would have another body like Ofsted that would inspect the grounds and would
see that everything is in correct. Most companies frown upon this but it is a good way of
keeping companies inline. Though a lot of companies like Tesco find ways to work around
it.

Companies also have mission statements. To work towards a goal - this does lower levels
of corruption and any unethical behavior simply because the company will be working
towards something. “Heresy grows from idleness”

1. Additionally, East jet would use a disciplinary procedure to maintain ethical

behavior and to maintain working standards within the workplaces. An appraisal is
sometimes the best way for an employer to tell you when something is wrong and how
you can improve. It allows them to explain clearly what improvement is needed. Easyjet
would usually write out a hand written disciplinary to give to employers.
2.
3. Whistle blowing is also a good way to maintain ethical behavior. Keeping a safe
guard on corruption is an excellent way to gain that ethically right perception from the
public. Whistle blowing is a tactic businesses employ so that no on within the business

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will commit any malicious or violating rules for personal gain or to sabotage either the
company or its stakeholders.
4.
5. Furthermore, as a big company; Easy Jet has a social responsibility to maintain. A
social responsibility is being socially responsible. People and organizations must behave
ethically and with sensitivity toward social, cultural, economic and environmental issues.
Striving for social responsibility helps individuals, organizations and governments have a
positive impact on development, business and society with a positive contribution to
bottom-line results and gives. Easyjet focuses primarily on the environment as they are a
large consumer of oil, and as we know oil is a harmful chemical which contain co2 which
toxicates 02 and nitrogen levels in the atmosphere.

Examples of Legal Issues in Business

Recovery of Banks Dues Issues

Banks, as social organizations, have to go out to the people and assist weaker sections
in achieving their aspiration. In their daily working activities, they have to face lots of legal
issues among them “recovery of Banks dues” is one. The Artha Rin Adalat Ain, 2010 was
enacted with a view to quick disposal of those cases which are pending for recovery of
Bank’s money lying with the defaulter borrowers.

Trade mark, Design or Patent Issues

Companies with a huge reputation always faced a threat that some other person or
persons is using the same name with a cunning change which is not identical at the first
instance. Therefore, in the name of original reputed company, the vested quarter is
making their revenue giving a serious loss to the original one. Thus necessity of

intellectual property law practice is considered an integral part by a large sector of

company. Most of the case the arise regarding Trade mark, Design or patent. So, it’s

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necessary that whatever the business make the company’s patent, trade mark or design
be registered.

Foreign Investment Issues

Laws are a major impediment to foreign investment. Governmental officials tend to be

negative to people. On top of that start up costs and risks tend to outlay investment
incentives. Customers and excise personnel are also trouble spots. A big issue is tariff
schedules of non-pre-inspected goods, regardless of invoiced amounts. The schedule
changes every three months o so, and without advanced notice. Changes even apply
while goods are in transit.

Examples of Ethical Issues in Business

Quality of Drug Issues

Some importers use to bring medicines in the country which are not registered through
unfair means either by not declaring or by carrying luggage. These sorts of medicines can
be of substandard quality that might be insufficient to use as medicine but are sold within
the boundary of the country at a cheaper price. As per market condition and affordability
of most of the Population, these trafficked medicines are easily sold at relatively lower

prices than the prices charged on the registered medicines. Consequently, sellers of the
registered medicines are suffering for this kind of action. Moreover, people’s lives are at
risk if they purchase those drugs.

Corruption Issues

Petty corruption, such as paying fees for government services are the biggest
complaints. Insider trading is commonly sited too. We can see lots of corruption for
getting orders or giving orders in business.

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