Type: Process Essays
Sample donated: Valerie Cross
Last updated: August 21, 2019
1.1 Describean organisation’s procedures for raising legal, regulatory and ethical concernsEvery business or organisation mustfollow procedures when legal, regulatory or ethical concerns are raised. Anyconcerns raised must be investigated as soon as possible and dealt withpromptly, because issues that aren’t resolved could seriously damage thebusiness. Every business will have procedures in place to raise and deal withthese concerns the best way possible.At Flightcase Warehouse I could raiseany concerns easily with any member of staff as we are such a small businessregarding workforce. All concerns would be taken seriously and investigatedwhether it be legal, regulatory or ethical.
To raise concerns personally Iwould go to Sam Austin or Steve Austin. Alternatively, I would speak to KerriAustin or Jason Furneaux. I am confident that any concern raised would be takenseriously and investigated fully. When raising a concern, a businesswill encourage the person to be open about what they are concerned aboutwhether it be legal, regulatory or ethical, but it will also be dealt withdiscreetly.
The issue should initially be raised with a line manager who willtreat the concern fairly. If the line manager can deal with the issueinternally then the concern will be dealt with straight away, however if theconcern cannot be handled internally police or other bodies may have to getinvolved. An example of a legal concern could becontracts. Contracts can often be disputed and can cause issues within abusiness between employers and employees as well as businesses to otherbusinesses and businesses to customers. A simple misunderstanding if nothandled correctly can cause big issues for a business.
There are regulations that every businessmust legally follow, for example all acts put in place by the government mustbe followed. A business can be prosecuted if the Data Protection Act is notfollowed as well as being ordered to pay fines or in some cases the businesswill be investigated in more depth. Ethical procedures are equally asimportant, and the Human Rights Act takes into consideration different ethicalbackgrounds as well as the right to have an opinion and beliefs and protectsagainst discrimination. 1.
2 Explain the scope of legal, regulatory andethical requirements in sales or marketingIn any business the sales andmarketing departments the same as any other department must meet legal,regulatory and ethical requirements. The scope of these requirements is whatthey are in place to achieve, what their objectives and goals are. Sales and Marketing are important asthey are generally the part of any business that is most exposed to the public,so it is important that all legal, regulatory and ethical requirements areconsidered and followed as not following them is not only going against companyPolicies and Acts but legal requirements which could harm the business due tonot following good practice. It could also lead to the business getting suedand or taken to court depending on the severity.Within Sales and Marketing, legalrequirements such as the Data Protection Act are put in place to ensure thehandling of a customer’s sensitive data for example the collection and use ofpayment details and address is done correctly as it is extremely important andmust be done by following company and legal procedures. These proceduresinclude only collecting data which is necessary, as well as not holding theinformation for any longer than we need it. Further to this at FlightcaseWarehouse we use a CRM (Customer Relation Management) system to capture thedetails of everyone who places an order with us. Any data that we hold is keptsecurely in our CRM system and is only available to those who need to use it.
Regulatory requirements such as theHealth and Safety Act are put in place by the Government. Businesses mustfollow these regulations as they are all legal requirements of a business. Thisis to ensure all actions that can be taken to protect the health and safety ofall employers and employees is taken to not only meet government requirementsand regulations but keep the workforce safe and healthy. At FlightcaseWarehouse We follow Health and Safety regulations for example we wear highvisibility jackets in the warehouse as well as the necessary PPE. Ethical requirements are put in placeto help, protect and keep employees from being discriminated against. Laws suchas the Human Rights Act are in place to protect people of all differentethnicities from being discriminated against.
In sales and marketing, atFlightcase Warehouse the people that I am exposed to and work with are diversemeaning they will have different religious beliefs or be a different ethnicity.This must be respected, and the human rights act must be followed. It is ofutmost importance that no one is discriminated against or treated anydifferently and if this behaviour does occur in the workplace or anywhere it isbreaking the law. 1.3 Explain how the legal, regulatory andethical requirements relate to the business of selling or marketing All legal, regulatory and ethicalrequirements are applicable to Sales and Marketing. Businesses will always makeclear their requirements and the consequences of not following them in thecontract of employment. A few examples of these requirements are: • WorkingTime Directive and Employment LegislationThe Working time directive shows theamount of time per week employees can work. All employees in the EU that work 5days a week or more have the right to 5.
6 weeks or 28 days of paid holiday (8of which can be bank holidays, this is down to the employer’s discretion).Employees are also entitled to rest breaks and the right to work no more than48 hours per week, however employees can opt out of this act which will thenallow them to work longer hours. Employment legislation is a list ofacts that are in place to protect employees. It is what the law expects fromemployers for their employees. The National Minimum Wage Act 1998 and The EqualPay Act 1970 are examples of some of the acts included within employmentlegislation.At Flightcase Warehouse I work 8 hoursper day with a 45-minute lunch per day and I must accrue holiday per month and Iam only to get apprentice minimum wage is £3.50 per hour.
• CopyrightslawsCopyright law applies to any form ofcontent creation or generation it is specifically important in a business aswell as sales and marketing because work can be copied or plagiarised which incertain cases is illegal as copying work from anywhere and not sourcing theinformation is also classed as copyright infringement. It is equally importantthat those who work in sales and marketing are aware of copyright laws and donot breach them. It is extremely common for copyright to be breached inmarketing as content is created all the time. Any original content, such asphotographs or written pieces such as blogs, can’t be used without thecreator’s permission under the Copyright Designs and Patents Act 1988.
Copyright also effects how businesses can use purchased software as in theterms and conditions there may be conditions that state how created content canbe used and distributed. • EqualityActThe most recent Equality Act wascreated in 2010 and merged other acts that came before. It was created to stopdiscrimination against sex, race, age, disability, gender reassignment,religion and belief, sexual orientation, marriage and civil partnership andpregnancy and maternity. The Equality Act within sales and marketing helps toprevent offense being cause due to treatment of customers or other employeesthrough communication verbally or any marketing or sales materials that may becreated. • Dataprotection actThe Data Protection Act regulates howbusinesses, people and the government can use data. For example, any datacollected must be used accurately and not manipulated in any way.
Confidentialdata must be kept safe for example at Flightcase Warehouse it is held on a datamanagement system that is on a secure network and the data is only available tothose who need to use it. If the data is a tangible document as in it is onpaper, it must be stored securely for example a lockable filing cabinet in alocked room or office or a safe. Sales and Marketing involves collecting andhandling customer’s information all the time and as such this act is massivelyimportant. Information a customer has provided to a company must never bepassed on without the customer’s prior consent and knowledge. If contactdetails are given and the customer does not want to receive any marketing or”spam” they must not receive anything of the sort.
This can be classed asharassment. • EthicalrequirementsFalse advertising is unethical and inmost cases illegal. It is the act of making false claims or publishingmisleading content in terms of sales and marketing. This will always lead todissatisfied and angry customers. When targeting vulnerable groups, such aselderly people or children, convincing them that they need to sign up to or buysomething is unethical.
Marketing has the power to do this and it shouldn’t beused in the wrong way. Businessesshouldn’t appear to have a biased opinion as a lot of people trust bigcompanies and a bias expressed by them is likely to sway opinions of theconsumers. So, in marketing, any opinions that are put out must be accurate andtrue. Companies must consider where they purchase their materials and if it isethical to source form these places. 1.4 Describe internal and external sources ofinformation on legal, regulatory and ethical requirements There are different internal andexternal ways to source information on legal, regulatory and ethicalrequirements.
When starting a new job most businesses will give new staff anintroduction pack and company handbook, which provides an overview of the codeof practice, policies and other helpful information about the business meaningit should include information on the businesses legal, regulatory and ethicalrequirements. Another internal source of information is the HR department. TheHR department is able to provide advice and guidance and should also be able toprovide information on legal, regulatory and ethical requirements.
Generally, the most accessible sourceof information for anyone would be the internet. Using the internet would allowanyone to find information on legal, regulatory and ethical requirements frommany sources including the official government website for up to date, relevantActs and Laws. The downside of accessing this information on the internet isthat there is a risk that the information could be outdated or incorrect.
• InternalInternal sources of legal, regulatoryand ethical requirements are: the HR department and in the company handbook asabove. The HR department will hold private and confidential information for eachemployee including their bank details, all of which will need to be kept in asecure location whether it is in physical form or held securely on a computer. The HR department is responsible forentering personal details into our system when an employee first starts as wellas generating and giving the paperwork to collect this data, so they will befamiliar with most legal, regulatory and ethical requirements and should beable to offer information regarding this. The company handbook will include allthe acts that the company must legally follow.
• ExternalExternal sources such as thegovernment will provide information in different forms like helplines that canbe called and official websites that can be accessed at any time. 1.5 Explain how an ‘ethical approach’ affectsorganisations in the sales or marketing environment Ethical approaches in marketing suchas an awareness of people’s beliefs to not offend anyone affects the businessin more ways than one. Primarily it will make customers happy and encouragerepeat business. Ethical marketing will make a customer more likely to rememberand recommend the business to others and because of this more business willoccur.
An ethical approach is also a legal requirement so if not followed itcan lead to legal issues which will affect the business in a bad way. 1.6 Explain the importance of Contract Law insales A contract is a legally bindingagreement between two or more parties. It is used as proof of an agreementbetween two or more parties where both sides have consented and understand whatis expected of them and their side of the agreement and what they should expectto receive from the other party or parties involved. A contract is almostalways legally binding, meaning that if it is not upheld or followed, then theperson in breach of the contract can be taken to court to settle the dispute. Contract law is important in sales andmarketing as it prevents the exploitation of every party involved. For example,when a purchase is made the customer will receive a receipt or invoice which isa contract of sale.
This is to show that the customer will receive any goods orservices that they have paid for and provides reassurance, as the businessshould allow a cooling off period which is part of this contract. The coolingoff period is the ability to cancel their contract without incurring a penaltyduring an agreed period after the sale has been made. In terms of how it willprotect the business, sales or marketing it means that any goods or servicesmust be paid for in full. 2.1 Explain the legal, regulatory and ethicalrequirements relevant to the role Within my role at Flightcase Warehousemost of the legal, regulatory and ethical requirements are relevant. Flightcase Warehouse has measures inplace to prevent all employees from injuring themselves whilst at work such ascorrect PPE and high visibility jackets being required when in the workshop andwarehouse, as well as fully tested electrical equipment and cable management inthe office to prevent tripping hazards. All of which comply with the Health andSafety at Work Act 1974. When producing content that will goout to customers I must consider if what is produced is ethical and right to bedistributed.
I try to ensure that I am non-bias and truthful in anything that Icreate as this is in my opinion morally right and misleading people isunethical and will affect the businesses reputation.Copyright laws are also important inmy role as I take photographs regularly as well as helping to create PR piecesand posting blog posts. The images I take are used on our website as well associal media and PR pieces are the same, so I must make sure that everythingthat goes out doesn’t breach the Copyright, Designs and Patents Act 1988. Another legal requirement within myrole is the Data Protection Act 1998.
As part of my job includes handlingcustomer data, whether it be taking details or handling existing details I amresponsible for their data. When taking peoples details over the phone I mustmake sure that once the data has been inputted into our system that anythingunnecessary must be destroyed and disposed of correctly and fully. 2.2 Describe the potential consequences of notcomplying with legal, regulatory or ethical requirements • Healthand Safety at Work Act Failing to comply with the Health andSafety at Work Act 1974 can cause serious repercussions for a business and theindividual who has failed to comply. Consequences can range from unlimitedfines, to imprisonment. Health and Safety inspections can occur regularly andif a potential risk is flagged and hasn’t been suitably assessed then thebusiness will be issued with a form of Improvement Notice, which must be actedupon before another inspection occurs and failure to address the issue canresult in a fine or further action. If an employee is injured or killed due tohealth and safety issues, then the consequences include prosecution and inextreme cases prison if it was directly someone’s fault. The CorporateManslaughter and Homicide Act 2007 was put in place to penalise any breach andthe penalty for breaching this Act is an unlimited fine as well as the businessbeing made to publicly disclose the details of their conviction.
• WorkingTime Directive and employment legislation Businesses are responsible formonitoring their employee’s working time and breaks. If the working timedirective 2003 is breached the employee affected can make a claim and may beentitled to compensation. The employee will likely be entitled to compensationif they have suffered health issues as a result. • CopyrightLaws The maximum penalty for copyrightinfringement in the UK is imprisonment and an unlimited fine. • EqualityAct All businesses will have disciplinaryprocedures in place to deal with breaches of the Equality Act 2010. Dependingon each situation and the businesses policies, the consequences could vary fromthe employee making a formal apology to the person affected or as serious asthe employee losing their job and further action being taken for example thepolice being involved. • DataProtection Act Information Commissioner’s Office orICO as they are otherwise known, are the public body responsible for enforcingthe Data Protection Act 1998.
If a person who has not been authorised viewsprivate data due to an organisation’s negligence, this is considered a databreach. ICO can act against data breaches, they’re able to pursue criminalprosecution for serious offences, take non-criminal enforcement, issue monetarypenalties and undertake audits to ensure that companies are complying with theAct. • Ethicalrequirements Unless an ethical requirement is alsoa legal requirement, a business will not face any legal consequences for beingunethical. Although if a business is found to be unethical customers willlikely not be happy and look elsewhere.
If enough people are unhappy and awareof the unethical practice then it will damage the reputation of the business,if severe enough the business may go bankrupt. 2.3 Explain the importance of working withinthe limits of the role, responsibilities and authority Flightcase Warehouse expect me to bepolite and friendly when I am speaking to anyone on behalf of the business.Even in day to day operations such as answering the phones I help to build agood reputation for the company. Daily tasks such as checking low stock andhelping while another member of staff is off are also important. It isimportant to work within the limits of my role but assist with others where andwhen I can as this is responsible. 2.4 Explain the process for reporting legal,regulatory and ethical concerns There are different ways to raiseconcerns regarding legal, regulatory and ethical issues in every business.
AtFlightcase Warehouse I would speak to either Sam Austin or Steve Austin whowould then help me decide what the best course of action would be. If Sam orSteve were unable to help me however there are other people I can talk towithin the business. If the situation is very serious in some businesses, therewill be an external helpline and in extreme cases the relevant agency can becontacted. 2.5 Explain the importance of clarity ofcommunication with the customer to ensure common understanding of agreementsand expectations Clarity of communication with thecustomer is important to ensure everyone is in full understanding of the agreementsand expectations that have been outlined. The customers satisfaction with theservice or product is important as this will encourage them to use the businessagain.
If there is any misunderstanding between the business and the customer,this could leave the relationship between the two parties in a less than idealstate and as such may lead to the customer not wanting to purchase from thebusiness in the future. In extreme cases, the customer may feel as though theyhave been exploited and try to pursue compensation, which would most likelyturn other current and potential customers away.