an organisation’s procedures for raising legal, regulatory and ethical concerns
Every business or organisation must
follow procedures when legal, regulatory or ethical concerns are raised. Any
concerns raised must be investigated as soon as possible and dealt with
promptly, because issues that aren’t resolved could seriously damage the
business. Every business will have procedures in place to raise and deal with
these concerns the best way possible.
At Flightcase Warehouse I could raise
any concerns easily with any member of staff as we are such a small business
regarding workforce. All concerns would be taken seriously and investigated
whether it be legal, regulatory or ethical. To raise concerns personally I
would go to Sam Austin or Steve Austin. Alternatively, I would speak to Kerri
Austin or Jason Furneaux. I am confident that any concern raised would be taken
seriously and investigated fully.
When raising a concern, a business
will encourage the person to be open about what they are concerned about
whether it be legal, regulatory or ethical, but it will also be dealt with
discreetly. The issue should initially be raised with a line manager who will
treat the concern fairly. If the line manager can deal with the issue
internally then the concern will be dealt with straight away, however if the
concern cannot be handled internally police or other bodies may have to get
An example of a legal concern could be
contracts. Contracts can often be disputed and can cause issues within a
business between employers and employees as well as businesses to other
businesses and businesses to customers. A simple misunderstanding if not
handled correctly can cause big issues for a business.
There are regulations that every business
must legally follow, for example all acts put in place by the government must
be followed. A business can be prosecuted if the Data Protection Act is not
followed as well as being ordered to pay fines or in some cases the business
will be investigated in more depth.
Ethical procedures are equally as
important, and the Human Rights Act takes into consideration different ethical
backgrounds as well as the right to have an opinion and beliefs and protects
1.2 Explain the scope of legal, regulatory and
ethical requirements in sales or marketing
In any business the sales and
marketing departments the same as any other department must meet legal,
regulatory and ethical requirements. The scope of these requirements is what
they are in place to achieve, what their objectives and goals are.
Sales and Marketing are important as
they 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 are
considered and followed as not following them is not only going against company
Policies and Acts but legal requirements which could harm the business due to
not following good practice. It could also lead to the business getting sued
and or taken to court depending on the severity.
Within Sales and Marketing, legal
requirements such as the Data Protection Act are put in place to ensure the
handling of a customer’s sensitive data for example the collection and use of
payment details and address is done correctly as it is extremely important and
must be done by following company and legal procedures. These procedures
include only collecting data which is necessary, as well as not holding the
information for any longer than we need it. Further to this at Flightcase
Warehouse we use a CRM (Customer Relation Management) system to capture the
details of everyone who places an order with us. Any data that we hold is kept
securely in our CRM system and is only available to those who need to use it.
Regulatory requirements such as the
Health and Safety Act are put in place by the Government. Businesses must
follow these regulations as they are all legal requirements of a business. This
is to ensure all actions that can be taken to protect the health and safety of
all employers and employees is taken to not only meet government requirements
and regulations but keep the workforce safe and healthy. At Flightcase
Warehouse We follow Health and Safety regulations for example we wear high
visibility jackets in the warehouse as well as the necessary PPE.
Ethical requirements are put in place
to help, protect and keep employees from being discriminated against. Laws such
as the Human Rights Act are in place to protect people of all different
ethnicities from being discriminated against. In sales and marketing, at
Flightcase Warehouse the people that I am exposed to and work with are diverse
meaning 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 of
utmost importance that no one is discriminated against or treated any
differently and if this behaviour does occur in the workplace or anywhere it is
breaking the law.
1.3 Explain how the legal, regulatory and
ethical requirements relate to the business of selling or marketing
All legal, regulatory and ethical
requirements are applicable to Sales and Marketing. Businesses will always make
clear their requirements and the consequences of not following them in the
contract of employment. A few examples of these requirements are:
Time Directive and Employment Legislation
The Working time directive shows the
amount of time per week employees can work. All employees in the EU that work 5
days a week or more have the right to 5.6 weeks or 28 days of paid holiday (8
of 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 than
48 hours per week, however employees can opt out of this act which will then
allow them to work longer hours.
Employment legislation is a list of
acts that are in place to protect employees. It is what the law expects from
employers for their employees. The National Minimum Wage Act 1998 and The Equal
Pay Act 1970 are examples of some of the acts included within employment
At Flightcase Warehouse I work 8 hours
per day with a 45-minute lunch per day and I must accrue holiday per month and I
am only to get apprentice minimum wage is £3.50 per hour.
Copyright law applies to any form of
content creation or generation it is specifically important in a business as
well as sales and marketing because work can be copied or plagiarised which in
certain cases is illegal as copying work from anywhere and not sourcing the
information is also classed as copyright infringement. It is equally important
that those who work in sales and marketing are aware of copyright laws and do
not breach them. It is extremely common for copyright to be breached in
marketing as content is created all the time. Any original content, such as
photographs or written pieces such as blogs, can’t be used without the
creator’s permission under the Copyright Designs and Patents Act 1988.
Copyright also effects how businesses can use purchased software as in the
terms and conditions there may be conditions that state how created content can
be used and distributed.
The most recent Equality Act was
created in 2010 and merged other acts that came before. It was created to stop
discrimination against sex, race, age, disability, gender reassignment,
religion and belief, sexual orientation, marriage and civil partnership and
pregnancy and maternity. The Equality Act within sales and marketing helps to
prevent offense being cause due to treatment of customers or other employees
through communication verbally or any marketing or sales materials that may be
The Data Protection Act regulates how
businesses, people and the government can use data. For example, any data
collected must be used accurately and not manipulated in any way. Confidential
data must be kept safe for example at Flightcase Warehouse it is held on a data
management system that is on a secure network and the data is only available to
those who need to use it. If the data is a tangible document as in it is on
paper, it must be stored securely for example a lockable filing cabinet in a
locked room or office or a safe. Sales and Marketing involves collecting and
handling customer’s information all the time and as such this act is massively
important. Information a customer has provided to a company must never be
passed on without the customer’s prior consent and knowledge. If contact
details 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 as
False advertising is unethical and in
most cases illegal. It is the act of making false claims or publishing
misleading content in terms of sales and marketing. This will always lead to
dissatisfied and angry customers. When targeting vulnerable groups, such as
elderly people or children, convincing them that they need to sign up to or buy
something is unethical. Marketing has the power to do this and it shouldn’t be
used in the wrong way. Businesses
shouldn’t appear to have a biased opinion as a lot of people trust big
companies and a bias expressed by them is likely to sway opinions of the
consumers. So, in marketing, any opinions that are put out must be accurate and
true. Companies must consider where they purchase their materials and if it is
ethical to source form these places.
1.4 Describe internal and external sources of
information on legal, regulatory and ethical requirements
There are different internal and
external ways to source information on legal, regulatory and ethical
requirements. When starting a new job most businesses will give new staff an
introduction pack and company handbook, which provides an overview of the code
of practice, policies and other helpful information about the business meaning
it should include information on the businesses legal, regulatory and ethical
requirements. Another internal source of information is the HR department. The
HR department is able to provide advice and guidance and should also be able to
provide information on legal, regulatory and ethical requirements.
Generally, the most accessible source
of information for anyone would be the internet. Using the internet would allow
anyone to find information on legal, regulatory and ethical requirements from
many sources including the official government website for up to date, relevant
Acts and Laws. The downside of accessing this information on the internet is
that there is a risk that the information could be outdated or incorrect.
Internal sources of legal, regulatory
and ethical requirements are: the HR department and in the company handbook as
above. The HR department will hold private and confidential information for each
employee including their bank details, all of which will need to be kept in a
secure location whether it is in physical form or held securely on a computer.
The HR department is responsible for
entering personal details into our system when an employee first starts as well
as generating and giving the paperwork to collect this data, so they will be
familiar with most legal, regulatory and ethical requirements and should be
able to offer information regarding this. The company handbook will include all
the acts that the company must legally follow.
External sources such as the
government will provide information in different forms like helplines that can
be called and official websites that can be accessed at any time.
1.5 Explain how an ‘ethical approach’ affects
organisations in the sales or marketing environment
Ethical approaches in marketing such
as an awareness of people’s beliefs to not offend anyone affects the business
in more ways than one. Primarily it will make customers happy and encourage
repeat business. Ethical marketing will make a customer more likely to remember
and recommend the business to others and because of this more business will
occur. An ethical approach is also a legal requirement so if not followed it
can lead to legal issues which will affect the business in a bad way.
1.6 Explain the importance of Contract Law in
A contract is a legally binding
agreement between two or more parties. It is used as proof of an agreement
between two or more parties where both sides have consented and understand what
is expected of them and their side of the agreement and what they should expect
to receive from the other party or parties involved. A contract is almost
always legally binding, meaning that if it is not upheld or followed, then the
person in breach of the contract can be taken to court to settle the dispute.
Contract law is important in sales and
marketing 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 is
a contract of sale. This is to show that the customer will receive any goods or
services that they have paid for and provides reassurance, as the business
should allow a cooling off period which is part of this contract. The cooling
off period is the ability to cancel their contract without incurring a penalty
during an agreed period after the sale has been made. In terms of how it will
protect the business, sales or marketing it means that any goods or services
must be paid for in full.
2.1 Explain the legal, regulatory and ethical
requirements relevant to the role
Within my role at Flightcase Warehouse
most of the legal, regulatory and ethical requirements are relevant.
Flightcase Warehouse has measures in
place to prevent all employees from injuring themselves whilst at work such as
correct PPE and high visibility jackets being required when in the workshop and
warehouse, as well as fully tested electrical equipment and cable management in
the office to prevent tripping hazards. All of which comply with the Health and
Safety at Work Act 1974.
When producing content that will go
out to customers I must consider if what is produced is ethical and right to be
distributed. I try to ensure that I am non-bias and truthful in anything that I
create as this is in my opinion morally right and misleading people is
unethical and will affect the businesses reputation.
Copyright laws are also important in
my role as I take photographs regularly as well as helping to create PR pieces
and posting blog posts. The images I take are used on our website as well as
social media and PR pieces are the same, so I must make sure that everything
that goes out doesn’t breach the Copyright, Designs and Patents Act 1988.
Another legal requirement within my
role is the Data Protection Act 1998. As part of my job includes handling
customer data, whether it be taking details or handling existing details I am
responsible for their data. When taking peoples details over the phone I must
make sure that once the data has been inputted into our system that anything
unnecessary must be destroyed and disposed of correctly and fully.
2.2 Describe the potential consequences of not
complying with legal, regulatory or ethical requirements
and Safety at Work Act
Failing to comply with the Health and
Safety at Work Act 1974 can cause serious repercussions for a business and the
individual who has failed to comply. Consequences can range from unlimited
fines, to imprisonment. Health and Safety inspections can occur regularly and
if a potential risk is flagged and hasn’t been suitably assessed then the
business will be issued with a form of Improvement Notice, which must be acted
upon before another inspection occurs and failure to address the issue can
result in a fine or further action. If an employee is injured or killed due to
health and safety issues, then the consequences include prosecution and in
extreme cases prison if it was directly someone’s fault. The Corporate
Manslaughter and Homicide Act 2007 was put in place to penalise any breach and
the penalty for breaching this Act is an unlimited fine as well as the business
being made to publicly disclose the details of their conviction.
Time Directive and employment legislation
Businesses are responsible for
monitoring their employee’s working time and breaks. If the working time
directive 2003 is breached the employee affected can make a claim and may be
entitled to compensation. The employee will likely be entitled to compensation
if they have suffered health issues as a result.
The maximum penalty for copyright
infringement in the UK is imprisonment and an unlimited fine.
All businesses will have disciplinary
procedures in place to deal with breaches of the Equality Act 2010. Depending
on each situation and the businesses policies, the consequences could vary from
the employee making a formal apology to the person affected or as serious as
the employee losing their job and further action being taken for example the
police being involved.
Information Commissioner’s Office or
ICO as they are otherwise known, are the public body responsible for enforcing
the Data Protection Act 1998. If a person who has not been authorised views
private data due to an organisation’s negligence, this is considered a data
breach. ICO can act against data breaches, they’re able to pursue criminal
prosecution for serious offences, take non-criminal enforcement, issue monetary
penalties and undertake audits to ensure that companies are complying with the
Unless an ethical requirement is also
a legal requirement, a business will not face any legal consequences for being
unethical. Although if a business is found to be unethical customers will
likely not be happy and look elsewhere. If enough people are unhappy and aware
of 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 within
the limits of the role, responsibilities and authority
Flightcase Warehouse expect me to be
polite 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 a
good reputation for the company. Daily tasks such as checking low stock and
helping while another member of staff is off are also important. It is
important to work within the limits of my role but assist with others where and
when I can as this is responsible.
2.4 Explain the process for reporting legal,
regulatory and ethical concerns
There are different ways to raise
concerns regarding legal, regulatory and ethical issues in every business. At
Flightcase Warehouse I would speak to either Sam Austin or Steve Austin who
would then help me decide what the best course of action would be. If Sam or
Steve were unable to help me however there are other people I can talk to
within the business. If the situation is very serious in some businesses, there
will be an external helpline and in extreme cases the relevant agency can be
2.5 Explain the importance of clarity of
communication with the customer to ensure common understanding of agreements
Clarity of communication with the
customer is important to ensure everyone is in full understanding of the agreements
and expectations that have been outlined. The customers satisfaction with the
service or product is important as this will encourage them to use the business
again. If there is any misunderstanding between the business and the customer,
this could leave the relationship between the two parties in a less than ideal
state and as such may lead to the customer not wanting to purchase from the
business in the future. In extreme cases, the customer may feel as though they
have been exploited and try to pursue compensation, which would most likely
turn other current and potential customers away.