1.1 Describe 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
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 involved.
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 many regulations that businesses
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 more thoroughly.
Ethical procedures are equally
as important, and the Human Rights Act takes into consideration different
ethical backgrounds and the right for people to have personal opinions and
beliefs and protects against discrimination.
1.2 Explain the scope of legal,
regulatory and ethical requirements in sales or marketing
In any business the sales and
marketing departments 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 being
sued 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
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:
Working Time Directive and Employment
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
Data protection act
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 harassment.
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
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
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
1.6 Explain the importance of Contract
Law in sales
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
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
Health 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.
Working Time Directive and
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 penalty for copyright
infringement in the UK’s magistrate’s court is imprisonment for 6 months and a
fine of up to £50,000. Whereas in the Crown Court the maximum length of
imprisonment is 10 years 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.
Data Protection Act
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 Act.
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 contacted.
2.5 Explain the importance of
clarity of communication with the customer to ensure common understanding of
agreements and expectations
Clarity of communication with
the customer is important to ensure a common understanding of agreements and
expectations is achieved. 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