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Explain the legal and ethical issues in relation to the use of business information

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Legal ethical and operational issues effecting business information A business comes across very sensitive information about employees, customers and any stakeholders therefore they are obliged to laws to keep operating. There are certain acts in which businesses have to follow by law and some other information should be kept protected even though by law a business is not obliged to do it; this is because of ethics and if they do not oblige by these they can be in trouble with the law which may lead to them paying a £5,000 which is not a problem for bigger business but for smaller organisations £5,000 is a lot for them to pay. For ethical issues people may be concerned and campaigns can start against a business for not keeping this information secure, this would be bad publicity for the company and it would mean less people would want to do business with them because they do not keep information that is of interest to the public, this information can include: Photo’s, Phone numbers and email addresses. The operational information that would affect a business is: security of information which means they need to keep sensitive information secured which they can by encrypting it, putting several passwords on so that only authorised personal are able to access the information. Data Protection Act: Any organisation operating in the UK must comply with the DPA (1998.The DPA 1998 is act which manages how your personal information is used by businesses, the government or any organisation in which you have to give any sort of information. Any business or organisation that holds data needs to abide by a set of rules called ‘data protection principals’. By law they must make sure that the information that they hold is used fairly, lawfully, only used for the purpose which means if someone gives this information the organisation must only use it for the reason that the individual gave it for, it is not kept for any longer that it is supposed to be kept for, it is kept at a safe secure location. ...read more.


?BCAP? covers TV and radio advertising. The ASA puts these codes out so that it helps businesses comply with what they are supposed to be doing. An example of Codes of Practice in action would be if the ASA asked for example Asda that one of their product advertisements were misleading and over exaggerating the features of the product. The advantage to a business of any size would be that it would set standards and targets for their employees to meet; this would mean that employees at business would work at a highest standard possible so that have job security and they do comply with the law so this may be an advantage to a business. If unethical behaviour occurred at business Codes of practice would help resolve that issue because if it is was a rival business released some promotional material which was considered to be unethical this would get resolved because of Codes of Practice they could potentially get fined for it. The disadvantage of Codes of Practice would be that if a business does not comply with the regulation set by the codes of practice the same consequences could occur to the business; for example if in one of Sainsbury?s promotional materials they had had or said something unethical about Asda they would get the same consequences that would happen Asda if they did the same. Organisational Policies Businesses also like to have their own policies? about the procedures that should be followed by the employees in the terms of internal and external communications. These policies are made so pacifically for that business and designed to achieve the targets of the business. The employees in that business are trained to follow the guidelines set out by them policies when communicating with customers and suppliers to ensure the business stay successful and obtain the cooperate image they currently have. These policies are also in place so that confidential information of the business does not go to the wrong people and end up with a competitor. ...read more.


Protection for health and safety is provided by the Health and Safety act (1974). The act requires employers to carry out a number of actions such as: assessing visual display units for problems and taking steps to reduce any risks, ensuring the work stations meet health and safety requirements, and planning work so the employee has regular breaks. An example of this in a business like Tesco for example would be that the supervisor has to give a break to all cashier workers so they get the rest that is required by law; the supervisor would need to ensure that they get a replacement for that worker. A firm that is constantly using It/computer is Business continuance plans Business continuance planning involves taking sets to help a business cope with unexpected situations that could damage the business and might force it to close down. This highlights the procedures that have to be taken too suddenly after a dangerous situation has occurred to allow the business to continue. An example of a business crisis could be loss or illness of key staff this could damage the performance of the business because if the key staff are not in place it could potentially force the business to close down because it is not function properly and not generating enough income because the key staff who run the important things are not their; to prevent this from happening the Business Continuance Plan can have a solution to this so that business is able to continue to perform. There is no disadvantage because it is something that business has created the only disadvantage could be that a major crisis occurs but that is not due to the plan. There are many advantages such as a business is backed up if a major crisis occurs and without this plan if a crisis that occurred they could potentially go bust. Another advantage of this is that they are secure and know that they are backed up with a plan if anything were to happen which could potentially be dangerous to the company. ...read more.

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