Legal, Ethical, and Operational Issues in Using Business Information

This report discusses the legal, ethical, and operational issues that businesses face when using business information. It focuses on Tesco Plc as a case study and explores the laws, regulations, and policies that govern the use of information. The report also highlights the importance of data security and privacy in ensuring the integrity and trust of customers.

Running Head: BUSINESS AND CORPORATION LAW 0
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4/25/2019
Student’s Name

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Contents
Introduction......................................................................................................................................2
Legal Issues.....................................................................................................................................2
Ethical Issues...................................................................................................................................4
Operational Issues............................................................................................................................5
Tesco: Privacy of Information.........................................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................9

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Introduction
Every business required certain information while performing its business activities. Such
information can be related to the business itself such as details of sales, purchase, and profits and
can be related to other stakeholders such as employees and customers. Nevertheless, a business
cannot use such information freely and faces many legal, ethical and operational issues while
doing so. The presented report is focused on this topic only. The company chosen for the
preparation of this report is Tesco Plc. In order to provide the background of the company, this is
to state that the same is a retail company having its headquarters in England, United Kingdom
(Skinner, Redfern and Barker, 2012). In the following report, the focus will be made on the
various issues that the company faces while using business information. In addition to this, the
way in which this company ensures to keep the subjective information secure will also be
discussed.
Legal Issues
Being a UK based company all the laws and regulations related to the use of information and
data privacy are applicable to the same. These legislations put the different requirement to the
company and influence it is a way of working. These laws, policies, and regulations are detailed
in the following fact sheet in addition to their requirements.
Law/Regulation Requirements Issue in business
Data Protection
Act of 2018
As per the provisions of section 2
of the act, it becomes a
responsibility of one to proceed
The company being a retailer
company has access to the personal
information of many customers.

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the personal data fairly and
lawfully either the mean by
consent or other means
(Legislation.gov.uk, 2019). In
addition to this the act required to
use the business information only
for the purpose to which it has
been collected.
Company is required to manage them
carefully. In the business operations,
it becomes the responsibility of all
the Tesco personnel to keep such
information confidential. Any breach
can lead to a huge adverse impact on
the company.
The EU General
Data Protection
Regulation
(GDPR)
Similar to Data protection Act
2018, these regulations also
require a person or a business to
keep the personal information
others confidential. As per these
regulations, the businesses are
required to inform the incidents of
a data breach to controllers and
customers without undue delay
and to authorities within 72 hours
(Gilchrist, 2018). Penalties are
very high under GDPR and a
business may be held liable to pay
4% of its global turnover or-or €20
Million (whichever is higher) for
The company has many of the
employees that deal with the
customer on a day to day business. In
such a situation the company has
significant exposure to the risk of a
data breach. It impacts the business
operations of the company as a
breach may bring heavy penalties to
the business and can disturb its
operations.

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in cases of data breach incidents
(Eugdpr.org, 2019).
Computer
Misuse Act of
1990
According to the provisions of this
act, it is illegal to make
unauthorized access to computer
material, unauthorized access to a
computer System with the
intention to create another crime,
unauthorized modification to
computer material (BBC.com,
2019).
Technology use is there in the
operations of the company and
employees are required to not to
make such unauthorized uses. It
makes the operations slow as the
personals have to check whether
particular conduct will be termed as
unauthorized or not. Further, it put
additional risk on working of Tesco
staff.
Ethical Issues
In addition to the legal issues, many ethical issues are also there that Tesco faces while using
business information. The ethical issues are those which the company faces while doing anything
which is in contradiction to its own code of ethics. This is the reason that while using the
business information company can face ethical issues. Fundamental ethical issue in case of
business information is integrity and trust. In its code of conduct the company promises to treat
all the customers fairly and with honesty. Customers expect that with the company, their data
will be secured. Tesco requires every employee to not to use the email for personal purpose and
to access the other accounts specially the private accounts as they can create ethical breach issue
for the company. Internet use is another area, where employees want to keep their personal

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interest protected and the employer wants to ensure that the resource of the company is not being
misused. The internal business information can be misused if an employee uses the internet out
of the allowed scope. As per the whistleblowing policy of the company, every person who comes
to an issue of breach of internal policies of the company may raise this concern to the authorities.
In this manner, managers, as well as an employee of this business, are required to keep the
ethical issues in consideration while using the business information as ignorance of the same can
lead adverse impact to them and can affect their reputation of them as well as of business.
Operational Issues
Only legal and ethical issues are not there but in addition to them, operational issues are also
there which the company faces in using and handling business information. Security of
information is one of the significant issues out of them. Tesco has to ensure that all the business
related information is secured and no unauthorized access is available for them. The business
also has to check that no data breaches happen with respect to internal business information as
well as information related to its customers. Back up is another issue that Tesco faces while
managing business information. Back up is important, as businesses are required to keep the
external and internal data secure (Ward, 2019). Sometimes back up takes too long to generate
and in such a situation the safety of data puts under a danger. Communication is a process by
which people passes information to each other. The company faces operational issues of
miscommunication sometimes when an employee shares the wrong information with other or
information with the wrong person. Such mistakes can prove dangerous for the business as it
defeats the goodwill of the company.

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Tesco: Privacy of Information
The company understands the legal, ethical and operations issues that the employee and other
staff members often face and also understand what loss to tangible as well as intangible assets
can happen in cases of misuse of such information. Company has it is own privacy and cookies
policy. The policy outlines the type of data that the company collects the manner of use of such
data and rights of another person when the company shares his /her personal data. In order to be
ensured about the security and safety of collected information company do the following
activities
How the company secure data The company uses cookies and other such
technology on its websites, which prevent
unauthorized access
Sharing information with others The company states that the same can use the
personal information of the third party within
the companies of the same group. Further as
per the subjective policy of the company, the
same only allow the selected and trusted
employees and partners to deal with the
personal information of its stakeholders. the
company applies electronic, physical, and
procedural safeguards in relation to the
collection and disclosure of personal
information.
Monitoring Company regular monitors its information

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security system in order to check whether the
same is protected from possible attacks and
vulnerabilities (Tesco.com, 2019).
Data Type This policy does not only cover the electronic
data but ensures that the physical data is also
secured and no one using the same in an unfair
manner.
Conclusion
In the presented report all the issues related to the use of business information have highlighted.
To conclude this report this is to state that all these issues are significant for the company and
company cannot ignore one or more of them. Laws are there which put the legal burden on the
company and breach of the same can lead penalties to the same. Similarly, on the other side
ethical issues are there when the company fails to operate in a manner, which is required by its
code of conducts and other policies. At last operational issues have been discussed that stated
that in day to day functions, the company faces issues related to data handling such as failure of
back up and software. By reviewing the company’s privacy policy it is clear that the same is
taking the topic of the use of business information seriously and ensure the safety and security in
an efficient manner.

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References
BBC.com. (2019) Computer Misuse Act. [online] Available from:
https://www.bbc.com/bitesize/guides/zt8qtfr/revision/2 [Accessed on 25/04/2018]
Computer Missues Act 1990
Data Protection Act 1998
Date protection Act 2018
Eugdpr.org. (2019). GDPR Key Changes. [online] Available from: https://eugdpr.org/the-
regulation/ [Accessed on 25/04/2018]
Gilchrist, A., (2018) A Last Minute Hands-on Guide to GDPR Readiness. Alasdair gilchrist.
Legislation.gov.uk. (2019) Data Protection Act 2018. [online] Available from:
http://www.legislation.gov.uk/ukpga/2018/12/pdfs/ukpga_20180012_en.pdf [Accessed on
25/04/2018]
Skinner, M., Redfern, D., and Barker, A. (2012) AQA A2 Geography Student Unit Guide New
Edition: Unit 3 Contemporary Geographical Iss. UK: Hachette UK.
Tesco.com. (2018) Privacy and cookies policy. [online] Available from:
https://www.tesco.com/help/privacy-and-cookies/privacy-centre/privacy-policy-information/
privacy-policy/ [Accessed on 25/04/2018]

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Ward, S., (2019) How Successful Companies Backup Data. [online] Available from:
https://www.thebalancesmb.com/data-backup-is-the-best-data-protection-2947129 [Accessed on
25/04/2018]