Business Law and Ethics: Specific Performance and Corporate Social Responsibility

This essay discusses the concept of specific performance as a remedial measure in business law and the importance of Corporate Social Responsibility. It covers the limitations of specific performance and the concerns regarding the implementation of CSR. The essay also provides examples and cases to support the arguments made.

Business Law and
Ethics

Table of Contents
INTRODUCTION ..........................................................................................................................2
TASK ..............................................................................................................................................2
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6
INTRODUCTION
Business law and ethics are concepts which have a different meaning but they in a way
complement each other. They can also be called interdependent. The decisions taken by business
firms usually depend on the laws that guide them rather than on ethical basis. Business law can
be defined as a civil body which tries to govern the business affairs at the workplace and regulate
the individual conduct when they work in an organisation. On the other hand, Business ethics
deal with matters that basically define ethics and make a distinction between what is right and
what is wrong(Almahrog, Aribi and Arun, 2018). It helps to establish a conduct of behaviour
within the organization. This essay will cover in detail the remedies in the form of specific
performance and its limitations that are ordered by the courts. It shall also cover he extent to
which the corporations take the Corporate Social Responsibility seriously.

TASK
1. Specific performance can be defined as the remedial measure that is available as a type of
option which can be chosen by the aggrieved party. The court has the discretionary power
of providing it as an equitable relief to the injured party against the party who does wrong
so that the other party commits acts which have been agreed in the contractual conditions.
So specific performance as a remedy works in contrast with the remedy of damage
wherein in this the innocent party is provided compensatory damages. Also, this remedy
in generally provided as a sort of exception measure. When the court provides the
remedial measure of specific performance that time the decree given by them is in the
favour of the plaintiff and the defendant is the party which is compelled to perform
specific parts of the contractual obligations. This type of remedy is generally ordered and
granted by the court in the conditions where the other remedy of damages is not adequate
to justify the situation (Anidjar, 2020). The famous case of Fackle vs Gray 1859 is
related to this. In this case, the matter of subject in the contract which is Chinese vases
was very unique so it could not be restored by damages. The applicability of specific
performance is dependant on the subject matter and thus it cannot be granted in vague
cases or in cases which do not have clear definition. Also in cases where continuous
supervision is required by agreement or the performance is only for a limited period of
time in those conditions as well specific performance cannot be ordered.
To get the grant of the remedial measure of specific performance the plaintiff in the case is
required and expected to make facts that satisfy the court in relation to the mentioned damages
stating that they are inadequate and thus they cannot restore the injured party to their original
position. For examples the cases that involve matter of transfer of property then these damages
cannot be appropriate for the aggrieved party. The plaintiff is required to specifically claim the
relief of specific performance from the court (Bouzouitina, Khaireddine and Jarboui, 2021).
Moreover, in the case of Leune vs Queens Cross Properties Ltd held that specific performance
as a remedy must be generally granted in cases where the said performance relates to contract or
agreement conditions and the work has to be completed with certainty rather than only as a part
of activity in a given time period. Moreover, the specific performance as a remedy is also not
covered under the contract which generally covers personal services provisions like in the
matters of contract of employment. Thus this is not under the ambit of this remedy because if an

order is made by the court then refrains the freedom of an individual in performing an act, this
was mentioned in the famous case scenario of Chappell vs Times Newspapers Ltd.
2. A company can perform activities so that it can be socially accountable towards the
society while also carrying out self regulation of its business, this is known as the
Corporate Social Responsibility. CSR does not have a fixed method of conducting
socially responsible behaviour, it can be adapted by the company in the manner that is
most suitable to them. Every company can give a part of its profit towards the benefit of
the society by carrying out social activities in multiple ways. These initiatives or
activities are conducted by the business so that it can contribute for the benefit of society
in primarily three sectors which can be economic, social and environmental. Generally,
the organization when they work do not consider the seriousness of CSR and thus do not
take up this responsibility (Crowther and Seifi, 2018). But with time people have become
aware of the merits of socially responsible behaviour of the organization which has thus
changed the scenario to a great extent. Moreover, there are various concerns which
require attention due to their rise day by day, such issues are global warning, loss of
biodiversity, unethical labour practices which must be addressed by the companies by
formulating policies so that they can help with these social problems while also
improving their brand image and in turn the sales of the company. Thus the practice of
Corporate Social Responsibility benefits the business activities due to a variety of reasons
(Eenmaa-Dimitrieva and Schmidt-Kessen, 2019). It is often observed that which ever
company indulges in the CSR activities by leading initiatives for it, that company has
more no. of satisfied employees and customers while also making them happy. The main
reason behind this can be that the employees when they engage in social concerns they
start to have a mindset that they have a purpose. Also, when a company spends more time
on their employees through CSR it also creates a favourable work environment for them
which in turn makes them enjoy their work and give proper time to the organizational
goals and objectives. CSR practices have grown positively due to the rise of social media
because it has been successful in creating awareness of the significance of CSR activities
for both the company and the society. Moreover, it helps in the creation of an image of a
trustworthy company on whom the consumers can trust so they are more attracted
towards that company and become willingly part of it. So to have a steady growth and

success in the market the company is required to practice Corporate Social
Responsibility. Also, if any company fails to inculcate socially responsible behaviour it
can create a downfall for the business organizations impacting their reputation and sales
in the market (Eisenberg, 2018) .
Further, there are also other benefits due to which CSR is inculcated and used by
the companies when they move forward but there is also rise of a concern regarding a fact that if
the companies are actually taking the CSR practice seriously or not or if they are only using it as
a way that can help them build a positive brand image in the customers eyes. It is beneficial in
the formation of customer relationships. The company can have positive financial gain when
they have good relations with their employees and customers which gives rise to sales and
profits. Moreover even after wide acceptance of the CSR practice by the companies still the
concern with respect to its execution is faced by the companies due to lack of coordination and
poor programs for it. Due to poor management as well the CSR practices are not thoroughly
implemented. CSR budgets also require adjustments so that even small businesses can cover
them in their overall costs. Conflict with respect to the aim of earning profit also arise in the
company with respect to inculcating CSR. The most essential duty of any company is give a
share of its profits or the benefit of the shareholders. Due to these, CSR activities in company
objectives can become second priority. There are also situations when companies hid their
wrongful business activities behind the face of Corporate Social responsibility so that they can
avoid paying tax but in real sense they are not doing any social good(Tai, 2018).
CONCLUSION
It can be concluded from this essay that due to the breach of contractual conditions by the
other party, the aggrieved or injured party can be provided the remedy of specific performance
which can help them restore their original or actual position. In this remedy, the court asks the
other party to perform certain parts of the agreement. With respect to the second part of the essay
corporate Social Responsibility is a great practice that must be inculcated by the companies so
that they can work for the benefit of society by doing social good. But it is concerning due to the
inculcation of CSR practice by the companies only on paper and not in the actual sense to remain
out of legal implications.

REFERENCES
Almahrog, Y., Aribi, Z.A. and Arun, T., 2018. Earnings management and corporate social
responsibility: UK evidence. Journal of Financial Reporting and Accounting.
Anidjar, L.Y., 2020. Interpersonal Trust and Contract Theory Redux. S. Cal. Interdisc. LJ, 30,
p.1.
Bouzouitina, A., Khaireddine, M. and Jarboui, A., 2021. Do CEO overconfidence and narcissism
affect corporate social responsibility in the UK listed companies? The moderating role
of corporate governance. Society and Business Review.
Crowther, D. and Seifi, S. eds., 2018. Redefining corporate social responsibility. Emerald Group
Publishing.
Eenmaa-Dimitrieva, H. and Schmidt-Kessen, M.J., 2019. Creating markets in no-trust
environments: The law and economics of smart contracts. Computer law & security
review, 35(1), pp.69-88.
Eisenberg, M.A., 2018. Foundational principles of contract law. Oxford University Press.
Tai, E.T.T., 2018. Force majeure and excuses in smart contracts. European Review of Private
Law, 26(6).