Business Law and Ethics: Specific Performance as a Remedy and Corporate Social Responsibility

This essay covers the remedy of specific performance under contract law and the importance of corporate social responsibility (CSR) in business. Specific performance is a remedy granted by the court to the innocent party in a contract breach case. CSR involves companies performing activities for the benefit of society and can help improve brand image and customer loyalty. However, some companies only use CSR for their brand image and do not implement it seriously.

Business law and
ethics

Table of Contents
INTRODUCTION ..........................................................................................................................2
MAIN BODY ..................................................................................................................................2
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6
INTRODUCTION
Business law and ethics are two different concepts that have different meaning where one
relates to legality whereas one is based on certain principles. These concepts due to their similar
nature complement each other by also acting as a guidance for the society, its members and for
the organizations or institutions in it. They are thus interdependent on each other in some or the
other form. A company makes decisions by carefully analysing the laws prescribed by the
government to operate and manage a business. Rules help to have a effective functioning of the
organizations. Thus, business law deals with the affairs of a business which includes the conduct
of its employer and employees within it(Abbas, 2020). Whereas Business ethics relates to the
principles which guide an individual or company to understand the difference of what is right
and what is wrong. It helps to inculcate a good and ethical behaviour in the organization. This
essay will cover in detail the specific performance as a remedy under the contract law and it shall
also cover the extent to which the Corporate Social Responsibility is taken seriously by the
corporations.

MAIN BODY
1. Contract law of United Kingdom provides in detail the remedy of specific
performance that is granted by the courts in favour of the innocent parties in a particular case.
The parties of the case can choose this remedy when they think of it as a good option for them.
Discretionary power is in the hands of the court to grant specific performance when it is just as a
form of equitable relief for the innocent parties. When this remedy is provided the court
generally goes against the act of the other party who had hands in the commitment of the illegal
act or wrongful act. But it is essential that it must have been agreed in the terms of the contract
between the parties prior to when it was formed (Ali, Danish and Asrar‐ul‐Haq, 2020). Thus, it
works in contradiction with the measures of damages that is granted as a remedy when
compensatory damages are required to be given to the injured parties in the case. It is generally
used as an exceptional scenario in the remey given in contract law. A form of decree is given
when this remedy is granted by the court in the plaintiff's favour so that the defendant is
compelled to specifically perform the acts or duties of the certain parts in terms of rights and
obligations of the contract. The courts give the remedy of specific performance when other forms
of damages and remedies are believed to be inappropriate or inadequate foe the parties of the
case. The famous case of Fackle vs Gray 1859 relates to the remedy of specific performance
defined under the contract law. This case relates to the subject matter of Chinese vases which
were a part of the contract where they were believed to be unique and thus it was given by the
court that damages cannot be an adequate remedy to restore them to their original position.
Because of the fact the specific performance as a remedy comes with condition for it to be
applied by relating it to subject matter thus it cannot be given in vague cases (Dagan and Heller,
2020) . Specific performance cannot also be granted when the agreement of contract relates to
continuity in supervision or there is a condition of performance of obligations for a specific time.
When the injured party requires the court to give the specific performance as a remedy it
is required to state the facts that were agreed in the contractual terms when it was formed in the
such a manner that the court gets satisfied with respect to the amount and extent to which
damages were given as an inadequate measure for the injured party so thus it cannot help the
parties restore to its actual position. Like the cases that deal with the matters of transfer of
property there these damages cannot be adequate for the injured party. The innocent parties of
the case must claim specific performance as a remedy from the court.

On the other hand, in the famous case of Lenne vs Queens Cross Properties Ltd it was
held by the court that specific performance can be granted to the parties as a form of remedy in
the cases where formation of contract includes conditions and obligations and it is defined that
the work gets completed with certainty rather than for a limited time with respect to specific
activities(Eisenberg, 2018) . The contracts do not cover specific performance where the
conditions of contract relate to employment contracts which specializes in provisions of personal
services. Thus, it is not comprised under remedies as it restricts individual freedom, this was
explained in case of Chappell vs Times Newspapers Ltd.
2. Corporate Social Responsibility (CSR) involves a company or organization when it
performs activities that can be beneficial to the society and works towards their social welfare. It
helps the corporation to remain accountable towards the society in the terms of the performance
of the business. CSR does not involve any kind of fixed or conditional method to perform social
activities for the benefit of society it is basically the share of profit that is given by the companies
for something good. Thus, it is flexible and companies can plan any kind of strategy or policy to
implement the CSR practices within the organization. There are several ways and manner by
which social activities can be performed in various fields like social campaign, environment
concern, etc. that can contribute to the well-being of the society. The three essential sectors
where CSR can be performed are social, environmental and economic sector. In recent time it
has been observed among the corporations that they do not take the practice of CSR
seriously(Kun, 2021). But with time awareness among the people and companies have been
created regarding the benefits of having socially responsible behaviour that has changes the
circumstances of CSR. But there has been rising concern regarding the different issues that are
emerging in the society and the environment like global warming, biodiversity loss, unethical
practices of labour which require the companies and corporations to formulate policies where
they must address and deal with these issues through CSR. It can help the company have a
positive brand image among its consumers which also helps to improve the sales numbers. Thus,
it helps in easy management of the affairs of the business.
CSR is not only helpful for the benefit of society but it is also helpful in achieving
employee and customer satisfaction because of their happiness in associating with a company
that works in social welfare. Employees are keen to get associated with social activities because
it makes them feel that their lives have a purpose. CSR helps the employees to have a favourable

and positive work environment wherein they also focus on the goals of the organization. The
positive growth of CSR is primarily due to the use of social media as it creates awareness
regarding the importance of conducting social welfare activities by the company which can help
in society's benefit. A company can create a creditworthy and reliable image by having CSR so
that customers feel attracted towards the company and become loyal to them due to their good
social behaviour (Pargendler, 2018). Thus to have growth among the competitors in the market it
is essential for a company to implement CSR under its policies. Because not having a CSR can
build a negative image of the company in the consumers.
There are also other benefits of CSR which make it essential for a company to be socially
responsible. Because uncertainties of CSR performances rise when there is expansion in the
business of the company which the organization to a point where they do not take the practice of
CSR seriously but only use it as a tool to have a brand image and reputation that is developed
among the customers. CSR helps in building relations with customers that helps in the sales and
profits of the company. Even though many companies have implemented CSR programs but
there is still concern as lack of coordination among employees and poor management can impact
the execution of social behaviour. Small businesses are also required to make adjustments in
their budgets for forming and implementing CSR. A company's primary duty is towards their
shareholders but they must also not neglect the stakeholders as they have an important role in the
growth of the company. CSR must become the top priority of the companies due to its benefits
for a longer period of time. Situations also arise when the companies use CSR to hide their
illegal activities in the business behind the positive picture of CSR so that they do not have to
pay taxes. But in reality it does no good for the society (Sánchez‐Torné, Morán‐Álvarez and
Pérez‐López, 2020).
CONCLUSION
From this essay it can be summarized that for specific performance to be granted as a
remedy by the court, the injured party must have suffered contractual breach because this remedy
puts the injured party and restores them to their original position which was in existence when
the contract was formed. The other party gets compelled in this remedy where they have to
perform specific parts of the contract. In context of Corporate Social Responsibility it is a type of

social activity that is performed by the company for the benefit of the society. In this the
company shares an amount of its profit for the welfare of society. CSR practices can help the
society in the economic, social and environmental sectors. Many companies are implementing
CSR but it is still a concern as the corporations only use it for their brand image and do not
implement it seriously.

REFERENCES
Abbas, J., 2020. Impact of total quality management on corporate green performance through the
mediating role of corporate social responsibility. Journal of Cleaner Production, 242,
p.118458.
Ali, H.Y., Danish, R.Q. and Asrar‐ul‐Haq, M., 2020. How corporate social responsibility boosts
firm financial performance: The mediating role of corporate image and customer
satisfaction. Corporate Social Responsibility and Environmental Management, 27(1),
pp.166-177.
Dagan, H. and Heller, M., 2020. Specific Performance. Columbia Public Law Research Paper,
(14-674).
Eisenberg, M.A., 2018. Foundational principles of contract law. Oxford University Press.
Kun, E., 2021. Is Insisting on Specific Performance under Smart Contracts Desirable under
English Contract Law? Inflexibilities of Smart Contracts and Potential
Solutions. Digital L. Rev., 3, p.139.
Pargendler, M., 2018. The role of the state in contract law: The common-civil law divide. Yale J.
Int'l L., 43, p.143.
Sánchez‐Torné, I., Morán‐Álvarez, J.C. and Pérez‐López, J.A., 2020. The importance of
corporate social responsibility in achieving high corporate reputation. Corporate Social
Responsibility and Environmental Management, 27(6), pp.2692-2700.