Business Law and Ethics: Historical Background of Employment Law and Company Formation in UK

This study material covers the historical background of employment law in the UK and the fundamental features of company formation. It also discusses the extent to which corporations take Corporate Social Responsibility. The material includes information on the Acts that safeguard the rights of employees and the procedure for incorporating a company in the UK.

Business Law and
Ethics

Table of Contents
INTRODUCTION ..........................................................................................................................3
ASSESSMENT 1 ............................................................................................................................4
(1) Evaluating the broad spectrum of historical background of the Employment Law of United
Kingdom and stipulating who you think the United Kingdom Employment Law favours – the
employers or the employees. ...........................................................................................................4
(2) Fundamental features of company formation in United Kingdom............................................7
ASSESSMENT 2 ..........................................................................................................................10
Critically discuss the extent to which corporations take Corporate Social Responsibility............10
Importance and Efficiency of Corporate Social Responsibility ..................................................11
Kinds of Corporate Social Responsibilities which are feasible to practice for an organisation....12
Making a edifice of a socially responsible organisation ...............................................................13
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Critically evaluating the scope of Business and Ethics which relates to the surroundings
of the business functioning and summing up manner determines the operations of the
organisation. The operating front of business make sure, that the working of an enterprises runs
accordingly with betterment in their formations. As the enhancements of the management of
organisation is tending to be complicated, every other day, the resolving of the complications
requires to maintain the by laws, ethical regulations, morals and code of conduct. With the
fulfilment of the regulations and professional code of conduct of the organisation will enhance
the productivity and pin development in the enterprise. The rudimentary matter in question of
the enterprises is related to the belonging of trust and ethics. Some other fundamentals which are
called in questions in relation with the organisation such as, the procedure of decision making,
the authority and the concord. On the account of occurrence of ethical platform for the industry,
it is crucial for the organisation to maintain the ethics and enhance the quality of their morals. In
the state of affairs of conformity with different sorts of variables which includes, common laws
directives like laws for environment, civil rights and other enactments which is in the scope of
making of postulates for the organisation and keeping up with the ethics (Adnan,Hay,and van
Staden, 2018).
The mentioned matter is divided into two parts, the primary assessment involving report s
states, the sphere of historical enlargement in the employment laws of United Kingdom and the
rudimentary components for the setting up of the company. And the second assessment which
contains an essay, which states Corporate Social Responsibilities (Al-Qahtani,and
Elgharbawy,2020).

ASSESSMENT 1
(1) Evaluating the broad spectrum of historical background of the
Employment Law of United Kingdom and stipulating who you think the
United Kingdom Employment Law favours – the employers or the
employees.
In the purview of Employment Rights Act 1996, which is an upgraded version to the
earlier enacted Labour Law (Anderson, 2021). This employment act, is entirely stands up for the
rights of the employees under the circumstance which tends to happen in the workspace, which
somehow rupture the legalities or provide any type of menace to the employee, which includes
Unfair termination from the job, paternity leave, maternity leave, redundancy and harassment of
any kind. Before the commencement of this act, the employee of the United Kingdom were
highly overburdened and oppressed by their hiring managers or employers. To bridle around
from the oppressions and abuse of power of the employer , many legislation enactments came
and go in the country which worked entirely n the employees (Atherton, 2020). The earlier
times, without the regulations perceived from the Employment Law, 1996, the surroundings for
the employees was not acceptable. The historial background of the employment law can be
structures as :
in the initial stage , there was amount to Master and Servant Act, 1823, which lays down
the institution of the criminal state of affairs against the workman if the workman tends be errant
or untrue with their masters (Bird, and Brown, 2018). This whole procedural regulations of the
1823 acts, states definite valuations of abuse of power. Furthermore in the background, there
were the commencement of the acts which were :
 Factory Act, 1883 – This provided assistance to preserve the employee or the labours in
the factories and put a ban on making the children to work under the age of 9 year,
making the provisions for the child labour.

 Slavery Abolition Act, 1883- This act mentioned as to the bygones times or the ancient
time, where the residence of the British emperor were, this prohibits the establishment of
slavery. This acts persuades to safeguard the individuals from the dogmas of slavery.
 Mines Act,1842- This act preserves the employee who tends to work in mines, which
were getting targetting by the predatory power for the owners of the mines.
 Trade Union, Act 1871- As in the earlier times, there was no specific statues established
union, who stand up again the oppression of the employees,, there the trade union act
comes into place. For living up and standing up for the rights of the employees.
 The Old Pension Act, 1908- This act contains the legalities in relation for providing the
right of pension to the retired individuals.
 National Insurance Act,1911- This enactment lays down the provisions for the insurance
and bringing about the advantages for the workers who were not able to work, due to
specific reasons mentioned in the provisions of this act.
 Education Act,1944- The unhealthy measurements in regard to women were way too
much in the earlier times, this enactment was introduced to bringing about advancements
for the women in order to make them learn about their rights and no other abused their
rights.
 Contract of Employment, Act 1963- The regulations of this act states that it is mandate
in the workplace to mandate the role of employment contract. To secure the measures of
terminations and salary.
 Redundancy payments Act,1965- This enactment was made in order to look after
where the falling out payment made was unnecessary or redundant.
 Race and Relations Act,1965- This legislations states the regulations inn relation to
forbid the discriminations essentially in the workspace and make to illegal, if the
individuals is discriminated any any level, the actions can be taken accordingly.
 Equal Pay Act,1970- It regulates the equal pay to all directive for the employee of an
organisation, payment structure differs on be at gender level turns out to major issues in
those times.
 Industrial Relations Act,1971- This act preserves the employee or workers who got
slammed with the unfair termination. The workers who were removed from the job role

by the parameters of unfair termination, are carried to get compensation for the wrong
done to them (Dowd, 2022).
 Health and Safety at work Act, 1974- The act lays down the measurement for the health
and medical facilities of the employees or workers. As a illustration to it, workers or
labours who are employed in mines, farms or factories, they have lessening capital, this
provision can implicate benefits for the workers, and give medical facilities to them in
need.
 Sex Discrimination Act,1975 – The announcement of this gives out protection of the
man and the woman from the discriminations, harassment or the sexual abuse of any sort
(physical or mental). Any discrimination which measures to rupture the dignity of any
workers will be instituted as an harmful act.
 The Employment Protection Act, 1975- This legislation was embodied in order to
safeguard the rights and duties of the employees for the abuse of power of the employer.
After great difficulties in order to manage the rights of the employees or workers, the
authorities of United Kingdom enacted these regulations for the benefits of the
employees. All the protection relating subject matters include, unfair terminations,
harassment , discrimination, salary or wages issues, abuse of powers, employment
contract and much more. After the 1975, there was amendment made which occurred in
the year of 1990 , which includes that employee having involvement in a specific trade
union was illegal. Then further to it there occurred one more amendment in the year of
1996, which brings about the codification of the regulations were there was
advancements in the employments laws.
The historical structure of the Employment Law of the United Kingdom, explains the orgin and
objective of the employment laws, how it enlarged from time to time after the so many acts
prolonging the middle of it. The dilemma in the past was vast and indeed vital to resolve, the
earlier acts were not in the procedure and not codified properly to resolve the issues mentioned
above, which involves the altogether problems of the employees, including unfair dismissal,
salary and wages issues, the harassment to men or women, not aware of the rights, growing of
abuse of powers, sexual abuse, wrongful use of contract, leaves (maternity and paternity) and

much more included in the diminishing culture of workspace for the detriment of the employees
or the workers.
The above explanation relating to the acts, formatted for safeguarding the rights of the
employees. The significance is clear that the regulations and directives mention in the
Employment Law, which clearly favours the employees in increase manner. As the abuse of
powers does happen to be more on the side of employers and the employee becomes the weaker
section. If under some goodwill circumstances there would no exploitation in sate of affairs of
the employees or workers rights, then fortunately the strict policies or regulations made would be
needless. By the world is wretch to the weaker section from the start and they need protection, a
ray of hope to stand up for themselves and these strong and ardent legislations which are made
by the governmental authorities gives them that hope to raise a voice against the inaccuracy and
maltreatment they face (Hoque, Rahman, Molla,Noman,and Bhuiyan,2018).
(2) Fundamental features of company formation in United Kingdom
Procedure of incorporation of any business or company is termed as company formation.
In UK, the Companies Act 2006 governs formation and regulation of corporations. The result of
formation is that company which is private limited in nature acquires an identity of its own. It
also becomes an individual entity which is completely separate from its owner along with
complete responsibility for the liabilities, assets and finances of it. Registration or formation of
company in UK is done with registering business with Company House. The procedure involves
seven crucial steps leading to the formation of company. They are as follows:
1. Structure of company to be chosen
In UK there exists varied types of companies like public limited company, unlimited company,
community interest company and others. First thing which any person aiming at formation of
company shall do is to select the kind of company to be formed. The most chosen option here is
that of private company limited by shares. Here the liability of the owner is limited and the
exposure to risk of personal nature is no there. Selection of type or structure of company
determines the liabilities too. This means the payment of taxes and other resource formation is
dependent over type of structure to be adopted by owners or people involved in formation of
company (Chidiac, 2018).

2. Registration of Company name
Companies are given separate legal entity and thus it is necessary that they be given a definite
name by which they will be addressed and recognised. Before proceeding with applying for any
name for the company during the formation of company, it is necessary that name to be chosen is
available for taking in the business. In simple terms, it means that name which is desired by
owner is available in the market and already owned by any other company. Crucial things here to
be kept in mind are proper analysis of market for which name is desired should be done,
meaningful name should be preferred, it should be kept simple and short and the difficult names
should be avoided (Ho,2021).
3. Package of forming company to be decided
There are number of packages available in the market associated with company formation. They
vary with the services provided like just registration and no document registration may be done
with minimum amount. If the owners need high standards to be followed with every minute
details to be provided then full secretarial packages of compliance are available for boosting the
footing of company. Others include the whole registration as per detailed analyses of rules and
standards of UK. All requirements cannot be fulfilled by any person alone as legality concerned
in formation of company is complex. Thus it is needed by them have their work done by
companies who are efficient in the procedures and offer services of equipping formation of
companies.
4. Information as to company to be mentioned
Procedure of formation of company requires information associated with company to be
presented with accuracy to company house. Such information requires the presentation of the
address to be registered as the official address of company, shareholders detailing which are to
be kept in the registered documents which in law should be at least one. It can be the director of
company or any other person as desired by the management. Details as to directors of company
is also to be provided in the documents which are required them for submission to Company
house.
5. Shares allocation
Allocation of shares in formation of company is basic requirement as it will define liabilities of
people associated with company. Though company is termed as separate legal entity but the
work of it is carried by individuals only who are the management and shareholders. Holders of

the shares of company may change with time but when it is to be formed it must be ascertained
properly.
6. Formation of MOA and AOA
The document having set objectives of company along with broad detailing of how it has to be
governed, what will be the basic areas of its business of objectives and other things is termed as
memorandum of association. It is essential part of formation of company that memorandum of
association is formed in detail. Articles having names of all the directors , managers and other
people necessary for management are provided in articles. There liabilities are well set along
with the powers in this document. For formation of company they are to be submitted to
company house as constitution on which the existence and registration of the company will
depend (García‐Sánchez,2020).
7. Submission of documents
Lastly, after completion of all the above mentioned steps, documents and other required things
shall be submitted to company house before 3 pm.
Registration and formation of company helps the owners to mark reputation among the
shareholders and customers. Startups are nowadays the international mark of evolution. They are
flourishing in a broad scope all throughout the world with respective public utility components.
The immature coevals is approaching up with the opinions to alter the life of masses and
problems that are faced and provide solutions in entrepreneurial way. But in the present sounds
of startups, almost of the groups tend to not striking where this all began from. Yes,
Establishment enrolment is the starting point of any business. Businesses require investment and
funds which can be acquired with more efficiency when the corporation for which all that is
needed is reputed and registered with complying all the legal formalities. The loopholes of legal
nature in the formation of company often lead to business being failure and then the member or
other shareholders suffers losses which they cannot make without external debts and other
structures (Deakin,2019).

ASSESSMENT 2
Critically discuss the extent to which corporations take Corporate Social
Responsibility
Corporate social responsibility a self regulation of business operations with the aim of
fulfilling the social accountability which assist in creating positive image of the company in the
society. For accomplishing such purpose the practice of corporate social responsibility
implement by the organisation. The concept of corporate social responsibility introduce by
focusing on the certain socio-economic factors such as gender equality, eco-friendly, eco-
conscious, condition of workplace, equal treatment among employees, diversity etc. which
ensure the operation of business ethically (Keeble, 2018). The practice of corporate social
responsibility started on voluntary basis later on with the advancement of the technology and
occurrence of socio-economic factor on international level its become mandatory for the
organisation to practice it within the organisation. Presently there are many legal framework
enacted at national and international level in reference to corporate social responsibility. It can be
find determined that there are various organisation which before the formulation of legal
framework for proper functioning of business operation and to build affirmative image in the
society (Malafronte,and Pereira,2021).
There are several causes for the implementation of practices of corporate social
responsibility as it assist in pursuing genuineness. In respect to corporate social responsibility the
firm needed to introduce in the organisational culture in order to smoothening the business
operations of the organisation (Mason, 2019). The social consciousness environs, employees and
consumer give priority to those firms who actively indulged in the practises of corporate social
responsibility. It assist in discouraging practice of the corporate hypocrisy several organisations.
To ensure the effectiveness of the corporate social responsibility organisation should considered
the mission, values, determine and major issues which align with the culture and goal of the
organisation. In reference to the organisation such practices can be done by the organisation
itself or can done with the assistance of outsiders. Now a days many organisation focus on the
sustainability in this direction they considered the goal of sustainable development of UN while
practising the CSR in the organisation. As such goals emphasis on the good health, well-being,
gender equality and many more (Neal, 2019).

Importance and Efficiency of Corporate Social Responsibility
There are plenty of reasons for a corporation to collect and connect with the practices
of CSR:
It ameliorate the consumer's viewpoint towards the company
It is crucial for the corporation to construct their image in front of the society and
enhance their image on a regular front. When the organisation gives their precise importance and
significance to the environment and other components of CSR, the company ultimately motivate
the stakeholders, the investors to invest in the organisation, the employees and the employers to
work for them more efficiently and the other members of the enterprise to look after the
company and enlarge their growth attributes. Only dwelling for the profit making scale can harm
the companies reputation on some scale (Sánchez‐Torné,Morán‐Álvarez,and Pérez‐López,2020).
Wondering what the company holds as matter of consequences on the society is also
vital to look for the working of the company and the brand of the company. Constructing a
optimistic representation in front of the society by managing the corporate social responsibilities
practices will advance the amount of working, it also gives assistance in managing the neck to
neck competition. Increasing the awareness scale in regard to the CSR application. The
enactment of sustainability will appropriately enhance the corporations profit variables, as the
firm will lessening the utilization of packaging and the energy resources will not misuse and the
cost efficiency will enhance the cost of production (Crowther, and Seifi,2018.).
CSR Fascinates and Hold on to the employee's
Under the present scenario and time, the young generation candidates tends to work in an
organisation, where the work of the company is systemically tackled and the organisation which
produces the utility of the resources of sustainability. The working manoeuvrer of the present
day companies, if in case they refuse or stay in denial to take of the planet or dies not involve in
the activities of the CSR, they can fail to improve their brand image as well. As the recent
generation would tends to look after the environment for the greater goods, as well as the
company also should improve their work qualities in order to safeguard the environment
(Vollero, Siano,Palazzo,and Amabile,2020).
CSR Escalates organisation allure the investors

Adapting the plan of action of CSR will bring about advancement in the organisation, by
captivating the investors. The business can attain the profits, when the investment variable of the
company are if and the investors are ready to put their money in the company. The business
which are based on the land of the United Kingdom has an viewpoint on the parameters of
sustainability. The organisation which achieves the programme level of sustainability, can max
out their reputation and get the investors to invest in their business. The neck to neck competition
in the marketplaces, be it local or at the international level, the organisation are looked by the
factors of CSR and how they are regularising their carbon emission and sustainability
programme. Including sustainability in the company, will bring about development and advance
the growth of the organisation (Sharma, 2019).
Kinds of Corporate Social Responsibilities which are feasible to practice for
an organisation
As per the the growing significance of the corporate social responsibilities in the
organisation, which can provide assistance towards the society, a great of amount of business
make their focal point on the four major CSR characteristics :
Do One's Best towards the Atmosphere- The primal focal point of the CSR scope is the
atmosphere. As the organisation these days are indulged into a enormous amount of carbon foot
printing, the CSR associates with the business in the respect to reduce the utilization of the
carbon foot printing. The application decreasing the uses of carbon foot printing can do best for
both, the society and the business.
Benevolence- Another way of carrying the applications of CSR, is by humanitarianism.
The corporations put their thoughts beyond profits and indulge into giving out their share of
profit, services or any base of product to the non-profit organisation. Donation or Charity can
make the company to be in the good books of the society and the rest of the philanthropy
exercises can be done by indulging into community services.
Moral Behaviour and Ethical Labour Operations- The organisation can also be a part
of CSR necessities by taking care of the employees on moral behavioural and ethical front. The
advantages for the business on the international marketplace following within the operational
functions of the labour laws.

Participation (Volunteering)- If the organisation gives more time and puts an impact
on their employees for the events of the community, it shows the intact integrity of the
organisation . The involvement of Corporate social responsibilities tends to be a up to the scratch
accomplishment which just leads to the growth of the company and the nurture attainment for the
environment (Purcell, and Garcia,2021).
Making a edifice of a socially responsible organisation
In the scope of the enterprise which are small scaled and the companies who just merely
started off, leading to the way of growth and apparently still has the tiny pocket in their business
zone. Their attempts can positivity effect the communities. The role of employees is crucial for
the company and as after the adaption of the CSR is vital ingredient too for the employees of the
organisation. If the decisions in regard to the CSR are discussed without the presence of the
members of the companies, then it will heed doubts in the brains, that the charity variables are
not up to point and the practices of CSR are not going as mentioned by the directives.
It is the betterment of the organisation that the decision making related conversations
should be held in the presence of the employees and the members of the company. The presence
of employees will sort the god image attributes of the corporation (Scharding, 2018).
The marketplaces must be aware of the state of affairs of a company, that the company is
using the resources of the sustainability and reducing the practices of carbon foot-printing, all
these components will enhance the growth of the business and induce development in the
organisation. The brand image is the pivotal thing to be looked by the organisation in front of the
society, that can attained when the products are dwelled in the sustainability resources, that
would the consumers will prefer over any products. As for the safeguarding of the environment ,
the society care for the atmosphere, so does the corporation (Yue,and Cowling, 2021).

CONCLUSION
The above content states, two components which included the report and the essay. The report
gives about the interpretations of the historical background of employment law, which
mentioned the provisions to safeguard the employees. The report calls out the matter in question
that the enactments of the employment law clearly in sheer transparency does favour the
employees more than the employers. This act can be determined as employee drifted act. The
importance can be considered by looking the previous acts in the bygones time period, where it
constituted a great difficulties to determined the re-solvation for the issues related to the
employees. The role of laws of employment which are enacted by the tight knitted legislation of
the United Kingdom, which ultimately look after the employees and the workers, and save their
day from the exploitation of any sort, the harassment, the salaries issues, the issue of leave and
the discrimination. The major good which relaxes the work of both employee and the employer,
is the establishment of the Contract of Employment.
In the content capacity of the essay, which define the chronicle impact of the Corporate
Social Responsibility on the corporate world , and the procedures of the application of CSR, can
bring about development in the business,enlarge the brand image of the organisation, attract the
consumers and the increase the variable of investment for the making the conditions favourable
for the business. To maintain themselves as an organisation, the firm should try to carry forward
the practices of CSR and be in the good books of the community.

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