Analyzing Informal Sector Entrepreneurship & CSR

This assignment involves critically examining the role of informal-sector entrepreneurs in economic development, with a focus on the functional understanding of business law as discussed by Dickerson. Additionally, it requires evaluating the hypocrisy-sincerity continuum in corporate communication and decision-making, as proposed by Fassin and Buelens, and exploring the legal framework for international business transactions using Folsom et al.'s problem-oriented coursebook. Furthermore, students are expected to analyze the benefit corporation model and its implications for corporate social responsibility, drawing from Esposito's primer and Hiller's analysis. The assignment also requires examining the English legal system and its relevance to business law.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................1
SECTION 1......................................................................................................................................1
P1 Structure of English legal system and different sources of laws...........................................1
P2. Role of government in law making and application of common law in justice courts.........3
SECTION 2......................................................................................................................................4
P3 (A) Legal obligations of an employer....................................................................................4
P3 (B) Employment and contract law and their influences on business.....................................5
SECTION 3......................................................................................................................................6
P4 Legal solutions for solving organisation problem.................................................................6
P5 Justification of selected solution............................................................................................7
SECTION 4......................................................................................................................................9
P6 (A) Concept and benefits of Alternative Dispute Resolution Process...................................9
P6 (B) Recommendation on an alternative legal solutions.........................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
.......................................................................................................................................................12

INTRODUCTION
Business laws contain various types of rules and regulations by which organisation's
activities can be carried out easily and effectively. In other terms, it can be said that these laws
explain the way of forming and running company in an effective and efficient manner which
helps in attaining the desired results or outcomes. These legislations have to be followed by
every enterprise otherwise, they will be liable for the penalty or punishment. These laws are
made by government which have their main motive to provide safety and security to the citizens
of country and can easily handle critical situation that are prevailing in the state so that economy
of nation can be developed. This project will contain various case laws which will aid in
conducting the operational analysis. It will also state about different English legal systems and
sources of laws which have to be followed by every organisation. While making an act,
government plays an important role because it is only one who takes corrective action for
handling any critical situation. Also, it will state about the role of employer towards employees
along with describing employment and contract laws that are prevailing in the United Kingdom.
Further, appropriate legal solutions which can be availed by disputed parties for protecting their
reputation in the market will be studied.
SECTION 1
P1. Structure of English legal system and different sources of laws
This system has various types of rules and regulations which are known as laws that help
in carrying out the business activities in an effective and ethical manner. English legal system
can be divided in two parts which are given as below-
 Civil law- It is a well organised system by which private disputes can be resolved easily
and effectively. It includes various rules and principles that are arranged in codes which
can be easily accessed by the citizens and jurists. For example- If any person is
terminated from his employment without getting prior notice then in this situation, civil
law will deal with this issue.
 Criminal law- It will deal with that case where one person is harming to other individual
intentionally. In short, it can be said that it handles serious cases such as murder or to
access of any important data without getting permission, etc.
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In this structure, Supreme Court is a superior body whose decision has to be followed by
every person whether aggrieved parties are satisfied with it or not. If aggrieved parties will not
follow its judgement then they will be liable for the penalty.
If any person will have any legal issues then he can get the best solution from following
bodies which are given as below-
 Firstly, he can take help of magistrate court and tribunal.
 Along with that, if he will not be satisfied then he can take support of other body which is
crown and country court. It deals for handling the serious offences.
 After that, aggrieved person can go to high court which is the second highest body in
United Kingdom. It is divided in two parts which are given as below-
◦ Family division is the first one which can is also known as Queen's Bench and
Chancery part.
◦ Another one if divisional court which can be called as administrative and divisional
tribunal.
 If still, disputed party does not get solution for his problems then he can go to supreme
judicature which is the largest body in United Kingdom and its judgement has to be
followed by every disputed party whether they are satisfied with this or not.
Sources of laws-
In a country, there are many sources of laws which are related to international, national,
regional and religious. In United Kingdom, there are four types of sources which are given as
below-
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(Source 1: English Legal structure, 2017)

 Statutes- It is a written document of legislative authority which is helpful in regulating
and controlling a state, city or country. It contains various rules and regulations which are
made by the government which have main motive to maintain peace in the nation so that
its economy can be developed. It is a forth general aim of legal instrument which is set in
a particular position.
 Common law- It comes under the English law in which decisions are taken on the basis
of previous judgement that are condemned in same case or situation. In this, prevailing
acts have no role in taking decision as jury does not see these laws while giving
judgement.
 European Union- It has large number of political group who take efforts for making
country more competitive at the global level.
 Case law- It is included in common laws in which judgements are taken on the basis of
previous same cases which are given by higher authority.
By following legal laws and regulations, an enterprise can reduce conflicts that arise at
workplace which will be helpful in achieving the desired results or outcomes.
P2. Role of government in law making and application of common law in justice courts
For passing an act, government and parliament plays an important role as they make
legislation for protecting the rights of employers, employees and consumers. These legislation or
laws are made after analysing the situation of country so that it can control this condition
positively and develop the economy of nation. In a country, there occurs various types of
harmful cases which affect the lives of many people. So, for protecting the rights of individuals,
government has to take corrective actions so that this negative condition can be controlled and all
persons can live their life easily. While passing an act, concerned authority has to follow some
steps which are given as below-
 At first, it has to make a proposal which will include all necessary points by which
prevailing negative condition can be controlled easily and effectively. It will be presented
in front of cabinet ministers for taking their suggestions or opinions on it whether it
should be passed or not.
 If this proposal will be passed by them then it will be known as bill which will involve
various provisions and sections that will help in sorting out the prevailing issues or
problems.
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 At last, it will be presented to the parliament for their consent so that this bill can convert
into an Act. For getting approval, government has to put lots of efforts so that bill can
convert into legislation and country' situation can be controlled.
For presenting a legal document in front of parliament's members, related authority has to
follow some stage which are given below-
 This document will be given to every member so that they can understand rules and
regulations and can also know about its objectives.
 Government an its concerned individuals should try to convince the other people so that
this legal instrument will get more positive response and it can become an Act and can
sought out the prevailing situation easily and effectively (Dickerson, 2011).
 At last, every member of parliament will start argument with each other on this topic and
will reach to a final judgement that it should be passed or not. If this bill get vote in
majority then it will be passed and vice versa. For it, government should try to resolve all
queries of people so that they can be satisfied with this legislation.
If an act is required some changes or modification then for this a committee will be
formed which will have approximately 20 MPs because they will take judgement regarding
changes after completion of argument. After reaching to a common decision, it will be sent to
Monarch for their assent so that this bill can become legal document.
In United Kingdom, there are various types of statutory laws which are enacted by
legislative body. It involves various rules and regulations that aid in solving a public problem
effectively and efficiently and also ignores harmful conflicts which may influence the lives of
citizens.
SECTION 2
P3 (A) Legal obligations of an employer
Employer is that person who provides more job opportunity to the people which aids in
living their life more efficiently and effectively (Eren and et .al., 2012). He also contributes in
the development of country because he improves the living of standards of society by creating
full employment situation in the nation. In United Kingdom, there are various types of laws
related to employment which have main objective to protect the rights of manager as well as of
workers. Some legal commitment are explained below-
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 Occupational safety and health act- According to Occupational Safety And Health
Administration Act 2004, an employer has obligation to provide safety and security so
that they can perform their job effectively and efficiently. Apart from this, he has to pay
all necessary safety equipment so that they can take care of themselves while performing
their function (Esposito, 2012). According to OSHA standards, if any accident arises at
work place then its information will has to given by manager to OSHA office within 8
hours of this injury. If in an enterprise, there will have less than 10 employees then it will
not come under this provision.
 Worker compensation- In UK, there are large number of laws which deals in
compensation related problems such as Minimum Wage Act, Equal Pay Act etc. which
have main motive to provide at least minimum amount of salary which will aid in the
survival of man power. According to this Act, employer has to pay at least mentioned
amount to the workers otherwise he will be liable for penalty. He can not deny to pay it in
any condition.
 Equal opportunity- It is governed by Equal Opportunity Act 2010, job provider should
provide equal chance of growth to every person. If businessmen will discriminate among
their employees then it will demotivate the workers the they will not perform their job
effectively and efficiently.
P3 (B) Employment and contract law and their influences on business
In UK, there are various employment and contract law which have main objective to
protect the rights of employer as well as of employees. In this rules and regulations are contained
related to working hours, recruitment, termination etc. which have to follow by every
organisations.
In the mentioned case study, a food outlet company recruits a 16 years old who will cook
the fries. While fulfilling her job, she felt down and her left hand puts into deep fryer which had
boiled oil (Fassin and Buelens, 2011). At the time of this incident, there is no proper staff and
team leader was also not coming on monitoring the business process. This accident will
influence the organisation reputation negatively and other disadvantages are as follows-
 It will affect the brand value of the company in negative manner which may result that
no one will believe on this organisation and will also not purchase their products.
 It will reduce the sales as well as its customer base.
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 It will expand their cost because organisation has to pay compensation to that injured girl
and now onwards, it has to conduct training programmes for existing as well as for new
workers so that they can perform their job in an effective and efficient manner.
This incident will affect the business negatively so it is recommended that leader should
evaluate the workplace on a regular basis so that he can remove the possibility of hazardous
situation (Folsom and et .al., 2012).
SECTION 3
P4 Legal solutions for solving organisation problem
In United Kingdom, government has made various types of rules and regulations which
state about the process of recruitment, selection and termination of an employee. There are two
types of retrenchment which are known as wrongful activity which are given below. In this case,
employer has to compensate to the worker according to the law.
 Unfair dismissal
 Wrongful termination
In given case study, Mr. Calvin who got fire without receiving any prior notice and any
type of warning regarding job then it will be known as wrongful firing. In this scenario, Ms.
Donna did not follow prescribed rules and regulation of contract that was exist between
employer and employee then in this case she will be liable for compensating to her worker. As
per law, employer has obligation to give 1 month notice to faulty employee so that he can find
out another job within that time period so that he can live his life without any disturbance.
Management also has to give correct number of warning to the worker so that he can know about
their fault and can improve in future (Gjølberg, 2011). In given study, Mr. Calvin can get
following situations which are given below-
 Reinstatement- In this, he has right that he can go back to his respective job which will
be decided by judge after considering the following points-
◦ Employee wants continue this job or not.
◦ Whether this decision will be practical or not.
 Re-engagement- In this, individual can go to the same company but by possessing
different job role. This judgement is given so that terminated employee can live his life
without any interference.
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 Compensation- If worker does not accept any option then jury give last option which is
compensation. In includes various components such as basic, compensatory and
additional.
If Ms. Donna wants to protect herself from this compensation then she should terminate
her employees according to the rules and regulations such as by giving proper notice and after
collecting essential evidence which will prove that Calvin is guilty.
In second case study, Mr. Dan commences a new venture which got fired then he filed
an application to insurance company for getting compensation amount but it denies to
compensate him (Hiller, 2013). But according to the Insurance Act, it is liable to pay him and
also has obligation to present their policies and procedure clearly so that no one will do mistake
intentionally. In this case, Mr. Dan can take help of court for getting compensation and also has
right to claim according to the Insurance Act 2015. This incident will affect the insurance
company in negative manner such as-
 It will loose their reputation in the market as well as its consumers.
 In future, people
P5 Justification of selected solution
In United Kingdom, there are various laws and legislation which have main motive to
defend the rights of people so that they can live their life easily and happily. As above discussed
about the availability of legal solutions which are totally depend on the legal system and
provides various benefits to each and every party (Bishara, 2011). It aids in solving every critical
situation in an effective manner.
In given case study, Mr. Calvin has right to file case against the name of company rather
than of individuals because company's name plays an important role. If aggrieved party does it
then it will create negative perception in the mind of consumers which will minimize its market
share. So it is advisable to both parties that they should not take help of court because it has
various negative impacts such as-
 Matters will not be confidential which means that everyone will know about the issues
and will interfere for taking enjoyment.
 Both disputed parties have to pay huge amount of money for hiring skilled and competent
lawyer and also have to wait for long period of time for dispute settlement.
 It will reduce their reputation ion the society.
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So it is recommended that aggrieved parties should sough out their matters with out
taking assistance of court.
In second scenario, Mr. Dan has file application for getting compensation from insurance
company but it denies to pay him. But according to the Insurance Act 2015, this organisation is
totally liable for compensating to its policy holder. As above described that taking help of court
will not be beneficial for both aggrieved parties because it has various disadvantages such as it
consumes lots of time and money (Borden and Rhee, 2011). If Mr. Dan wants to take support of
legal system then he should file sue against the name of company rather than individual because
in this case sued party has to pay compensation to him for protecting their brand image in the
market.
In first scenario, fashion company can save from negative situation if it will provide valid
reason of termination to the jury. If disputed parties will take help of legal system then it will be
costly affair for every individuals such as they have to pay legal charges or other fees. So from
the above discussion, it is concluded that organisation should not go to the court for taking help
but they should adopt alternative ways for their settlement because it provides various range of
surplus.
Same thing applies in second case study in which disputed parties are insurance company
and Mr. Dan. They can also settle their disputes without any help of court because in this, lots of
time and money consumes for settling the conflicts. For example- they have to hire that lawyer
who will be capable in convenience to the judge so that he will take decision in favour. Along
with this, they have to wait for long period of time for getting best solution (Carroll and
Buchholtz, 2014).
So from the above report, it is concluded that to take help of alternative ways will be
beneficial for disputed parties rather than to go court.
SECTION 4
P6 (A) Concept and benefits of Alternative Dispute Resolution Process
Alternative Dispute Resolution is a procedure by which issues can be resolved easily and
quickly. Conflicts means disagreement between two or more parties. In this process, court has no
participation in the settlement because in this, third party comes into picture and tries to sought
out problems. In includes arbitration, conciliation, negotiation, evaluation etc. which is helpful in
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the settlement of issues. This method has various benefits such as no need to pay any legal
charges, not to hire any lawyer etc. In this, problems are also solved as soon as possible.
For starting a process, firstly, a third person will be hired who will listen the matters of
aggrieved party. This individual will be neutral which means that he will be related to any person
because if he will be concerned with anyone then he will take favour of him. In order to get best
possible result, there is a process which has to follow by concerned people-
 Firstly, all problems will be disclosed to arbitrator [third party].
 That individual will listen to each and every person and at last will take judgement
accordingly.
This procedure can be used in trade contract and other situations like consumer conflicts
etc. It has various advantages such as-
 It is less time consuming procedure because in this decision are taken as soon as possible.
 Aggrieved parties need not pay any types of legal charges for getting solution.
 In this, there is no biasness among parties which means that arbitrator does not take
favour of any one.
 At last benefit is that, in this, matter does not disclose to any outsider. In other terms it
can be said that procedure is very confederal which protect the reputation of disputed
parties in the society.
P6 (B) Recommendation on an alternative legal solutions
In the case study, it is given that dispute arises in those parties who have better relation in
earlier days and their name was Antwon and Tyrell who had worked together as a partner. So for
this case, it is recommended that they should go for alternative dispute resolution rather than to
go court because this procedure will help in maintaining relation between them. It will provide
various benefit such as-
 It will aid in maintaining better relation.
 Problems can be sough out easily, effectively and within short period of time.
 There is no discrinmi9nation among parties.
 It also saves money because no one need to pay any legal charges.
 It maintains confidentiality which helps in protecting reputation in the society and also
help in maintaining customers base as it is.
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So from the above discussion, it is concluded that disputed parties should go for
alternative dispute resolution rather than to go court because it provides many surplus to the
aggrieved individuals.
CONCLUSION
In today competitive environment, business law plays an important role because it guides
the businessmen to run their enterprise in an effective ans ethical manner and also assists in
resolving any kind of issues with in short period of time. From the above report, it is concluded
that there are two types of English legal system which are civil and criminal law and also has
various types of sources of laws such as European Union, common law etc. For converting a
proposal in to an Act, government has to put lots of efforts and also has to follow long
procedure. A legislation is made because of removing negative situation from the country so that
economy of the nation can be developed. In United Kingdom, there are various types of law
regarding employment such as Equal Pay Act, Minimum wage act etc. which have to follow by
every organisations otherwise it will be liable for penalty.
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REFERENCES
Books and Journals
Bird, R. C., 2011. Law, strategy, and competitive advantage. Conn. L. Rev. 44. p.61.
Bishara, N. D., 2011. Governance and corruption constraints in the Middle East: Overcoming the
business ethics glass ceiling. American Business Law Journal. 48(2). pp.227-283.
Borden, B. T. and Rhee, R. J., 2011. The Law School Firm. SCL Rev. 63. p.1.
Carroll, A. and Buchholtz, A., 2014. Business and society: Ethics, sustainability, and stakeholder
management. Nelson Education.
De Jonge, A., 2011. Transnational corporations and international law: bringing TNCs out of the
accountability vacuum. Critical perspectives on international business. 7(1). pp.66-89.
Dickerson, C. M., 2011. Informal-Sector Entrepreneurs, Development and Formal Law: A
Functional Understanding of Business Law. The American Journal of Comparative
Law. 59(1). pp.179-226.
Eren, S. S and et .al., 2012. Caching message fragments during real-time messaging
conversations. U.S. Patent 8,255,473.
Esposito, R. T., 2012. The social enterprise revolution in corporate law: A primer on emerging
corporate entities in Europe and the United States and the case for the benefit
corporation.Wm. & Mary Bus. L. Rev. 4. p.639.
Fassin, Y. and Buelens, M., 2011. The hypocrisy-sincerity continuum in corporate
communication and decision making: A model of corporate social responsibility and
business ethics practices. Management Decision. 49(4). pp.586-600.
Folsom, R. H and et .al., 2012. International business transactions: a problem-oriented
coursebook. Thomson Reuters. 49(2). pp.28-75
Gjølberg, M., 2011. Explaining regulatory preferences: CSR, soft law, or hard law? Insights
from a survey of Nordic pioneers in CSR. Business and Politics. 13(2). pp.1-31.
Hayden, G. M. and Bodie, M. T., 2012. The Bizarre Law and Economics of Business Roundtable
v. SEC. J. Corp. L. 38. p.101.
Hiller, J. S., 2013. The benefit corporation and corporate social responsibility. Journal of BBird,
R. C., 2011. Law, strategy, and competitive advantage. Conn. L. Rev. 44. p.61.
Online
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<https://law.duke.edu/lib/researchguides/english/>. [Accessed on 25th July 2017].
English Legal System Lecture Notes .2017. [online]. Available through:
<https://www.lawteacher.net/lecture-notes/english-legal-system/>. [Accessed on 25th
July 2017].
What Is Business Law? - Definition & Overview. 2017. [online]. Available through:
<http://study.com/academy/lesson/what-is-business-law-definition-overview.html>.
[Accessed on 25th July 2017].
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