Business Law and Ethics Assignment 1: Specific Performance and CSR

This essay analyzes two key aspects of business law and ethics. Firstly, it explores the legal remedy of specific performance in contract law, defining it as a court order compelling a party to fulfill contractual obligations, particularly when damages are insufficient. The essay examines the limitations imposed by courts, referencing case law such as Co-op Insurance v Argyll Stores and Rainbow Estate Limited v Tokenhold Limited, highlighting instances where specific performance is not granted due to issues like constant supervision or hardship. Secondly, the essay delves into Corporate Social Responsibility (CSR), examining the extent to which corporations embrace it. It discusses the arguments for and against CSR, including its potential to increase profits, minimize government intervention, fulfill moral duties, enhance public image, and increase stockholder return. The essay references academic viewpoints from authors like Carroll, Chowdhury, and Rangan, concluding that CSR offers various benefits to businesses, employees, communities and the environment. This analysis provides a comprehensive overview of these two crucial business concepts.

Business Law and Ethics
Assignment 1- Essay
London School of Business in partnership with
University of Suffolk
Student id: S216438
Word count: 1404
(Cover page and reference list not included in the word count)
1. Discuss the remedy of specific performance and the limitations imposed by the
courts on this form of relief, with reference to relevant case law and legislation with
respect to Contracts.
2. Discuss the extent to which corporations take Corporate Social Responsibility
Seriously.

Student ID: S216438 Assignment 1 Essay
Business Law and Ethics
Assignment 1
After graduating from University of Business, Sam was offered an invitation
for an internship at Manchester Law where she would spend time in Contracts and
Corporate Division if she would be successful. During the interview process, Sam
was given two questions, where one is related to the departments she would work
during her internship and asked her to discuss the remedy of specific performance
and its limitations imposed by the courts on this specific form of relief, referring to
relevant case law and legislation.
According to Thomson Reuters (2022) a contract is a legally binding promise
where one party has the obligation to fulfil the other party in return for consideration.
Specific performance is known as a court order which requires a party to fulfil its
contractual duties when harms are not an adequate answer and it is usually
arranged (Schwartz, 1979). Specific performance it is a basic concept that will
appear and will not be asked if the contract needs performance or constant
monitoring over an indefinite period of time and the contract's responsibilities are not
clearly specified, for example in the pledge of keeping the shop open during
business hours was denied by the House of Lords in Co-op Insurance v Argyll Stores
[(1997) 2 WLR 898] because the approval of a contract to continue on a company
would need constant judicial supervision, with the court resorting to criminal
sanctions for contempt of court if the request was not granted (E-law Cases, nd).
Another suitable example of specific performance in contracts and corporate division
can be the Rainbow Estate Limited v Tokenhold Limited and another [1998] New
Property Cases 33 where the appointed authority in this case concluded that the
former provision of rejecting specific performance if it included constant supervision
was no longer valid or (at the very least) that there were exceptions. Specific
performance may be available to landowners only in the most extraordinary
circumstances (for example, in this case); yet the arguments presented suggest that
it should be available in a variety of situations. Tenants were expected to spend
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Student ID: S216438 Assignment 1 Essay
£300,000 on pad repairs, thus specific performance was demanded. The landowner
had no right of passage to fix in failure of the occupier; the rent included no
relinquishment statement; and the structure was documented in such a way that
upkeep as distinct from redevelopment was the most suitable outcome (Beckett and
Kay, 2015).
Although specific performance remains an extraordinary remedy because of
the rules defining the jurisdiction of the chancellor, it involves disadvantages too
which, in most of the cases, would lower the joint contractual value. On the first
hand, the seller of the good will have to comply even though it will be costly and
outweighs the value to the buyer. Secondly, the problems encountered might lead
the seller to take careless steps which might impact in its production. Third, the seller
is bearing high risks and the process of enforcement might imply substantial
expenses and finally result in substandard outcomes (Shavell, 2005). Specific
performance is frequently demanded in connection with building projects because
the contract manages outcomes rather than the persistence of an action over an
indefinite time, and it typically describes the work to be performed with precision and
isn't accessible for contracts requiring individual administrations (for example,
Chappell v Times Newspapers Ltd [1975] 1 WLR 482) (Vlex, 2022). On the specific
performance cases, the court has ample discretion in granting it and practicing it
considering factors such as delay in requesting the request (for example the case of
Lazards Brothers and Co Ltd v Fairfield Properties co Ltd [1977] 121 SJ793 ),
whether the individual against whom the request is looked would experience
hardship in performing (Patel v Ali [1984] 1WLR 482) or whether the contracts needs
to be considered adequately (Jeffrys v Jeffrys [1841] 1 Cr and Ph 138) and whether
any third party freedoms would be impacted (Judiciaryni, 2002; Megarry et al, 2012).
The second question Sam was asked during the interview referred to the
extent of which the corporation would take Corporate Social Responsibility seriously.
Many businesses have adopted corporate social responsibility (CSR), a philosophy
(described in Why Ethics Matter) in which a company's expected actions include not
only producing a reliable product, charging a fair price with fair profit margins, and
paying a fair wage to employees, but also caring for the environment and acting on
other social concerns (Byars & Stanberry, 2018).
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Student ID: S216438 Assignment 1 Essay
Academics, practitioners, and policymakers now agree that firms should
utilise their resources and influence to reduce societal issues. However, there are
still some debates over how involved a corporation should be in social issues. Some
individuals believe that corporations should take on important obligations to address
numerous social issues, while others believe that firms should only participate in
social activities if they generate a profit (Camilleri, 2017). There is a lot of hyperbole
around this topic, and many studies have investigated the arguments for and against
the concept of CSR, arguing that companies are given a social sanction by society
that demands them to contribute to the society's growth and development. Critics of
CSR, however, argue that businesses already contribute to society by providing
products and services, generating jobs, paying taxes to the government, and
returning profits to shareholders (Chowdhury, 2019). However, Sethi (1975; cited in
Agudelo, Johannsdottir and Davidsdottir, 2019) points out that CSR should refer to
going beyond the concept of social obligation.
The corporations should opt in adopting CSR because it has a multitude of
advantages, stating:
1. Increased profits: One of the key reasons why businesses
should take on social obligations is that such actions might lead to increased
earnings in the future. In general, society expects a business to operate in
ways that benefit not only the company but also the community. As a result, a
better society will provide a better business environment in the form of higher-
quality workers, cheaper manufacturing costs, more property security owing to
fewer crimes, and so on. If a result, as firms devote more resources to social
initiatives, they will reap greater long-term advantages (Carroll, 2016).
2. Minimize government intervention: The primary purpose of every
government is to maintain social stability. To do this, all members of society
must perform their social obligations. The government may persuade
organisations to avoid anti-social behaviour by adopting legislation to
preserve the environment, assure workplace safety, and maintain equal
opportunity, among other things. It is preferable for businesses to accept
social duties on their own to avoid excessive government interference (ibid)
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Student ID: S216438 Assignment 1 Essay
3. A company is a sub-system of society, and it has a moral duty.
All societal sub-systems should work together to improve the total system, not
only for their personal benefit. As a result, corporations have a moral duty to
pay back to society on this basis (Ibid).
4. Increase stockholder return: According to Wallich and McGowan
(1970 cited in Chowdhury, 2019), corporations that engage in specific types of
social activities can increase stockholder returns. They employed advanced
analytical processes to demonstrate several sorts of social responsive
behaviour that help the business sector as a whole and can also benefit the
holder of a diversified portfolio. As a result, a company's inability to be socially
responsible might deprive shareholders of higher earnings.
5. Enhance public image: The concept of public image refers to the
advantages that individual businesses gain from maintaining a positive image
in society. Furthermore, any firm that contributes to the fulfilment of society's
ambitions has a better public image. Such businesses can benefit from
gaining loyal consumers and workers who are happy to work with them
(Rangan, Chase and Karim, 2015).
The extent to which a company engages in CSR initiatives is determined
by industry norms as well as external government influences. CSR may not be
required in certain industries, while it may be the standard in others. Firms must
properly examine the implications of CSR programmes on diverse stakeholders
before embarking on such initiatives. Furthermore, businesses should seek
feedback on the success of their CSR policies to identify areas where they may
improve and places where they are succeeding.
Corporate Social Responsibility became extremely popular in the recent
years as it is recognising the multiple advantages to the businesses, workers,
communities, and the environment. CSR implies that a company cares about
broader societal concerns than simply those that affect your bottom line, which
will attract customers that share the company`s beliefs.
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Student ID: S216438 Assignment 1 Essay
Reference List:
1) Agudelo, M. A. L., Johannsdottir, L., Davidsdottir, B., (2019). A
literature review of the history and evolution of corporate social responsibility.
International Journal of Corporate Social Responsibility. [online].
https://doi.org/10.1186/s40991-018-0039-y
2) Beckett And Kay, (2015). Rainbow Estates Ltd v Tokenhold Ltd
and another. All England Law Reports/1998/Volume 2 /Rainbow Estates Ltd v
Tokenhold Ltd and another - [1998] 2 All ER 860 [online]. Available at:
https://beckettandkay.co.uk/wp-content/uploads/2015/07/Rainbow-Estates-v-
Tokenhold-1998-specific-performance1.pdf [Accessed 4 March 2022]
3) Byars, S., M., & Stanberry, K., (2018). Business Ethics.
OpenStax: Texas
4) Camilleri, M., A., (2017). Corporate sustainability and
responsibility: creating value for business, society and the environment. Asian
Journal of Sustainability and Social Responsibility. [online]. Vol. 2, pp. 59-74.
https://doi.org/10.1186/s41180-017-0016-5
5) Carroll, A. B., (2016). Carroll`s pyramid of CSR: taking another
look. International Journal of Corporate Social Responsibility. [Online]
https://doi.org/10.1186/s40991-016-0004-6
6) Chowdhury, F., (2019). Corporate social responsibility: to what
extent businesses should contribute from theoretical perspective? European
Journal of Business and Management. [online]. Vol. 11 (12), pp. 21-25.
Available at:
https://www.researchgate.net/publication/341774446_Corporate_Social_Resp
onsibility_To_What_Extent_Businesses_Should_Contribute_From_Theoretica
l_Perspective [Accessed 5 March 2022]
7) E-Law Cases, nd. Co-op Insurance Society v Argyll Stores
[1997] 2 WLR 898 House of Lords. [online]. Available at: https://e-
lawresources.co.uk/cases/Co-op-Insurance-Society-v-Argyll-Stores.php
[Accessed 3 March 2022]
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Student ID: S216438 Assignment 1 Essay
8) Judiciary, (2002). Lazard Brothers and CoLtd v Fairfield
Properties co (Mayfair) Ltd [1977] 121 SJ793 [online]. Available at:
https://www.judiciaryni.uk/sites/judiciary/files/decisions/James%20McIvor
%20v%20The%20Northern%20Bank%20Executor%20and%20Trustee
%20Company%20Limited.pdf [Accessed 5 March 2022]
9) Megarry, R., Wade, W., Harpum, C., et al., (2012). The Law of
Real Property. 8th ed. Sweet & Maxwell: London.
10) Rangan, V. K., Chase, L., Karim, S., (2015). The Truth about
CSR. Harvard Business Review. [online]. Available at:
https://hbr.org/2015/01/the-truth-about-csr [Accessed 6 March 2022]
11) Reuters, T., (2022). Contract. Glossary. [online]. Available at :
https://uk.practicallaw.thomsonreuters.com/4-107-6271?
transitionType=Default&contextData=(sc.Default)&firstPage=true [Accessed 3
March 2022]
12) Schwartz, A., (1979). The Case for Specific Performance. The
Yale Law Journal. [online]. Vol. 89 (2), pp. 271-306. https://doi.org/795838
13) Shavell, S., (2005). Specific Performance versus Damages for
Breach of Contract. Harvard Law School. [online]. Available at:
http://www.law.harvard.edu/programs/olin_center/papers/pdf/Shavell_532.pdf
[Accessed 4 March 2022]
14) Vlex, (2022). Chappell v Times Newspaper ltd. Case Law.
[online]. Available at: https://vlex.co.uk/vid/chappell-v-times-newspapers-
793114749 [Accessed 4 March 2022]
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