Business Law and Ethics: Individual Report on Legal and Ethical Issues

This report provides a comprehensive analysis of business law and ethics, focusing on a case involving Extortionate PLC and its liability for a customer's injury due to negligence. It delves into the concepts of tort law, duty of care, and ethical considerations, exploring the bank's responsibilities tow...Read More

Business Law and
Ethics

Table of Contents
INTRODUCTION...........................................................................................................................3
INDIVIDUAL ESSAY....................................................................................................................3
Tort and duty of care..............................................................................................................3
As per the case or doctrine of tort Extortionate PLC is liable for Samantha’s injury............4
Ethical consideration of bank towards public........................................................................4
Possible defence for Extortionate PLC...................................................................................5
INDIVIDUAL REPORT.................................................................................................................6
Reorganization and responding to ethical conflict and turbulence in professional career and
workplace...............................................................................................................................6
Philosophical theories and professionals body ethical guidance and advice.........................7
Appropriate MIS development and acquisition approaches in acquiring relevant systems for
organizations...........................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Business law refers standards of behaviours which are being expected of companies and
sole proprietorship and business ethics refers legality or having knowledge to identify difference
between the right and wrong (Cowton, 2017). This present study is divided into 2 parts such as
individual report and essay. Individual essay is going to show importance of ethics and
performing all activities and functions by companies in an ethical and legal manner. Further, it
will also discuss some duties like duty of care, conflict and others which companies have to
perform when they fail to perform their functions in an ethical manner and do not concern
towards their clients. Second part of this study, essay will discuss consequences of performing
activities in an unethical manner. When an organization do some unethical and illegal acts then it
has to pay several duties and other party or victim can take help of legal system of the UK which
include: Solicitors and Barristers as per their nature of case.
INDIVIDUAL ESSAY
Tort and duty of care
Before understanding Tort of duty and care it is important to understand the Tort of
negligence and in this context it can be said that it is a legal wrong which suffer by any
individual who is at the hand of another, fails to take care in order to avoid what a person regards
foreseeable risk. In the case of Extortionate PLC it is analyzed that Samantha, customer of bank
went for taking loan and when leaving the bank she fail down because of carpet which came
away at the sides of stairs. But in this case or injury of Samantha, Bank denied taking
responsibility by saying that they have already mentioned and had an exclusion clause limiting
liability against personal injury of their clients (Chan, 2016).
As per the tort law and duty of care refers a legal obligation in which an individual owe a
duty of care to another person in order to make sure that they will not suffer any harm and injury
as well. In the case of Extortionate PLC it can be said that as a bank it is responsibility of bank
towards their clients and public to care them and have duty of care but it was breached. In the
negligence and breach of duty of care company or tortfeasor have to compensate to victim or
clients (Plunkett, 2018).

As per the case or doctrine of tort Extortionate PLC is liable for Samantha’s injury
As per the doctrine of tort there are mainly 4 tort laws on which basis, company have to
pay or compensate to victim such as; causation, injury, duty and breach of duty. As per this if
any individual fail down and got injured then there duty of care occurs for company. In the case
of Extortionate PLC it is stated that one customer of this bank, Samantha went to bank for
inquiring about loan for business start up. But while leaving the bank, She fails down from the
stairs where carpet came away at the sides and for protecting herself, she put her hands in front
of her. Due to this she got injured her wrist. It is stated that it was not the one case as she found
that there were many customers who got injured for the same reason and that carpet. In all of that
case, bank denied to pay and become responsible and said that they had an exclusion clause
which limiting their liability against any personal injury of clients. One of friend of Samantha
said that there are many customers of this bank who have fallen down the stairs and same case
and issue was raised with this Extortionate PLC bank. As a proof she got a link from her friend
of bank where all customers who got injured at bank claiming bank for compensation and
performing duty of care (Tilley, 2016).
So, it can clearly be said that Extortionate PLC is liable for all customers because as a
bank there is a duty of care of bank towards their clients and public. They breach the duty of
care. As per the policy of duty of care all companies including private and public required to
perform this duty. As per the national care standard there is a duty of an organization to follow
all rules and policies related to safeguarding people and managing risk (Ehrlich, 2018).
Ethical consideration of bank towards public
There is requirement for bank to perform their all function in an ethical and effective manner.
Rather performing all functions of their business it is also important to follow some codes of
ethics towards their public in order to make them feel valued and following all rules of national
standard of safeguarding. The banking industry is known as the unique and customers centric
industry among all because the main responsibility of this sector is to satisfy customers and make
them feel pleased and valued by providing effective services along with performing duty of care.
Other main reason is this sector and banks are based on trust. There are some principles and
ethical consideration of bank towards public which includes:

Integrity: An ability to being honest towards public is one of the main principle and code of
ethics which need to be followed by them.
Supervision of public benefit: It is one of the main principle and codes of ethics which shows
people that bank is concerned for them. As per this code of ethics, bank is required to take care
of their people or clients and take pains in supporting cultural and social events. Rather, making
profits and accomplishing goals which are related to revenue and profit, it is the other general
duty (Plato-Shinar, 2019). Supervision of public shows that bank takes care of their clients
genuinely which increases trust and honesty in customers.
As per the article 13 there is a duty if bank to provide security to their employees and
public. Providing secured and safe working environment is other ethic which covers precautions
and measures as well whose main aim is to increase trust among employees and increasing
customers retention rate. They are also liable to compensate to their customers if customers got
injured due to ineffective and unsafe working environment of bank (Sharma and Singh, 2016).
They can also develop banking ethics if they feel requirement in it and for they have to
represent or submit proposals to Association board of director. It allows them in knowing
additional requirement of following rules and codes of ethics in order to improve image and
prevent themselves against lawsuits. So, overall as per the discussed roles, duties and codes of
ethics of bank towards public it can be said that Extortionate PLC was liable for their client,
Samantha’s injury and they need to compensate all customers who got injured due to unsafe
working environment.
Possible defence for Extortionate PLC
In the context of Extortionate PLC it can be said that by denying compensating to all customers
and Samantha for her injury at bank which happen because of unsafe working environment, there
is a duty of care happen. But they breached that duty of care and negligence so, in this case there
are several defenses for this bank which includes: exclusion of liability and inevitable accidents.
As per the exclusion of liability, there is requirement for banks to inform clients about
workplace safety and unsafe working environment. It is stated that bank had an exclusion clause
limiting and mentioning its business hall about unsafe working environment and any kind of
personal injury of clients will not be their concerned (De Gama, 2017). By making their facilities
at their own, company would not be liable. So, as per this exclusion of liability, this defense is
available to bank.

In addition, as per the inevitable accidents plaintiff may face some problems in succeeding claim
for negligence if injury to them arises because of their inevitable accidents. As per this defense it
can be said that injury happen due to negligence of plaintiff and in this case Bank or defendant
can say that they already made aware to all clients with notice board that any personal injury of
clients will not be considered by the bank. So, in this case it can be said that plaintiff had to take
care of herself and in this situation one of the main focus can be of the enquiry is whether there
was anything the defendant could have done to prevent the accident by the exercise of ordinary
care (Danchin, 2017). So, these both defenses are appropriate and available for Extortionate
PLC.
INDIVIDUAL REPORT
Reorganization and responding to ethical conflict and turbulence in professional career and
workplace
In the context of ethics it can be sad that it plays an important role as it allows people at
workplace to identify the difference between the right and the wrong and also making effective
decision. With the help of ethics like performing activities in a legal and effective manner, they
can improve their image and can also prevent themselves against lawsuit (Allan and Moffett,
2016). An ethical conflict at workplace occurs when colleagues of an organization make a
decision that can be seen as illegal or inappropriate to 3rd party. Smallest lies and other
inappropriate ways to decision process affect the company as whole including employees,
investors and others as well.
In addition it can also be said that without ethics at workplace, company’s internal as well
as external processes affected to the great extent. One of the main affect which ethical conflicts
at workplace have is decreasing in sales and poor brand of the company because when an
organization is identified an unethical then investors do not prefer to invest in that company an
also customers do not prefer to buy products and services from that company. Asking for
shredding an incriminating record by employers to employees is one of the main example of an
ethical conflict even employees do not play tasks in that process.

Types: There are different types of ethical conflicts at workplace as different companies deal
with different situations when they are being viewed and recognized unethical such as: Fraud,
honesty, confidentiality etc. Fraud is one of the main type of ethical conflict and an unethical act
and it occurs at workplace when an organization present incorrect informations to stakeholders
(customers and public) knowingly (Lluch-Canut and et.al., 2020). There are several examples of
companies who knowingly presented wrong informations or income statement then it is known
as the big unethical act or ethical conflict in profession. For example; an energy company Enron,
presented an income statement fraudulently in order to show that it is performing better even it
was not doing. So, this act of doing some act knowingly is known and counted in an unethical
behaviour of an ethical conflict. In such kind of situations and ethical conflicts, companies have
to pay some duties such as duty of loyalty to client, the duty of confidentiality.
It can also be said that in the context of legal profession of the UK in context of ethical
perspective that there is requirement to perform some duties and professionals that can be
authorized to carry out reserved legal activities under solicitors have direct contact with their
clients. As the largest part of legal profession, customers’ or victims are required to get legal
advice as well as assistance on a range of matters (Sobolewski, 2019).
Philosophical theories and professionals body ethical guidance and advice
In the context of legal profession of the UK it can be said that there are some rights of
clients and audience if they find any unethical acts by companies. As per the legal profession,
there is a right of clients or audience to conduct or appear proceedings in the court.
In the context of solicitors, it can be said that European lawyers are mainly responsible
and authorized in the context of rights of audience and ethical guidance and advice. They are
granted rights of clients or audience in all courts but there is a requirement of registration. But
clients cannot exercise their rights in the higher courts until they have complied with additional
assessment (Farrow, 2016). Before understanding all professional theories in ethical guidance
and advice it is important to understand legal profession of the UK which consists of solicitors
and barristers. Knowing difference between qualified lawyers is also important.
Solicitors V Barristers: Solicitors are one of the main qualified lawyers who provide a
ranges of legal advice to companies, people in some legal issues context. One of the main
responsibility or role of Solicitors is to solve problems of companies and people in an ethical
manner. They generally help their clients in finding some solutions within framework of statues,

case laws and regulations as well. On the other hand, Barristers get instructions from solicitors or
qualified lawyers. So, it can be said that for getting legal advice and solutions of problems,
clients have to go through solicitors even they want to go to Barristers or getting access to
barristers. They perform roles of legal expert as well as exceptional advocates. But still,
Barristers have wider or the highest right of clients as compare to solicitors (The Solicitor and
Barrister Profession in the UK, 2011).
Theories: There are some philosophical theories related to ethics which can help audience and
clients in getting legal advice and solving problems from which they suffer such as: deontology
and Utilitarianism. As per the deontology philosophy theories of ethic it is important for people
to adhere their obligations as well as duties when engaged in the process of decision making and
when ethics are in play. So, it can be said that it is important for people to follow their
obligations to another individual because it is considered as an ethical act. Keeping promise and
following rules of law can prevent people and companies against lawsuit or unethical acts
(Holyoak and Powell, 2016).
In addition, Utilitarianism theories of ethics are based on an individual’s ability to assume or
predict consequences of an action played by them. For getting several benefits it is important to
be ethical correct in all manners. By using act utilitarianism, person often acts which benefits to
him and others as well. And rule utilitarianism takes into account laws which is mainly
concerned with fairness.
Appropriate MIS development and acquisition approaches in acquiring relevant systems for
organizations
MIS can be defined as a development process or a system which mainly deal with management
informations. This system plays an important role as it supports manager of an organization in
making an effective management planning, taking decision and appropriate actions. In this
system one of the main important factors which is essential for organizations is informations as
like time and capital (McGee, 2019). If management manages it or informations in an effective
manner then it can accomplish its goals and can prevent itself against performing illegal or
unethical act and lawsuit as well. There is requirement of focusing on some areas while
managing informations such as: maintaining quality, quantity and content of informations or how

much informations is required to take actions and how these informations can help in taking
decision. Maintaining accuracy of informations, reliability and security of the system.
Information system are known as major asset while making decision in legal profession then it is
important for qualified lawyers to have accurate and well maintained informations (Hadidi and
Power, 2019). IT can allow them to give better legal advice to clients and help them out against
illegal acts dine by other party. Organizations also required being responsive to emerging
opportunities. For acquiring the best approach of system it is important to establish system in an
effective manner and then acquire them (Acquiring Information System and Services, 2020).
Process of acquisition of information systems can either involve external sourcing or depend on
internal development or modification. There are several ways to acquire informations system
from external of the company such as outsourcing. Outsourcing entails moving the services
abroad and by maintaining information system companies may outsource. So, overall it can be
said that buying and using system, buying and customizing, rent or lease it and building it at own
are some methods of acquiring system.
Ethical and legal requirement: In the context of legal requirements it can be said that it is
important for companies to follow some ethics and legal requirements for implication of
information system (Ethical and Legal Implications of Information Systems, 2018). The reasons
behind is its informations system and appropriate technologies have great effects or impacts on
human behaviors. In this context it can be said that by focusing or following codes of ethics and
professional conduct of the association for computing machinery in organizations. In this context
it can also be said that commitment to ethical professional conduct is expected of each and every
member of the association for computing machinery. This Code, consisting of 24 imperatives
formulated as statements of personal responsibility which helps companies in identifying all
elements of commitment.
CONCLUSION
From the above study, it has been summarized that ethics played an important role at every
stage and field. In an organization, ethics is known as the main key of the success and when an
organization perform its all activities and functions in an ethical manner then they are more
likely to prevent themselves against lawsuits. It has shown that an unethical act creates several

problems for companies and as per the legal profession of the UK they need to take help of either
solicitor or barrister as per the type or nature of conflicts and act. This study has also discussed
that companies have to perform duties of honesty, care and safety if they commit any illegal act
or unethical act. For preventing themselves against all these issues and performing duties of
conflicts, care and others, it is important to perform all acts in a legal and ethical manner.

REFERENCES
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