1.1 considered as soon as the business is

1.1 Describe an organisation’s
procedures for raising legal, regulatory and ethical concerns


Businesses all have procedures
in place that must be followed when any legal, regulatory or ethical concerns
are raised. Legal concerns will need to be considered as soon as the business
is aware of them and must be acted upon immediately as legal issues could be
detrimental to the business for example it could mean the business is running
incorrectly. An example of a legal procedure a company must follow is all
businesses must be insured. This is extremely important for all businesses as
not only could it affect them legally but if anything happened to their
premises and the business doesn’t have insurance they could lose business
assets and in turn money. There are many regulations that organisations must
legally follow, all acts put in place by the government must be followed for
example. A business can be prosecuted if the data protection act is not
followed as well as being ordered to pay fines or in some cases the business
will be investigated more thoroughly. Ethical procedures are equally important,
and the human rights act takes into consideration different ethical backgrounds
and the right for people to have personal opinions and beliefs and protects
against discrimination. At Flightcase Warehouse I could raise any concerns
easily to any member of staff as we are such a small business in terms of
workforce. All concerns would be taken seriously and investigated whether it be
legal, regulatory or ethical. To raise concerns personally I would go to Sam
Austin or Steve Austin. Alternatively, I would speak to Kerri Austin or Jason
Furneaux. I am confident that any concern raised would be taken seriously and
investigated fully.

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1.2 Explain the scope of legal,
regulatory and ethical requirements in sales or marketing


In any business the sales and
marketing departments will have practices that meet legal, regulatory and
ethical requirements. The scope of these practices are a set of procedures,
processes and actions which are designed to work alongside rules and
regulations as well as considering ethical dilemmas. In business, a procedure
is a specific way of doing something, an action is doing something to reach a
predetermined goal and a process is a series of actions to achieve a goal.

At Flightcase Warehouse we use a
CRM system to capture the details of every person who places an order with us
as well as using social media platforms and email marketing to reach a wider
audience. This enables us to adjust our marketing to appeal to everyone and not
offend anyone. The handling of people’s private data means that certain
procedures must be followed to comply with The Data Protection Act 1998. The
procedures would include only asking for data which is necessary, as well as
giving a justified reason for the length of time that we will hold the
information for and the purpose of us collecting the data is made obvious and

All data that we hold is kept
securely in our CRM system and is only available to those who need to use it.


Sales and Marketing are
important as they are the part of any business that is most exposed and
specifically to the public, it is important that these requirements are
followed as customers may be offended and this is going against company
policies and acts which could harm the business. It could also lead to being
sued or taken to court depending on the severity.

Legal requirements for example
are making people aware what goes into the making of the product. Another legal
requirement is to following acts such as the data protection act, the handling
of a customer’s sensitive data for example their payment details and address is
very important and must be dealt with correctly by following procedures.

Regulatory requirements are laws
put in place by the government. Businesses must follow these regulations as
they are all legal requirements. Regulations are put in place to ensure that government procedures are
followed. This is to ensure all actions that can be taken to make sure all the
products manufactured and sold by the business meet government requirements and

Ethical requirements are put in
place to help, protect and keep employees from been discriminated against. Laws
such as the human rights act will protect people of all different ethnicities
being discriminated against. In sales and marketing, the people that you will
be exposed to and must work with will be diverse meaning they will have
different religious beliefs or be a different ethnicity. This must be
respected, and the human rights act must be followed. It is of utmost
importance that no one is discriminated against or treated any differently and
if this behaviour does occur in the workplace or anywhere it is breaking the


1.3 explain how the legal,
regulatory and ethical requirements relate to the business of selling or


All legal, regulatory and
ethical requirements are applicable to the business of selling and marketing.
Most businesses will voice their stance on these requirements and the
consequences of not following them in their terms and conditions policy and
contracts. This information must be kept up to date as to not become outdated. A
few examples of these requirements are:


Working time directive and
employment legislation


Working time directive sets the
amount of time per week employees can work. All employees in the EU that work 5
days a week or more have the right to 5.6 weeks or 28 days of paid holiday.
Employees are also entitled to rest breaks and the right to work no more than
48 hours per week, however employees can opt out of this act which will then allow
them to work longer hours.

Employment legislation is a list
of acts that are in place to protect employees. It is what the law expects from
employers for their employees. The National Minimum Wage Act 1998 and The Equal
Pay Act 1970 are examples of some of the acts included within employment


Copyrights laws


Copyright law applies to any
form of content creation or generation it is specifically important in a
business and in sales and marketing as created work can easily be copied or
plagiarised which is illegal as copying work from a website online and not
sourcing where the information came from will also be classed as copyright
infringement. It is equally important that those who work in sales and marketing are
aware of copyright laws and do not breach them. It is extremely common for
copyright to be breached in marketing as content is created all the time. Any
original content, such as photographs or written pieces such as blogs, can’t be
used without the creator’s permission under the Copyright Designs and Patents
Act 1988. Copyright also effects how businesses can use purchased software as
in the terms and conditions may be conditions that state how created content
can be used and distributed.


Equality act


The most recent equality act was
created in 2010 and merged other acts that came before. It was created to stop discrimination
against sex, race, age, disability, gender reassignment, religion and belief,
sexual orientation, marriage and civil partnership and pregnancy and maternity.
The equality act within sales and marketing helps to prevent offense being
cause due to treatment of customers or other employees through communication
verbally or any marketing or sales materials that may be created.


Data protection act


The data protection act regulates
how businesses, people and the government can use data. For example, any data
collected must be used accurately and not manipulated in any way. Confidential
data must be kept safe for example at Flightcase Warehouse it is held on a data
management system that is on a secure network and the data is only available to
those who need to use it. If the data is a tangible document as in it is on
paper, it must be stored securely for example a lockable filing cabinet in a
locked room or office or a safe. Sales and Marketing involves collecting and
handling customer’s information all the time and as such this act is massively
important. Information a customer has provided to a company must never be
passed on without the customer’s prior consent and knowledge. If contact
details are given and the customer does not want to receive any marketing or
“spam” they must not receive anything of the sort. This can be classed as


Ethical requirements


False advertising is unethical
and in most cases illegal. It is the act of making false claims or publishing
misleading content in terms of sales and marketing. This will always lead to dissatisfied
and angry customers. When targeting vulnerable groups, such as elderly people
or children, convincing them that they need to sign up to or buy something is
unethical. Marketing has the power to do this and it shouldn’t be used in the
wrong way.  Businesses shouldn’t appear
to have a bias opinion as a lot of people trust big companies and a bias
expressed by them is likely to sway opinions of the consumers. So, in
marketing, any opinions that are put out must not be biased. Companies must consider
where they purchase their materials and if it is ethical to source form these







1.4 describe internal and
external sources of information on legal, regulatory and ethical requirements


There are different internal and
external ways to source information on legal, regulatory and ethical
requirements. When starting a new job most businesses will give new staff a introduction
pack and company handbook, which provides an overview of the code of practice, policies
and other helpful information about the business meaning it should include information
on the businesses legal, regulatory and ethical requirements. Another internal
source of information is the HR department. The HR department is there to
provide advice and guidance, and in turn should be able to provide information
on information on legal, regulatory and ethical requirements.


Generally, the most accessible
source of information for anyone would be the internet. Using the internet
would allow anyone to find information on legal, regulatory and ethical
requirements from many sources including the official government website for up
to date, relevant acts and laws. The downside of accessing this information on
the internet is that there is a risk that the information could be outdated or




Internal sources of legal,
regulatory and ethical requirements are: the HR department and in the company
handbook as above. The HR department will hold private and confidential
information for each employee including their bank details, all of which will need
to be kept in a secure location whether it is in physical form or held securely
on a computer.


The HR department is responsible
for entering personal details when an employee first starts as well as
generating and giving the paperwork to collect this data, so they will be
familiar with most legal, regulatory and ethical requirements and should be
able to offer information regarding this. The company handbook will include all
the acts that the company must legally follow.




External sources such as the
government will provide information in different forms like helplines that can
be called and official websites that can be accessed at any time.


1.5 explain how an ‘ethical
approach’ affects organisations in the sales or marketing environment


Ethical approaches in marketing such
as an awareness of people’s beliefs as to not offend anyone affects the
business in more ways than one. Primarily it will make customers happy and encourage
repeat business. Ethical marketing will make a customer more likely
to remember and recommend the business to others and because of this more
business will occur. An ethical approach is also a legal requirement so if not
followed it can lead to legal issues which will affect the business in a bad



1.6 explain the importance of
contract law in sales


A contract is a legally binding
agreement between two or more parties. It is used as proof of an agreement between
two or more parties where both sides have consented and understand what is
expected of them and their side of the agreement and what they should expect to
receive from the other party or parties involved. A contract is almost always
legally binding, meaning that if it is not upheld or followed, then the person
in breach of the contract can be taken to court to settle the dispute.


Contract law is important in
sales and marketing as it prevents the exploitation of every party involved. For
example, when a purchase is made the customer will receive a receipt or invoice
which is a contract of sale. This is to show that the customer will receive any
goods or services that they have paid for and provides reassurance, as the
business should allow a cooling off period which is part of this contract. The
cooling off period is the ability to cancel their contract without incurring a
penalty during an agreed period after the sale has been made. In terms of how
it will protect the business, sales or marketing it means that any goods or
services must be paid for in full.


2.1 explain the legal,
regulatory and ethical requirements relevant to the role


Within my role at Flightcase
Warehouse most of the legal, regulatory and ethical requirements are relevant.


Flightcase Warehouse has measures
in place to prevent all employees from injuring themselves whilst at work such
as correct PPE and high visibility jackets being required when in the workshop
and warehouse as well as fully tested electrical equipment and cable management
in the office to prevent tripping hazards. All of which comply with the Health
and Safety at Work Act 1974.  


When producing content that will
go out to customers I must consider if what is produced is ethical and right to
be distributed. I try to be non-bias and truthful in anything that I create as
this is in my opinion morally right and misleading people is unethical and will
affect the businesses reputation.


Copyright laws are also
important in my role as I take photographs regularly as well as helping to
create PR pieces and posting blog posts. The images I take are used on our
website as well as social media and PR pieces are the same, so I must make sure
that everything that goes out doesn’t breach the Copyright, Designs and Patents
Act 1988.


Another legal requirement within
my role is the Data Protection Act 1998. As part of my job includes handling
customer data, whether it be taking details or handling existing details I am
responsible for their data. When taking peoples details over the phone I must
make sure that once the data has been inputted into our system that anything unnecessary
must be destroyed and disposed of correctly and fully.




2.2 describe the potential
consequences of not complying with legal, regulatory or ethical requirements


Health and Safety at Work Act


Failing to comply with the
Health and Safety at Work Act 1974 can cause serious repercussions for a
business and the individual who has failed to comply. Consequences can range
from unlimited fines to imprisonment. Health and Safety inspections can occur
regularly and if a potential risk is flagged and hasn’t been suitably assessed
then the business will be issued with a form of Improvement Notice, which must
be acted upon before another inspection occurs and failure to address the issue
can result in a fine further action. If an employee is injured or killed due to
health and safety issues consequences include prosecution and in extreme cases
prison if it was directly someone’s fault. The Corporate Manslaughter and
Homicide Act 2007 was put in place to penalise any breach and the penalty for
breaching this Act is an unlimited fine as well as the business being made to
publicly disclose the details of their conviction.


Working Time Directive and
employment legislation


Businesses are responsible for monitoring
their employee’s working time and breaks. If the working time directive 2003 is
breached the employee affected can make a claim and may be entitled to
compensation. The employee will likely be entitled to compensation if they have
suffered health issues as a result.  


Copyright Laws


The penalty for copyright
infringement in the UK’s magistrate’s court is imprisonment for 6 months and a
fine of up to £50,000. Whereas in the Crown Court the maximum length of
imprisonment is 10 years and an unlimited fine.


Equality Act


All businesses will have disciplinary
actions in place to deal with breaches of the Equality Act 2010. Depending on each
situation and the businesses policies, the consequences could vary from the
employee making a formal apology to the person affected or as serious as the
employee losing their job and further action being taken for example the police
being involved.


Data Protection Act


Information Commissioner’s Office or
ICO as they are otherwise known, are the public body responsible for enforcing
the Data Protection Act 1998. If a person who has not been authorised views
private data due to an organisation’s negligence, this is considered a data
breach. ICO can act against data breaches, they’re able to pursue criminal
prosecution for serious offences, take non-criminal enforcement, issue monetary
penalties and undertake audits to ensure that companies are complying with the


Ethical requirements


Unless an ethical requirement is
also a legal requirement, a business will not face any legal consequences for
being unethical. Although if a business is found to be unethical customers will
likely not be happy and look elsewhere. If enough people are unhappy and aware
of the unethical practice then it will damage the reputation of the business,
if severe enough the business may go bust.


2.3 explain the importance of
working within the limits of the role, responsibilities and authority


Flightcase Warehouse expect me
to be polite and friendly when I am speaking to anyone on behalf of the business.
Even in day to day operations such as answering the phones I help to build a
good reputation for the company. Daily tasks such as checking low stock and helping
while another member of staff is off are also important. It is important to
work within the limits of my role but assist with others where and when I can
as this is responsible.


2.4 explain the process for
reporting legal, regulatory and ethical concerns


There are different procedures in
place for raising concerns regarding legal, regulatory and ethical issues in
every organisation. Initially the employee should notify their line manager in
privacy, the line manager should then help the employee to determine the best
course of action to be taken. However, if the line manager discards the issue
then there are alternate ways to raise a concern, if the employee wishes to
pursue it, for example the next best person to approach is the person above the
line manager or someone in the HR department depending on the issue. If the
situation needs to be further escalated, then certain businesses will have an
anonymous tip line, or the problem can always be reported to the relevant
government agency.


With most companies this procedure
can vary depending on the business i.e. private sector would be different to a
government run business. The procedure is normally to report to your line
manager who will discuss the issue and decided what actions need to be taken to
tackle the concern in hand. A smaller company such as a company in the private
sector which has fewer employees and fewer levels of management may take the
concerns straight up to the managing director of the business.


2.5 explain the importance of
clarity of communication with the customer to ensure common understanding of
agreements and expectations


Clarity of communication with the
customer is crucial to ensure a common understanding of agreements and expectations
is achieved. If there are any misconceptions between the company and client,
then there is the risk of the customer being disappointed with the product or
service that they receive. This may lead to the customer not wanting to do
business with that company again in the future. In some cases, the customer may
feel like they’ve been exploited and decide to sue the company for
compensation, which would reflect very poorly on the company and may damage
their business.