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Unit 4 - Business Communication M2 Analyse the legal, ethical and operational issues in relation to the use of business information, using appropriate examples$5.15
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Unit 4 - Business Communication M2 Analyse the legal, ethical and operational issues in relation to the use of business information, using appropriate examples
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Unit 4 - Business Communication
Institution
PEARSON (PEARSON)
Book
BTEC Level 3 National Business Student Book 2
Unit 4 - Business Communication M2 Analyse the legal, ethical and operational issues in relation to the use of business information, using appropriate examples. BTEC business level 3 extended diploma. Please leave a review if this was useful for you, thank you!
ethical and operational issues in relation to the use of business information
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Sadia Hussain Unit 4
M2 - legal, ethical and operational issues
Legal issues
One of the legal issues is the data protection act 1998. “The Data Protection Act 1998 (DPA 1998) is
an act of the United Kingdom (UK) Parliament defining the ways in which information about living
people may be legally used and handled. The main intent is to protect individuals against misuse or
abuse of information about them.” The data protection act is extremely important to follow
including for Blackburn College. This act is created to protect a customer’s personal data such as
credit card details, name and address of the customer. This legal issue is important as it will ensure
that Blackburn College and other companies to follow the correct policies and procedures when
handling customers’ personal data.
There are many consequences that can take place if a company does not follow this act, a company
can lose its brand and its image, and loyalty and trust of the customers. The company can also be
fined for not following this act, and those that are responsible can also be prosecuted. Companies
can be fined up to £500,000. “For businesses that did not adhere to these regulations, fines could be
issued to the organisations of up to £500,000 for failure to comply with the Data Protection Act”’
Sony was fined £250k for failing to follow the data protection act. “Sony has been hit with a £250k
fine after the Information Commissioners Office found the Japanese giant guilty of allowing a ‘serious
breach’ of the Data Protection Act for failing to use up to date security software on its PlayStation
Network.”
One of the advantages of the data protection act is that it helps make sure that all personal
information is handled correctly, such as the information of the students and the staff at the
Blackburn College. This ensure that students and the staff feel safe and more comfortable sharing
the information as they know that their information is not accessible by anyone but those that are
responsible. The students and the staff are also able to access the information anytime they want.
The disadvantage of the data protection act is that sometimes it can be expensive to store the data
in a certain way, companies such as Blackburn College have to make sure that they have the right
facilities to store the data which can be expensive, if not then they will not be able to handle the
information correctly.
Another legal issue is the Freedom of Information Act 2000. “The Freedom of Information Act (FOIA)
gives you the right to access recorded information held by public sector organisations. Anyone can
request information – there are no restrictions on your age, nationality or where you live. Your
request will be handled under different regulations depending on the kind of information you ask
for2” This is another important act that companies including Blackburn College need to be aware of.
This act allows the members of the public the right to access information from public authorities.
However, companies can deny the individuals request due to certain factors such as if the
information is not necessary or if it will cause the company harm in any way. This is an extremely
important act for companies such as Blackburn College; they need to answer all customers’ requests
for any information, if they do not provide what is requested in the correct time scale, the business
could face serious charges as it is breaking the law.
The authorities have 20 working days to reply to the requested information. “a public authority must
comply with section 1(1) promptly and in any event not later than the twentieth working day
following the date of receipt.” If a company fails to follow this act they will get finned. “Depending
on the nature of the incident, an authority or its individual members of staff could be charged with
this offence. The penalty is a fine. There are no financial or custodial penalties for failure to provide
information on request or for failure to publish information.” One advantage of this act is that
1
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