Legislation And Ethics

Role of Legislation and Ethics in Business

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Introduction To Legisiation And Ethics

Legisiation and ethics are the law and code of conducts that have been proposed by the parliament and higher authority of industry to control and monitor the business functions and process of organization to protect the rights of employees and customers for betterment of business and companies (Allen and et.al., 2005). Ethics have significant impact on the values, humanity, attitude and understanding of fundamental for the development of relations with the customers and staff members that helps the organization to increase the business activities accordingly. The report will explain the legal and regulatory framework of the English legal system and discuss about the respective bodies and international Conventions used to regulate the surface, sea and air transport. In the next part report will evaluate the impact of health and safety legislation for the hotel Bell and analysis the Equality legisiation in the English legal system for recruiting and managing employees at hotel. Furthermore, report will briefly explain the Contract Terms Act 1977 and Consumer Contract Regulation 1999 as well as sales Goods Act 1999.

In the end, report will explain the consumer protection legisiation relating the package holidays and analysis the instances of ethical dilemmas faced by the Thomas cook in the travel and tourism sector as well evaluation of Corporate Social Responsibility of organization.

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Legal and regulatory framework of the English Legal system

Law is a body of rules of conduct of binding legal force and effect, prescribed, recognization and enforcement by the controlling authority. For the development of law and regulations, the parliament of UK consider the sources like Case law, statutory law(Act of parliament) and ethics to make the changes and establish the law. In this process parliament consider the sources and cases like Youngstown Sheet & Tube Co. v. Sawyer 343 U.S. 579 (1952); and Griswold v Connecticut 381 U.S. 479 (1965), Pickstone v Freeman [1988] 2 All ER 803 and Letang v Cooper [1965] 1 QB 232). In order to maintain the ethical and legal environment for travel and tourism sector, English legal system has proposed and implemented following legal and regulatory framework for controlling and monitoring the operations of organizations. The justice system of UK use the court system in which different authorities have role according to dignity. In that system government has establish the court as per the cases and importance of issues. The travel and tourism organization has to implement the regulation for encouraging the brand value and considerations of belief and values of staff members and customers.

Development of tourism Act 1969: This Act has been establish by the British Tourist Authority Board of England to promote and monitor the activity of organizations to maintain the legal and ethical approach in tourism sector. In that provisions has been determine for hotels and travailing agency. This helps to extension, alteration and improvement of regulation and protect the rights of customers.

Civil Law: The English Legal system has proposed the civil law to sort-out the non-criminal conflicts and disputes among the staff members and customer in travel sectors. Civil law considered the legal aspects for making any decision for consumer and staff members rights which claimed by individual or organizations that working in the travel and tourism sector (Arendt and Brettel, 2010). In order to claim the individual or management, English Legal system required the evidences for managing the damage to provide the relief for particular accident or disputes.

Criminal law: According to the English legal system criminal law refers to the act and operation that has been banned by the organization and law of UK parliament which can influences the code of conduct of the company or lead to breach of contract. In addition to that of the travel and tourism industry English legal system has determine the rules and regulation for robbery, sexual assault, negligence of individual rights and exploitation (Banerjee, 2007). The English council has included the fraud,Execution of the defendant, penalty of death Penalty payable to regulatory authority and Confinement in jail if the individual found at fault for the unethical or illegal activities.

Role of regulation bodies for surface, sea and air transport sectors

To maintain the ethical and legal approach in the transportation, English legal system and regulation bodies have proposed the rules and regulations for the transport agencies to meet the responsibilities in the legal aspects. Following are the key transportation bodies which following the rules and regulation of UK government to sustain the business:

Surface: In order to control and protect the rights of customers government bodies have proposed the regulations in which organization has to provide the safe transportation facilitate for the visitors (Bhattacharyya, 2010). In addition to that the, this the responsibilities of travailing organization to pay compensation for the loss and damage of cargo and goods carried by the passengers. In the surface transportation the authorities like railway and road has sated the law for distributing the resources and mentions the limits of individual according to rules and regulation to perform the activity. The authority of road and railway of England has define the rules for passengers also to maintain the proper ethical approach in management of resources and development of transportation. The Association of British travel Agents has sated these rules and regulation for road and railway transportation.

Sea: To maintain the ethical and Legal approach in the sea transaction, UK government has sated the rule protect the rights of customers who ever avails the services of sea transport. For the sea transportation, higher authority Maritime has determined the regulation to protect the rights of passenger and services that offer by the organizations. in addition to that MCA has provide the security plan, certificate of proof of civil, passenger or other liability insurances to improve the effectiveness in working and monitoring. According to that law, customer can claim as per the terms and conditions determine and consider by the both parties for the physical and goods damage happened during the visit or using the services of sea transport in UK (Bowman and Wittmer, 2000). This Act provides extension to the jurisdiction of British courts for the crimes committed on high seas. However these provisions are not applied on the foreign citizens. To avail the benefits of law, consumer have to be knowledgeable about the regulations.

Air: For the air transport and traveling services, civil aviation industry has provided rules and regulations in which the council monitors the operations and policies of air transportation companies to protect the rights of employees and customer associated with the organization (Bredeson, 2011). According to the law that proposed by the Civil authority for air transportation, organization must be have the licenses of air transportation as well as have to appoint the professional pilots for the commercial and charter services. In addition to that, organization has to followed the international health and safety rules for staff members and customer. This is the responsibility of management to disclose the terms and conditions to customer to sell the holiday packages to visitors. According to regulations of civil aviation industry of UK, companies need to registered their aircraft to utilize the services of UK government for the effective air transportation (Buciuniene and Kazlauskaite, 2012). According to the Act 1979 Road and Air, this the responsibilities of travailing organization to pay compensation for the loss and damage of cargo and goods carried by the passengers.

WARSAW CONVENTION

This is Convention for the unification of certain rules relating to international carriage by air in which regulation has been proposed for international carriage of person, luggage or goods performed by the aircraft. The air travel and tourism organization has to follow the regulation according to WARSAW CONVENTION to maintain the effectiveness for air transportation. This has been signed in 1929 for developing the legal approach in England air transportation.

Impact of health, safety and security legisiation for the Bell hotel

For the hospitality organization health and safety has key role for influencing the decision of customers and employees. According to given scenario Bell hotel id offering quality services and healthy working environment for staff members that has positive impact on the performances of employees and retention of employees. Following are the important rules and regulations for health, safety and security that have significant impact on hotel Bell services:

Privacy: In the security of information about the employees and customer, Bell hotel management has to implement the data protection regulation which will help to maintain the confidentiality (Bueble, 2009). According to Act 1998, Bell hotel management maintain the privacy about the information of customers and employees that performing task for the organization. By following this regulation hotel will able to gain the good brand value and customer recognization.

Duty of care: In the safety and security of employees and customer, Bell hotel management has to pay attention towards the functions and operations that has more risk. By planning the proactive actions to eliminate the risk that can improve dissatisfaction among the staff members, management can increase the level of bonding with employees and encourage to work with positive attitude (Chapple and Moon, 2005). In addition to this, duty of care involve the personal and property injury that associated with the hotel and individual. From the analysis it is consider that organization has to implement the safety plan and equipment to sustain the market position.

Occupier liability: It is responsibility of management to keep the proper equipment for safety and security like heating and electronic equipment clean, clear and respire which will eliminates risk of fire and short-circuit (Cohen, 2010). By maintaining the electronic parts and machinery organization can prevent fire from starting and spreading. in order to prevent employees and visitors from fire, Bell hotel needs to implement fire safety system that will help management to keep fire from starting and spreading. There are many damage control system such as fire doors and safety alarms can be used in rooms and building that will support organization to use these system in case of fire. These safety tools will help organization to improve the health and safety of visitors and staff members.

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Vicarious liability: For the security and safety of the visitors and employee, vicarious liability arises in such situations where innocent party is held liable for the tortuous act at the work place. This is responsibility of Bell hotel management to follow-up such obligation is imposed due to influential relationship between parties and liable party was in position to prevent such acts (Crane and Matten, 2010). By the effective implementation Bell management can encourage the working environment on the basis of provisions of vicarious liability, employers are liable to take care of actions of employees to prevent negligent act.

Equality legisiation for recruiting and managing employees

To avoid the discrimination at the work place and protect the rights of employees, the management of Bell hotel need to follow and implement the rules and regulations. The parliament of UK has proposed the rules for Equality in recruiting and managing the staff members. Following are the major Equality legalization that need to be refer by Bell management:

Human Right 1998: According to this Act, UK government has proposed the legal law for the protection of fundamental rights of people to apply for the job and get the significant payment for the contribution (Clayton, Jayawardena and Harrison, 2004). The management of Bell hotel can not ignore individual for the personal reasons if one has all quality as per the requirements. For the elimination of candidate, management has to provide the legal and appropriate reason to satisfied the applicants.

Employability Act 2002: In order to generate the job opportunities for the young professionals, organization has to offer the job for the betterment of society. According to this law every individual has the right of getting employed. In the selection and recruitment of new professional, Bell management has to consider the following regulation (Constanti and Zopiatis, 2007). In spite of that, this law also provides the dismissal of employees that performs the unethical or illegal activities within the organization.

Equality Act 2010: To recruit and managing the employees, Bell management has to consider the Equality Act 2010 proposed by the UK parliament. According to this act, organization can not discriminate the candidate by sex which has been mention in the Act of 1984 and 2002, race and physical disabilities which might not affecting the work of hotel. In addition to this, Bell management has to implement the laws managing the staff members and assigning the role and responsibilities in the organization. For the improvement in relationship with the employees, management need to consider the Equality Act which will also encourage the brand value in the hospitality industry (Goeldner and Brent Ritchie, 2005). These Acts incorporates provisions of previous Acts such as Race Relation Act 1965, 1968 and 1975 for the promotion as well as sexual disabilities of rave equality and effective prevention of race discrimination.

Unfair Contract term Act 1977, sales goods act and supply of goods and services act

In order to promote the ethical and legal process in the commercial activities which performed by the organizations to operate the business in travel and tourism industry, the parliament of UK has applied the following rules and regulations to develop the positive and healthy business environment.

Unfair contract term 1977 and unfair terms in consumer 1999:

According to law of UK government, unfair term of consumer is refers to protection of customer's rights and follow-up of fair policies for the management has to pay attention towards the functions and operations that has more risk. By planning the proactive actions to eliminate the risk that can improve dissatisfaction among the staff members, management can increase the level of bonding with employees and encourage to work with positive attitude (Fynn, 2004). In addition to that, staff members and customer in travel sectors has to consider the civil law to protect the legal aspects for making any decision for consumer and staff members rights which claimed by individual or organizations that working in the travel and tourism sector. In order to claim the individual or management. For example, if traveling organization offering the package on optimum price including the all expenses for food and accommodations and visitor accept the all condition by paying the amount than there is contract between the organization and visitors. This contract can not be avoided according to law as well as enforceable by the law of UK.

According to the unfair consumer Act of 1999, customer has the rights to claim for unethical or illegal process that has been followed by travel and tourism organization. According to law of UK parliament, organization can not change the prices or holiday schedule by not considering the customer interest (Buhalis, 2000). For example, If the travel and tourism organization not disclosed the all destinations and make changes in the holiday package will consider as the unfair term of consumer rights that can be claim by the visitors. In addition to that, organization also responsible for the injury and damage that happen on the holiday tour. Customer can claim for the compensation to overcome the damage and meet the objectives of visitors.

Sales of Goods 1979 and Supply of Goods and services Act 1982:

For the sales of Goods in travel and tourism industry, organization has to follow the sales of Goods Act 1979 which help to develop legal and ethical contract which make the deals by including the dates, subject and modification which need to be consider for offering the Goods (Brotherton, 2012). According to this Act, it is the responsibilities of travel and tourism organization to inform about the modification in the schedule and perform the sales activities as per the contract. For example, if organization has proposed to sale the goods at optimum prices and make modification without informing the customer will consider as the breech of sales goods act and can be claim by the customers.

Supply of goods and services Act 1982, is develop and applied by the government of UK to meet the objectives of contract for the supply of effective and desired services for the customers. According to this act, it is the responsibility of organization to transfer the quality and expected services and Goods to the visitors to maintain the ethical process in business (Bernick and Boo, 2013). For example, this is right of visitor to get the services and Goods as per the payment coated by the traveling organization at the time of booking. In addition to this, Goods should be free from defects and it should as per sample provided. Both the parties should be competent to enter into contract. Contract of supply of services is governed by Supply of Goods and services Act 1982. Provisions of this legislation are applied to all commercial contracts formed in England. This act has develop to protect the rights of customer to get the benefits of goods and services that has been offer by the traveling organization.

Consumer protection legalization relating to to package holidays

For the protection of customer rights, government of UK has proposed the legalization relating the norms to determine the ethical and legal process for offering of products and services in travels and tourism industry. In order to avoid the conditions that increase the dissatisfaction in the targeted customer group, travel and tourism organization has to consider the civil and criminal code of conduct to sustain the market position as well as retain the customers (Ball,Horner and Nield, 2009). For example, organization is bound to be offer the proposed services and products according to holiday package sold to the customer. According to Law, English legal system has determine the rules and regulation for robbery, sexual assault, negligence of individual rights and exploitation. The English council has included the fraud, Execution of the defendant, penalty of death Penalty payable to regulatory authority and Confinement in jail if the individual or organization which has been found at fault for the unethical or illegal activities as per the civil or criminal Act.

Analysis of ethical dilemmas faced by Thomas cook

In the UK's travel and tourism industry, Thomas cook is one of the leading travel and tourism company which offering quality products and services to customers all around the world. For the development of business and retain the visitors organization is following the legal and ethical policies (International Passenger Survey, Office for National Statistics. 2011). However these policies and approach helping organization to increase the brand value but the challenges like environment issues, followup of rules and regulations of the different nations for the travel and tourism creating barriers for Thomas cook. In order to maintain the positions and market rating organization has to consider the environment and legal issues like prices, services and quality of products which comes under the Act of sales and supply of Goods as per the demand of customers.

For the travel and tourism organization environment and use of resources are the major issues that need to be consider and fulfill to develop the ethical and legal process in traveling industry (Package Travel Regulations. 2013). For example Thomas cook can reduce the number of tourist by increasing travel charges. Further they can impose penalty charges for the tourist if they are engaged in misconduct.

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Corporate social responsibilities of Thomas cook

In order to maintain the position and develop the positive image in the market, Thomas cook management perform the following CSR activities:

  • Consideration of ethical and legal regulations for business.
  • Ethical marketing and dis-closer of policies and terms.
  • Donations and charity for betterment of society.
  • Use of Eco-friendly products and services to influenced the decision of customer.
  • Optimum utilization and sharing of natural resources for development of business.

For the implementation of CSR activities and meet the objectives of higher council organization is following the rules and regulations proposed by them which has significant impact on the CSR functions of Thomas cook (The Package Travel, Package Holidays and Package Tours Regulations, 2014). By following the regulation company has reduces the negative impact of economy, society and environment issues that has improve the significant of Corporate social responsibilities of Thomas cook.

Conclusion

From the report it is consider that legalization and ethical approach has significant impact on the business and performances of organization. Report has discussed role of regulatory bodies and impact of health, safety and security legisiation for Bell hotel to improve the effectiveness. In the end report has explain consumer protection Act and Corporate Social Responsibilities of Thomas cook considering the legal and ethical activities.

References

  • Ball, S.,Horner, S. and Nield, K., 2009. Contemporary Hospitality and Tourism Management Issues in China and India. Routledge.
  • Banerjee, S. B., 2007. Corporate Social Responsibility: The Good, the Bad and the Ugly. Edward Elgar.
  • Bernick, N. L. and Boo, S. 2013. Festival tourism and the entertainment age: interdisciplinary thought on an international travel phenomenon.
  • Bhattacharyya, S. S., 2010. Exploring the concept of strategic corporate social responsibility for an integrated perspective. European Business Review. 22(1). pp.82 – 101.
  • Bowman, S. J. and Wittmer, L. D., 2000. The unfashionable Drucker: ethical and quality chic. Journal of Management History (Archive).
  • Bredeson, D., 2011. Applied Business Ethics: A Skills-Based Approach. Cengage Learning.
  • Brotherton, B., 2012. Introduction to the UK Hospitality Industry: A Comparative Approach. Routledge.
  • Buciuniene, I. and Kazlauskaite, R., 2012. The linkage between HRM, CSR and performance outcomes. Baltic Journal of Management.
 

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