P5 and p6 completed candace

Candace Haynes Cathline


P5: Explain the legal and ethical issues in relation to the use of business information

Introduction: In this assignment I will be explaining the legal and ethical issues in relation to business information.

Legal issues

Legal issues are various types of legislation (law) to protect the use of business information.

Data Protection Act 1998

Most businesses store and use information about people. The data protection act ensures that the information which is stored about people are protected from misuse. To ensure this the information which is stored by business on a database.

They must ensure that:

1. The information is obtained fairly and lawfully 2. The information is used for only its purpose stated during collection 3. The information must not be kept for longer than necessary 4. The process of the information is in line with your rights 5. Procedures put in place to prevent unlawful damage, accidental loss, destruction and

damage to personal data. How does Zara follow the Data Protection act? On Zara website they have a privacy statement in which they go into detail on how they customers data is stored, how effectively this data is used. They a text file called cookies which stores their customer’s data this could be for they own use. The data stored by Zara can improve the website knowing what products are selling and how often the site is visited. But also benefits the customers as the data which is stored in the cookies will need allow the customer to see what they last purchased. It also allows the customer to see when they last visited Zara webpage.


Computer Misuse Act 1990

The computer misuse act 1990 is a law in the UK which legislates against certain activities using computers this will include activities such as hacking in other peoples systems, misusing software or helping a person gain access to files.

The computer misuse act 1990 is spilt into 3 different sections this will include:

1. Unauthorised access to computer material 2. Unauthorised access to computer systems with intent to commit another offence 3. Unauthorised modification of computer material

How does Zara follow the computer misuse act?

Examples of how Zara does this by every customer who purchases goods using their online website have a unique account and username making it very difficult for hackers to hack into their websites operation. Also Zara has teamed up with PayPal which is a service where online shoppers can safely pay for their goods using this website application.

Freedom of information Act 2000

This is an act in which enables individuals or organisation with the right to request information held by the public authority. The public authority must then tell the applicant whether it holds the information, they must then supply this information within 20 working days in a request format.


Examples of this is if the cost of a request for information exceeds the appropriate limit, the public authority may decide whether the greater public interest is being served by denying the request or supplying the information.

Privacy acts

The privacy act of 1974 is a United States federal law which establishes a code of fair information practice that governs the collection, maintenance, use and dissemination of personally identifiable information about individuals that is maintained in systems of records by federal agencies.

Human right acts

The Human Rights Act 1998 (also known as the Act or the HRA) came into force in the United Kingdom in October 2000. It is composed of a series of sections that have the effect of codifying the protections in the European Convention on Human Rights into UK law.

All public bodies (such as courts, police, local governments, hospitals, publicly funded schools, and others) and other bodies carrying out public functions have to comply with the Convention rights.

Ethical issues

Ethical issues are codes of practice which exist in an organisation to maintain business ethics such as:

1. Use of email 2. Internet 3. Whistle blowing 4. Organisation policies 5. Information ownership

Use of emails

Emails are also known as electronic mails. It is just like sending a letter but through the internet. A person has to have access to the internet to be able to send and receive mails. It


is very similar to the letter but it is easier and a lot quicker. It is widely used as a form of business communication. Emails are used in many organisations to be able to pass some important information around especially if it’s quite a big company. To be able to use the email technology, it only requires internet connection. When emails are used internally, that is within a business, it can function as a proof of a message sent or received. Emails are also used to advertise products and services to its customers, vendors and more. Emails have helped in marketing and helped in the communication within their business. Emails are also used in communicating with its customers, not only by advertising but customers can make enquiries about things and to contact them is through their companies email. This is very essential for every company to have because it is part of their contact information.

Internet The internet is a very big means of communication. It can be used in different ways and for different things. A whole lot of information is gotten off the web. A lot of companies use the internet to publicise their products that is advertise their goods and services. The internet is a global form of communication. This is because it enables people from different parts of the world to be connected. Things like twitter and face book now exist so that companies can actually communicate with their customers and keep them posted on what is happening in their store. Shopping online is done through the internet. Many companies have this for example Zara this is convenient for some customers so they don’t have to go all the way to the shop. Using the internet also reduces some certain costs like postal costs, phone costs and advertising costs. Using the internet helps to boost efficiency which can be an answer for why a lot of companies are involved with the internet. This way, their goals will be met. This technology also allows the company to get feedback from its customers; this is usually done through questionnaires or surveys.

Whistle blowing


This is when an employee raises a concern on a business practice this could either be to management within the company or an outside organisation. The concerns may varies from fraud, crime or danger or any other serious risk that may impact on the customers. For example if an employee was made away that the fire alarm was not working in the store the person can then go to inform management. Other examples includes:

• When someone is spoiling the atmosphere. • When someone makes a criminal offence • When the company isn’t having the right insurance, that is dis‐obeying the law • Fraud • Putting someone’s health and safety into danger

Organisation polices Organisations may have many policies in which they ensure their business practices with regard to information can be done ethically. This could be anything from how they manage information to ensuring marketing and other business practices are fair and just. Conclusion: In this assignment I have looked at both legal and ethical issues in relation to business information. For legal issues I have outlined and gone into detail in 3 main legislation which are data protection act 1998, Computer misuse act 1990 and lastly freedom of information act 2000. Ethical issues I have outlined the 3 main codes of practice used. Which are use of email, internet and whistle blowing. Bibliography http://www.equalityhumanrights.com/your‐rights/human‐rights/what‐are‐human‐rights/human‐rights‐act https://www.google.co.uk/webhp?sourceid=chrome‐instant&ion=1&espv=2&ie=UTF‐8&safe=active&ssui=on#q=privacy+act+1974&safe=active&ssui=on

P6: Explain the operational business in relation to the use of business information

Introduction: In this assignment I will be creating a table explaining the operational business in relation to the use of business information in my chosen organisation which is Zara

Policy or procedure

Why does Zara require this?

Security of information

Information security management deals with maintaining the integrity and availability of organisational information and knowledge. For a company like Zara, it is quite essential. For workers that handle detail on the computer, they use what is known as passwords. This is set


so that not everyone has access to a particular account. Although people can be careless. It is important for businesses like Zara or any other organisation

Back up

Large business have developed business continuity programmes to try to minimise the risk of losing vital business information stored in IT severs. Backing up files can be stored on CD, USB, hard drives. This is essential for Zara because of the vital information which is stored such as customer feedbacks, stocks and so on.

Health and safety

The health and safety policy is a written document that clearly states who does what, when and how. This policy is necessary and is very important. This is so that the interests of the employees and customers are not at risk. The main aim for this policy is to encourage high standards of health and safety in places of work. If this law is broken there is a great penalty suffered. An example is if clothes fall on the floor and are left there. Different bacteria and germs are picked up leaving customers or whoever purchases the product at risk.

Organisation policies

These are polices which relate to the use of business information which can help make decisions affecting staff.

Costs

Every business should have a clearly defined cost policy which is expected to maintain a framework of how successful the business might run within its costs limits. A business has different costs including costs due to rent, salary payment, tax, utilities payment, logistics, etc. This cost policy is to ensure that the company remains prudent in its expenditure as it


will go a long way to enhance growth and help the company to avoid going bankrupt. Zara for instance will need to estimate its profit margin annually and then workout how many employees they require to obtain an optimal result in the business in general.

Business continuance plans

These are steps in which a company puts in place in order to make sure the business is capable of surviving a worst case scenario. It is essential for Zara as a business strategy to response towards any eventuality in a business. Unexpected occurrences such as fire, flood, robbery, vandals, power fault or any other disaster can affect a business at any given time hence every business should have a recovery plan to bounce back within the shortest possible time. There should be alternative resources for a company like Zara, they can have alternative suppliers so that their store would never go empty. Alternative source of finance is also considered in order to use in case when there is a failure.

Conclusion: In this assignment I have looked at the policies and procedures that are required in my chosen organisation Zara. I have look at the reason why and how Zara uses these policies and procedures

P5 and p6 completed candace

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