The Main Laws of Business and Ethical Standards


I have been asked to explain the main laws of business write about the policy and for each I have to write what it protects, why is it important, how does business follow it and what are the consequences if businesses fail to follow it. Then I’ve got to write what’s policy and the ethical issues such as why must business are ethical when dealing with personal information, use of internet, use of computer, whistleblowing and use of email. Lastly I’ve got to compare and come up with conclusions. The policies I’ve used and why are some very specific, how are some general, what sort of language is given to staff and why is it important update policies. I’m going to find the information through a source like the college policy website and then explain it.

The Main Laws

Data act protection- Data act protection is the process of protecting data and involves the relationship between the collection and spreading around of data and technology, the public perception and expectation of privacy and the political and legal supports supporting details surrounding that data. Data protection is important because it allows businesses to store information and record key information about customers, clients and staff, which ultimately take care of key records on the people living and working in various location. Bolton college will follow data protection by obviously making sure all information are stored, kept in order and making sure no one can get hold of it. If they fail to follow it data might be stolen and important information will be in other competitor’s hands which is dangerous within a business.

Freedom of information act 200 – The Freedom of Information Act 2000 provides public access to information held by public authorities. It does this in two ways which is public authorities are obliged to publish certain information about their activities and members of the public are entitled to request information from public authorities. Freedom of information is important because is abusing your power with knowledge that their actions could be kept from the public’s eyes and a good government, which is trusted and respected by the public. Bolton College will follow this by allowing private citizens and journalist to request documents that have been filed by or with government agencies. If Bolton colleges fails to follow it, an information will be stolen.

Computer Misuse Act

Computer misuse act is designed to protect computers users against wilful attacks and theft of information. Offences under the act include hacking, unauthorised access to computer systems and purposefully spreading malicious and damaging software such as viruses. It is important because businesses need the act in order to ensure that their work is safe from hackers and in order to keep their private files are not deleted changed or filled with viruses. Bolton College will follow computer misuse act by creating codes because with a code, which is id number only students and staffs can use it and that reduces with computer user’s wilful attacks and theft of information. If a Bolton college fails to follow this, it will not run probably and computer users will theft a lot of information etc.

Public Disclosure Act

the Act protects most workers in the public, private and voluntary sectors. The Act protects workers from detrimental treatment or victimisation from their employer if, in the public interest, they blow the whistle on wrongdoing. Public disclosure act is important because provides protection to ‘workers’ making disclosures in the public interest and allows such individuals to claim compensation for victimisation (singling) following such disclosures. Bolton College follow public disclosure act policy when a staff is whisblowing to protect his work place on wrongdoings and make sure they are whistleblowing with the right intentions. If business do not follow public disclosure act, workers and workplace will not be protected.


A policy is a system of principles to guide business decisions and achieve outcomes. A statement of intent could be a policy implemented as a procedure and it’s also adopted by governance within an organization. Businesses use policy in a useful way where they invite employees for a workplace, this helps the business establish boundaries for what the company considers acceptable behaviour in certain situations. With these workplace policies in place, employees have guidelines to help them understand what their company expects from them.

Policy is created usually by the organisation for the company to work probably and to be committed to offer a healthy and safety working environment for all employees and visitors. 5 suitable policies about managing information from a business is:

  • Retention policy – which is an aspect of records and information management, the record life cycle that identifies the duration of time for which the information should be maintained.
  • Auditing policy- defines account limits for a set of users of one or more resources. It comprises rules that define the limits of a policy and workflows to process violations after they occur.
  • Personnel policy- A personnel policy is a preplanned course of action establishing a guide to work toward acceptable outcomes and objectives
  • Organizational policy-n organizational policy is a set of guidelines and best practices put in place to protect the company, employees, and customers.
  • Disciplinary policy-When an employee’s conduct or attendance is lacking, you should have a written policy to let them know what disciplinary action you can take against them.
  • Good practice – A best practice is a way of doing things that for example increase sales and develop new markets or become more competitive, through experience and research, has proven to reliably lead to a desired result. A promise to using the best practices in any field is a promise to using all the knowledge and technology at one’s disposal to make sure of success.
  • Bad practice – bad practice is the opposite of good practice, the one that don’t serve your business and the one a business needs to cut out. Bad practice in business could be working by yourself maybe it’s easy to catch up doing things by yourself but if you want your business to succeed you need as solid a team etc.

How can bad policies and systems affect a business?

A bad policy or a system can affect a business in variety ways such as the government’s money based policy, which is taxation policy. It will affect your business directly via taxes and interstates, and indirectly via public spending. Tax laws can increase or decrease the amount of tax you have to pay, and therefore will change your money made and good product received. Special permissions to not do something may affect certain business areas etc. reduced productivity is another way the business or organization can be impacted. When employee wants to work a guideline should give to him with standards for their position listed. This helps employee to know where they stand and their alignment with the business goals.

Ethical Issues

Business must be ethical when dealing with the policies because:

  • Personal information: A business should be very ethical and look after employers personal information and be kept in a good place because if it is not ethically placed at a good spot, their personal information will be spread around. Their personal data can be misused, or is used for a purpose other than the one for which it is supplied. Hence, it is unethical to use web data mining as people’s privacy is violated.
  • Use of internet and email: When dealing with use of internet and email the business should only focus with the work, they have given with the internet, also privacy because employees sometimes assume their emails are private, but a growing number of employers routinely monitor employee emails sent from company accounts or computers. Creating policies will help the company outline what is allowed and what is not allowed.
  • Use of computer- use of computer have taken over workplaces being ethical comes in when challenges are facing the business like security, privacy, ownership, accuracy and control. Ethical computer workers must consider that now, information can be shared with the click of a mouse. Therefore, they need to protect privacy, both their own and coworkers’. Issues like this highlight the need for a set of ethical standards within the business and the tech industry.
  • Whistleblowing- whistleblowing is reporting on wrongdoing and approved of good organizational governance. When dealing with whistle blowing being ethical is good because either positive or negative doing is reported it will help the company with the promotions of the employers. The ethics is based on the individuals to have the moral decision-making at every level in the corporation.


The policies I have used as example are policies that are very specific; all have their own rule, and ways that show it is important to have a policy. Data protection and computer misuse if they both do not follow their policy they theft information. In addition, both policy need to protect which shows the similarity they have got. Freedom of information act 200 and public disclosure act are very specific because one is when a person makes request for their own information; this is a data protection subject access request. However, members of the public often wrongly think it is freedom of information act that gives them the right to their personal information. The language that is used for the policies is to influence and determine all major decisions and actions, and all activities take place within the boundaries set by them. Procedures are the specific methods employed to express policies in action in day-to-day operations of the organization such as Bolton College. They have rules, everyone follows them, and it influenced everyone by using the rules in the department out there on their days off. The information is given to the staffs and tutors by organizing staff meeting or putting signs and on the TV that is at the corridor. It is important that Bolton College update policies and different type’s policies that have similarities and differences such as data act protection which is protecting data and computer misuse which is using computer for something else and hacking it etc. Policies are consistent and effective Reviewing policies and procedures is especially important for high-risk or highly regulated industries such as healthcare, public safety, banking, and more.


It is important that business follow legal requirements because the rule of law means that there are clear, understandable rules that everyone has to follow. Business without any legal requirements you would never know how another party would act in any given situation and it would be all too easy to be taken advantage of. Because the rule of law provides much-needed stability, consistency and it gives everyone framework on how to act and operate. For example, Bolton College uses rule of law and it has helped them build the college. Policies such as data act protection has helped the college keep everyone’s personal data and kept in place where it has hardly to be found and they are many different people that study at Bolton College so this policy has helped a lot. Businesses produced clear policy to help manage business communication by clearly writing in easy to understand language etc.

Following procedures makes your organization run smoothly because they know what they are responsible for, what is expected of them, and what they can expect from their supervisors and coworkers. This frees them up to do their jobs with confidence and excellence. In addition, it helps with better and safer workplace because when procedures and policies are followed workplace incidents and accidents are less likely to occur etc. not following procedures could lead to a lot of issues in the future and in the present. Things such as employers no following it will not make the organization run properly and treating employers could cause an issue so employers should be treated in the same manner to make it run properly and to make sure they follow it.