Business Ethics and Law
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According to the Collins Dictionary, how are morals defined?

Concerned with or relating good and bad, or right and wrong behaviour.

Why is it important to balance profit and loss with moral factors regarding workplace health and safety?

  • To reduce compliance costs
  • To increase productivity
  • To justify health and safety improvements (correct)
  • To avoid legal issues

    • It is socially moral for organizations to seek to prevent accidents and injuries in the workplace.

    True

    According to the ILO, the economic burden of poor occupational safety and health practices is estimated at __% of global GDP each year.

    <p>3.94</p> Signup and view all the answers

    What is the legal status of Approved Codes of Practice (ACOPs)?

    <p>quasi legal</p> Signup and view all the answers

    What is the purpose of Regulations in relation to Acts of Parliament?

    <p>Contain more specific details than Acts of Parliament</p> Signup and view all the answers

    Approved Codes of Practice (ACOPs) must be followed strictly by all organizations.

    <p>False</p> Signup and view all the answers

    What are the benefits of proactive management of health and safety at work?

    <p>Preventing injuries and ill-health, increased morale, productivity, trust, confidence, and reputation.</p> Signup and view all the answers

    What are the two types of costs that are accrued in the event of an accident?

    <p>Indirect costs</p> Signup and view all the answers

    Insured costs incurred due to an accident include all possible costs.

    <p>False</p> Signup and view all the answers

    What are the potential costs to the engineering firm mentioned in the text?

    <p>£80,000</p> Signup and view all the answers

    Effective health and safety can improve production and __________ quality.

    <p>product</p> Signup and view all the answers

    What was National Grid Gas fined for?

    <p>Incomplete gas records</p> Signup and view all the answers

    Match the following types of costs with their examples:

    <p>Insured costs = Damage to equipment, loss of worker, fines Uninsured costs = Replacement labor, loss of sales, loss of confidence in the workforce</p> Signup and view all the answers

    Statute law is introduced through the parliamentary process.

    <p>True</p> Signup and view all the answers

    The Health and Safety at Work etc., Act of 1974 sets out general duties which employers have towards ______________.

    <p>employees and members of the public</p> Signup and view all the answers

    What is common law based on?

    <p>decisions made by judges through judicial precedent</p> Signup and view all the answers

    Which type of law includes offenses against the state?

    <p>Criminal law</p> Signup and view all the answers

    In criminal law, the burden and onus of proof lies with the prosecution.

    <p>True</p> Signup and view all the answers

    What is the purpose of a civil action in common law?

    <p>to seek compensation for a wrongdoing</p> Signup and view all the answers

    Civil law is mainly concerned with _______ law.

    <p>common</p> Signup and view all the answers

    What is the role of Fire Authorities after the Regulatory Reform (Fire Safety) Order in 2005?

    <p>Issuing improvement and prohibition notices for fire-related breaches</p> Signup and view all the answers

    What does FFI stand for and what is its purpose?

    <p>FFI stands for Fees for Intervention. Its purpose is to shift enforcement costs from public funding to organizations that breach health and safety laws.</p> Signup and view all the answers

    Inspectors can issue improvement notices when there is an imminent risk or harm.

    <p>False</p> Signup and view all the answers

    A __________ notice requires the hazard to be resolved over a given time period.

    <p>improvement</p> Signup and view all the answers

    Match the following types of notices with their descriptions:

    <p>Improvement notice = Served when there is a breach of statutory provisions or likely repetition without imminent risk or harm Prohibition notice = Issued when there is a risk or danger, preventing the use of equipment or premises</p> Signup and view all the answers

    In the case involving the decomposed snail in the ginger beer, what did the House of Lords establish about the duty of care owed by the manufacturer?

    <p>The defendant, being the manufacturer of the ginger beer, owed a duty of care to the claimant as the consumer of the beer to ensure that the bottle did not contain anything that might cause harm.</p> Signup and view all the answers

    What are the threefold duties that the employer owes to their employees as established in Wilsons & Clyde Coal Co.Ltd v English case?

    <p>A safe place of work, safe equipment, safe systems of work</p> Signup and view all the answers

    Volenti non fit injuria is a total defense against negligence claims.

    <p>False</p> Signup and view all the answers

    When an agent is performing the duty of the employer, the employer remains ________ liable for the agent's negligence.

    <p>vicariously</p> Signup and view all the answers

    What regulations contain specific health and safety requirements for new and expectant mothers at work?

    <p>Management of Health and Safety at Work Regulations 1999</p> Signup and view all the answers

    What does Regulation 16 of the Management of Health and Safety at Work Regulations 1999 require employers to do?

    <p>Conduct a risk assessment for new and expectant mothers</p> Signup and view all the answers

    Regulation 18 of the Management of Health and Safety at Work Regulations 1999 places a duty on employers to conduct a risk assessment once an employee notifies in writing that she is a new or expectant mother, or that she has given birth within the past six months, or that she is ____________.

    <p>pregnant</p> Signup and view all the answers

    What is a simple caution?

    <p>a formal warning given to persons aged 18 or over who admit to committing an offense</p> Signup and view all the answers

    What are possible grounds for making an appeal against a notice?

    <p>Inability to comply due to confusing wording</p> Signup and view all the answers

    Cautions given by Inspectors to duty holders are the same as those given to suspects prior to questioning.

    <p>True</p> Signup and view all the answers

    In Civil Law, cases can be brought by individuals and are heard through the ______ Court structure.

    <p>County</p> Signup and view all the answers

    Match the following terms with their definitions:

    <p>Tort = Civil wrong that leads to injury or harm Duty of Care = Established in Donoghue v. Stevenson, principle of taking care to avoid harm to others</p> Signup and view all the answers

    Study Notes

    Morals and Money

    • Moral expectations of good standards of health and safety:
      • Definition of morals: concerned with or relating to the distinction between good and bad, or right and wrong behavior according to conscience or principles.
      • Moral obligations consider beyond just our responsibilities to the health, safety, and welfare of our employees.
      • Employers owe a duty of reasonable care to anyone affected by their activities, including contractors, visitors, members of the public, customers, and suppliers.
    • Financial costs of incidents (insured and uninsured):
      • Employers' Liability Insurance in the UK:
        • Legally required to insure against the injury or ill-health of employees.
        • Minimum cover of five million pounds.
      • International standards:
        • ILO Convention C121 and national legislation.
    • Direct and indirect costs:
      • Direct costs: immediate costs of the accident, including damage to equipment, loss of worker, and fines or compensation.
      • Indirect costs: less obvious costs, such as replacement labor, clean up, loss of sales, and loss of confidence of the workforce.
    • Uninsured costs:
      • Estimated at about ten times the amount of the actual incident.
      • Include indirect costs, such as repair or replacement of damaged machinery or equipment, and hiring additional labor.
    • Benefits of health and safety:
      • Improve production and product quality.
      • Boost motivation within the workforce.
      • Lower staff turnover rate.
      • Save on retraining and job advertising costs.
      • Improve organization's image and reputation.
      • Develop goodwill and stronger relationships with other organizations.
      • Result in further business and profitability.

    National and International Standards

    Morals and Money

    • Employers can face financial losses due to accidents and incidents, including:
      • Loss of expertise and experience
      • Loss of morale and bad publicity
      • Product and material damage
      • Lost production time
      • Legal costs
      • Investigation time and administration
      • Fines
      • Supervisors/first aider time
      • Overtime and temporary/relocated labor
      • Additional recruitment and training
    • Example: An engineering firm faced a total cost of £80,000 due to an accident, including wages for the injured worker, lost production, replacement worker wages, increased insurance premiums, and fines.

    The Force of Law – Punishment and Compensation

    • Employers must comply with health and safety laws to avoid punishment and compensation.
    • Sources of law:
      • Statute law: written law introduced through the parliamentary process, e.g. Health and Safety at Work etc., Act 1974.
      • Common law: precedents and case law.

    Statute Law

    • Statute law includes:
      • Acts of Parliament: general duties and provisions for Regulations and Approved Codes of Practice (ACOPs).
      • Regulations: specific details on hazards and activities, e.g. Management of Health and Safety at Work Regulations 1999.
      • Approved Codes of Practice: recognized interpretations and methods to comply with legislation, e.g. Workplace (Health, Safety and Welfare) Regulations 1992.
      • Official guidance: best practice and recommendations.

    Criminal Law Liabilities

    • Employers can face criminal law liabilities, including:
      • Fees for Intervention (FFI) for material breaches of legislation.
      • Powers of inspectors, e.g. enforcement notices, simple cautions, and prosecution.
      • The Corporate Manslaughter and Corporate Homicide Act 2007.

    Civil Law Liabilities

    • Employers can face civil law liabilities, including:
      • Tort/delict of negligence.
      • Duty of care (neighbour principle).
      • Breach of statutory duty, e.g. providing a safe place of work.
      • Vicarious liability.
      • Contributory negligence.### Regulation and Compliance
    • The Workplace (Health, Safety and Welfare) Regulations 1992 emphasize compliance, and if an organization chooses not to follow the Code, they must have sufficient evidence to prove their measures achieve compliance.
    • These Regulations are easier to amend than legislation, allowing for quicker guidance to industry.

    Absolute and Qualified Duties

    • Absolute duties use the word "shall" and require unqualified compliance.
    • Practicable duties use "shall" but may be qualified by "where practicable," meaning it is feasible to do so.
    • Reasonably practicable duties also use "shall" but may be qualified by "where reasonably practical," considering effort, time, and money proportionate to risk level.

    Guidance and Codes of Practice

    • Official Guidance notes are provided by the Health and Safety Executive to give a greater understanding of Regulations and best practice advice.
    • Codes of Practice (ACOPs) provide information that organizations can adopt into procedures and safe working practices.

    Common Law and Statute Law

    • Common Law is based on judicial precedent, with decisions made by judges passed down through time.
    • Statute Law is established by Parliament, with laws created through a parliamentary process.

    Criminal Law

    • Criminal Law deals with offences against the state, with punishment and compensation for wrongful acts.
    • Burden and onus of proof lie with the prosecution to establish guilt beyond a reasonable doubt.
    • Criminal law is mainly concerned with statute law.

    Civil Law

    • Civil Law deals with private individuals seeking compensation for wrongdoing (torts).
    • Burden of proof is based on the balance of probabilities (51%).
    • Civil law is mainly concerned with common law.

    Health and Safety Executive

    • The Health and Safety Executive (HSE) advises the Secretary of State in creating and amending regulations.
    • HSE provides information and guidance for all industries and enforces regulations for directly regulated industries.

    Health and Safety Executive for Northern Ireland (HSENI)

    • HSENI is a non-departmental public body responsible for occupational health and safety in Northern Ireland.
    • HSENI collaborates with the Health and Safety Executive to ensure effective delivery in the UK.

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    Description

    This quiz covers the importance of morals and ethics in business, the role of law in regulating health and safety, and the consequences of non-compliance.

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