P6 1 - Unit 12, 4, 7 PDF

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Unit 12, 4, 7 ...

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P5 – Explain the legal and ethical issues in relation to the use of business information P6 – Explain the operational issues in relation to the use of business information M2 – Analyse the legal, ethical and operational issues in relation to the use of business information, using appropriate examples Introduction In this task, I will be explaining the legal, ethical and operational issues that can affect Tesco in relation to their business information. Moreover, analysing legal, ethical and operational issues of Tesco by using examples. LEGAL ISSUES There are different kinds of legal issues that Tesco need to consider:   

Data protection act 1998 Freedom of information act 2000 Computer misuse act 1990

Data protection act 1998 The Data Protection Act controls how Tesco’s personal information is used by the other business organisations or public. The data protection rules are mainly set out in the data protection act. Therefore, the information stored by Tesco must be:  Used fairly and lawfully  Used only for limited and specifically stated purposes  Used in a way that is adequate, relevant and not excessive in relation to the future use.  Accurate and up-to-date  Not kept for longer than is necessary  Handled per the data protection rights of the people  Kept safe and secure by preventing them from accidental loss, destruction and damage to the personal data  Should not be transferred outside the (EEA) European Economic Area without any adequate protection in that area. Benefits to Tesco Tesco store the data of employees and customers. The information is stored by Tesco Personal Finance which is the Data controller in Tesco group. The information about the customers and employees are important for Tesco as they protect it and make sure that it is accurate and kept up-to-date. Tesco mainly hold information about the customers and employees and the transactions made. This will include information from the third parties. The main benefit of using the information include understanding the customers’ needs and

wants and developing the products. Tesco gets the information from the customer through Club card which can help Tesco to improve their services. Tesco wont share the information unless the permission of the customer. This can benefit the customers as they are satisfied by Tesco and their information are safe with Tesco. Moreover, Tesco is complying with the governments law Limitations to Tesco One of the impact of Tesco who stores the information of all customers and employees had to ensure that their activities conform to the Act and to the 8 principles. Moreover, it is difficult and expensive for secure and safe storage because need to store the information offsite in a facility which can provide external perimeter security, 24-hour manned security, motion detectors and 24- hour monitored alarm systems connected to external controls. If Tesco fail to protect the customers’ information, then it can impact their business. For example, Thomas Wengierow admits breach of Data Protection Act while he was employed at call centre in Tesco. He copied the data about customers’ personal details into email and sent it to himself and he was charged under Data Protection Act. Freedom of information act 2000 The Freedom of information act 2000 provide individuals or other organisation to access the information held by the public authorities. This is because public authorities are obliged to publish the information about their activities and members of the public are allowed to request the information from the public authorities. Public authorities would include government departments, local authorities, the NHS, state school and police forces. Per the law if the applicant requested for any information from the public they should provide the information within 20 working days. Benefits and limitations to Tesco One of the main benefit for Tesco is that they can gain information for marketing because the population of specific area and ethnicity can help them to do marketing per that. For example, to find the ethnicity of people living in a specific area is hard to find without a survey. Therefore, using the government surveys can help Tesco to know what kind of ethnicity live in that area, which can help them to sell the products and thus. However, Freedom of act can only affect government companies because Tesco is not a public-sector company. Therefore, they are not obliged to publish their information to the public. But Tesco are obliged to release the financial data of the company. The benefit of releasing the profit and loss financial data is to reassure the shareholders of Tesco to invest in their business. However, it can affect Tesco if they have loss at the end of the year then the shareholders will not invest in the business. Computer misuse act 1990

The computer misuse act 1990 is law in the UK Parliament passed in 1990. It is designed to control the activities over the computer crime and internet fraud. Moreover, activities which include hacking into other’s system, misusing the software and accessing the protected files. The computer misuse act is mainly divided into three sections: 

 

Criminalize unauthorised access to computer material  including using another person’s identifier and password without the proper authority to use data or program. Unauthorised access to computer systems with intent to commit another offences  this include gaining access to the financial records. Unauthorised modification of computer material  destroying files, creating virus in computer.

In Tesco, they have specified in employees book about the do’s and don’ts when using internet especially in every till and every other form of computer in Tesco. Every employee has unique login services to access the internet in Tesco. Moreover, Tesco have filters on their own webpage, which can restrict employee or the user in Tesco which can prevent them from misusing the computer. Benefits and limitations to Tesco One of the main benefit of Tesco is they protect the staff from distraction and make sure that the restrictions are put on in every system. They protect their till and make sure that everyone who work in Tesco have individual logon services and remote checking facilities. Protecting the internet of Tesco will allow the customer services to be quicker which can satisfy the customers. However, it is expensive for Tesco to insert security system in Computer and there are still employees in Tesco who misuse the computers at work. ETHICAL ISSUES There are different types of ethical issues that is practiced in organisation to maintain their business ethics: -

Use of emails Internet Whistle- blowing Organisational policies Information ownership

Use of emails The email is used in exchanging the messages between people who use computers, tablets and mobile phones. Email is highly effective and inexpensive. Tesco update their handbook to ensure that the staff of Tesco is not misusing the use of emails. This would include: 

Writing the message sensitively and carefully



To keep the message short which is easier for the receiver to understand what the other writer is trying to convey.

Benefit and limitations of Tesco Tesco will make sure that the employees are not wasting their company times by misusing the use of emails. Moreover, Tesco restrict employees in using their personal email accounts for transmitting the information that is related to the Tesco or forwarding the business information to their personal emails. The limitations of Tesco in restricting the use of emails of employees is that Tesco can’t stop employees from receiving their personal emails, because sometimes its practical for Tesco to allow some personal emails if the employee is using their personal email for business purpose outside the normal working hours. Internet The use of internet can benefit business as it is a powerful tool which can help business to be more productive and profitable. It makes the business activity much easier and communicate effectively. Moreover, it can reduce the business expenses. Tesco will make sure that employees are not misusing the internet by specifying the use of internet in employee’s handbook and during their induction period. Tesco restrict certain social media which can distract the employees while working in Tesco and blocking websites to protect employees. The benefits and limitations of Tesco Tesco can block websites because employees will have spent time on the internet in doing activities which is not related to business such as social media, shopping etc. By blocking websites Tesco can protect and staff will more safe in their working environment. If they are not distracted by social media or online shopping, it can increase their working progress and thus rewards from the Tesco for contributing their efforts to make business profitable. Tesco can protect the staff from misusing internet by installing program that can control the internet usage of employees. However, the constant updates can be expensive. If once it gets hacked then Tesco need to spend a lot of money to make it safe. Whistle blowing The term whistle blowing or whistle blower is defined as the person who raise concern about a wrong doing in an organisation. The concern will include fraud, crime, dangers to health and safety or concern that can impact employees, customers, shareholders etc.

Tesco encourage their employees to whistle blow internally therefore it will not affect the good will of the business. Tesco encourage whistle blowing because they can identify the concerns inside the business. In every store Tesco have an anonymous comment box for the employers who works in the store. Benefits and limitations to Tesco Tesco can identify the problems that employees are facing. The benefit of having an anonymous comment box for employees in the business is that they can share their concerns with them therefore, it would go to the media or the press which can damage the reputation of the business. When employers highlight the concerns Tesco will be aware of the problems that happening inside the business between employees therefore Tesco can sort it out. This can help employees to be satisfied in working under Tesco. However, the staff will be afraid to inform or complaint about something happening inside the business because of them being labelled as whistle blower. Organisational policies Organisational policies are written statement to help with the missions and values of the business. Organisational policies is a document of the organisation’s plans, instructions and processes. This policy will guide all the staff and volunteers in the business to clarify the business values and to influence the culture. Policies of Tesco are formal written documents therefore, everyone in the business organisation is clear in what Tesco’s expectations and limitations are. In Tesco, management make policies which is shared to the head offices and send to the stores. Tesco will ensure that they update the staff’s handbook this can help employees or staff to have a clear guidelines and framework for the action that can help them in their role. Moreover, Tesco will email to the staff or employees if they change the policies because of the external factors. Benefits and limitations The benefit of organisational policies in Tesco is that it makes things more clearly to the employees. Once the workers know the policies then it is easier for them to act upon that knowledge without any essentially having to process the information. Moreover, employers get a clear structure in what they need to do when they are working under Tesco. However, the policy only includes limited framework. Therefore, Tesco don’t have a clear guidelines or instructions when a concern or problem arises in business which can affect them. Informational ownership Information ownership is the information that is created for the day-to-day work. The informational owner is a person or group who are responsible for applying security policies in Tesco. The information owner of Tesco is responsible for protecting the documents and making ensure that the data is correct and reliable.

Operational issues Tesco has to store and manage the information of business as it is important and Tesco need to make sure that they are managing the information properly. There are different policies and procedures to manage the information. This would include:    

Security of information Backups Health and safety Business continuance plans

Security of information Tesco need to make sure that their information is protected and secured. Therefore, it will be easier for Tesco to make decisions when they need to. Tesco need to make sure that they keep their important information and documents on IT systems in which they can access it anytime they need. Moreover, they have to keep the right information in the system which can help them in making right decisions in future. In addition to, to keep their information safe the IT security should take account of all security systems in computer. Secure logon identification in the system can avoid others from using it and controlling it. Benefits and limitations to Tesco The information of Tesco is secured and protected in system the management can dictate in who can view and update the information. The information security is easy to use because they can protect less important files with a password and for more important files Tesco has to install firewalls or detection systems. As technology increase the hacking and fraud increases as well therefore, it is always a good option to make use of information security. However, as mentioned earlier, when technology changing Tesco has to purchase the advanced information security. Moreover, it is time consuming if Tesco has to constantly enter the password. Backups Tesco has to minimise the risk of losing the business information stored in the IT systems. Therefore, the backups can minimise the losses of the important information saved in the system. Backups are stored in a separate hardware and Tesco create information every hour relating to business. Therefore, if the information is lost or destroyed there always will be a copy in system. Which will not affect the business decisions in future. Benefits and limitations to Tesco The main benefit of using backup in Tesco is that they will be able to recover the documents from the system. Backup is quick and easy process. However, it can be expensive for Tesco

and expensive for training people to use it. Moreover, some backups provide have no grantee that stored data will be kept private. Health and safety The Health and safety include two main factors which is: systems within the work place and the responsibility of Tesco in monitoring and maintaining the work environment. There are increasing legislation on the safety of employees in work place. The Health and Safety regulation 1992, provision and use of work equipment regulation 1992 and work place safety regulations 1992 are all related to the use of computers in workplace. Therefore, in every organisation there is a specific guidelines in how Tesco can avoid risk like headaches, eye problems etc. Tesco need to ensure that computer screens are at the right position, moreover, Musculoskeletal problems like stiffness of the body, aching joints and aching muscles because of sitting in the same position for long time and RSI (repetitive strain injury) is the pain in wrists and hands. Benefits and limitation to Tesco Tesco has to make sure that they respond to the employees concern in their needs and wants because it can satisfy them in working with Tesco. If they are healthy they will put all their effort in their task. which can gain profit for the business. However, if Tesco fail to meet their needs and wants the employee is allowed to take legal action against Tesco which can lose their reputation. Business continuance plans Business continuance is the plan to make sure that Tesco is not facing any strategy. Business need to make sure that they provide a regular backup for all the information in the system. The tragic can include events like natural disaster or manual error. Therefore, the backup can prevent the losses of the important information. The IT department of Tesco should have procedures to follow therefore they can at least provide a limited service. The business continuity plan includes:   

Copies of essential records Recovery locations Disaster response plan

Benefits and limitations of business continuance plan Business continuance plan can help Tesco to build customer confidence and to build confidence within the business. They can prevent business risk and financial exposures by minimising the financial loss. However, it is time- consuming to create a business continuity planning. Tesco were hacked in November 2016. Tesco has admitted that over the weekend 40,000 customers have been affected by an online theft. Therefore, Tesco froze their online

transactions and refund 20,000 to the customers. The chief executive of supermarket Benny Higgins said that the decision to suspend the banking activities was to protect the customers from the online criminal activity. Moreover, they apologies to all the customers and they refunded to the customers. Impact of increasing sophistication of systems The impact of increase in the sophistication of the system is that as the time goes on the computer systems are becoming more complex. This shows that Tesco has to provide training to the staff with the specific skills required and the staff who are already employed in Tesco need further training for the new software and hardware to make sure that they understand it. Therefore, training can provide more understanding of the systems as it is no longer based in the manual systems. Moreover, Tesco will also need to provide the staff with the knowledge on the processes, transactions and reports. Benefits and limitations to Tesco One of the benefit to Tesco is that even though the new systems are complex it can create a better systems and moreover, Tesco can store their important documents on the cloud which is less expensive. However, it can be expensive when Tesco need to train the staff to use it and to buy the equipment and if they don’t upgrade it, then it can affect Tesco. Costs In order to implement the policies the Tesco need to consider the implementation and maintenance costs. Therefore, it is important to manage the costs. Tesco need to invest money because Tesco will be spending large amounts of money when developing the strategies. There are different areas, where Tesco need to consider the cost: -

For training new staff Buying new computer equipment and installation Cost of developing or getting new system Cost of future developments.

Conclusion Overall, in this task, I have explained about legal, ethical and operational issues that can affect Tesco. Legal issues are mainly the laws raised by government. Therefore, the business has to abide the law, but in the most cases it can affect business if they don’t abide the law. Ethical issues mainly involve the right and wrong in which the employers of Tesco have to follow. Moreover, the operational issues are the relation to the use of business information like security of information, backups, health and safety, business continuance plans and costs....