Course/Programme: |
BA Business |
Level: |
4 |
Module Title: |
Business Law and Ethics |
Assessment No. |
1 |
Format |
Individual Essay |
Student Name –
Student ID -
Essay
The essay is an exploration of specific performance and the role of CSR as ethics of an organization. The role of specific performance as a remedy for unfulfilled contracts, the legality of enforced contracts, and the case laws for the same will be provided. The situations in which it can be given and who has the authority to provide it. Then, the role of Corporate Social Responsibility (CSR) and if it can be enforced, whether there is any statutory obligation on the companies, and is there relevant legislation, common laws, will be explored.
Specific Performance
The contract is the promise made by one person, for consideration, to another person, for goods and services. The promise can be accepted or rejected, when it is accepted it becomes legally binding on both parties. The contract can be either oral or written and between two or more people. The contract if breached has a lot of remedies that can be obtained, one such remedy is Specific Performance. The law relating to contracts is made through common laws, the judge-made laws. The judges gave the decision and that decision can be legally enforceable, which creates a systematic regulation of judicial precedents. These precedents can be used by future judges and practitioners in the field. The contract law is important in the working of a business, the few examples are, employment, sales, and purchasing contracts.
The contract when breached and can’t be performed by any other person, then the court can order the defendant to specifically perform the contract that was promised to be completed. This remedy is a judicial remedy and only the courts have the power to order the defendant. The facts of the case are to be judged by the judicial authority and the specific performance is ordered in necessary situations, there is no substitute remedy available. The court sometimes has to supervise and coordinate the completion of specific performance, to keep a close watch on the defendant. The courts also have the power to order damages with the performance of the contract. The courts restrict ordering specific performance as it is tough to administer and increases the burden of the court. The plaintiff, in that case, has to legally prove that he/she had a legal contract, which was breached, causing damage to the plaintiff, and damages are not a feasible option (Harperjames, 2019).
The courts can refuse to order the specific performance of the contract and provide the damages instead. The court can also refuse this remedy when it has to provide constant supervision, and when there are other remedies available to the plaintiff. Time is also of relevance in these situations, sometimes the contract can’t be fulfilled in time and the defendant has no sources and it can take a lot of time to specifically perform the contract. The courts also have the power to order specific performance (in a way), before the time of the contract is completed. The courts can’t order this remedy in cases where this remedy creates a breach in individual liberty of a person, for example, an Employment Contract. The limitation on bringing a suit for breach of contract has to be brought within six months from the said breach, according to the Limitations Act of 1980.
The court in the case of Photo Production Ltd v Securicor Transport Ltd [1980] AC 827 stated that the contract is an obligation by the promisor and its legally binding nature makes it enforceable by law. The remedy of specific performance is provided in rare cases and the breach in the first promise, with the enforcing power of the court, can give rise to a substitute or secondary promise (court-ordered). The courts can provide damages instead of ordering specific performance of contract The contract has the same enforceable power as the first contract and is equally binding on both parties, the only difference is that this contract is judge-made and order of the court. In another case, Airport Industrial GP Ltd & another v Heathrow Airport Ltd & another [2015] EWHC 3753, stated that the court can also interfere before the time of contract s completed. Through this case, the High Court ordered a builder to start performing the basic requirements of the contract and to show that he is intending to perform the contract. The court can’t order specific performance of a contract before the contract is breached, but can provide the remedy in this way, the court also gave extra two years to the builder, for completion of the contract.
Corporate Social Responsibility
Businesses are an important element of the society, through it the employment in a country is regulated, taxes are collected which help the functioning of the government, and the people living in the country get the goods and services. Corporate Social Responsibilities (CSR) are the basic ethical requirements of the business through which a corporation regulates its business. The managers of the business should maintain a balance between the vision of the investors and the ethical functioning of the CSR. The focus of CSR in a company is to work, to achieve profits as well as the sustainable development goals impacting the world. The business has to protect human rights, society, and the environment at large. The non-violation of human rights can be enforced through employment laws, but no law enforces the business owners to act in a way that has no impact on the environment. So, it can be stated that there is no legal obligation of the companies to follow CSR, and there is no statutory obligation as well (Bhattacharyya, 2019).
No statute defines what CSR is, how it can be followed, or any liability that the business suffers for non-compliance with CSR. It is up to the company to follow CSR, voluntary in nature. CSR should be an international matter as non-compliance by a lot of businesses can impact the environment. Currently, a survey states that sixty percent of the companies in the UK are following CSR and providing a report on the matter. The implementation of specific statutory laws for the same can improve the current situation. This responsibility is not responding as it is not legally binding, where it should be a social contract between an organization and society. It can be regulated through corporate governance, where the directors of a company are supposed to implement business in such a way that the profit is earned and at the same time sustainable development is achieved. The UK is separated from the European Union and now has its lawmaking authority, and it can be a good time for the UK to implement CSR statutorily. The reputation of a business can take a hit if the public sees that the functions of an organization are causing environmental damage. The media in modern society is quite advanced and the intervention of media can lead to the development of laws and before that happens the compliance of CSR by the business entities. The hardest thing to achieve is to make the organizations follow CSR and make an assessment system to check whether CSR is followed or not (Das and Cirella, 2020).
There is no specific regulation maintaining CSR and the environment and society violations by an organization are voluntary, but the human rights and employee violations can be handled by the courts. The employment law provides the mandatory conduct of employers towards the employees and the situations in which the employers can be liable, for example, the Equality Act states that the employer mustn’t discriminate based on gender, class, race, or nationality. Another example of human rights violation is given by the court in the case of Vendetta Resources PLC and another v Lungowe and others [2019] UKSC 20. The villagers in the case were allowed to file the petition against a company as well as its subsidiary company for the violation of Human Rights. The court stated that the company had a requirement to follow human rights and the villagers had the right to file in court.
The assessment was an analysis of the situation of the specific performance in the UK and the Corporate Social Responsibility of the organizations. The functioning of Specific Performance, its remedy provided by the court, case laws supporting Specific Performance, and the situations in which courts can refuse to provide it was explained. After that, the role of CSR in the UK, that it is voluntary and the choice of the company. The requirement of CSR and the need for enactment of statutory law as well as international obligations, and its overall impact on the globe, was discovered.
Reference
Airport Industrial GP Ltd & another v Heathrow Airport Ltd & another [2015] EWHC 3753 https://www.bailii.org/ew/cases/EWHC/Ch/2015/3753.html
Bhattacharyya, P., 2019. A comparative analysis of corporate social responsibility regimes in the United Kingdom and India? (Doctoral dissertation, University of Essex).http://repository.essex.ac.uk/26972/1/1807153_DIssertation.pdf
Das, D. and Cirella, G.T., 2020. Corporate social responsibility practices in the United Kingdom. Journal of Applied Management and Investments, 9(2), pp.51-54.http://www.jami.org.ua/Papers/JAMI_9_2_2020_51-54.pdf
Harperjames. 2019. What is specific performance of a contract?. [online] harperjames. Available at: https://harperjames.co.uk/article/specific-performance-ordered-contractual-completion-date/. [Accessed on: 9th February 2022]
Photo Production Ltd v Securicor Transport Ltd [1980] AC 827 https://casebrief.fandom.com/wiki/Photo_Production_Ltd._v_Securicor_Transport_Ltd
Vendetta Resources PLC and another v Lungowe and others [2019] UKSC 20. https://www.ejiltalk.org/corporate-responsibility-for-human-rights-violations-uk-supreme-court-allows-zambian-communities-to-pursue-civil-suit-against-uk-domiciled-parent-company/
