Understand Legal, Regulatory and Ethical Requirements in Sales or Marketing

1 Understand an organisation’s procedures for dealing with legal, regulatory and ethical requirements relating to sales or marketing.

1.1   Describe an organisation’s procedures for raising legal, regulatory and ethical concerns.

Each organisation will have procedures to follow when a legal, regulatory or ethical concern is raised. These are incredibly important to follow to ensure security for your business. Legal concerns generally should be sorted out immediately to ensure the business does not get taken to court or fined, for example a legal procedure which should be followed by each organisation is if your business is not insured - you would aim to deal with that concern with a matter of extreme urgency to avoid losing assets and premises. The UK government have many regulations in place which should also be part of each business’s procedures, this can include data protection regulations which ensure no personal details are shared without consent, if this regulation is not followed correctly serious prosecution could be the outcome. Ethical procedures could involve support against discrimination or outsourcing to legal and ethical suppliers. At The Marketing Café we are such a small company, having only two in office staff, that I would have no issue with going to my manager and the owner of the company to raise any concerns I may have.

1.2   Explain the scope of legal, regulatory and ethical requirements in sales or marketing.                         

Legal, regulatory and ethical requirements cover many areas however are all based on three main principles – accuracy, privacy and honesty. Legal requirements are in support of regulations such as data protection which must be followed for example, procedures must be in place to ensure customer security with payment details and personal details is protected. Regulatory requirements are put in place to ensure all procedures are followed correctly. Ethical requirements are put in place to help mainly employees from discrimination as this is against the law.

1.3   Explain how the legal, regulatory and ethical requirements relate to the business of selling or marketing.

There are many regulations set by the UK government to ensure ethical marketing such as the Consumer Protection from Unfair Trading regulations which protect against deceptive, aggressive or misleading advertising. There is a separate regulation for B2B Organisations known as Business Protection from Misleading Marketing Regulations which covers all the above but includes other points such as using a competitor’s logo or comparing your product to something else. The Data Protection regulations have changed recently which has shown a lot of light on some potentially illegal marketing tactics, this covers sharing info with third parties, saving consumers information without consent, use of cookies and more. There are also separate regulations for how you choose to market your product known as the CAP non broadcast code which protects against unacceptable print or online marketing, and the CAP broadcast code, which protects against indecent or distasteful TV or radio marketing. Disregarding any of these regulations can be reported to trading standards or advertising standards and could then result in heavy fines, or prosecution. Working time directive also is important when running a business to ensure your employees get all holidays and rest breaks necessary.

https://www.gov.uk/marketing-advertising-law/advertising-codes-of-practice

1.4   Describe internal and external sources of information on legal, regulatory and ethical requirements.

Generally, when starting a new job you will be given training on requirements and codes of conduct from the company’s human resources department, they are known as an internal source of information as they are part of the company. External sources of information could be anything from the government websites to trading union support.

1.5   Explain how an ‘ethical approach’ affects organisations in the sales or marketing environment.

It is the law for businesses to have an ethical approach and therefore can cause big problems such as fines and prosecution if not followed correctly. However ethical companies who conduct themselves and their produce in a manner to not offend people tend to have happier, more trusting customers. It will also make your consumers more likely to return and recommend to others.

1.6   Explain the importance of contract law in sales.

A contract is essentially just a legally binding document made between two parties, generally in sales most contracts will be invoices however these show that both parties are aware and informed on the purchase or decision they are making. Contract law is important in sales as it ensures both parties are protected should there be any attempted exploitation. For example, if you were to go and purchase something you would be a receipt or invoice showing that you’ve purchased that product. This counts as a legally binding contract and is in place as reassurance for the customer and details on the cooling off period/returns policy. Contract law allows businesses and consumers to keep track of all purchases, agreements or sales made.

2 Understand the legal, regulatory and ethical limits of the sales or marketing role.

2.1 Explain the legal, regulatory and ethical requirements relevant to the role.

There are many ethical, legal and regulatory requirements for each individual, no matter what role you are in. The main requirements I must follow at work as a digital marketer are the Data Protection Act and Copyright laws. These are regulations put in place by the UK government in order to protect citizens details and lower harassment from unnecessary sales calls. Another big one is the health and safety at work regulations, these ensure a safe working environment for all staff and can protect you should something happen to you at work. These are especially relevant if you work with the public, like in a large busy clothes shop. This also helps the staff know what do in event of an emergency or potentially dangerous task in order to stay safe.

2.2 Describe the potential consequences of not complying with legal, regulatory or ethical requirements.

In the UK you can face 6 months in prison and a fine of £50,000 for copyright infringement, breaching the data protection act could get you criminally prosecuted and therefore it is very important to behave responsibly within your role at work.

Another requirement that most people face in their job is the health and safety at work act, an obvious consequence of this would be illness or injury at work. Regulations are in place to keep both parties represented and looked after, if you were to breach these there is a high chance you would lose customers due to distrust or even cause offence. Unless an ethical requirement is also a legality, the business will face no legal backlash for not following, however this is where they is a high chance of consumer distrust and can leave your business with a bad name.

2.3 Explain the importance of working within the limits of the role, responsibilities and authority.

In order to work within the limits of my role at TMC I must ensure to follow all requirements set out by the company, including speaking politely when with clients and following health and safety practices for my own and others safety. This includes daily tasks such as liaising with and responding to clients.

2.4 Explain the process for reporting legal, regulatory and ethical concerns.

Each business will have its own process for reporting legal, regulatory and ethical concerns, at TMC as a very small company and if I have any issue, I would simply mention it to my manager, and we would have a discussion about the issue. There are other organisations you can speak to in order to report and gain advice on these things, such as your employee union or local citizens advice bureau.

2.5 Explain the importance of clarity of communication with the customer to ensure common understanding of agreements and expectations.

It is important to communicate clearly with every customer to ensure a mutual understand is present before any agreement or contract. Is made. This ensures there will be no unwanted surprises or extra stress for the client. If the client is unclear or feels misled or exploited, in extreme cases you could end up in court or they could aim to gain compensation, both of which will give your business a bad name and turn away any potential customers.