CFA Law and Ethical Issues - Case Study Example

FА СЕО Rероrt for the Lаw and Еthiсаl Issues Name: Institution: СFА СЕО Rероrt for the Lаw and Еthiсаl Issues Identification and Explanation of Legal Issues Coal for Australia Pty Limited (CFA) is a mining company publicly listed on the Australian Stock Exchange (ASX). It is important that the company match up to the task by acting professionally and credibly especially after launching a mining expedition. At such relevant position in the field, CFA is liable to its clients through drafting a contract and following the requirements that are necessary before closure. The launched coalmine in central Queensland near Blackstone ensures to ascertain that coal is extracted from the mine and transported 150km to a coastal port. From here, it is transported around Australia and exported internationally. CFA raised the money to finance the mine by issuing shares and taking on significant debt to a number of Australian banks. CFA owns the mine, the rail link and the port. To achieve this, CFA needs certification from the government as well as design contracts with the workers and associates. After progressing with the contract for a while, the company reported some issues that may be translated into legal complications. One of the visible issues that may create legal complications was the breach in the delivery of materials. Having contracted with a shipping company in Indonesia, they were required to dock three ships a week at the port but failed by delivering two ships in a week. The outcome is that there is an appalling bundle of coal resting at the dock waiting for export. CFA will be tempted to terminate its contract with IBS. Therefore, based on material breach of contract, the contract becomes irreparably broken owing to the inability to perform as dictated. In this case, CFA is eligible to the collection of damages (Shavell, 1980). Legal action may be taken by the court through referring to previous cases attracting attention as a contract dispute. Workers form a significant part of the business since they assist in ensuring that the objectives of the business are met. Employers and employees are often engaged in a negotiation on the mode and method of payment as well as the duration. Such issues are covered in the wages and payment collection act in most countries that ensure workers meet the conditions of the contract (Shavell, 1980). It also covers the deductions that employers can implement in the payment of its workers. Under CFA's employment contract with its employees, its dockside workers are entitled to be paid only for each ship they load. However, the company failed to meet the requirements therefore creating a legal issue that may warrant closure of business. Although it has not been sought after, the workers have responded through protests that have led to the damage of property (Birmingham, 1969). To attract a legal claim, employees need to have an agreement with their employers. CFA is only obliged to segment the wages of its employees once they notify the workers prior to the task. The payment of less than the minimum wage is punishable as a misdemeanor by imprisonment for up to three months or a fine with payment. Often, the federal law permits workers to demonstrate peacefully in bid to sensitize on the violation of any contract they undertake with an employer. Popularly known as exercising the freedom of speech, protests and demonstration, CFA workers may air out their views and opinions. However, once the demonstrations cause damage to a person or equipment that is deemed business property, the company may file legal petition for compensation (Williston & Jaeger, 1957). Although filing for damage compensation may be a course of action, the company may suffer more from the legal aspect associated with the violation of the wage payment laws. The Australian business culture has developed over the years owing to the improvements that have been encountered in different sectors of the country. The historical aspect plays a significant role since it allows for the setting and distribution of boundary and allowance systems that govern the mode of business. Under the Native Title Law in Australia, the traditional beliefs and customs are recognized considering the effect that they bring to the indigenous people (Strelein, 2005). The law requires people to protect the culture terming extinguishment as a breach of the law. Coal mining around the port seems to interfere with the native title rights of the indigenous people, which is hunting, and fishing. Solicitors may chose to take legal action against CFA rendering the excavation process to a halt (Sutton, 2004). The claim may be against the assurance that CFA offered to the people as well as Queensland and Commonwealth governments who were concerned about the environmental impacts of the mine, particularly on endangered species and habitats. Irene, a CFA manager was injures because of the protests that were experienced in the company premises. Although the injury was not work related, Irene may choose to take legal action against CFA basing the arguments on negligence on the part of the employer. Negligence on the part of the employer would suffice as a case in the court since the employer failed to counter the causes of the protests (Mitchell, 1975). Work injury claims are issued once the afflicted has suffered 15 or more percent injury owing to the employer’s negligence. In this case, they will be required to pay the damages that would further strain the financial aspect of the company. Work injury is a common aspect within the workplace (Posner, 1972). However, it can be rather costly for the business especially when compensating the workers as well as reinstating the equipments. Evidently, the contemporary business society experiences constant changes especially with the economic variations surrounding dominating countries. Therefore, approaching business from a future oriented perspective ensures that CFA is at the forefront of any changes and able to handle challenges. However, in March 2016, CFA discovered that the current market is stumbling to the constant global changes. Therefore, the excavation process was likely to reflect a disadvantage in the financial aspect of the business (Schmidheiny, 1992). Considering that CFA transported its excavated coal to Asia, it recorded a downturn. To counter this effect, Australian-based coal mining companies need to moderate the supply of coal to the global regions where it is still in demand such as China, India and Indonesia. It would require altering the conformity of the contract to seeking new markets. Under Australian contraction agreements, businesses may only seek out new ventures once the objectives of the previous contracts are attained (Schmidheiny, 1992). The prompt in such a case considers the ability of contract partners to accept and accommodate the conditions offered arguing that they will strain their financial ability. It is important that companies build a popular brand that will concentrate a mass of consumers. The company logo is an important marketing and branding tool once it becomes popular. A competitive company in the coal industry for CFA is Asian Coal. Its branding strategy is designed to accompany its new strategic direction in India. To go with its new calculated course in India, Asian Coal has engaged a marketing consultant to design a new brand and trademark. However, this trademark is quite similar to CFA's trademark and may attract legal action based on copyright issues. This is because the public may confuse CFA's logo with the new Asian Coal brand. Copyrights grants a company the exclusive rights to control the production, manufacture and exploitation of amenities and natural resources offering jurisdiction against any form of arrest or claim (Joyce et al., 1998). Based on the identification of the visible issues, CFA is likely to experience increased set of issues. Breaching contracts often entitle a non-breaching person to the respective damages that were encountered. In this case, CFA is eligible for compensation and exempted from the challenge of performing under the contract. Coal was an important element within the contract, failure on the part of Sea Pty Limited would exempt CFA of the task of meeting other requirements within the contract such as paying the workers in time (Barton, 1972). Many contracts often contain a variety of agreements and promises that are set to be met by either partner. Therefore, to restore the CFA to its original position had the breach not occurred, they may choose to affirm the contract and claim a damage award (Shavell, 1980). Optionally, CFA may opt to rescind the contract that would render it restored to its original position. Under the wage bill, employees are obliged to pay their workers for any services offered. Promising workers of timely and concise payment implies that CFA enters into a payment contract with the workers. Therefore, failure on delivery implies a form of contract beach that may be met with hostility from the workers. In this case, CFA paid its workers for only one ship docked. Under the wage law, once the breach in payment is only partial, the claimant may seek damages in an amount equal to the cost of hiring someone else to complete the performance contemplated by the contract (Barton, 1972). Arguably, the workers would have opted to refuse the job offer considering it was similar to the competitors. However, the offer given by CFA proved that the company was willing to substitute positive cost with exemplary service to meet the market requirements. Based on specific performance, CFA may be held liable for equitable remedy, which compels one party to perform, as nearly as practicable, the specified tasks within the contract. Worker compensation is considered as an effective remedy for injured workers within the work environment. In this case, Irene, injured during a protest is eligible for worker compensation. Worker compensation applies regardless of the condition that may be intentional intent, claims owing to bad faith, and statutory employment violation. In the workers contract, there lacked compensation insurance that was availed by CFA. Employers are required to carry and issue valid compensation insurance to cover injuries that occur willingly or unwillingly within the company premises (Krueger, 1990). Although the assertive process is intended to be basic, there are precise guidelines for determining whether an assured damage or illness qualifies for reimbursement, and various procedures must be followed in order to file a proper claim. In case CFA fails to consider the compensation claim, they expose the business to a legal lawsuit that may warrant closure or termination of any projects. Native Title Law in Australia is recognized by the common law. The law warrants positive approach on adhering to the rights of the indigenous people located within the country. Often, companies that seek to expand their influence are likely to result to the violation and inconsiderate behavior towards the indigenous people. The title offers such people complete jurisdiction over natural elements such as the wild animals, land and water. It also offers remedies for people who live on the area, access the area for customary purposes, like camping, or to do ceremonies, vacation and guard significant areas and sites, hunt, fish, gather food or customary resources like water and wood, and teach law and custom in the country. CFA therefore violated such rights warranting mediation or legal implications. Moreover, CFA can seek to negotiate terms with the aboriginal inhabitants to exploit the land while offering an alternative such as employment. The CFA coal market has proven to be a challenge considering the drifting global trends. The contract terms dictate the duration of operation for the parties and the products highlighting the target market. Therefore, altering such aspects would imply breaching the contract with the transport companies. The Indian shipping contractor will have to encounter the cost of transferring all the services to Indian and Chinese markets. Without a succinct business plan, it is possible that the company would experience losses. Therefore, it would be illegal for CFA to alter the conditions within the contract that highlight the relationship with other parties. It would be interpreted as termination of the original contract. To counter the effect, CFA needs a solid agreement with other parties that would cater for their interests and desires. For instance, withdrawal from the original agreement to transport to Indonesia may be interpreted as a rescission, which is the remedy that terminates the contractual duties of both parties (Rogge, 1929). CFA seeks to establish a renowned business aspect that is primarily drawn from the image created in the trademarks and logo. As a company, intellectual property law ensures that trademarks are safeguarded at all costs through controlling the ability of companies to imitate competitive and successful brands. Copyright is designed to guard against almost all unlicensed copying that is exterior of the desirable use (Sterk, 1996). However, trademark is involved with using a mark that causes confusion in that company’s marketplace. Trademarks narrow scope limits the situations and it can be used in cases where the use is misleading or confusing customers. Therefore, CFA can demand compensation on damages to its trademark against Asian Coal. Identification and Explanation of Ethical Issues Business ethics seeks to identify the principals and moral attributes that CFA is engaged in. Such forms of ethics often apply to the various departments that ensure that the practices and attitudes of the workers meet the desirable expectations as highlighted in the business law system. As a prominent mining company, CFA incorporates normative and descriptive dimensions that ensure its coal mining procedures such as contracts and transport are kept candid. However, not until recently that CFA was engaged in a variety of practices that would be interpreted as unethical. To understand the implication of such activities, it is important to classify the activities into the micro and macro procedures (Hudspith, 1991). Micro ethical issues involve procedures that affect the business activities through the employees and within the various departments. The macro ethical issues involve external factors that affect the behavior of the organization. The employees play an important role in actualizing the business procedures and goals. Under the basic elements within the microenvironment, CFA has failed to acquire the loyalty of its employees through fulfilling the terms of the contract. Arguably, the morality of the business may be questionable considering the inability to orchestrate their payment procedures and plans. Similarly, CFA has failed to address the issue through various ways that may prove to be effective. Micro ethics begins from the ability of CFA to ensure professional performance in their internal systems (Brummer, 1985). It involves communicating with the workers to help them understand the situation and design procedures that will enable them counter the situation. Any tasks performed by the workers prompts reward. Failing to reward the workers based on the promises made as well as the contracts portrays a negative perception of CFA to value their workers. Jack, a worker in CFA was not prohibited from taking action against the company for the breached payment contract. This protest saw the injury of Irene prompting undesired dismissal. In this case, unfair professionalism was imposed considering that the managers and leaders could have approached the situation differently by investigating the cause of the matter and judging promptly. The internal environment forms a platform where the workers can perform under habitable conditions. Instead of dismissing its workers because of unintentional occurrences, it should focus on altering the working conditions that will ensure the workers desire to work more and much better (Stead, Worrell & Stead, 1990). Sacrificing honesty through desirable termination and dismissal policies will assist the company in attaining additional credibility building a stronger and credible brand in a competitive market. CFA was engaged with the Blackstone Chamber of Commerce gaining support to undertake the mining expedition. However, there were ultimatums that had to be met. For instance, the project wanted to ensure that some of the profits were invested in the town. Therefore, signing a Memorandum of Understanding ensured that CFA would invest in housing, schools and other community infrastructure. It forms significant part of the macro ethical environment as a way of giving back to the society. This would ensure that the company would employ its resources to a greater cause at the expense of the resources that would be exploited. Moreover, assuring the banks that it would meet all the financial aspects such as lending requirements was considered rather vague (Bouckaert & Vandenhove, 1998). Maintaining a credible and dependable relationship with the financiers implied offering concise information regarding the banking systems regarding the profits and future growth. Considering that, the global demand and consequently the price of coal has been falling in recent years because of the push towards renewable sources of energy to combat climate change, future prospects of financial benefit are likely impaired. Social responsibility forms a significant aspect of CFA considering that the company is involved with interacting with the natural environment. Similarly, CFA intends on reaching an extensive market locally and globally. In this case, the business is required to maintain a socially responsible character. However, CFA failed to ensure that they sensitize the indigenous habitants of the issues that may arise with exploratory activities. The macro ethical aspect is the immediate surrounding that a business is exposed to may dictate the survival nature (Brummer, 1985). As part of the ethical responsibility of CFA, relaying truthful insight to Queensland and Commonwealth governments who were concerned about the environmental impacts of the mine, particularly on endangered species and habitats would prove a step towards attaining success in business. CFA needs to follow through with any promises made by establishing a reserve in the southeastern corner of the mining lease. Respecting the local construction of the people within the reserves is a macro ethical condition that ensures the people’s traditional systems are respected. The property rights of the indigenous people need to be considered through engaging the natives in mediation (Posey, 1990). The local Blackstone community is stoutly opposed to increasing the airport services, hoping that the absence of air services will persuade more employees to transfer to the region and enhance the native economy. The Blackstone Chamber of Commerce had asked CFA to act on the Memorandum of Understanding and invest in housing rather than permitting construction of a larger airport. Achieving such factors would imply adhering to the macro ethical desires of the indigenous people. More often, it is understood that company is not bound by any ethics other than abiding by the law. Laws are written statutes and codes that highlight the opinion of the administrative governance to how people and businesses should operate. In this case, CFA is able to make profits under the jurisdictions of the law by presenting their systems fairly and promptly. To some, the application of business rules invokes the conformity of the laws towards the systems of the society. However, companies encounter issues while attempting to remain within the limits of the law while making profits through countering the effects of competitors (Farnsworth, 1970). CFA seems to encounter a challenge with the market in India that has experienced constant fallout. The law is there to protect other companies from being exploited. In the modern business world, it is possible that the legal confines are insufficient mechanism to make CFA ethically accountable. It is the moral responsibility of each worker to maintain a professional relationship with colleagues to ensure that the objectives in business are made clear. The case of CFA proves to be rather contradictory since the Chief Executive Officer is allegedly involved in an affair with Jenifer. Arguably, such factors seem to ensure that the workers remain focus and accelerate their ability to make conscious decisions (Morrison & Nolan, 2007). At a leadership position, the CEO is required to focus more on improving the company through ensuring that the contract obligations are met and that CFA records increased profits. Therefore, ethical and moral obligations at the workplace enforce the policy of excluding romantic relationships arguing based on impaired judgment and results. CFA is at a position where it can improve in the delivery of goods and services. However, the decisions made in the past may seem ineffective. Therefore, it is important to design strategies that will prove effective in countering the effects created by the legal and ethical challenges. Contracts take into account a number of factors that may be overlooked until breached. Therefore, to safeguard the credibility of all contracts that have been undertaken by CFA, it is important to understand the consequences of breaching. Furthermore, a deal with Queensland Aviation is ready to start construction of the airport as soon as the Board gives authorization to sub-let the southeast corner of the lease will be a positive start to the continuation and success of CFA. References Barton, J. H. (1972). The economic basis of damages for breach of contract. The Journal of Legal Studies, 1(2), 277-304. Birmingham, R. L. (1969). Breach of contract, damage measures, and economic efficiency. Rutgers L. Rev., 24, 273. Bouckaert, L., & Vandenhove, J. (1998). Business ethics and the management of non-profit institutions. Journal of Business Ethics, 17(9), 1073-1081. Brummer, J. (1985). Business ethics: Micro and macro. Journal of Business Ethics, 4(2), 81-91. Farnsworth, E. A. (1970). Legal remedies for breach of contract. Columbia Law Review, 70(7), 1145-1216. Hudspith, R. (1991). Broadening the scope of engineering ethics: From micro-ethics to macro-ethics. Bulletin of science, technology & society, 11(4-5), 208-211. Joyce, C., Leaffer, M., Jaszi, P., & Ochoa, T. (1998). Copyright law (p. 810). Matthew Bender & Co., Inc. Krueger, A. B. (1990). Workers' compensation insurance and the duration of workplace injuries (No. w3253). National Bureau of Economic Research. Mitchell, C. (1975). Products Liability, Workmen's Compensation and the Industrial Accident. Duq. L. Rev., 14, 349. Morrison, R. L., & Nolan, T. (2007). Negative relationships in the workplace: a qualitative study. Qualitative Research in Accounting & Management, 4(3), 203-221. Posey, D. (1990). Intellectual property rights: and just compensation for indigenous knowledge. Anthropology Today, 6(4), 13-16. Posner, R. A. (1972). A theory of negligence. The Journal of Legal Studies, 1(1), 29-96. Rogge, O. J. (1929). Damages upon Rescission for breach of Warranty. Michigan Law Review, 28(1), 26-45. Schmidheiny, S. (1992). Changing course: A global business perspective on development and the environment (Vol. 1). MIT press. Shavell, S. (1980). Damage measures for breach of contract. The Bell Journal of Economics, 466-490. Stead, W. E., Worrell, D. L., & Stead, J. G. (1990). An integrative model for understanding and managing ethical behavior in business organizations. Journal of Business Ethics, 9(3), 233-242. Sterk, S. E. (1996). Rhetoric and reality in copyright law. Michigan Law Review, 94(5), 1197-1249. Strelein, L. (2005). From Mabo to Yorta Yorta: Native Title Law in Australia. Wash. UJL & Pol'y, 19, 225. Sutton, P. (2004). Native title in Australia: An ethnographic perspective. Cambridge University Press. Williston, S., & Jaeger, W. H. E. (1957). A Treatise on the Law of Contracts (Vol. 6). Baker, Voorhis. Read More

The payment of less than the minimum wage is punishable as a misdemeanor by imprisonment for up to three months or a fine with payment. Often, the federal law permits workers to demonstrate peacefully in bid to sensitize on the violation of any contract they undertake with an employer. Popularly known as exercising the freedom of speech, protests and demonstration, CFA workers may air out their views and opinions. However, once the demonstrations cause damage to a person or equipment that is deemed business property, the company may file legal petition for compensation (Williston & Jaeger, 1957).

Although filing for damage compensation may be a course of action, the company may suffer more from the legal aspect associated with the violation of the wage payment laws. The Australian business culture has developed over the years owing to the improvements that have been encountered in different sectors of the country. The historical aspect plays a significant role since it allows for the setting and distribution of boundary and allowance systems that govern the mode of business. Under the Native Title Law in Australia, the traditional beliefs and customs are recognized considering the effect that they bring to the indigenous people (Strelein, 2005).

The law requires people to protect the culture terming extinguishment as a breach of the law. Coal mining around the port seems to interfere with the native title rights of the indigenous people, which is hunting, and fishing. Solicitors may chose to take legal action against CFA rendering the excavation process to a halt (Sutton, 2004). The claim may be against the assurance that CFA offered to the people as well as Queensland and Commonwealth governments who were concerned about the environmental impacts of the mine, particularly on endangered species and habitats.

Irene, a CFA manager was injures because of the protests that were experienced in the company premises. Although the injury was not work related, Irene may choose to take legal action against CFA basing the arguments on negligence on the part of the employer. Negligence on the part of the employer would suffice as a case in the court since the employer failed to counter the causes of the protests (Mitchell, 1975). Work injury claims are issued once the afflicted has suffered 15 or more percent injury owing to the employer’s negligence.

In this case, they will be required to pay the damages that would further strain the financial aspect of the company. Work injury is a common aspect within the workplace (Posner, 1972). However, it can be rather costly for the business especially when compensating the workers as well as reinstating the equipments. Evidently, the contemporary business society experiences constant changes especially with the economic variations surrounding dominating countries. Therefore, approaching business from a future oriented perspective ensures that CFA is at the forefront of any changes and able to handle challenges.

However, in March 2016, CFA discovered that the current market is stumbling to the constant global changes. Therefore, the excavation process was likely to reflect a disadvantage in the financial aspect of the business (Schmidheiny, 1992). Considering that CFA transported its excavated coal to Asia, it recorded a downturn. To counter this effect, Australian-based coal mining companies need to moderate the supply of coal to the global regions where it is still in demand such as China, India and Indonesia.

It would require altering the conformity of the contract to seeking new markets. Under Australian contraction agreements, businesses may only seek out new ventures once the objectives of the previous contracts are attained (Schmidheiny, 1992). The prompt in such a case considers the ability of contract partners to accept and accommodate the conditions offered arguing that they will strain their financial ability. It is important that companies build a popular brand that will concentrate a mass of consumers.

Read More