BUS6003 Business Law Essay 3 Sample

BUS 6003 Business Law Essay 3

Assessment Detail

Working individually students choose a business organization and research how five business law areas that are relevant to the plans and operations of the chosen business organisation and discuss social and ethical issues. This essay will be submitted by each student based on your own research.

• Business report format is required for the Essay submission.

• Harvard Referencing Style is required. You are required to use in-text citations in the body of the report and a reference list at the end of the report. Please refer to the link for the referencing style: https://apic.instructure.com/courses/368/pages/referencing.

• Use Font 12 Times New Roman with 1.5 spacing, single column, justified and 2.5 cm margin in all four sides for the report body and submit as a Microsoft Word file.

• All assignments must include an individual assignment cover sheet which is downloadable from APIC website.

• While ChatGPT or other AI tools are permissible for study purposes and to enhance your understanding of the subject, it is important to note that no AI-generated materials, including copied and edited text, are allowed in the final submission.

For detailed requirement, please refer to the guidelines of how to write Business Report and academic writing style on the SLS learning Enhancement Section in Canvas. The link of Business Report Guideline is provided in the assessment section of this subject in APIC Canvas.

Solution

1. Introduction

Puma is a multinational leisure and sports footwear headquartered in Germany. They design and manufacture footwear, apparel, and accessories for sports and leisure. Puma manufactures the third most sportswear in the world. Founded in 1948 (About.puma.com, 2023), Puma was named after its founder, Rudolf Dassler. Legal participation in intellectual property, international trade, labour practises, and environmental issues is crucial to PUMA's global development and dedication to honesty and transparency in business. This essay examines five key aspects of business law and how they are relevant to PUMA's operations. In the last section, the essay discusses the company's efforts to deal with social and ethical challenges.

2. Five business law areas

The international sportswear and performance footwear market leader PUMA is being challenged on many fronts throughout the globe. Five main business law areas significantly impact PUMA's objectives and operations: intellectual property law, contract law, international trade law, labour and employment law, and environmental law.

The distinctive product designs, trademarks, and positive public perception of PUMA are major factors in the company's success. Intellectual property (IP) laws are necessary for the security of such assets. PUMA must register its trademarks, logos, and distinctive product designs to ensure their safety. Brand reputation and market share may suffer from IP infringement. To stay out of court, PUMA should also respect the intellectual property rights of others (Bently et al. 2022). Legislation such as the Trade Marks Act 1995 and the Copyright Act 1968 control intellectual property protection in Australia (Legislation.gov.au, 2017). Trademark registration grants exclusive rights and safeguards against trademark infringement for MBA assignment expert.

In addition, PUMA has to keep an eye on the market to ensure its intellectual property isn't being used without permission. Several patents and trademarks cover Puma's Fenty footwear. Puma has an extensive global enforcement system to safeguard its intellectual property in the Fenty Shoe line (Peppo, 2019). A recent injunction won by Puma prevents the German shop Top Shop from selling counterfeit Fenty Shoes.

PUMA's ties with its suppliers, distributors, and endorsers are all based on contracts. Contract law in Australia is grounded not on codified laws but in the common law of England. The fundamental principle of Australian contract law is freedom of contract, which permits any two parties to enter into whatever arrangement they see fit. Legislative rights may occasionally supersede contractual rights, and certain major legislation, such as the Competition and Consumer Act 2010 (Cth), effect these basic statements of principle but cannot be bargained (Utz, 2015).

Offer, acceptance, consideration, and purpose to form legal relations are all required elements of a valid contract under Australian law. Pricing, product distribution, intellectual property rights, and dispute resolution methods are all areas where PUMA must assure transparency. Following contract law rules helps eliminate confusion, lowers the likelihood of legal conflict, and facilitates effective commercial dealings. Contracts between PUMA and its suppliers, distributors, and endorsers are always clear and well-drafted. As a result, fewer snafus and more productive collaborations are formed (About.puma.com, 2023).

PUMA operates worldwide; thus, it must comply with the laws and agreements regulating international commerce. Avoiding fines and ensuring cross-border activities go smoothly depends on adhering to trade rules, import and export legislation, and customs procedures (Bettencourt et al. 2023). Among the issues that might substantially affect PUMA's worldwide supply chain and distribution are tariffs, restrictions, and trade embargoes. The Customs Act of 1901, other legislation, and bilateral and multilateral trade agreements govern Australia's foreign commerce (Legislation.gov.au, 2023). As a multinational corporation, PUMA must deal with the complexities of import and export regulations.

In addition, slowdowns at the border and fines await those who don't follow the rules. PUMA's international success depends on the company's ability to keep abreast of changing trade agreements and regulatory rules. Customs clearance goes faster and has fewer hassles if PUMA follows international commerce standards. Through lower tariffs and more access to markets, trade agreements may help businesses save money (Johnson and Gramer, 2020). However, supply chains and pricing strategies are vulnerable to trade agreements and levies changes. There may be an increase in administrative time and cost to ensure compliance with complicated rules.

2.4 Labour and Employment Law

Employees, contractors, and manufacturing partners from all around the world make up PUMA's workforce. Conditions of employment, employee protections, and minimum health and safety requirements are all governed by various labour and employment laws. Maintaining a good public image, avoiding legal obligations relating to problems like workplace discrimination and unfair labour practices, and averting labour conflicts all require adhering to these regulations (Ilo.org, 2023).

The Fair Work Act of 2009 establishes labour and employment standards in Australia, including the minimum pay, the working conditions of employees, and protections against discrimination (Employsure.com.au, 2023). As an employer, PUMA must follow these guidelines to protect its workers' rights and prevent legal trouble. Preventing workplace accidents and injuries requires strict adherence to health and safety rules, as outlined in the Work Health and Safety Act of 2011 (Worksafe.qld.gov.au, 2023).

PUMA has made human rights integration one of its sustainability goals and has a zero-tolerance policy for modern slavery in all its manifestations. Maintaining ethical labour standards boosts morale, output, and pleasure at work. A more welcoming and accepting workplace may be achieved by adherence to anti-discrimination regulations (Employsure.com.au, 2023). There might be serious legal repercussions for the business and/or the employee if the Code is disregarded. The necessity for PUMA to invest in better working conditions and perks due to stricter labour standards might drive up operating expenses. Labour-related legal challenges are potentially harmful to the company's image.

2.5 Environmental Law

PUMA must follow all applicable environmental rules of each country. The business must follow regulations for garbage collection, gas emissions, and using renewable resources. It is possible to face legal action, reputational harm, and regulatory penalties for failing to satisfy environmental duties (Kumar et al. 2022).
Australia's Environment Protection and Biodiversity Conservation Act 1999 align with PUMA's dedication to sustainability (Agriculture.gov.au, 2023). Management of resources, disposal of waste, and regulation of emissions all need conformity. PUMA must consider the environmental effects of its production methods and where it gets its resources. Reputational harm and regulatory sanctions may occur from failing to satisfy environmental commitments.

PUMA's image as an ethical corporate citizen is bolstered by its commitment to environmental sustainability. Sustainable practices may draw in customers who are concerned about the planet. Puma has become the first firm in the world to assign a monetary value to the eco-services it employs in producing its athletic footwear and apparel, signalling a seismic shift in how corporations will account for their use of natural resources. As part of its commitment to sustainability, PUMA has released an economic appraisal of the environmental consequences of greenhouse gas emissions (GHGs) and water usage throughout its entire supply chain (Theguardian.com, 2011).

In conclusion, PUMA's intentions and operations are deeply intertwined with several subsets of commercial law. The company's ideas are safeguarded by intellectual property law, while its interactions with its many stakeholders are governed by contract law. Compliance with labour and employment law promotes a healthy work environment, while international trade law guarantees that business deals between countries go off without a hitch. Last but not least, PUMA recognises that compliance with environmental regulations is critical to its sustainability initiatives (About.puma.com, 2023). Successfully navigating these legal areas is crucial to PUMA's worldwide growth and ethical business practices.

3. Discussing the social and ethical issues of PUMA

Several social and ethical difficulties have impacted the public's view of the major sportswear maker PUMA the firm has faced. Concerns have been raised about a data breach, the treatment of workers in its supply chain, and the effects of material manufacturing on the environment.

Data Breach and Privacy Concerns: One of PUMA's North American labour management service providers, kronos were hit by a ransomware assault, leading to a leak of sensitive information. Information on PUMA workers and their family members was stolen in the attack (Gatlan, 2022). Concerns regarding the safety of sensitive data are warranted since the attackers obtained access to it before encryption. The necessity for stricter cybersecurity safeguards and the need to protect employee data to prevent privacy leaks have both been highlighted by this incident (Cybernews.com, 2023).

While the number of Puma workers whose data was compromised is not specified in the breach report, data submitted to the Office of the Maine Attorney General indicates that 6,632 people had their data compromised (Gatlan, 2022). Puma also said sensitive information such as Social Security numbers were taken in the Kronos ransomware assault. Experian IdentityWorks, which includes credit monitoring, identity restoration, and identity theft insurance, was made free to anyone impacted by this data leak for two years. Puma's internal application's source code was stolen in August and then listed for sale on the Market data breach site. Puma's director of corporate communications, Robert-Jan Bartunek, has acknowledged the assault (Dong et al. 2023).

Labour Conditions in Supply Chain: PUMA has been criticised for treating workers in nations like China, where its products are manufactured. Concerning working conditions were discovered during inspections by China Labour Watch (CLW) at PUMA's suppliers (Chinalaborwatch.org, 2008). Low salaries and unsafe working conditions in factories were among the concerns brought to light by studies. At the same time, thirteen workers at a Puma-supplying firm lost their employment after voting in a union election earlier this year (Sothyroth, 2023). Eastcrown Footwear Industries, situated in the Kandal province, is accused by labour rights advocates and union members of routinely engaging in union-busting practices and harassing employees. Workers in certain of PUMA's supplier factories continue to confront horrible circumstances, despite PUMA's assertions to the contrary. This makes one wonder whether PUMA cares about its workers' rights and can provide them with safe, healthy workplaces (Niskanen, 2019).

Environmental Impact of Material Production: Thirdly, the environmental effect of PUMA's material production processes includes sourcing and manufacturing. Production of essential materials like polyester, cotton, and leather is a significant component of the firm's ecological impact (About.puma.com, 2023). The use of these commodities exacerbates the depletion of resources, pollution, and other adverse environmental effects. PUMA's use of resource-intensive materials raises moral concerns about the company's dedication to reducing its ecological imprint at a time when sustainability is increasingly important to customers and society (Niskanen, 2019).

PUMA has taken action to deal with these problems and debates:

Management of Data Breaches: PUMA contacted customers and gave them free identity protection services for two years after the breach. The company's swift action demonstrates its dedication to fixing the privacy issue and safeguarding customers.

Supplier Audits and Reforms: While some have been sceptical about PUMA's reaction to complaints about working conditions, the firm has pledged to examine and reform its suppliers. However, these steps must be executed consistently across all suppliers to show a true commitment to ethical labour practices (About.puma.com, 2023).

Sustainability Initiatives: PUMA is aware of the environmental damage it is causing and taking steps to mitigate it via its sustainability programmes. PUMA's goal is to lessen its environmental impact by adopting more eco-friendly policies and procedures, such as employing recycled materials in its products (About.puma.com, 2023).

4. Conclusion

In conclusion, PUMA's efforts to address social and ethical challenges in today's complex corporate climate cannot be overstated. Despite these obstacles, PUMA can maintain its brand's integrity, propel innovation, and secure its future by implementing robust cybersecurity, encouraging fair labour practises, adhering to international trade regulations, promoting sustainable sourcing, and upholding environmental responsibilities. Including several perspectives throughout the decision-making process, disseminating cultural awareness training, and maintaining culturally sensitive advertising all contribute to an environment that is welcoming to everyone. Stakeholders may voice their issues and provide feedback via open internal and external communication channels. Last but not least, continual improvement calls for the evaluation of policies on an ongoing basis, the adoption of new environments, and the incorporation of lessons acquired from previous instances. These measures will strengthen PUMA's image as an ethical business and help make the industry more responsible and sustainable.

References

About.puma.com (2023). More sustainable material. Available at: https://about.puma.com/en/sustainability/product#:~:text=Over%20half%20of%20PUMA%27s%20environmental,ambitious%20targets%20to%20be%20fulfilled (Accessed on 20 August 2023).

About.puma.com. 2023. Annual Report 2022. Available at: https://about.puma.com/ (Accessed on 20 August 2023)

About.puma.com. 2023. HUMAN RIGHTS. Available at: https://about.puma.com/en/sustainability/social (Accessed August 22, 2023)

About.puma.com. 2023. PUMA AND THE ENVIRONMENT. Available at: https://about.puma.com/en/sustainability/environment (Accessed on 20 August 2023)
About.puma.com. 2023. STORY OF AN AUDITOR. Available at: https://about.puma.com/en/sustainability/social/story-of-an-auditer (Accessed August 22, 2023)

Agriculture.gov.au (2023). Environment Protection and Biodiversity Conservation Act. Available at: https://www.agriculture.gov.au/agriculture-land/farm-food-drought/natural-resources/vegetation/apdc-act#:~:text=%E2%80%8BThe%20Environment%20Protection%20and,important%20natural%20and%20cultural%20places (Accessed on 20 August 2023).

Bently, L., Sherman, B., Gangjee, D. and Johnson, P., 2022. Intellectual property law. Oxford University Press.
Bettencourt, E., Healey, P., Kennedy, E. and Marcantonio, T., 2023. Imagining a Social Enterprise Partnership Between Banksia Gardens Community Services and PUMA.
Chinalaborwatch.org (2008). Puma’s Failure In CSR: Supplier’s Critical Conditions. Available at: https://chinalaborwatch.org/pumas-failure-in-csr-suppliers-critical-conditions/ (Accessed on 20 August 2023).

Cybernews.com. 2023. Puma investigates claims of leaking more than 230k customers’ data. Available at: https://cybernews.com/security/puma-investigates-data-leak/#:~:text=In%202022%2C%20Puma%20was%20struck,data%2C%20including%20social%20security%20numbers. (Accessed August 22, 2023)

Employsure.com.au (2023). What is the Fair Work Act? Available at: https://employsure.com.au/guides/fair-work-australia/what-is-the-fair-work-act/#:~:text=The%20Fair%20Work%20Act%202009,within%20the%20national%20workplace%20system (Accessed on 20 August 2023).

Gatlan, S. (2022). Puma hit by data breach after Kronos ransomware attack. Available at: https://www.bleepingcomputer.com/news/security/puma-hit-by-data-breach-after-kronos-ransomware-attack/ (Accessed on 20 August 2023).

Ilo.org. 2023. National Labour Law Profile: Australia. Available at: https://www.ilo.org/ifpdial/information-resources/national-labour-law-profiles/WCMS_158892/lang--en/index.htm (Accessed August 22, 2023)
Johnson, K. and Gramer, R., 2020. The great decoupling. Foreign Policy, 14, p.2020.

Kumar, L., Nadeem, F., Sloan, M., Restle-Steinert, J., Deitch, M.J., Ali Naqvi, S., Kumar, A. and Sassanelli, C., 2022. Fostering green finance for sustainable development: A focus on textile and leather small medium enterprises in Pakistan. Sustainability, 14(19), p.11908.

Legislation.gov.au (2017). Copyright Act 1968. Available at: https://www.legislation.gov.au/Details/C2021C00044 (Accessed on 20 August 2023)
Legislation.gov.au. 2023. Customs ACT 1901. Available at: https://www.legislation.gov.au/Details/C2022C00061 (Accessed on 20 August 2023)

Niskanen, H., 2019. Sustainability in the sporting goods industry: How Nike, Adidas and Puma have developed company sustainability.
Peppo, E., 2019. Well-known marks and sports in view of the world intellectual property Day 2019. European science review, (3-4), pp.142-144.

Sothyroth, Ph. (2023). Puma-Supplier Employees Lose Their Jobs Again in Alleged Union-Busting. Available at: https://cambojanews.com/puma-supplier-employees-lose-their-jobs-again-alleged-union-busting/ (Accessed on 20 August 2023).

Theguardian.com (2011). Puma world's first major company to put a value on its environmental impact. Available at: https://www.theguardian.com/sustainable-business/puma-value-environmental-impact-biodiversity (Accessed on 20 August 2023).

Utz, C. (2015). Australian Contract Law. Available at: https://www.acc.com/resource-library/australian-contract-law#:~:text=Australian%20contract%20law%20is%20based,any%20codified%20or%20statute%20law (Accessed on 20 August 2023).

Worksafe.qld.gov.au (2023). Work health and safety laws. Available at: https://www.worksafe.qld.gov.au/laws-and-compliance/work-health-and-safety-laws#:~:text=The%20Work%20Health%20and%20Safety%20Act%202011%20(Qld)%20sets%20out,on%20you%20and%20your%20workers (Accessed on 20 August 2023).