Fundamental and Ethical Issues in EE Telecommunications - Case Study

Legislative And Professional Issues

Introduction: Legislative And Professional Issues

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Fundamental and ethical issues are an important part of the business context that helps in the promotion of conduct based on integrity and trust. Apart from that, there are a few complex issues involving accommodating, compliance with corporate governance, and empathetic decision-making all those things, which are consistent with the core, values of the organization. The resort shed light on the management of the legislative and professional issues that are identified in the EE telecommunication organization and the ways that can be useful in solving them.

Criteria 1

Identification of the Company

EE telecommunication is a digital telecommunication organization founded in the year 2010 with the aim of delivering high-quality mobile network service. EE telecommunication operates exclusively in the economy of the UK offering TV, mobile, voice services, and broadband, both to retail and business customers with help of the various telecommunication technologies (Ee.co.uk, 2022).   Furthermore, EE is the operator of the British mobile network and the service provider of the BT group. 

Along with the Company offers specialization in delivering home and business broadband utilizing both fixed-line communication and 4G. The retail presence of the entity at present has crossed around 600 stores in the economy of the UK (Ee.co.uk, 2022). The headquarter of the Company is located in Hatfield, England. Moreover, the entity is the first to launch 4G in the economy of the UK in the year 2012, as well as the first to launch 5G in the year 2019 successfully in their first attempt. 

Overall corporate structure 

The corporate structure of EE telecommunication has been focused on providing a high level of internet and mobile services to business customers and to personal customers. In the opinion of McClung et al. (2020), the overall corporate structure indicates to the various organization of different departments and units work jointly as a unit. The CEO of the Company is  Marc Allera and all the important and vital decisions are taken from his end for changes in the Company. 

Corporate social responsibility strategy

The changes in business performance and organization demand a high level of social and environmental engagement from the business owners and executives. Based on the views of Brokowski and Adli (2019), CSR strategy is a plan that business executives need to build structure and develop in order to take a further step in social awareness. The corporate social strategy of the organization is built up at delivering a high rate of performance with its objectives being a clear and specified market leader. Apart from that, the entity is equally focused on maximizing the value of shareholders and their potential customers. Based on the research work of Wang et al. (2022), the socio-economic factors are taken into due consideration for maintaining the core objectives of the business aligned. EE’s core objective is focused on basically the three most imperative elements “customer loyalty, operational excellence, and creating a platform for ensuring long-term growth and success.

 The vision is to provide the best quality of service for ensuring that their customers are not at any kind of compromise and have full trust in their digital lives. In addition to that, the Company is highly focused and puts emphasis on identifying the key business sustainability risk areas namely the supply chain management, environmental impact, safety of the child, and social and corporate responsibilities. Along with the initiatives taken by the organization they have focused on providing youth employment and contributed highly to the growth and development of the economy.   

Articles of association

The Article of Association is the principal document that depicts the rules and regulations for managing the internal affairs of EE telecommunication. Based on the views of Ede and Obeagu (2018), the document comes along with the “memorandum of association” containing the constitutions, responsibilities of the appointing directors, and the tackling of the financial tracks and records of the Company. As per the rules laid down in the economy of the UK, it is prescribed that the “Memorandum of association” needs to be signed by both shareholders and guarantors who have agreed to the terms of the company. In case the business is established in online mode there is no requirement for creating the “MOA” that will be automatically created as a mandatory part of the registration. 

Definition of Ultra vines

The term is widely applicable in the Latin, terms that mean “beyond power” which is meant for describing the act that requires legal compliance authority and power. As per the reference of Raus et al. (2021), the term indicates the act and transaction that is beyond the control and limits of the organization. This indicates any unlawful act or actions that are done by any members of the corporations are unlawful but this cannot be handled or mitigated by the corporation’s legitimate powers. As opined by Ede and Obeagu (2018), the act is widely applicable in the context of the corporate organization that stays powers that are beyond the management  of the company. Secondly, the power that are beyond the control of the directors under the authority conferred on them by the constitution. 

The doctrine of ultra vines

As highlighted by Li et al. (2019), the doctrine of the ultra vines is a constituent of the corporate law that plays an imperative part in governing all the contracts entered into by the Company. However, in case of any contract that is considered to be above the scope of the organizational law is deemed to be anticipated as illegal. In the simple text, it can be ascertained that the doctrine of ultra vines is the fundamental law that revolves around company law (Brokowski  and Adli, 2019). The law lays down the specific judgment regarding the consequences of the acts that are done beyond the control and scope of the organizational law. Apart from that, the acts and deeds are identified to be completely void and illegal those are not in the control of the Company and are not binding them. Along with that, it cannot be ratified by any of the shareholders either. 

Identification of the type of Company

EE telecommunication is the part of the British telecommunication group since the merger and acquisition that happened in the year 2016. EE is the Private Company Limited by Guarantee. The company is engaged with the charity to Go ON UK for helping in the improvement of the digital skills of many customers and people (Ee.co.uk, 2022). 

On the board

Board of directors is an important part of the organization that helps in enhancing the success level of the Company. The management of the Company is as follows

Chairman of EE telecommunication is Mat sears (Ee.co.uk, 2022)

The directing manager of EE telecommunication is Rich OWEN (Ee.co.uk, 2022)

The “Chief executive officer” is Marc Allera

The CFO of the Company is Stephen Harris (Ee.co.uk, 2022)

The Auditors of the entity are Ernst & Young LLP

The general counsel of the Company is Russell Johnstone

Anna Captanio is the HR director of the entity.( Ee.co.uk, 2022)

Company Secretary

The role of the Company secretary is to ensure that all the activities of the organization is complying with the financial and non-financial requirements of the entity. As opined by Kraus et al. (2020), the high level of standards maintained by the organization is taken care of by the company secretary. Officer James Blendis is responsible for tackling all the legal and financial matters of the EE telecommunication Company (Ee.co.uk, 2022). The responsibilities of the secretary lie to provide instruction to the chairman and the board for ensuring that the boards are acting on behalf of the Company and performing in compliance with the rules established within the organization respectively. 

As an important part of the management, the CS is required to take into account the important and relevant decisions that will have a profound impact on the administration of the Company. As opined by Bowen et al. (2020), the requirements of all the imposed legal and statutory goals and objectives are fulfilled within the organizations' matters, and operations are maintained or not inspected by the Company Secretary. Since this approval or inspection will allow for detecting that the decisions of the board of directors are wisely implemented

Definition of Corporate social responsibility

Ther term “Corporate social responsibility” indicates the business model that aids the organization in becoming socially accountable towards itself and its various internal and external stakeholders. Based on the research work of Tam et al. (2019), a concept is a form of self-regulation that aims to contribute towards the societal objectives of the philanthropic  or charitable nature that helps in contributing to ethically oriented practices and activities. Most importantly, as a leading network provider of telecommunication service EE telecommunications aims at providing high-quality performance towards its environment and stakeholders and become socially and ethically considerable in their views (Ee.co.uk, 2022). The main elements of CSR are “environmental responsibility, economic responsibility and ethical responsibility, and philanthropic responsibility. 

Figure 1: CSR Activities

As a group of BT telecommunication, the largest network provider of the economy of the UK. The entity aims at becoming the potential leader in attracting maximum customers and earning the trust and loyalty of many customers. As opined by Powers et al. (2019), socially responsible entities actively participate in the due care and protection of the rights of their members and various stakeholders. In addition to that, they aim at using environmentally friendly ways of production and processing services to make them high and the best quality while delivering to their valuable customers. 

Nowadays, many customers that are concerned regarding the selection of the products and services or they chose to be a part of an entity that has a major role in the contribution of CSR initiatives and activities. The creation of the CSR strategies is done with the help of evaluating the core business process and activities of the organization (Powers et al. 2019). This allows the development of the best strategy as per their requirements and part for bringing changes in the corporate goals and in its nearby environment. After that look for opportunities from where the scope of indulging in CSR-based activities can be implemented. Along with the impact of CSR is anticipated as a link with their profitability and efficiency. 

Examples of the CSR initiatives taken by EE telecommunications

As a, leading network provider in the economy of the UK, EE telecommunications tends to keep its focus intact towards maintaining social and corporate responsibilities at the top of the priority list. The group continuously thrives at investing in new opportunities and capabilities for ensuring the long-term development and growth of the business, keeps them, tries to evolve the customer demand, and at the same time provides them the appropriate platform for optimizing their talents and integrity continuously and unstoppably (Ohiare, 2020). The group is equally interested in developing high-quality performance for the upcoming generation and is actively participating in the “international standard-setting process”.  

As a part of the CSR initiative, the Group invests in the communities that are associated with the  charity Go ON UK meant to improvising the digital skills of more than 1 million people  with the help of the Techy Tea Parties and the range of online resources and skills made for the fulfillment of skills-based customer service. Lately, three years ago three was a youth employment opportunity that brought down 1000 apprentices into the business (Ee.co.uk, 2022). The factor of suitable practices and activities that ensure a better future for the growth and development of the organization keeps its stakeholders and community at the top of the list. 

Along with that, the responsibility of thriving at the best possible speed of its mobile experience and the quantity of mobile data is kept on top of the static goals. EE continuously leverages the capacity of the network for maximizing its connections to the network (Ee.co.uk, 2022). The latest development in the field of internet services is highlighted by the organization for their potential and valuable customers. There has been always a scope for growth and development for the stakeholders and employees taking initiative for creating high-speed digital services and communications channels. 

Criteria 2

Legal formations of the Companies in the economy of the UK

In the dynamic and complex world maintaining a sound economic policy is of great importance and requirement. The UK has a world-class level of reputation that is important for being indulged in the European business hub along with exploring gateway in the US market. The legal formation of the Company indicates the incorporation that is formed by the group of individuals meant for engaging and operations of the business, enterprise, or Company (Duffield, and Watson, 2020). The sound economic policy structure maintained by the UK has helped them to explore many small and medium-sized businesses in the economy of the UK that are experiencing high-level stability in comparison to that of most Companies and organizations. Moreover, the UK is regarded to be one of the influential places that allow easy and convenient to do business along with that the “UK Limited companies” have a higher international reputation that is incomparable to none. 

Principle of separate legal responsibility

The fundamental principle in the field of Company law states that the Company is treated completely differently from that its members. As per the reference of Báez et al (2018), in case the business is separate then it owes some kind of rights and laws that are applicable to that the organization members. The treatment of the Company is completely different from that of its existing stakeholders. Ther few steps that are needed to be filled for creating a separate legal entity are

• The promoters of the company need to produce a copy of the important documents to the “registrar of companies”.
• Second of the documents passes to the government agency called the Companies House.
• Lastly, the registrar will provide a “certificate of incorporation” that will allow providing the organization a separate legal identity to exist (Carroll and Brown,  2018).

Figure 2: Separate legal entity

There are few rights and responsibilities that are completely owned by the Company and are not different from that the rights of the owners. There is some common right like “Limited Liability, Ownership of Property, Criminal Liability, and many more. 

Duties of the directors

The role and responsibilities of the directors are based on the motive of improving the success level of the organization with due control of their exercising controls and powers. As highlighted by  Kraus et al. (2018), right from starting of the inspection of the financial books of accounts to taking care of the necessary actions against any members not abiding by the rules and regulations of the Company lies within the control and power of the directors. The conduction of the board meeting notices,  till the execution of the board meeting minutes, is a legal right of the directors. The judgments and knowledge of the directors are independent of any of the members in the organization and is completely fair and free from prejudices. \

Governance of the Companies in the UK

There are certainly many rules, laws, regulations, codes of practice, and market guidance that is followed by the organization to be a leading entity in the economy of the UK. apart from the certain rules and guidelines that are applicable to European laws, there are a few that are followed by the UK. Among the most relevant code of conduct and laws, the Corporate Governance Code is the most imperative one prevailing in the economy of the UK. Furthermore, the “Governance code” is  published and updated annually by the “Financial Reporting Council” (FRC), which is a statutory body. 

Figure 3: Corporate Governance issues

During the year 2020, the FRC has included the stewardship code that is basically applicable to the institutional investors, and community, and not to the organization directly. As a matter of fact, the governance of the UK regularly publishes and keeps on updating the guidance on a list of the matters that are specifically connected with that of the shareholder's rights to vote and for the entities that are listed under the top-notch stock exchange listing. 

Corporate governance issues

The majority of corporate governance needs to protect the values of the stakeholders and their interests in a way of improvising the performance and accountability of the accountability organization. As per the reference of Bowen et al. (2021), a few of the Corporate governance issues involve fairness which means that the organization must treat their stakeholders equally and they must be given opportunities and benefits without being biased and it must be equitably. There must not be the presence of any kind of violations or prejudice occurring against any of the stakeholders. 

As a ruling telecommunication organization, it is important for EE telecommunication to ensure that they are not treating their shareholders or any members differently or on grounds of any biases. Furthermore, transparency within th business operational process and in the organization is maintained which means that there is nos secrecy maintained from the internal organization to their shareholders and other members who are involved with the organization. Based on the research work of Porter and Rickabaugh (2018), the accountability of all the relevant strategies and activities that are a part of the corporate goals of the Company must be taken into consideration and it must be regarded for achieving the long-term goals and objectives. 

Conclusion

The entire conclusion can be drawn on the basis of the professional and ethical code of conduct that is to be maintained in the EE communication in order to deliver a high-class performance and professional code for conducting business. The importance of the professional issue and their implication on the performance of the company has been properly understood with the help of the various corporate governance issues and problems. Moreover, the importance of CSR activities and strategies has been understood are relevant for the business organization to follow. EE telecommunication ensures that all the activities of the employees are under the supervision and control of the management. 

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