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Explain the impact of the Equality Act 2010 on an organisation. - Scottish Highers Business Management - Question 2 (a) - 2023

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Question 2 (a)

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Explain the impact of the Equality Act 2010 on an organisation.

Worked Solution & Example Answer:Explain the impact of the Equality Act 2010 on an organisation. - Scottish Highers Business Management - Question 2 (a) - 2023

Step 1

If the legislation is not complied with – the organisation may be prosecuted/reprimanded

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Answer

Should the organisation fail to comply with the Equality Act 2010, it may face legal repercussions, including potential prosecution. This not only impacts the organisation’s image but can also lead to costly legal proceedings. This negative influence on the reputation can affect stakeholder trust and customer loyalty.

Step 2

Reputation could be negatively affected

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Answer

Non-compliance can harm the organisation's reputation in the market, leading to decreased customer confidence. A tarnished reputation may result in lost business opportunities and difficulties in attracting new clients.

Step 3

Employers may have to scrutinise their recruitment policies – this gives the HR staff additional work

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Answer

To adhere to the requirements of the Equality Act, HR departments may need to revise their recruitment strategies to eliminate bias. This includes ensuring equal opportunities for candidates from diverse backgrounds, thus increasing the workload of HR professionals who must implement and monitor these changes.

Step 4

Organisation has a responsibility to investigate any issues of discrimination/harassment

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Answer

The Act places an obligation on organisations to actively investigate complaints related to discrimination or harassment. Failure to do so can further lead to legal consequences. Employers must ensure that appropriate policies are in place and that staff training is conducted to foster an inclusive workplace.

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