The prosecution of Grampian Health Board following the death of a patient has highlighted the importance of protecting the health and safety of customers, third parties and, in this case, patients.

Vincent Mulsant had been admitted to the hospital on 31 December 2019. He had managed to abscond from the ward in two separate incidents, on 19 and 22 February, which resulted in him being placed under constant supervision. Six weeks later he was found dead on the bathroom floor.

An investigation by the Health and Safety Executive (HSE) found that Grampian Health Board had failed to adequately manage the risks posed to a patient’s health and safety.

Grampian Health Board pleaded guilty to breaching Sections 3(1) and Section 33(1)(a) of the Health and Safety at Work etc. Act 1974 and was fined £60,000 with a £4,500 victim surcharge.

The responsibility of a hospital for the safety of its patients is different in some ways to that of a business for the safety of its customers, due to the nature of the services provided and the vulnerability of the individuals involved. However, an employer's responsibility to protect customers and other third parties is a fundamental aspect of operating a business. It is a duty grounded in law, ethics and common sense, reflecting the importance of creating safe, secure and trustworthy environments for everyone involved. By adhering to legal requirements, implementing best practices and prioritising the safety and wellbeing of customers and third parties, businesses can not only avoid legal trouble but also build a strong, positive reputation in their communities.

Under UK law, the concept of "duty of care" is central to an employer's responsibility towards customers and third parties. This duty is derived from the broader principles of negligence established in common law, where an employer must take reasonable steps to prevent harm to others. The primary legislation governing this duty includes the Health and Safety at Work etc. Act 1974, which imposes a general duty on employers to ensure, so far as is reasonably practicable, the health, safety and welfare of all individuals affected by their business activities. This includes not just employees but also customers, visitors and any other third parties.
Protecting customers and third parties isn't just a legal obligation for businesses; it also offers significant ethical advantages that can enhance a company's reputation, build trust and contribute to long-term success.

Here are some key ethical advantages.

Building trust and loyalty

• Trust: When customers know that a business prioritises their safety and wellbeing, it fosters trust. Trust is a cornerstone of any successful business relationship, and it encourages repeat business and long-term customer loyalty.
• Loyalty: Ethical behaviour, such as ensuring product safety and protecting personal data, builds customer loyalty. Customers are more likely to return to a business they perceive as honest, responsible and caring.

Reputation enhancement

• Positive reputation: Businesses that consistently act ethically and protect their customers and third parties develop a strong, positive reputation. A good reputation is invaluable, attracting new customers and retaining existing ones.
• Differentiation: In competitive markets, ethical behaviour can differentiate a business from its competitors. Customers often prefer to support companies known for their integrity and commitment to safety.

Risk reduction

• Legal and financial risk: By proactively protecting customers and third parties, businesses reduce the risk of legal action, fines and financial losses. Ethical behaviour minimises the chances of accidents, data breaches or product failures, which can be costly.
• Crisis management: When a business is known for its ethical standards, it is better positioned to manage crises. Customers are more likely to be forgiving and supportive if an issue arises, knowing that the business typically acts in their best interest.

Enhanced employee morale and commitment

• Employee pride: Employees are often more motivated and take pride in working for a company that values ethics and customer safety. This can lead to increased job satisfaction, better performance and lower turnover.
• Ethical culture: A commitment to protecting customers and third parties fosters an ethical culture within the organisation. This culture influences all aspects of the business, encouraging employees to act with integrity and take responsibility for their actions.

Positive social impact

• Community relations: Protecting customers and third parties contributes to the wellbeing of the broader community. This can enhance a company's relationship with local communities, leading to support and goodwill.
• Corporate social responsibility (CSR): Ethical protection of customers aligns with broader CSR initiatives, reinforcing a company’s commitment to social responsibility and sustainable business practices.

Long-term sustainability

• Sustainable growth: Ethical behaviour is key to long-term business sustainability. Companies that protect their customers and third parties are less likely to face disruptions from legal issues, negative publicity or loss of trust, enabling steady growth.
• Investor confidence: Investors are increasingly interested in companies with strong ethical practices. Protecting customers and third parties can attract investment by demonstrating that a business is well-managed, risk-averse and committed to ethical standards.

Moral responsibility

• Moral integrity: Beyond business benefits, protecting customers and third parties is simply the right thing to do. It reflects a commitment to moral integrity and respect for others, aligning business practices with ethical principles.
• Human dignity: Ensuring safety and fairness upholds the dignity and rights of individuals. Ethical businesses recognise their role in safeguarding these rights, contributing to a more just and equitable society.

Regulatory alignment and futureproofing

• Regulatory compliance: Ethical practices ensure alignment with current regulations and help businesses anticipate and adapt to future legal requirements. By prioritising customer safety and data protection, companies can stay ahead of regulatory changes.
• Proactive ethical standards: By setting high ethical standards, businesses can influence industry norms and contribute to the development of better regulations that protect consumers and third parties.