CIE IGCSE Topical Past Paper 1
6.2 Environmental and ethical issues
045/12/M/J/2024
RBG is an oil company. It has operations in 6 countries. RBG has 2000 employees including 60 managers. Some of its managers use a laissez-faire leadership style. All of RBG’s internal communication uses information technology (IT) based methods. The Managing Director knows RBG’s business activities can create external costs and external benefits. She says: ‘Pressure groups often try to influence business decisions.’
(c) Outline one external cost and one external benefit RBG’s business activities might create. [4]
External cost:
External benefit:
(e) Explain two ways a pressure group might try to influence business decisions. Which way do you think is likely to be the most effective? Justify your answer. [6]
045/11/M/J/2024
CFG is a social enterprise. It buys cocoa beans from local farmers and then uses the beans to make chocolate. Being ethical is important to the business. CFG has developed a new chocolate bar. The Marketing Manager plans to use skimming as its pricing method, and retailers as its distribution channel for the new product. He knows there are many legal controls over marketing that might affect a business.
(e) Do you think being ethical will always lead to lower profit for a business? Justify your answer. [6]