Business 0450 · IGCSE · Environmental and ethical issues
Environmental and ethical issues — practice question
FSW is a multinational company that operates in 6 countries. It produces steel used by the construction industry. Quality assurance is employed to make sure production is of a high standard. FSW has numerous stakeholder groups that take an interest in its activities. The Managing Director recognises that FSW’s business generates external costs. She also knows that pressure groups attempt to affect business decisions.
(a)[2]
Define what is meant by ‘external costs’.
(b)[2]
Identify one objective that each of the following stakeholder groups may have:
Employees.
Customers.
(c)[4]
Identify four ways in which a pressure group may try to affect business decisions.
(d)[6]
Explain one possible benefit and one possible drawback for a country that has FSW (a multinational company) operating there.
(e)[6]
Do you think quality assurance is the best method for a business to achieve quality production? Justify your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Expenses paid by society/third parties as a consequence of business activity” …