CAIE A-Level Business A2 6.1.3 Social and Demographic Questions

\multirow{5{*}{Level & $\begin{array}{c}\text { AO1 Knowledge and } \text { understanding } \mathbf{2} \text { marks }\end{array}$ & $\begin{array}{c}\text { AO2 Application } \mathbf{2} \text { marks }\end{array}$ & $\begin{array}{c}\text { AO3 Analysis } \mathbf{2} \text { marks }\end{array}$ & $\begin{array}{c}\text { AO4 Evaluation } \mathbf{6} \text { marks }\end{array}$

3 & & & & $\begin{array}{l}\mathbf{5 - 6} \text { marks } \text { Developed evaluation in } \text { context } \text { • } \text { A developed } \text { judgement/conclusion } \text { is made in the } \text { business context. } \text { Developed evaluative } \text { comments which } \text { balance some key } \text { arguments in the } \text { business context. }\end{array}$

2 & $\begin{array}{l}\mathbf{2} \text { marks } \text { Developed knowledge } \text { of relevant key term(s) } \text { and/or factor(s) is used } \text { to answer the question. }\end{array}$ & $\begin{array}{l}\mathbf{2} \text { marks } \text { Developed application } \text { of relevant point(s) to the } \text { business context. }\end{array}$ & $\begin{array}{l}\mathbf{2} \text { marks } \text { Developed analysis } \text { that identifies } \text { connections between } \text { causes, impacts and/or } \text { consequences. }\end{array}$ & $\begin{array}{l}\mathbf{3 - 4} \text { marks } \text { Developed evaluation } \boldsymbol{-} \text { A developed } \text { judgement/conclusion } \text { is made. } \text { Developed evaluative } \text { comments which } \text { balance some key } \text { arguments. }\end{array}$

Level

AO1 Knowledge and understanding 2 marks

3

5-6 marks

Developed evaluation in context

- A developed judgement/conclusion is made in the business context.

- Developed evaluative comments which balance some key arguments in the business context.

3-4 marks

Developed evaluation

- A developed judgement/conclusion is made.

- Developed evaluative comments which balance some key arguments.
\end{tabular}}}

5

Indicative content

AO1 Knowledge and understanding

Limited knowledge ${ }^{\mathrm{K}}$ will be demonstrated through knowledge of CSR or knowledge of how CSR could impact GBS's decision to expand into new land.

Developed knowledge K+K will be demonstrated through knowledge of CSR and knowledge of how CSR could impact GBS's decision to expand into new land.

- Knowledge/explanation of CSR, including social or environmental audits.

- Business should take into account impact of decision on society and the environment.

- Stakeholder view vs shareholder view.

- Role of pressure groups.

- Cost of implementing CSR policies.

Benefits to GBS of CSR approach:

- Image

- Retention of employees

- Increased sales

- Adds value

- Possible objectives of GBS

- Use of financial investment appraisal methods in making the decision.

5

AO2 Application

Limited application, ${ }^{\mathrm{APP}}$ applies knowledge to GBS once.

Developed application, ${ }^{\text {APP }}+{ }^{\text {APP }}$ applies knowledge to GBS twice.

- Paying an incentive to local government official is unethical.

- Economy requires increased supply of building materials.

- Need for permission from local government.

- Gordy has objective of expansion.

- Using renewable energy to extract materials.

- Job creation from expansion.

- Protests from villagers about pollution and noise.

- Mo is concerned about the cost of CSR to GBS.

AO3 Analysis

Limited analysis AN - candidate shows one link in the chain of analysis.

Developed analysis ${ }^{\text {L2AN }}$ - candidate shows two or more links in the chain of analysis.

- Failing to take account of CSR when making decisions could result in negative publicity and a loss of reputation AN this could result in losing contracts to supply building materials resulting in a loss of revenue and profit L2 AN.

- Implementing socially responsible actions such as using renewable energy could increase costs and therefore reduce the profitability of the expansion ${ }^{\mathrm{AN}}$.

- Businesses are part of society and therefore have a moral responsibility to consider the impact of their decisions on society AN.

- Making profit is the primary goal of private sector business and therefore it is acceptable to make any decision as long as it is within the law ${ }^{\mathrm{AN}}$ to increase profit on behalf of the owners L2AN.

- Due to the housing shortage society will benefit significantly by GBS producing more building materials ${ }^{\text {AN }}$ therefore GBS does not need to take account of other CSR issues L2AN.

PUBLISHED

5

AO4 Evaluation

Limited evaluation ${ }^{[\text {vwi }]}$ - limited supported judgement and/or a weak attempt at evaluative comment.

Developed evaluation ${ }^{\text {L2 }}{ }^{\text {Fum }}$ - supported judgement and/or reasonable evaluative comment.

Developed evaluation in context ${ }^{\text {L3 }}$ - supported judgement in context and/or reasonable evaluative comment in context.

- Weighing up the financial vs non-financial considerations.

- If expansion is a primary objective this may be more important than profit as long as costs are covered.

- How committed are Gordy and Mo to CSR or to maximising profit? At the moment we are not sure.

- Does practising CSR actually lead to an increase in costs? Short term costs vs long term savings.

- How important is CSR to GBS's customers? Construction businesses are more likely to be interested in minimising their costs rather than purchasing supplies from a business practicing good social responsibility.

- Conclusion as to extent of influence of CSR.

Accept all valid responses.