Analyse the benefits to BSJ of implementing a corporate social responsibility policy for the purchase of raw materials.

Mark scheme

Marking points from the official mark scheme (May/June 2019). The mark or mark type is shown in brackets.

1. [Knowledge] Meeting legal and ethical requirements in target markets meaning more sales and/or access to markets
2. [Knowledge] Opportunities for PR
3. [Knowledge] Ethical suppliers mean less likelihood of fraud
4. [Knowledge] Annual report can contain details of good practice
5. [Knowledge] Possible competitive advantage
6. [Knowledge] Getting ahead of wider possible legal changes
7. [Knowledge] Buyers build up trust possibly leading to beneficial dealing
8. [Application] Reference to diamonds, gold, silver used to make the jewellery
9. [Application] Reference to specialist suppliers used
10. [Application] Reference to suspicion that money paid to suppliers is being used to fund criminal activities
11. [Application] Attitude of retail customers overseas and their desire for ethically sourced supplies
12. [Analysis] Ethically sourced gold etc could
13. [Analysis] Increase customer loyalty and reduce price elasticity of demand resulting in an increase in sales and/or the ability to increase price and profit margin
14. [Analysis] May limit pressure group activity and result in improvement in BSJ's public image leading to an increase in sales
15. [Analysis] Highlighting BSJ's ethical sourcing policy could give BSJ more control over pricing and increase profit
16. [Analysis] Use of USP to improve competitiveness and therefore boost sales