Analyse two benefits to HD of increasing its focus on corporate social responsibility (CSR).

Mark scheme

Marking points from the official mark scheme (May/June 2022). The mark or mark type is shown in brackets.

1. CSR is the policies that demonstrate a business is acting ethically and for the well-being of society and stakeholders.
2. Issues associated with CSR include accounting practices, bribery to win contracts, poor health and safety, environmental responsibility, use of ethical supply chains.
3. Role of triple bottom line related to CSR.
4. Social audits monitor/measure CSR in a business.
5. Pressure groups with particular concerns are stakeholders and they attempt to move organisations in a particular direction.
6. CSR is becoming more important as a factor for businesses and consumers in their purchasing decisions.
7. Greater brand loyalty
8. Increased sales
9. Better employee retention and improved recruitment
10. Provides a USP to HD
11. Reduced pressure from pressure groups
12. Making use of the business context:
13. HD designs, manufactures and supplies circuit boards, not easily recycled
14. Metals used are difficult to recycle – CSR could include designing circuit boards that can be more easily recyclable
15. Supplying to certain customers e.g. social media, police, security forces, governments may have particular CSR implications.
16. Some manufacturers make payments not shown in accounts – unethical.
17. High labour turnover in Design Division – CSR could reduce this.
18. Increasing levels of competition – CSR as a differentiator or USP for HD
19. Two pressure groups and government have requested a social audit – could this cost be avoided with focus on CSR?
20. Building of chains of arguments linked to Knowledge and Application points raised above, drawing out an implication or consequence for HD.
21. Increased monitoring and implementation of CSR could result in increased sales to e.g. universities, some governments
22. Some activities of HD may appear to be problematic regarding CSR, a positive social audit will lead to transparency and improved public image.
23. With increasing competition HD will benefit from further developing competitive advantage. A greater focus on CSR could provide a USP and enable HD to increase sales or increase price as demand may become more price inelastic.
24. Legal, financial and environmental legislation is more likely to be complied with so less risk and possibility of fines.
25. Increased focus on CSR may make HD a more attractive organisation to work for leading to easier recruitment and better labour retention which will reduce costs.