Evaluate the extent to which corporate social responsibility (CSR) should influence GBS's decision to expand into new land.

Mark scheme

Marking points from the official mark scheme (May/June 2024). The mark or mark type is shown in brackets.

1. [K] Knowledge/explanation of CSR (social/environmental audits), impact on society/environment, stakeholder vs. shareholder view, role of pressure groups, cost of CSR implementation, benefits of CSR (image, employee retention, sales, value, objectives), use of financial investment appraisal.
2. [APP] Application points: unethical incentive to local official, economy needs more building materials, local government permission, Gordy's expansion objective, using renewable energy for extraction, job creation from expansion, villager protests (pollution/noise), Mo's concern about CSR costs.
3. [AN] Ignoring CSR can lead to negative publicity, reputation loss, lost contracts, reduced revenue, and profit.
4. [AN] Implementing CSR actions like renewable energy could increase costs and reduce profitability.
5. [AN] Businesses have a moral responsibility to society to consider their impact.
6. [AN] Profit is a primary goal for private sector business and therefore it is acceptable to make any decision as long as it is within the law to increase profit on behalf of the owners.
7. [AN] Due to the housing shortage society will benefit significantly by GBS producing more building materials therefore GBS does not need to take account of other CSR issues.
8. [EVAL] Consideration of financial versus non-financial implications.
9. [EVAL] If expansion is a primary objective, it might take precedence over profit, provided costs are managed.
10. [EVAL] The commitment of Gordy and Mo to CSR versus profit maximization is a key factor.
11. [EVAL] Assessing whether CSR leads to short-term costs or long-term savings.
12. [EVAL] The importance of CSR to GBS's customers (e.g., construction businesses prioritize cost) should be evaluated.
13. [EVAL] A conclusion regarding the extent of CSR's influence.