Analyse two impacts on KTJ of its commitment to corporate social responsibility (CSR).

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2025). The mark or mark type is shown in brackets.

1. [1] Definition of CSR: When businesses consider the interests of society by taking responsibility for the impact of their decisions and activities on stakeholders.
2. [1] Benefits of CSR: Can enhance brand image.
3. [1] Benefits of CSR: Increased sales.
4. [1] Benefits of CSR: Competitive advantage.
5. [1] Benefits of CSR: Greater control over prices – make demand more price inelastic.
6. [1] Limitations of CSR: Cost.
7. [1] Limitations of CSR: Impact on cash flow.
8. [1] Application: Research into plastic bottles to reduce environmental impact of packaging.
9. [1] Application: Using seasonal fruits in juices with no added sugar.
10. [1] Application: Purchasing fruit from local farm cooperatives.
11. [1] Application: Need to audit the farming methods of suppliers.
12. [1] Application: 'Soft' approach to managing human resources.
13. [1] Application: KTJ markets juices as premium products.
14. [1] Application: Seasonal local fruit reinforces KTJ's sustainability strategy.
15. [1] Application: Linking to mission statement.
16. [1] Analysis: Effective CSR can enhance the branding of KTJ.
17. [2] Analysis: Effective CSR can enhance the branding of KTJ resulting in more loyal customers and therefore increase profit.
18. [1] Analysis: Having to change packaging of bottles will increase costs making juices more expensive.
19. [2] Analysis: Having to change packaging of bottles will increase costs making juices more expensive reducing competitiveness against other rival brands leading to a reduction in sales.
20. [1] Analysis: Purchasing fruit from local farm cooperatives may increase costs making juices more expensive.
21. [2] Analysis: Purchasing fruit from local farm cooperatives may increase costs making juices more expensive which will decrease profits.
22. [1] Analysis: KTJ will need to spend more money on auditing its activities.
23. [2] Analysis: KTJ will need to spend more money on auditing its activities which will increase costs.
24. [1] Analysis: Commitment to sustainability can reduce price elasticity of demand and therefore enable KTJ to increase prices.
25. [2] Analysis: Commitment to sustainability can reduce price elasticity of demand and therefore enable KTJ to increase prices and therefore increase profit.