Identify and explain two reasons why P & P might respond to the pressure group and change what the company is doing.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2016). The mark or mark type is shown in brackets.

1. [1] Knowledge [1] - award one mark for each reason (maximum of two).
2. [1] Analysis [1] – award one mark for a relevant explanation for each reason (maximum of two).
3. [2] Application [2] – award two application marks for each reason (maximum of four).
4. Possible reason: Want to keep a good reputation for being environmentally friendly.
5. Possible reason: Wants to keep customers from switching to competitors.
6. Possible reason: Does not want to upset local residents.
7. Possible reason: Wants to avoid fines or legal action.
8. Possible reason: Wants to keep a favourable reputation for being a good employer.
9. Award a maximum of three additional marks for each explanation – 2 of which must be applied to this context – of why the business might respond to the pressure group and change what the company is doing.
10. Indicative response: To not lose customers who may buy from competitors if they are against businesses polluting the environment (k). The pollution affects a lot of people such as fishermen (ap) and may mean there are a greater number of people lobbying the government for the company to reduce pollution put into the river (ap). The more people affected then the more effective the pressure group and the more likely they are to change to another company if P & P do not change the way they produce paint (an).
11. Relevant points for (b) might include:
12. External costs:
13. - Pollution - waste put into river makes children ill, kills fish, people can no longer catch their own fish, have to buy fish now - no clean water
14. External benefits:
15. - Provides jobs; increased sales for fish sellers; taxes paid to government
16. [1-3] Level 1: Outline of external costs and benefits.
17. [4-6] Level 2: Detailed discussion of external costs and benefits on third parties.
18. [7-8] Level 3: Some limited judgement shown in recommendation as to whether or not the government should take any action.
19. [9-10] Level 3: Well justified recommendation as to whether or not the government should take any action.
20. [1] Level 1 - 1 mark for each L1 statement (max of 3 marks) e.g. The company puts waste products into the river.
21. [4] Level 2 – one L2 explanation can gain 4 marks, e.g. The company puts waste products into the river and this kills the fish leading to local people have to increase their spending on food which leaves them less to spend on other products. (4 marks for L2 answer plus one application mark for mentioning catching fish from the river).
22. [2] Award up to 2 additional marks for relevant application.