4C

Question 1

Inputs

Answer 1

Inputs are raw materials or resources used by a business to produce goods and services.

Question 2

Output

Answer 2

Output are the final goods and services provided to customers.

Question 3

Cost conscious customers

Answer 3

Cost conscious customers purchases goods and services primarily based on price. If another business offered a cheaper alternative, these customers would be likely switch immediately.

Question 4

Sustainability

Answer 4

Sustainability is the ability to use something or act in a manner that does not deplete resources for the future.

Question 5

Advantages

Answer 5

.Business’s reputation can be improved when working with socially responsible suppliers, therefore improving its competitiveness.
. Employees may be more motivated to work at a social responsible business and contribute to achieving objectives.
.A business can earn more revenue as customers are likely to have a better perception of a business that is socially responsible.

Question 6

Disadvantage

Answer 6

.Socially responsible suppliers may not offer inputs needed for production.
.It may be time consuming to find ethical suppliers or communicate expectation to suppliers.
.Inputs may be more costly from ethical suppliers due to increased wage costs compared to cheaper unethical suppliers.

Question 7

Example

Answer 7

The Body Shop sells ethical and sustainable hair, beauty and skin related products .The Body Shop is founding member of the ethical trading initiative which promotes fair work rights for employees. The Body Shop currently work with 120 suppliers which together have 30,000 employees. Suppliers of The Body Shop often visits its suppliers to ensure employees and being paid a sufficient wage to maintain their livelihood, provided with work safe working conditions and not being overworked.