The seven most likely case studies for BUSS4 CSR

Predicting exam questions is a mug’s game. But some sensible thinking can focus revision and build confidence before an exam. That’s what this blog entry is about, as I consider what business or industry will set the scene as the stimulus material for the two AQA BUSS4 CSR essay questions in Section A? I’m adding my seven predictions to this blog entry today.

Remember that in Section A students have to refer to BOTH the stimulus material AND their own research. The stimulus material cannot be ignored - it is fundamental to achieving good application. The stimulus material also provides rich opportunities for writing “compare and contrast” sentences where a student can develop an argument by examining the differences between the featured firm/industry and other relevant examples

The stimulus material isn’t designed to fool or shock the candidate. You can expect it to be pretty accessible and perhaps familiar to students who have kept in touch with significant business stories during the course of their studies.

For example, for the previous research theme (UK recession) the stimulus materials focused on the UK car industry (June 2010) and Dominos Pizza (January 2011). Both these two were highly predictable and had been covered extensively on resources like the tutor2u Business Studies blog!

The BUSS4 examiner writes high quality papers - he uses firms and industries which provide plenty of potential for high quality answers. So what might he opt for this time in relation to CSR?

The BUSS4 exam was written a little time ago - so for inspiration for potential cases we might look back to 2010 (and perhaps 2009) for some significant business news stories which might have captured the imagination of the examiner. The BUSS4 exam paper is a closely guarded secret - so no guarantees. But we like the following examples which could easily appear. If they don’t, then these are ready-made examples to use as your evidence-based research in the essay you choose to write! Don’t forget - you need to compare and contrast with the stimulus material. Make sure you are prepared to do just that!

Our Seven Chosen Firms / Industries are:

Unilever opts for a strategy of sustainability

http://www.tutor2u.net/blog/index.php/business-studies/comments/csr-unilevers-sustainable-living-plan/
http://www.tutor2u.net/blog/index.php/business-studies/comments/csr-an-interview-with-paul-polman-unilever/
http://www.tutor2u.net/blog/index.php/business-studies/comments/csr-project-shakti/
http://www.tutor2u.net/blog/index.php/business-studies/comments/sustainable-sourcing-unilever-and-the-palm-oil-problem/

Unilever, one of the world’s biggest consumer multinationals, took a major change in strategic direction in November 2010 with the launch of its Sustainable Living Plan. Here is a business that has put CSR right at the top of its corporate objectives, backing in full the potential benefits of CSR. Unilever regularly appears at the top of rankings of firms/brands based on their reputation for CSR.

Apple and the CSR Problems in its Supply Chain

http://www.tutor2u.net/blog/index.php/business-studies/comments/csr-apple-audits-the-supply-chain/
http://www.tutor2u.net/blog/index.php/business-studies/comments/csr-apple-big-profits-but-dirty-data/
http://tutor2u.net/blog/index.php/business-studies/comments/the-dark-side-of-the-ipad-and-iphone/

An obvious candidate for the BUSS4 paper - but also a very good one. Here is an iconic global brand which has enjoyed rapid growth in revenues and profits despite some well-publicised problems with working conditions at its main suppliers in China. Apple’s response to the criticisms has been pretty well-received - it has made the process of supplier audits transparent and has acknowledged many of the CSR problems encountered at its factories.

Fast fashion and Primark

http://www.tutor2u.net/blog/index.php/business-studies/comments/csr-lesson-video-primark-on-the-rack/
http://tutor2u.net/blog/index.php/business-studies/comments/the-primark-question/
http://www.tutor2u.net/blog/index.php/business-studies/comments/csr-avoiding-the-child-labour-hotspots/
http://www.tutor2u.net/blog/index.php/business-studies/comments/csr-responsible-jeans-its-a-blast/
http://www.tutor2u.net/blog/index.php/business-studies/comments/csr-lesson-video-child-labour-in-bangladesh/

Another obvious target for the examiner, and a broader opportunity to invite students to consider an industry (fashion retail) rather than just one firm or brand. Primark was the main target of the (now discredited) Panorama documentary on working conditions in Bangladesh. However, many other global fashion brands have been caught out by the media and/or pressure groups who have highlighted the exploitation of child labour and other problems at garment factories in emerging markets.

Sustainable retailing as a competitive advantage (M&S Plan A & Cooperative Group)

http://www.environmental-finance.com/news/view/1771
http://www.guardian.co.uk/sustainable-business/staff-plan-worlds-sustainable-retailer
http://www.tutor2u.net/blog/index.php/business-studies/comments/csr-cooperative-group-invites-you-to-join-a-revolution/
http://www.tutor2u.net/blog/index.php/business-studies/comments/csr-insights-from-the-leader-of-the-revolution/

Do consumers really care about CSR? That could be a fruitful line of attack for the examiner and the two examples here are great illustrations in an industry in which some major players see CSR as a source of competitive advantage (compare with the negative CSR reputation of the fast fashion retailers). The two key examples here are M&S Plan A (launched in 2007) and the Cooperative Group’s “Join the Revolution” (early 2011.

M&S Plan A is another obvious target for the examiner. The sustainability plan has been around for several years and there is lots of data/evidence about the benefits/costs of the project. An important point for students to appreciate is that M&S originally expected that Plan A would have a negative impact on profitability, but that it had “no option” (i.e. there is no Plan B!). However, in a statistic likely to be quoted by at least 5,000 students in BUSS4, M&S estimates that Plan A now contributes around £50m to the firm’s bottom line. In fact this stat is out of date - M&S now estimate the annual benefit at £70m.

The Cooperative Group example is more recent (perhaps too late for the exam paper setting?) but still a terrific illustration of CSR as a strategy. I can’t think of a better candidate for compare and contrast points than the Co-op, given its unique ownership structure, its long-term perspective (objectives) and the strength it gains from such a distinctive organisational culture.

Chocolate, Palm Oil and Fairtrade (Cadbury & Nestle)

http://www.tutor2u.net/blog/index.php/business-studies/comments/csr-chocolate-the-bitter-truth/
http://www.tutor2u.net/blog/index.php/business-studies/comments/fairtrade-chocolate-qa-with-divine/
http://tutor2u.net/blog/index.php/business-studies/comments/go-bananas-for-cadbury-and-fairtrade/
http://tutor2u.net/blog/index.php/business-studies/comments/csr-focus-on-fairtrade-fortnight-2011/

How important is the source of the commodities which are used to make popular consumer products such as chocolate? Should global consumer brands take account of the price that they pay suppliers in developing economies and of how those commodities are sourced? Is there a potential business benefit (branding, added value, customer loyalty) from being seen to actively support sustainable sourcing and movements such as the Fairtrade Foundation? The Chocolate examples we’ve chosen were certainly very topical when the exam paper was being set!

Nestle has long been a target for NGOs such as Greenpeace; the campaign to highlight Nestle’s use of palm oil from non-sustainable sources in the production of KitKat was a classic example of how a firm can be forced to become more socially responsible as a result of external stakeholder pressure (but note - perhaps not neccessary for government to intervene given the power of NGOs - bullet 6). However, Nestle is a firm that has embraced CSR strategically. Its vision is “creating shared value” (nice link to Porter).

AQA teachers may be squirming at the thought that Divine Chocolate and Fairtrade might appear in another exam paper this summer - but you never know! Cadbury and Nestle have both committed to the use of Fairtrade-sourced ingredients in their branded chocolate bars - is this a proactive or reactive strategy?

Cut-price alcohol & government legislation v industry self-regulation

http://tutor2u.net/blog/index.php/economics/comments/diagio-opposes-minimum-alcohol-price/
http://www.tutor2u.net/blog/index.php/business-studies/comments/external-influences-supermarkets-reducing-promotions-on-alcohol/
http://www.tutor2u.net/blog/index.php/economics/comments/decision-time-radio-4-government-intervention-and-binge-drinking/

A good topic here for some fruitful questions on the role of NGOs and government in CSR. The social and private costs of alcohol-abuse are well understood. But whose responsibility is it to control how alcohol is sold? Should retailers be allowed to use sales promotion of cut-price alcohol as a loss-leader to drive customer loyalty? Do the drinks manufacturers have a social responsibility to do much more than currently to encourage sensible alcohol use?

Pressure groups and campaigners have long argued for the UK government to ban the sale of cut-price alcohol in the face of increasing health concerns and worries about the rise of violence among drunken teenagers. However, successive governments have been reluctant to act, preferring to leave supermarkets to take responsibility and regulate their own activity.

[to be updated]