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Question 1

Advantages of e-commerce

Answer 1

1. Can find out if products are in or out of stock
2. Can increase global market share
3. Customer data can be used for marketing
4. Improved relationship with suppliers
5. Often reduces lead time
6. Saves costs and improves efficiency

Question 2

Disadvantages of ecommerce

Answer 2

1. Concerns about security when purchasing/banking online
2. Delivery problems
3. Fear that retail shops will be replaced by storage warehouses
4. Shopping is more impersonal and less of a social affair

Question 3

CSR policy

Answer 3

1. Community involvement - CSR requires organisations to treat their local community with respect and to engage in some kind of community investment. This can be through: by offering your staffs’ time and skills in developing and maintaining local projects
2. CSR employers treat their staff fairly, equally and value diversity. This is done through: being fair in the recruitment and promotion processes
3. CSR means doing more than complying with the law in treating the environment with respect by:
   reducing energy consumption and minimising waste
4. CSR means you have an obligation to best serve the interests of stakeholders, e.g. customers, shareholders, government, wider society, by:
   meeting conflicting stakeholder demands, e.g. maximising ROI for investors while providing high quality and low cost for customers

Question 4

Benefits of pursuing a policy of CSR

Answer 4

1. It will improve the business’s public image and strengthen the brand
2. It can attract good quality staff and improve employee retention and productivity
3. Due to the increase of ethical investors the business can access new sources of capital for expansion
4. You may be less likely to face litigation and fines
5. Attracts and keeps employees values similar to the firm resulting in higher motivation and productivity

Question 5

Costs of pursuing a policy of CSR

Answer 5

1. Increased business costs lead to a reduction in dividends for shareholders
2. Turning down a lucrative contract because you disagree with the prospective client’s business philosophy
3. Raw ingredients in food production are more expensive, e.g. when using organic ingredients

Question 6

What is corporate social responsibility

Answer 6

It refers to a more holistic approach that an organisation takes to meet or exceed both internal and external stakeholders’ expectations beyond those of simply making profits and meeting legal obligations