Social Responsibility of Business
14 Grade 10 Business Studies questions on Social Responsibility of Business, with worked marking schemes. 14 questions are available on this topic in full.
Question 1
4 marksDescribe two social responsibilities that a tea factory owes its employees.
(4 marks)
Marking scheme
Award 1 mark for each responsibility named and 1 mark for the description, to a maximum of 4 (2 x 2). Any two of: 1. Safe working conditions (1) - providing protective clothing, gumboots and guards on machines, and training workers on safety (1). 2. Fair remuneration (1) - paying at least the agreed wage, on time, and remitting the workers' statutory deductions (1). 3. Training and development (1) - equipping workers with new skills and giving chances for promotion (1). 4. Reasonable working hours and leave (1) - avoiding overworking staff and granting annual, sick and maternity leave (1). 5. Fair treatment (1) - hiring and promoting without discrimination and hearing workers' grievances (1).
Question 2
1 markWhich one of the following is a social responsibility of a manufacturing firm towards its employees?
A. Providing protective clothing and a safe working place
B. Planting trees along the public road outside the gate
C. Selling its goods at fair prices
D. Paying single business permit fees to the county government
(1 mark)
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3 marksOutline three benefits that a supermarket chain may gain from being socially responsible.
(3 marks)
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6 marksExplain three ways in which a cement factory in Athi River can act responsibly towards the environment.
(6 marks)
Marking scheme
Award 1 mark for each way identified and 1 mark for the explanation, to a maximum of 6 (3 x 2). Any three of: 1. Fitting dust filters and controlling emissions (1) so that dust and smoke do not pollute the air breathed by residents and settle on crops (1). 2. Treating waste water before discharge (1) so that the stream used by households and livestock is not contaminated (1). 3. Rehabilitating exhausted quarries by refilling them and planting trees/grass (1) so that the land is restored and open pits do not endanger people and animals (1). 4. Controlling noise and vibration from blasting by using set hours and limits (1) so that nearby homes and schools are not disturbed (1). 5. Recycling and safely disposing of solid waste such as used bags and clinker dust (1) instead of dumping it on open land (1).
Question 5
2 marksExplain what is meant by the social responsibility of a business.
(2 marks)
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1 markA hardware business keeps accurate books of account and uses the firm's money only for approved business purposes. This mainly shows social responsibility towards
A. the county government, which collects land rates from it
B. its owners, who are entitled to a true account of their investment
C. its customers, who want to buy goods at lower prices
D. its competitors, who trade in the same market centre
(1 mark)
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1 markWhich one of the following actions by a milk processing plant shows social responsibility towards its customers?
A. Donating desks to a primary school in the neighbourhood
B. Remitting its taxes to the Kenya Revenue Authority on time
C. Printing the correct volume and expiry date on every packet
D. Paying its workers above the minimum wage
(1 mark)
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3 marksSuggest three consequences that a fish processing plant on the shores of Lake Victoria may face if it continues to release untreated waste into the lake.
(3 marks)
Marking scheme
Award 1 mark for each correct consequence, to a maximum of 3. Any three of: 1. Prosecution and heavy fines imposed by the environmental regulator. 2. Suspension or withdrawal of its operating licence, or closure of the plant. 3. Loss of customers and markets as buyers boycott its products. 4. Hostility, demonstrations or court action from the fishing community. 5. Destruction of fish stocks, which are its own raw material, raising its costs. 6. Heavy clean-up and compensation costs. 7. Damage to its reputation, making it hard to attract investors or partners.
Question 9
1 markWhich one of the following best shows a business being socially responsible towards the government?
A. Advertising its products on a local radio station
B. Declaring all its income truthfully and paying its taxes on time
C. Employing all its workers on casual terms in order to cut costs
D. Offering discounts to its most loyal customers
(1 mark)
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1 markA quarry company near Athi River repairs the murram road used by villagers and fits dust screens on its crushers. Which one of the following is the most likely benefit to the company itself?
A. It will no longer be required to pay rates to the county government
B. Its cost of producing each tonne of ballast will fall immediately
C. It will be exempted from obeying environmental laws
D. It will enjoy community goodwill and support for its operations
(1 mark)
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1 markA tea processing factory in Kericho installs a plant that treats its waste water before it is released into the nearby river. This action best demonstrates the factory's social responsibility towards which of the following?
A. Its shareholders, because treated water raises their dividends
B. The surrounding community and the natural environment
C. Its employees, because they live near the river
D. Its suppliers, because they deliver green leaf to the factory
(1 mark)
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2 marksDistinguish between a business's social responsibility to its customers and its social responsibility to the community.
(2 marks)
Marking scheme
Award 1 mark for each side correctly stated, to a maximum of 2: 1. Responsibility to customers - duties owed to those who buy from the business, such as selling safe goods of the stated quality, using correct weights and measures, charging fair prices, labelling truthfully and honouring guarantees (1). 2. Responsibility to the community - duties owed to the people living around the business whether or not they buy from it, such as employing local people, supporting local schools, health facilities and roads, and avoiding pollution and noise (1).
Question 13
1 markA shopkeeper in Meru receives a carton of cooking fat that will expire in two weeks. Which one of the following actions is the most ethical?
A. Storing the tins until after the expiry date and then selling them cheaply
B. Telling customers the expiry date and selling the fat at a reduced price before it expires
C. Rubbing off the expiry date before displaying the tins on the shelf
D. Selling it quickly at the normal price without mentioning the date
(1 mark)
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4 marksState four groups to which a manufacturing business owes social responsibility.
(4 marks)
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