ACCA Applied Knowledge · Business and Technology · Social and demographic factors
Brightway Ltd, a manufacturer, finds that customers are increasingly boycotting brands linked to poor labour conditions in supply chains. Which response would best address this change in social attitudes?
Auditing suppliers against a code of conduct and publishing the results is best, because it directly addresses the labour-conditions concern and shows transparency. Extra advertising, fewer product lines or choosing the cheapest supplier ignoring conditions would not resolve customers' ethical objections.
- AAudit suppliers against a code of conduct and publish the resultsCorrect
- BIncrease advertising spend on existing products
- CReduce the number of product lines offered
- DMove production to the cheapest supplier regardless of conditions
Explanation
The concern is labour conditions in the supply chain. Auditing suppliers against a code of conduct and reporting openly tackles the cause and builds trust. Advertising alone does not change practices, fewer products is unrelated, and choosing the cheapest supplier regardless of conditions worsens the problem.
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