ACCA Applied Knowledge · Business and Technology · Sustainable business practices
Marlow Foods is criticised for using suppliers whose workers are poorly paid. Which action would best show social accountability by Marlow Foods?
Auditing suppliers' labour practices and publishing the results best shows social accountability. It addresses the specific concern about worker treatment and lets stakeholders see the company's impact and its response. Higher dividends, lower prices or a cheaper head office do nothing about supplier labour conditions.
- AIncreasing dividends to shareholders
- BAuditing suppliers' labour practices and publishing the resultsCorrect
- CReducing selling prices to customers
- DMoving head office to a cheaper location
Explanation
Social accountability means answering to stakeholders for social impact, here by checking supplier labour conditions and openly reporting. Dividends, price cuts and relocating address financial or cost aims, not the social concern.
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