This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here.

Specification: Units 1, 3, 4, 5. Introduction to Business Management; Finance and Accounts; Marketing; Operations Management

Read the article below and then answer the questions:

Tony’s Chocolonely boss says investing in farmers is good for business

• To what extent should businesses prioritise ethical sourcing over shareholder profit maximisation? Use the perspectives of Lamont, consumers, and shareholders to frame the debate

• How can a business’s commitment to sustainability create sustainable competitive advantages?

• Identify the key stakeholders mentioned or implied in the article (farmers, consumers, shareholders, the company/Tony’s CEO, competitors, governments)

• Analyse the potential conflicts between these stakeholders if cocoa prices were to fall. Should Tony’s cut its prices for consumers, pay farmers more, or increase dividends for shareholders?

• Use the article to conduct a short STEEPLE analysis. Focus on:

1. Economic factors, such as fluctuating cocoa commodity prices.

2. Social/Ethical factors, such as growing consumer awareness of issues like child labour in the cocoa farming industry and fair pay for farmers.

3. Environmental factors, such as the impact of poor harvests, disease, and adverse weather on supply

(a)     Define the term ethical objectives [2 marks]

(b)     Define the term stakeholders [2 marks]

(c)     With reference to Tony’s Chocolonely, explain two benefits of having a unique selling point/proposition (USP) [4 marks]

(d)     Explain one advantage and one disadvantage for Tony’s Chocolonely of its ethical sourcing strategy [4 marks]

InThinking subscribers can also access Paper 3 resources for Tony’s Chocolonely here.

Paul Hoang, InThinking