PKN manufactures glass. Contributing to sustainable development is important to the business. PKN has factories in 30 countries. It has 27000 employees. The Managing Director knows PKN has benefited from globalisation. She plans to expand the business using external growth. Retained profit is one source of finance a business could use to fund expansion. Some of PKN's directors are concerned about possible diseconomies of scale as the business grows. Outline two ways PKN could contribute to sustainable development. Way 1: Way 2: .......................................................................................................................................

Business
IGCSE&ALevel
CAIE
Exam No:0450_s25_qp_11 Year:2025 Question No:4(c)

Answer:

Award 1 mark for each relevant way (max 2 ).
Award 1 mark for each relevant reference to this business (max 2).

Points might include:
- Use renewable energy [k] in each of the 30 countries [app]
- Use energy efficient/environmentally friendly methods [k] to make glass [app]
- Use fewer resources/reduce output [k] in its factory/factories [app]
- Recycle waste [k]
- Use/develop new environmentally friendly products [k]
- Avoid/reduce use of chemicals (that produce toxic waste) [k]
- Use packaging made of recycled material \([\mathrm{k}]\)
- Use packaging that can be recycled/reused [k]
- Avoid unnecessary travel [k]
- Use local supplier [k]
- Replant trees [k]
- Switching to environmentally friendly transport or examples [k]

Other appropriate responses should be credited.

Knowledge points:

6.2.1.1. How business activity can impact on the environment, e.g. global warming
6.2.1.2. The concept of externalities: possible external costs and external benefits of business decisions
6.2.1.3. Sustainable development; how business activity can contribute to this
6.2.1.4. How and why business might respond to environmental pressures and opportunities, e.g. pressure groups
6.2.1.5. The role of legal controls over business activity affecting the environment, e.g. pollution controls
6.2.1.6. Ethical issues a business might face: conflicts between profits and ethics
6.2.1.7. How business might react and respond to ethical issues, e.g. child labour, paying fair prices to suppliers

Solution:

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