Business Studies Q2c – Corporate social responsibility | HSC HSC Practice – StudyPulse
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Business Studies HSC HSC Practice Question 2c – Corporate social responsibility

Q2c Business Studies Corporate social responsibility Module 1 - Outcome 2

NeuroNest Pty Ltd is an Australian business that assembles “smart home” voice assistant hubs (a speaker with microphones and a processor). The business promotes fast delivery and low prices, and it competes against larger global brands.

NeuroNest’s operations manager is reviewing the end-to-end operations system after two issues:

  • A consumer group reported that many returned devices are being sent to landfill because the hubs are difficult to disassemble and contain glued-in batteries.
  • A local council asked NeuroNest to clarify whether its warehouse and logistics partners are complying with new state e-waste handling rules.

Current operations details:

  • Assembly occurs in Melbourne using imported components.
  • The hub casing is made from virgin ABS plastic.
  • The battery is sealed using industrial adhesive; replacing it requires breaking the casing.
  • NeuroNest offers a 12-month warranty. After warranty, customers can pay a flat fee of \$79 for replacement, but the business typically swaps the whole unit rather than repairing.
  • NeuroNest’s warehouse uses a third-party logistics (3PL) provider. The 3PL contract requires compliance with workplace safety laws and relevant waste regulations.

NeuroNest is considering an operations redesign that would change product design, sourcing, and reverse logistics. Three options have been costed for the next 12 months:

Option Operations change Upfront cost Ongoing cost impact Operational impact
A Redesign casing with screws and a replaceable battery module; publish repair instructions to customers and independent repairers \$420,000 +\$3.20 per unit Assembly time increases by 2 minutes per unit; expected to reduce return-to-landfill rate by 55%
B Keep current design; introduce a take-back program with prepaid return labels and partner with a certified e-waste recycler \$90,000 +\$8.50 per returned unit Expected to divert 80% of returned units from landfill; no change to assembly time
C Switch casing material to 70% recycled ABS from a new supplier; keep sealed battery design \$0 +\$1.10 per unit No change to assembly time; supplier states it meets all legal requirements but will not provide independent verification of recycled content

Additional information:

  • NeuroNest sells 60,000 hubs per year at \$199 each.
  • Last year, 7% of units were returned (warranty and non-warranty combined).
  • A competitor recently faced backlash for advertising “eco-friendly electronics” while only meeting minimum legal disposal requirements.
  • No regulator has issued NeuroNest a fine or formal notice to date.

Question 2c

8 marks

Recommend the best combination of options (A, B, and/or C) NeuroNest should implement over the next 12 months. Justify your recommendation by evaluating trade-offs between cost, operational feasibility, and corporate social responsibility (including the risk of meeting legal minimums but failing ethical expectations).

Your Answer

0 words

About This Business Studies Question

This is a free HSC HSC Business Studies practice question worth 8 marks, testing your understanding of Corporate social responsibility. It falls under influences in Module 1: Operations. Submit your answer above to receive instant AI-powered marking and personalised feedback.

Subject
Business Studies – Higher School Certificate (NSW) HSC
Module 1
Operations
Outcome 2
influences
Content Point
Corporate social responsibility

Content Point Detail

corporate social responsibility - the difference between legal compliance and ethical responsibility - environmental sustainability and social responsibility

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