SOCIAL & CULTURAL SUSTAINABILITY
Excellence level answers from past examination questions
2011 Sample paper
Q
Explain why it is important for Air NZ to encourage social and cultural sustainability in New
Zealand.
A
As a national airline, largely owned by the NZ government Air NZ has a responsibility to
respect and act responsibly by linking and promoting social and cultural initiatives. They
need to be a reputable brand and since they represent NZ to the world they need to
encourage behaviours that lead to sustainability. They need to be understanding of
diversity, NZ’s bicultural heritage and their impacts on NZ and global society. It is necessary
for them to do this to survive as a 21st century business.
Q
Fully explain how the suggested disregard for Maori culture may negatively impact on Air
NZ.
A
It can portray Air NZ as insensitive to Maori culture and could cast doubt on their attitude
towards other cultures. As a result, customers may not want to do business with them and
go elsewhere. Similarly, employees could also be offended and leave to work elsewhere. This
would impact negatively on their overall reputation and brand image as a national airline.
Q
A strategic response means a business-wide reaction at multiple levels. Evaluate a strategic
response that Air NZ could implement to address this criticism, and to prevent similar
criticism in the future. In your answer you should:
 Explain the suggested response
 Fully explain the negative and positive impacts of the strategic response
 Come to a justified conclusion on the likely success of the suggested strategic response
A

Air NZ needs to address all stakeholders. It can use the media to apologise publicly to all
its customers and fully explain their choice of uniform and that their intention was not
Page 1


to be offensive. The CEO can meet with staff to discuss the company’s objectives and
intentions and answer to any feedback questions, to satisfy and support employees.
They can order a review of the uniform as a result of the feedback and this time invite
appropriate Maori feedback and advice as to how best to portray the symbols. At an
international level they can let the global market know via a media low-key magazine
article that they are overcoming some uniform issues and are excited about the review.
A positive impact could be that all parties appreciate honesty and respond favourably to
an apology and explanation. Negative impacts could be loss of time, increased costs in
carrying out the response, as well as risk of not regaining the reputation.
Overall, the benefits of the response succeeding in terms of repairing the reputation,
engaging with social and cultural groups, being a responsible employer and caring about
its customers, justify going ahead with the strategic response.
2012 paper
Q
Explain why social and cultural sustainability are seen as important.
A
Social and cultural sustainability ensures the things that are important to us now are still
important for future generations. Some stakeholders will regard social and cultural
sustainability as important because they believe it allows us to understand how we are both
similar and distinct from one another/or that they value and wish to retain the customs
that their community has developed. Social and cultural sustainability means that
businesses take care of the community and their employees, and ensures that their values,
beliefs and customs are respected and maintained for future generations.
Q
A strategic response means a business-wide reaction at multiple levels (size, scope,
timeframe). Name a business operating in a global context that you have studied in depth.
Evaluate a strategic response that your named business has taken or could take to support
social and cultural sustainability. In your answer you should:
 Explain one social and/or cultural issue and the strategic response by the business
 Fully explain one positive and one negative impact to the business of the strategic
response
 Draw a justified conclusion on the success or likely success of the strategic response
A (answer given for Heinz Watties)
 New Zealanders feel quite strongly about some food items. When Heinz took over
Watties, it maintained its brands rather than sell under its own brand names, as it does
elsewhere. This required maintaining production, marketing and sales functions in New
Zealand.
 One positive impact is that it has maintained sales of its products, due to the brand
loyalty shown by many consumers. One negative impact is that marketing economies of
scale are lost. Heinz must market their Watties range separately from their international
Heinz range of foodstuffs. This raises costs and makes them less profitable.
 The policy may be successful in the short term, however as New Zealanders become
more aware of Heinz products the benefits of maintaining the Watties line of products
may diminish.
Page 2