Cambridge IGCSE Commerce: Sustainability and Ethics — Revision Notes

Topic 6 of Cambridge IGCSE Commerce (0715, 2028) asks how businesses can trade without harming the planet or treating people unfairly, and how consumers are protected when things go wrong. It has three short sections - 6.1 Sustainability, 6.2 Ethics and 6.3 Consumer protection - but questions on it are usually applied to a scenario and often ask you to evaluate a business decision, so learn each action with a benefit and a drawback.

For full explanations see the sustainability and ethics study guide, then practise with the sustainability and ethics practice questions.

Syllabus coverage (0715, 2028)

Section	Content
6.1 Sustainability	Purpose of sustainability in the supply chain; nine actions to improve sustainability
6.2 Ethics	Meaning of ethics; role of fair trade; misleading advertising and harmful disposal of products
6.3 Consumer protection	Reasons for consumer protection; actions by buyers and sellers to resolve complaints

What is the purpose of sustainability in the supply chain? (6.1.1)

To make commercial processes eco-friendly and environmentally responsible for future generations. In other words, today’s buying, making, moving and selling should not use up resources or damage the environment in ways that leave future generations worse off.

Which actions improve sustainability? (6.1.2)

Action	Example	Benefit to the business	Possible drawback
Sustainable materials	Recycled cotton, certified timber	Appeals to eco-conscious customers	Often more expensive
Sustainable logistics	Electric vans, fuller loads, route planning	Lower fuel costs over time	Investment in new vehicles
Reducing packaging	Refill stations, minimal wrapping	Lower material and waste costs	Products may be less protected
Selling eco-friendly products	Biodegradable cleaning products	New market segment	Higher prices may lose some buyers
Recycling and reducing waste	Reusing offcuts, recycling cardboard	Lower disposal costs	Sorting systems cost time
Reducing returns and exchanges	Accurate size guides, clear product photos	Fewer delivery journeys and less waste	Needs better product information
Digital resale marketplaces	Platform for customers to resell used items	Customer loyalty; extra income	Running the platform costs money
Free repair services	Repairing clothes or electronics	Longer product life; good reputation	Fewer repeat purchases in the short term
Water stewardship	Reducing and treating water used in production	Lower water bills; protects local supply	Treatment equipment is costly

What does ethics mean in commerce? (6.2)

• Ethics = moral principles about what is right and wrong, guiding how a business behaves beyond what the law requires.
• Fair trade: producers in low-income countries are paid a fair, stable price and work in decent conditions; buyers may pay a premium for community projects. Role in commerce: protects small producers from low world prices, gives consumers an ethical choice and can strengthen a retailer’s reputation.
• Ethical issues:
  • Misleading advertising - false or exaggerated claims about a product, such as hidden charges or untrue health benefits. It damages trust and can lead to legal action.
  • Harmful disposal of products - dumping waste, unsafe disposal of electronics or chemicals, or sending waste to places that cannot treat it.

Why do consumers need protection? (6.3)

• Sellers usually know more about products than buyers.
• Goods may be unsafe, faulty or not as described.
• Consumers can be misled by advertising or pricing.
• Individual consumers have less power and money than large businesses if a dispute arises.

How are complaints resolved?

Buyer’s actions	Seller’s actions
Keep the receipt and evidence of the fault	Listen to and record the complaint
Complain to the seller first, calmly and in writing if needed	Offer a repair, replacement or refund
Escalate to the manager or head office	Apologise and offer goodwill, e.g. a voucher
Contact a consumer protection organisation or regulator	Investigate and fix the cause
Take legal action as a last resort	Train staff to handle complaints well

Worked example: applying the content

A clothing retailer finds that 30% of online orders are returned, mostly for poor fit.

• Sustainability problem: extra delivery journeys and waste from returned items.
• Actions: reduce returns with better size guides and photos; offer a digital resale marketplace for items that do not fit; use reusable packaging for returns.
• Evaluation: these actions cut costs and emissions, but take time and money to set up; the retailer must decide whether savings outweigh the costs.

Common mistakes and exam traps

• Defining sustainability as “being green” without mentioning future generations.
• Treating ethics as the same as the law - ethics goes beyond legal requirements.
• Saying fair trade means “cheap prices” - it means fair prices to producers.
• Describing consumer protection without saying what the buyer or seller actually does.
• Giving only benefits of sustainable actions when the question asks you to evaluate.
• Mixing up sections: misleading advertising is an ethical issue (6.2), while the steps to resolve a complaint belong to consumer protection (6.3).

Frequently asked questions

Is sustainability only about the environment? In 0715 the purpose is stated in environmental terms: eco-friendly, environmentally responsible processes for future generations. Ethical treatment of people is covered under 6.2.

How does fair trade help commerce? It gives producers a fair, stable income, offers consumers an ethical choice and can improve the reputation and sales of businesses that stock fair trade goods.

Why is harmful disposal of products an ethical issue? Dumping waste or sending old electronics to places that cannot treat them safely may be cheaper, and may even be legal in some countries, but it damages the environment and the health of people who live nearby. An ethical business considers that harm, not just the cost or the law.

What should a customer do first with a faulty product? Return to the seller with the receipt and evidence, and ask for a repair, replacement or refund before escalating.

Official syllabus

Cambridge IGCSE Commerce (0715) syllabus for 2028 - official syllabus PDF, Topic 6.