A wildlife charity operates a visitor centre beside a wetland. Entry fees and donations pay for staff, while any surplus is used to restore habitats. The ch...
Question 1 Report
A wildlife charity operates a visitor centre beside a wetland. Entry fees and donations pay for staff, while any surplus is used to restore habitats. The charity has decided not to sell advertising space to a company that would damage the wetland, despite being offered a high payment.
(a) Identify the main purpose of the charity. [1]
(b) Explain one reason why the charity may reject the advertising payment. [2]
(c) Which stakeholder is most likely to support habitat restoration: visitors or a competing advertising company? [1]
(d) What happens to surplus funds in this charity? [1]
Answer Details
(a) The charity's main purpose is to protect or restore wildlife habitats, which is an environmental and social aim rather than profit maximisation. [1]
(b) The advertising payment may be rejected because advertising for a company that damages the wetland would conflict with the charity's environmental mission. This could also reduce support from visitors and donors, who may expect the charity to protect the habitat. [2]
(c) Visitors are most likely to support habitat restoration, because a healthy wetland supports the purpose of their visit. [1]
(d) Surplus funds are reinvested in habitat restoration or other charity aims. A charity may need income to operate, but it uses any surplus to pursue its mission rather than distribute it to owners. [1]
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