Picasso Paints sources 30% of its ingredients from Australian producers, while the remaining 10% are imported from the country Chernobel. Chernobel experienced a nuclear leak at one of its power plants in 2017. This resulted in a significant loss of life with the long-term effects still unknown. Picasso Paint purchases from Chernobel an ingredient that aids in binding mixtures together and acts as a bonding agent. By using this ingredient Picasso Paint can mix up larger batches of solver-based paints which assist in keeping costs down and improves efficiency. Picasso paints have made major efforts to improve its sustainable business practices, but it still has a significant opportunity to improve the processes that are currently in place. One area the business is in the process of auditing is its supply chain. Picasso Paints is working with its suppliers to assess the sustainability of the raw materials.

Required: What are some of the financial, environmental, social and broader issues that Picasso Paints should consider when reviewing all supplier? (Maximum of 300 words) (10 marks)

What are some of the policies that Picasso Paints could implement to manage the issues identified and what would the benefits be? (Maximum of 300 words) (10 marks)