CAF-7 · Chapter 7 · Question 14 of 15
If an organization completely ignores sustainability practices and focuses solely on aggressive resource extraction for short-term profit, it is most likely exposing itself to which type of long-term risk?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Regulatory risk (fines and tighter laws) and reputational damage
Explanation
Ignoring sustainability exposes a firm to severe regulatory risks (as governments pass stricter laws) and massive reputational damage (as consumers boycott unethical brands), threatening its long-term survival.
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