Strategic Management, Text and Cases by Pearson

EMBEDDING ENVIRONMENTAL AND SOCIAL CONSIDERATIONS IN STRATEGY

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per requirements in each society. In the era of widespread use of social

media, injury to one consumer can cause havoc to the reputation of

the firm.

8.2.7 Reputational Risks and Boycotts

Reputational risks and boycotts refer to the risk related to the trust-

worthiness of a firm. Environmental and social issues present finan-

cial and reputational risks to companies as green consumerism gains

momentum. It is a risk arising from negative perception on the part of

customers, shareholders, regulators, and investors. The consequences

of negative perception include loss of sales, fall ...