What are the Consequences of Losing Stakeholder Trust?
Losing stakeholder trust can have dire consequences:
- Financial Loss: Investors and customers may withdraw their support, leading to reduced funding and sales. - Reputation Damage: Negative public perception can harm brand image, making it difficult to attract new customers and retain existing ones. - Operational Challenges: Employees might lose motivation, leading to decreased productivity and increased turnover. - Legal Repercussions: Breach of trust could result in legal actions and regulatory fines, further straining financial resources.