What Are the Risks of Losing Stakeholder Confidence?
Failure to maintain stakeholder confidence can have dire consequences:
Decreased Investment: Investors may withdraw their funds, leading to reduced capital and potential financial instability. Employee Turnover: Loss of confidence among employees can lead to increased turnover, higher recruitment costs, and lowered productivity. Customer Attrition: Customers may switch to competitors, resulting in lost sales and market share. Supplier Issues: Suppliers may become hesitant to extend credit or enter into long-term contracts. Community Backlash: Negative public perception can lead to protests, boycotts, and regulatory scrutiny.