Re: 12 Analyse how a company's poor environmental record could negatively affect its share price
Posted: Wed Oct 22, 2025 4:49 pm
[KN]It can damadge their reputation.
[APP]For example an oil company responsible for an oil spill may see its share price fall as people boycott its products.
[AN]Thus when investors lose confidence in a company’s future profits or reputation due to environmental issues, demand for its shares falls, causing the share price to decrease which can lead towards a decline in brand image and thus reduce customer loyalty.
[APP]For example an oil company responsible for an oil spill may see its share price fall as people boycott its products.
[AN]Thus when investors lose confidence in a company’s future profits or reputation due to environmental issues, demand for its shares falls, causing the share price to decrease which can lead towards a decline in brand image and thus reduce customer loyalty.