Understanding Business, 10th Edition

Published by McGraw-Hill Education
ISBN 10: 007352459X
ISBN 13: 978-0-07352-459-7

Chapter 16 - Using Effective Promotions - Critical Thinking - Page 458: 1

Answer

Primarily, the firm could endanger its public reputation.

Work Step by Step

If a firm doesn't communicate with environmentalists, the news media, and the local community, the firm could endanger its public reputation (primarily), which also damages its ability to make profit. Dupont, for example, is not responsible to communities. As a result, they have been hit with a tremendous number of lawsuits and reduced sales.
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