Which of the following best represents a consequence of legal sanctions for unethical practices?

Enhance your understanding of CIPS Ethical and Responsible Sourcing. Use flashcards and multiple choice questions to prepare. Get ready for the CIPS exam!

The consequence of legal sanctions for unethical practices primarily results in high legal costs and potential fines. When organizations engage in unethical behavior, they may face legal proceedings that can lead to significant financial penalties. These costs can arise from various sources, including litigation expenses, settlement payments, and remediation costs to rectify the unethical behavior. Additionally, the negative impact of such sanctions can extend beyond immediate financial implications, affecting an organization's reputation and operational capabilities.

While the other options might seem beneficial at first glance, they do not accurately reflect consequences stemming from legal sanctions for unethical practices. Greater market entry, increased marketing investment, and expanded partnerships are typically goals or outcomes of ethical business practices rather than direct consequences of legal issues. In fact, unethical conduct can hamper an organization’s ability to enter new markets, increase investments, or build partnerships, as stakeholders may become wary of associating with a company that has a history of unethical behavior.

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