Which of the following risks can result from consumer boycotts?

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

The risk that can result from consumer boycotts is a reduction in sales. When consumers choose to boycott a company, they actively decide not to purchase its products or services, which directly affects the company’s revenue. This decline in sales can lead to significant financial consequences, including a decrease in profits, potential layoffs, and diminished market share.

Additionally, consumer boycotts can also have a long-lasting impact on a brand's reputation, as public perception can be swayed against the company, making it more challenging to recover sales even after the boycott ends. Organizations must therefore address the reasons behind boycotts proactively to mitigate these risks and maintain their customer base.

The other options, such as increased operational efficiency, higher quality products, and market dominance, do not logically result from a consumer boycott. Instead, they may be affected negatively due to the boycott's impact on company resources and public sentiment.

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