Exam L5M5 Topic 1 Question 20 Discussion

Actual exam question for CIPS's L5M5 exam
Question #: 20
Topic #: 1
EcoWear, a well-known apparel company committed to sustainability, has recently expanded its supply chain but failed to address key ESG issues, leading to the following concerns:
A supplier has been reported for using toxic dyes, causing environmental harm.
Another supplier has poor labor practices, resulting in worker strikes.
If these ESG issues remain unresolved, what are the most likely consequences for EcoWear? Select any TWO.

Suggested Answer: C,D Vote an answer

Choice A- Increased Sales is unlikely, as consumers are increasingly aware of ESG issues and may choose to avoid brands that don't align with their values.
Choice B- Legal Benefits is also unlikely, as failing to address ESG issues could actually increase regulatory scrutiny and legal risks.
Option C & D is the answer as per the study guide.

Reference: LO-1.1; Page 53; Impact of breaches of ethical codes or ESG standards on reputation and brand

by Nathaniel at Sep 12, 2025, 04:11 AM

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