Financial Threats

The video discusses financial threats to organizations from environmental and social perspectives. It highlights how environmental factors like commodity prices, regulations, and extreme weather can impact financial stability. The role of institutional investors in promoting climate and supply chain issues is examined. Social movements, such as boycotts and divestment, can also pose financial risks, as illustrated by the BP oil spill case. The importance of business resiliency strategies in addressing these threats is emphasized.

What are some environmental factors that can pose financial threats to an organization?

• Customer satisfaction and brand loyalty

• Market competition and product innovation

• Employee turnover and training costs

• Increased commodity prices and extreme weather

How do institutional investors influence companies regarding environmental and social issues?

• By pushing for transparency and accountability

• By offering tax incentives

• By providing direct financial support

• By reducing interest rates on loans

What is a potential consequence for companies that do not address environmental and social issues?

• Higher employee satisfaction

• Improved brand image

• Increased market share

• Lower financial performance

What was the major financial impact on BP following the oil spill, aside from the regulatory fine?

• Loss of market capitalization due to investor withdrawal

• Government subsidies to cover losses

• Increased sales due to public sympathy

• Higher insurance premiums

How can social movements affect a company's financial health?

• By enhancing customer loyalty

• By reducing operational costs

• By leading to product boycotts and divestment

• By increasing employee productivity