What are the consequences of non-compliance with environmental regulations?

Non-compliance with environmental regulations can lead to significant fines and penalties imposed by regulatory agencies, which are designed to enforce adherence to environmental laws. This financial burden can severely impact a company's bottom line. Furthermore, organizations may experience damage to their reputation, leading to loss of trust among consumers, investors, and the community. The negative publicity associated with non-compliance can result in decreased sales and a damaged brand image, which can be long-lasting and difficult to repair.

In contrast, the other options reflect outcomes that are generally associated with compliance and positive environmental practices. For instance, increased employee morale and productivity, as well as enhanced corporate image and community support, typically result from actively engaging in environmental stewardship. Non-compliance, on the other hand, tends to create a hostile environment both inside the organization and in the community, undermining any potential for positive relationships and goodwill.