CIPS Exam L3M6 Topic 3 Question 11 Discussion

While shareholders seek high ROI, responsibility is increasingly a priority. The CIPS L3M6 module notes that modern shareholders---especially institutional investors---value sustainability, as irresponsible behavior (e.g., pollution scandals) risks long-term profitability and reputation. For example, fossil fuel divestment trends show shareholders pushing for green practices. This falsifies the statement, aligning with LO2's view that environmental responsibility enhances, rather than detracts from, financial success.

________________________________________