Accommodation strategy occurs when taking responsibility for actions due to what triggers?

• A. Encouragement from special interest groups; Perception that failure to act will result in government intervention
• B. Waiting for government to intervene before acting
• C. Ignoring stakeholder pressure
• D. Reducing obligations to cut costs

Answer: (A)

An accommodation strategy is used when a company takes responsibility for its actions in response to external pressures from stakeholders, especially to avoid or mitigate government intervention. It’s triggered when influential groups advocate for action and when there’s a perception that not acting could lead to tighter regulation or penalties. So, pressure from special interest groups and the belief that inaction may invite government involvement explain why this approach is chosen.

Waiting for government intervention before acting is a passive stance, not proactive accommodation. Ignoring stakeholder pressure runs counter to accommodation, which is about responding to those concerns. Reducing obligations to cut costs is a cost-cutting move, not about addressing stakeholder demands or regulatory risk.