Social trends, such as demographic shifts, diversity and inclusion, or changing consumer behavior, can impact companies differentlyeven within the same sector. The extent of impact depends oncorporate culture, business model, and regional market dynamics.
For example, two technology companies may face the same social trend (e.g., remote work demand), but their responsediffers based on leadership philosophy, operational strategy, and corporate values.
Option A is incorrect because different industries experiencevarying levels of exposureto social trends. Option B is incorrect because economic development significantly influences how social trendsmanifest and affectbusinesses.
[References:, CFA Institute ESG Integration Guide, World Economic Forum (WEF) Global Risks Report, MSCI ESG Research on Social Trends and Corporate Adaptation, ========, , ]
Submit