Source 1: A new company policy on corporate social responsibility (CSR) states that all suppliers must adhere to strict environmental standards and fair labor practices. Source 2: An internal audit report reveals that 30% of current suppliers are located in countries with weak environmental regulations, and 20% have been flagged for potential labor rights issues in the past five years. Which of the following is the most immediate challenge Company Z will face in implementing its new CSR policy?
✓ Correct Answer: Option C
The audit report shows a significant portion of current suppliers (30% + potentially 20%) are non-compliant. Terminating these suppliers to meet the new policy's strict standards would immediately disrupt the existing supply chain, posing a critical challenge.