What is the disadvantage of divestment?

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2026-08-17 07:55

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Divestment can lead to financial losses for organizations, as selling off assets may result in lower returns compared to holding them long-term. It can also limit the influence of the divesting entity over the targeted industry, reducing opportunities to engage in dialogue and drive change from within. Additionally, divestment might create negative public perception if not aligned with a clear ethical or strategic rationale.

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