A report indicates that a firm will likely suffer financial penalties because they have failed to meet environmental standards, and their stock price plummets. Which of the following BEST describes the firm's most serious failure?

a. they failed to justify their decisions in a persuasive manner.

b. They failed to maximize shareholder's wealth with long-term planning.

c. They failed to pay attention to legislation affecting them.

d. They failed to make a commitment to the environment.