Which strategy is characterized by a company taking a defensive stance towards regulatory compliance?

The strategy characterized by a company taking a defensive stance towards regulatory compliance is best represented by the defense option. This approach involves the company actively seeking to protect itself against potential regulatory penalties and legal risks by adhering to existing laws and regulations. Businesses adopting a defensive strategy often do so to minimize liabilities, avoid penalties, and ensure they are adequately meeting compliance requirements without necessarily engaging in efforts to exceed them.

In contrast, a proactive strategy would involve the company going beyond mere compliance, actively anticipating future regulations and making adjustments ahead of time to meet those anticipated requirements. The reactive strategy, on the other hand, typically signifies a response to regulatory changes only after they have been enacted, rather than developing a preemptive approach. Accommodation usually implies a willingness to adapt and perhaps even negotiate with regulators, aiming for compliance in a collaborative manner, which does not reflect a purely defensive stance.

Thus, the defense option clearly encapsulates the essence of a company focusing primarily on protecting itself within the scope of current regulations without additional engagement.