Which of the following affects a business’s reputation negatively?

Increased regulation can negatively impact a business's reputation because such regulations may signal to the public that there are more risks and oversight associated with the business’s operations. When a business is subjected to stricter regulations, it may face more scrutiny and could be perceived as less trustworthy or reliable, particularly if these regulations are in response to past issues, such as unethical practices or harm to consumers or the environment. This can lead customers and stakeholders to question the business's integrity and commitment to compliance, ultimately tarnishing its reputation.

In contrast, the other options tend to be associated with positive perceptions. Increased community engagement fosters goodwill and strengthens relationships with local stakeholders, while lower tax obligations can be seen as a financial advantage that could be reinvested into the business or community. Higher employee satisfaction usually translates into better service and productivity, contributing positively to a company's public image.