Question :

1. What is organizational legitimacy and why might it be considered to be a 'resource'?

2. If an organization's management supposed that the organization might not have operated in accordance with community expectations (it broke the terms of the social contract), consistent with Legitimacy Theory, what actions could you expect management to undertake in the following period?

3. (a) Apply the managerial perspective of Stakeholder Theory to describe whether management would care about the concerns of the charity One Parent Families.

(b) If we applied an ethical perspective of Stakeholder Theory, could management care?

(c) If society considered that the banks' policies were unreasonable, would you expect the banks to use their annual reports to defend their position (legitimacy)?

4. Could you expect management to worry about attitudinal surveys? Describe your answer, as well as explaining how such surveys might impact on the disclosure policies of an organization.