What is Legitimacy Theory?Work related learning week 5 JAN24B

Fill in the blank: Legitimacy theory posits that organizations need to be perceived as _______ by their stakeholders, including customers, employees, investors, and the public. This legitimacy is crucial for the organization's survival and success.

• legitimate

• profitable

• innovative

• competitive

Legitimacy represents a ________ to operate, granting the organization permission to exist and conduct business. It's based on the alignment of the organization's actions with societal norms, values, and expectations. Fill in the blank.

• social license

• legal contract

• financial incentive

• market strategy

Fill in the blank: The social contract is an ______ agreement between an organization and its stakeholders, outlining mutual expectations and responsibilities.

• implicit

• explicit

• temporary

• verbal

According to the passage, the organization is expected to act in a way that benefits its stakeholders while also achieving its own goals, demonstrating a balance between its interests and ________ expectations.

• societal

• personal

• financial

• technological

According to the passage, how does the social contract change over time?

• The social contract changes as societal values, norms, and expectations change.

• The social contract remains the same regardless of societal changes.

• The social contract is only influenced by economic factors.

• The social contract is determined solely by government policies.

What is required for organizations to demonstrate ethical conduct?

• Maximizing profits at all costs

• Demonstrating ethical behavior and adhering to established moral principles

• Ignoring societal values

• Focusing only on internal goals

Social responsibility for organizations involves engaging in practices that benefit which of the following?

• Only the organization

• The community, environment, and broader society

• Only the government

• Only shareholders

Transparency and open communication about activities, including successes and failures, are crucial for building ______ and demonstrating alignment with societal expectations.

• trust

• wealth

• competition

• conflict

What is the purpose of regular and comprehensive reports provided by organizations?

• To increase profits

• To demonstrate adherence to societal norms and values

• To reduce employee workload

• To avoid taxes

Which of the following is NOT a key area addressed by organizational reports?

• Environmental impact

• Social impact

• Financial performance

• Product design