“An organization can adopt a number of strategies where it perceives that its le
ID: 1139115 • Letter: #
Question
“An organization can adopt a number of strategies where it perceives that its legitimacy is in question because its actions or operations are at variance with society’s expectation and value”
(Source: Australian financial accounting. Unregulated corporate reporting desicions: considerations of systems - oriented theories, Mc Graw-Hill 6th edition, 2008; pp332)
Required
a. Discuss how you would expect an organization to react from a corporate disclosure perspective
b. State any two courses of actions that an organization can take to obtain, or maintain legitimacy in these circumstances’.
Explanation / Answer
In a case where the society is not in concern or satisfied with the company's performance or working, the company would react in the following ways:
a) the organization can clarify its working strategies to the society's functioning heads, can state its motive and make them realize that the company's values might be a bit different from the society but its intentions are not bad or harmful. It can start working more towards the corporate social responsibility and make the society realize the company's developmental work done.
b) two steps that the company or the organization can take are:
1. Work towards maintaining its CSR well.
2. Be focused towards bringing more transparency in its working, and do not hinder the society's norms much.
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