What is organisational legitimacy and why might it be considered to be a resource?
Explain why organisational legitimacy is place and time -specific
Assume you were undertaking a research project that was investigating how a particular
adverse environmental event negatively impacted the legitimacy of an organisation. How
would you determine that the legitimacy was eroded?
A clothing manufacturer has decided to close its factory in a regional Australian town and move its operations offshore to another country where they are going to be able to employ workers at a substantially reduced cost. Closing the factory will result in the loss of 600 jobs in the town. Outline the issues the company might face with regards to its implied social contract. You should identify what groups or people are likely to be concerned or affected by the decision and whether the decision is likely to be seen as advantageous or disadvantageous to these groups. You should also discuss actions the company could take to reduce any potential negative reaction to the decision.
a)Provide an example of an organisation that you believe has breached the social contract.
b)What was the behaviour that broke the social contract?
c)What if any, were the consequences for the organisation?
d)What steps did the organisation take to regain legitimacy?