Legitimacy Theory In Brewing And Hotels Sector Essay

Legitimacy Theory In Brewing And Hotels Sector - Essay Example These social contracts may be three-fold; between the society and the state, the society and the businesses and between the state and the businesses. Suchman says that legitimacy is the general view that an entity's actions are desirable, appropriate as well as proper in the light of values, norms, and beliefs within a system that's socially constructed.Suchman further highlights three kinds of legitimacy in organizations. These are; cognitive, moral and pragmatic. Management of legitimacy according to him also faces various challenges like maintenance, gaining and the repairing of it. He also writes that communication is where the management of legitimacy rests. Therefore, while the function of legitimacy is being examined it’s not possible to sideline the corporate communications’ essentiality. It attributes to goals or purposes that a business entity has.It's an issue that's widely linked with issues of corporate governance. Corporate governance is defined as the pow er exercised over business entities with the aim of increasing the value toward its stakeholders. These stakeholders should be accountable for their actions to the society at large to make sure that they achieve these objectives. That's, both to the internal and the external societies. The internal society may refer to issues like workers' protection like adherence to industrial and factory safety measures while the external society is the entire society not involved in the business actions first- hand. (William, 2009)