Definition And Analysis Of Legitimacy Theory

3.2 Legitimacy Theory | Definition and Analysis 3.2.1 Introduction to Legitimacy Theory Legitimacy Theory is the notion that for an organization to survive and continue to function and achieve its purpose and goals, it needs to conform to the socially constructed systems of norms, values, beliefs, and expectations (Burlea, 2013). Suchman (1995) defined legitimacy as the validation that the actions, goals, functions, structure, and disclosures of an organization is proper, accepted, and within the boundaries of the Social Contract. As discussed in the Definition and Analysis of Social Contract, for an individual to exist and ensure his survival, he needs to maintain his position in the civil society. The Law of Nature is intolerable. By all means possible, Man will escape chaos and violence,

However, the validation of whether the organization is in compliance doesn’t come from the organization itself. The public, stakeholders, community, and the government validate the compliance of the organizations based on its disclosures of internal information (Burlea, 2013). Legitimacy Theory is mostly applicable to Corporate Social Responsibility. Corporate Social Responsibility is centered on the concept of “sustainability.” Most companies, especially the giant corporations, have taken bold steps to ensure that their means of production are sustainable. Sustainability, in simple terms, means ensuring that the present generation is able to meet their needs without compromising the ability of the future generations to meet their (Beatie, 2015). Essentially, Corporate Social Responsibility has three main pillars: Environmental