Bertrand Louise, an important stakeholder at Carmichaels & Sons. Inc., requests for a detailed report of the profit statement of the company when rumors reach him that their balance sheet for the past year was fabricated. Bertrand's request is immediately granted as some of the higher officials had the same suspicion as that of Bertrand. Which of the following best explains the quick actions taken in this case?

Question

Quizplus · Accepted Answer

The quick actions taken in this case can be best explained by the demand legitimacy principle, which requires organizations to answer questions and concerns of stakeholders promptly and transparently. Bertrand's request for a detailed report of the company's profit statement was immediately granted because the higher officials had the same suspicion, and they wanted to ensure that the company's financial statements were accurate and reliable. This reflects the company's commitment to being accountable to its stakeholders and maintaining their trust.

Bertrand Louise, an Important Stakeholder at Carmichaels & Sons