Legitimacy theory suggests that corporate social disclosure will be used to:

Question

Quizplus · Accepted Answer

Legitimacy theory suggests that firms disclose their social and environmental activities in order to manage the concerns of key stakeholders such as the government, the community, customers, employees, and investors. This is done in order to maintain their legitimacy, which in turn enhances their reputation and promotes their long-term success. Therefore, choice C is the most appropriate option. Choices A, B, and D are not consistent with the assumptions of the legitimacy theory.

Legitimacy Theory Suggests That Corporate Social Disclosure Will Be Used