Question

A new gold mine operated by Viper Resources is scheduled to begin operations in November 2020. The company has developed a stakeholder engagement plan which identifies the mine's most important external stakeholder groups and the main concerns of each stakeholder group.   This strategy is best explained by which theory?

		The institutional perspective of legitimacy theory.
		The strategic perspective of legitimacy theory
		The managerial perspective of stakeholder theory
		The instrumental perspective of stakeholder theory.

Answer 1

ANSWER:  A new gold mine operated by Viper Resources is scheduled to begin operations in November 2020. The company has developed a stakeholder engagement plan which identifies the mine's most important external stakeholder groups and the main concerns of each stakeholder group.   This strategy is best explained by

The institutional perspective of legitimacy theory: Because the strategic level of Legitimacy develops in the internal enviroment of the organization and the institutional perspective of the legitimacy theory develops in the external enviroment. Blending those two levels falls upon the reflection of the organization's image in the society.

Legitimacy theory has the role of explaining the behaviour of organizations in implementing and developing voluntary social and enviromental disclosures of informations in order to fulfill their social contract that enables the recognition of their objectives and the servival in a turbulent enviroment.

The managerial perspective of stakeholder theory means that the managers of a business must take into account the needs of all the stakeholders and not just the shareholders.

The instrumental perspective of stakeholder theory deals with how managers should act if they want to flavour and work for their own interests. This theory suggests that to maximise the shareholders value over an uncertain period of time frame, managers ought to pay attention to key stakeholders relationship.