1.5 The Corporation and the Business System & 1.6 Society's Permission for Business

Question 1

Legitimacy

Answer 1

Belief in the rightness of an institution, in this case the appropriateness of our business system to supply the goods and services wanted by Canadian society. Society must believe in the business system, which involves trust and confidence.

Question 2

Why is legitimacy put in question?

Answer 2

legitimacy is questioned by some in society who are suspicious of materialism and excessive consumption.

Question 3

2 important observations from the discussion of society’s attitudes toward business

Answer 3

(1) The attitudes - in particular the criticisms - must be monitored by management

(2) Where justified and feasible, management should take actions to counter the negative views of business.

Question 4

Social Licence

Answer 4

privilege of operating in society with minimal formalized restrictions based on maintaining public trust by doing what is acceptable to stakeholders in the business and society relationship. A social licence must be earned and maintained.