Asked by Chantal Taylor on Jun 10, 2024
Verified
Bertrand Louise, an important stakeholder at Carmichaels & Sons. Inc., requests 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?
A) issue urgency
B) corporate social responsibility
C) demand legitimacy
D) self-centred behaviour
E) organizational setting
Fabricated
Something that is made up or constructed; often referring to information or data that is falsely created or manipulated.
Profit Statement
A financial document detailing a company's revenues, expenses, and net profit over a specific period.
- Comprehend the role of stakeholder influence and corporate governance in maintaining ethical standards.
Verified Answer
TC
Taylor ClarkJun 10, 2024
Final Answer :
C
Explanation :
The quick actions taken in this case can be attributed to the demand for legitimacy, since there were suspicions about the authenticity of the balance sheet and Bertrand's request for a detailed report of the profit statement was made to ensure that the company was operating in a legitimate manner.
Learning Objectives
- Comprehend the role of stakeholder influence and corporate governance in maintaining ethical standards.
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