Question

Explain two ways organisations can use corporate disclosure policy to maintain or regain organisational legitimacy? (4 marks, 200 words)

Answer 1

Organisations can use corporate disclosure policy to maintain Or regain organisational legitimacy through these two ways-

A.organisations can seek to change expectations of its performance from the society.It can do through proper communication to the stakeholders of the organisation.

B. Organisations can look to educate and inform society about actual changes in the organisational performance and activities.

An organisation can use disclosure as a technique in both these strategies and it can provide information to offset negative news that may be publicly available.

Organisations can also use disclosure requirements to draw attention to strength, or to put down the negative news. Disclosures can also be helpful in advertising changes in performance or activities of the organisation.