Question

Recruiting a well-known and highly respected of directors lend legitimacy to any firm. Discuss

Answer 1

The business is very much a perception driven process of a transaction between the business and the consumers. The stakeholders have to be clear about the objectives and achievements of the firm to expect legitimate outcomes. The directors of the business are the person who makes the business direction and decisions based on practical situations possible to achieve as expected by the stakeholders. The business may hire a reputed director to generate the needed legitimacy if there is a loss of it. The well-known director is known for their understanding of the situation and thus making decisions based on the practicality of the business capabilities. The legitimacy of the business grows since the stakeholders understand that the director of repute won’t join without a good look into the business and its prospects. The joining of the director in the firm thus enhances the confidence of the stakeholders since the Brand of the director changes the confidence. This makes the directors be used to get the legitimacy of the firm's future.