Stakeholder legitimacy
Stakeholder legitimacy concerns whether a relationship or claim is regarded as valid or appropriate under relevant legal, ethical and social expectations. It is distinct from the power to impose a demand or the urgency of a request. Assessments can be disputed and can reflect whose viewpoint is heard. A commercial contract is one basis for a claim, but valid community or other claims need not depend on one.
Worked example
A community raises an evidenced concern about pollution without trading with the company. Lack of a sales contract does not, by itself, make the claim illegitimate.
Common mistake
Do not equate legitimacy with management’s approval, or label every challenging stakeholder illegitimate because the claim is inconvenient.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | SBL | Supporting | September 2026–June 2027 |