Legitimacy management through reporting in Ford Motor Company and General Motors

General Motors and Ford Motor Company manage their legitimacy through different mechanisms. Deegan (2014) suggests that organisations take various actions to ensure that their operations are perceived as legitimate. Ford Motor Company and General Motors also have their own different ways of ensuring that their operations are perceived as legitimate.

General Motors ensures that its operations are perceived as legitimate through actions that are mainly focused on the customers. The company reports that its main intention in all its sustainability actions is to meet customer needs. This will make the stakeholders, especially customers, to believe that the company’s actions are legitimate.

The company also proves its legitimacy to its stakeholders by highlighting its positive performance indicators in 2012. For instance, the company reports that it was ranked position 1 in 2012 in terms of renewable energy and customer satisfaction in the motors industry. Furthermore, the company indicates some of the steps that it takes to improve its products, including innovation and R&D.

The company also proves its legitimacy by indicating in its sustainability report that it seeks to improve environmental sustainability; hence conforming to the acceptable social norms of the society as suggested by legitimacy theory (Mathews, 1993).

Ford Motor Company ensures that its products are perceived as legitimate by indicating the financial health and employee satisfaction in the company. This is then supported by some environmental and social performance in terms of fuel economy, vehicle safety, supply chain, CO2 emission.

The company suggests that the company’s sustainability efforts improve the fuel economy by reducing fuel costs for customers by 25%. These activities indicate that the company is attempting to make its operations to appear legitimate. In this case, the company uses communication to alter the definition of social legitimacy in order to be in line with its current practices, output, and values.

Ford Motors suggests that it is committed to the improvement of the environment through reduction of CO2 emission, enhancement of fuel safety and improved supply chain practices. These indicate activities also indicate that the company is adapting its products to conform to prevailing definition of social legitimacy.

Leave a Reply

Your email address will not be published. Required fields are marked *