In April 2017, staff members of United Airlines were caught on video dragging a passenger off...

 

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In April 2017, staff members of United Airlines were caught on video dragging a passenger off one of their flights. The scene was so disturbing that the market reacted. The market value of United Airlines shares dropped by more than $1.4 billion in the days following the incident. Required Use legitimacy theory to make sense of the events above. Your answer must: i. Describe the 'social contract' as it relates to legitimacy theory. (5 marks) ii. Explain the legitimacy gap drawing on an example from the scenario. (5 marks) iii. Use legitimacy theory to explain the drop in United Airlines' share value. (4 marks) iv. Suggest 2 legitimizing activities that United Airlines may have undertaken to mitigate the negative outcomes of the incident. (6 marks) In April 2017, staff members of United Airlines were caught on video dragging a passenger off one of their flights. The scene was so disturbing that the market reacted. The market value of United Airlines shares dropped by more than $1.4 billion in the days following the incident. Required Use legitimacy theory to make sense of the events above. Your answer must: i. Describe the 'social contract' as it relates to legitimacy theory. (5 marks) ii. Explain the legitimacy gap drawing on an example from the scenario. (5 marks) iii. Use legitimacy theory to explain the drop in United Airlines' share value. (4 marks) iv. Suggest 2 legitimizing activities that United Airlines may have undertaken to mitigate the negative outcomes of the incident. (6 marks)

Answer rating: 100% (QA)

i The social contract in legitimacy theory refers to the implicit agreement between an organization and its stakeholders including the public customer... View the full answer