Commentary: Legitimacy as Moral Exchange?

Abstract

The sequel to the controversy between Heineken and several NGOs raises questions on how far a company must go toward satisfying the demands and expectations of external stakeholders, in this case NGOs. In this commentary I discuss two elements of the case: the role of legitimacy as important factor in the advancing demands made of the company and the value of an institutional perspective for analysing such controversies. Legitimacy plays a significant role in such controversies, both for companies and NGOs and that a moral perspective on legitimacy could offer companies a way out of the struggle for legitimacy.