From licence to operate to licence to lead: A case study of 7-Eleven Canada's corporate legitimacy and reputation

Abstract

This case study investigates 7-Eleven Canada’s corporate legitimacy and reputation as perceived by key provincial government regulators in gaming and tobacco control, and healthy food promotion. Measuring corporate legitimacy as a springboard for reputation has been a challenge for reputation scholars. Building on King and Whetten (2008), this case study finds that deficient legitimacy on regulatory compliance did not prevent 7-Eleven from building favourable reputation on elevated compliance measures. Regulators awarded 7-Eleven an above-average reputation that mirrored the reputation of the convenience store industry in a competitive retail environment. As part of a corporate reputation management plan for 7-Eleven, citizenship-building initiatives are highlighted to close the reputation gaps uncovered in the case study. The research method was modelled on the Harris/Fombrun Reputation Quotient. Further research could test the proposition that corporate legitimacy and reputation can operate as seemingly semi-detached concepts.