Legitimacy: Working hypotheses

Today more than ever, legitimacy is a vital resource for institutions seeking to lead and sustain impactful change. Yet, it can be elusive.

What does it truly mean for an institution to be legitimate? This publication delves into legitimacy as both a practical asset and a dynamic process, offering institutional entrepreneurs the tools to understand, build, and sustain it over time.

Legitimacy is not a static quality, nor is it purely theoretical. Instead, it’s grounded in the beliefs of those who interact with or are governed by an institution. These beliefs shape whether people view an institution’s authority as rightful and worth supporting. Drawing from social science research and real-world insights, this publication provides a framework to help institutional entrepreneurs address one of the most important challenges of institutional design: ensuring their legitimacy is sufficient to achieve their goals.

The paper emphasizes that legitimacy is relational and contextual. Institutions gain it through three primary sources: outcomes (delivering results), fairness (ensuring just processes), and correct procedures (following accepted norms). However, the need for legitimacy varies depending on the institution’s size, scope, and mission. For example, a body requiring elite approval may need less legitimacy than one relying on mass public trust.

Legitimacy is also dynamic—it ebbs and flows in response to external factors like competition, crises, and shifting societal narratives. Institutional entrepreneurs must anticipate these changes and actively manage their strategies for maintaining legitimacy. This publication highlights actionable steps for doing so, from framing mandates strategically to fostering public trust through transparency and communication.

By treating legitimacy as a resource that evolves over time, institutional entrepreneurs can ensure their institutions remain relevant, trusted, and effective in addressing pressing societal challenges.

Key takeaways

• Legitimacy is the belief by an audience that an institution’s authority is rightful.
• Institutions build legitimacy through outcomes, fairness, and correct procedures.
• The need for legitimacy depends on an institution’s scope and mission.
• Legitimacy is dynamic and shaped by external factors like crises and competition.
• A portfolio approach to legitimacy—balancing outcomes, fairness, and procedure—is more resilient.
• Institutional entrepreneurs must actively manage perceptions and adapt to changing contexts.
• This publication offers practical frameworks to help institutional entrepreneurs build and sustain legitimacy.

This publication is the product of collaboration between TIAL and Berggruen Institute. The publication is also accompanied by a practical guide, or toolkit, that can help institutional entrepreneurs reflect on the key questions concerning legitimacy when designing a new institution — or updating an old one.