This study examines the direct impact of three dimensions of the institutional environment on managerial attitudes toward the natural environment and the direct influence of the latter on the environmental sustainability orientation (ESO) of small firms. We contend that when the institutional environment is perceived by owner–managers as supportive of sound natural environment management practices, they are more likely to develop a positive attitude toward natural environment issues and concerns. Such owner–manager attitudes are likely to lead to a (...) positive and proactive orientation of their firms toward environmental sustainability. The study uses survey data from 166 small manufacturing firms located in three Philippine cities. First, the study develops and tests the measurement models to examine the validity of the constructs representing the firm’s institutional environment, managerial attitudes toward the natural environment and the ESO of firms. Second, the study develops and tests the structural models examining the institutional environment–managerial attitudes–ESO linkages. Multi-sample invariance structural model analysis shows the mediating role of managerial attitudes in the institutional environment–ESO nexus. The findings show that ESO is a construct comprising three dimensions: knowledge of environmental issues, sustainable practices and commitment toward environmental sustainability. The cognitive, regulatory and normative elements of the institutional environment are strongly linked to positive managerial attitudes toward environmental sustainability, which in turn, positively influences the firm’s overall ESO. Managerial attitudes play a mediating role in the institutional environment–ESO linkages. The managerial, practical, research and policy implications of the research findings are discussed. (shrink)

The entrepreneurial institutional environment is the external factor that entrepreneurial enterprises rely on for survival. Our interest is in how entrepreneurs cultivate entrepreneurial orientation in response to the highly uncertain entrepreneurial situation. Based on the cognitive appraisal theory of emotion, we analyzed the impact of the entrepreneurial institutional environment on entrepreneurial orientation through entrepreneurial passion. This study applied stepwise regression analyses to test the hypotheses on a sample of 197 entrepreneurs from the co-creation space in China. The output (...) of the study showed that the entrepreneurial institutional environment had a positive effect on entrepreneurial orientation and that entrepreneurial passion played a mediating role between the entrepreneurial institutional environment and entrepreneurial orientation. (shrink)

As the answer to sustainability concerns, green economic growth has gradually attracted considerable attention. Notably, the optimization of the institutional environment contributes to green economic growth from the perspective of new institutional economics. However, few studies have systematically explained the connection between the institutional environment and green growth. In this study, the institutional environment was divided into three dimensions: governmental, legal, and cultural subenvironments. We adopted econometric models with the effect of every dimension on green growth (...) and empirically analyzed with the generalized method of moments, based on Chinese provincial panel data from the years 2000–2016. The results indicated that there was an inverted U-shaped relationship between China’s institutional environment and its green growth. That is, the institutional environment can initially promote China’s green growth but, if it is not changed, will eventually inhibit it. In addition, the analysis on the three dimensions of the institutional environment highlighted that the role of the cultural subenvironment in green growth is greater than those of the governmental and legal subenvironments. (shrink)

Why do multinational corporations frequently encounter corporate social responsibility crises in leading emerging markets in the new century? Existing research about institutional impacts on MNC CSR has developed a void-based account about how the flawed institutional system allows misdeeds to happen. But the fact that such misdeeds have turned into increasing CSR crises in the new century along with institutional change is rarely taken into account. This paper combines studies of institutional voids, institutional entrepreneurship, and (...) stakeholder theory to develop a concept of institutional sophistication, which refers to both the top-down maturation of the regulatory system that standardizes firm behavior and the bottom-up diversification and intensification of grassroots initiatives that redefine stakeholder membership. Based on this concept, we developed a framework to comprehensively demonstrate how both institutional voids and sophistication drive the MNC CSR crisis in leading emerging markets. Empirically, we established an original database that includes 309 publicized CSR crises encountered by major foreign MNCs in China, India, and Russia, 2000–2011. Through a content analysis, the paper reveals six common sophistication processes that drive the MNC crisis across contexts and also specifies stakeholder strategies that make these processes happen and vary by social problems and national contexts. We also discussed the value of studying corporate social irresponsible behavior in understanding the institution–MNC relationship. (shrink)

We investigate the research question: Why are there very few social enterprises in China? Our findings unpack four types of institutional challenges to social entrepreneurship, as perceived by social entrepreneurs: norms of a strong role for government; misunderstood or unknown role for social enterprises; non-supportive rules and regulations; and lack of socio-cultural values and beliefs in support of social goals. We contribute to the literature on social enterprises by showing how an institutional environment may be “non-munificent,” i.e., non-supportive (...) for the existence of social enterprises and their goals, and we thus address the need for more attention to the institutional environment in which social entrepreneurship takes place. Further, by using Q-methodology on 42 social entrepreneurs along with illustrative qualitative data from interviews, we address the need to go beyond anecdotal case studies and introduce methodological plurality in social entrepreneurship research. Finally, our findings on institutional challenges provide us with an opportunity to discuss how social entrepreneurs may engage with purposive activities to overcome such challenges, leading us to initiate a conversation between the social entrepreneurship and institutional work literatures. (shrink)

Although companies recognize the importance of social responsibility and community engagement, conflicts between companies and communities have been noticeably increasing. To better understand the role of institutional environments in company–community conflicts, we analyze two mining conflicts—Minera Yanacocha's Minas Conga extension project in Peru and Minera Los Pelambres' El Mauro Tailings Dam in Chile. Our findings imply that, to prevent negative consequences and alleviate company–community conflicts, mining companies should address underlying structural causes and pursue informal approaches in order to (...) obtain and maintain their social license. We find that better formal institutional environments not only alleviate conflict intensity but also facilitate informal approaches through which companies and communities can cooperate to resolve conflicts. The best practice would be to start and continue dialogs between communities and companies, mediated by impartial governments, to understand the concerns of the counterparty and find means by which to address the causes. (shrink)

Drawing on institutional and signaling theories, this study examines how environmental corporate social responsibility affects firm performance in a dysfunctional institutional environment. We extend the ECSR literature by suggesting that ECSR indirectly influences firm performance through the mediating effects of business and political legitimacy. Based on a dataset of 238 firms in China, we find that ECSR affects business and political legitimacy followed by firm performance. Moreover, legal incompleteness weakens and legal inefficiency strengthens the effects of ECSR on (...) business and political legitimacy. (shrink)

Our paper draws attention to a neglected channel of corruption—the bribe payments by state-owned enterprises. This is an important phenomenon as bribe payments by SOEs fruitlessly waste national resources, compromising public welfare and national prosperity. Using a large dataset of 30,249 firms from 50 countries, we show that, in general, SOEs are less likely to pay bribes for achieving organizational objectives owing to their political connectivity. However, in deteriorated institutional environments, SOEs may be subjected to potential managerial rent-seeking (...) behaviors, which disproportionately increase SOE bribe propensity relative to privately owned enterprises. Specifically, our findings highlight the importance of fostering democracy and rule of law, reducing prevalence of corruption and shortening power distance in reducing the incidence of SOE bribery. (shrink)

While support for corporate political activity (CPA) is well echoed in the literature, little has been done to empirically examine its ethicality. Moreover, existing ethical CPA frameworks assume normative and rational leanings that are insufficient to provide a comprehensive account of CPA ethicality. Utilizing the Ghanaian context, adopting a multiple case study design involving 28 Directors from 22 firms, and employing a grounded theory approach, I explore how the ethicality of CPA is determined in weak institutional environments. The (...) findings reveal that business executives evaluate ethics at three levels (i.e. context, organizational and strategy) using three principles (i.e. utilitarianism, justice and institutions). Leveraging this knowledge, I present an eclectic framework that bridges the long-standing gap between normative ethical prescriptions and lived ethical realities. In doing so, I move away from abstraction to give “voice” to the actors involved in CPA. I also present a model that shows how the ethical judgement process is influenced by managerial intuition and interactive personal and organizational experiences. This article has important theoretical and practical implications for ethical business-government relations in developing countries. (shrink)

Abstract:Recent work on the subject speaks to the importance trust has for firm performance (e.g., Hagen and Choe, 1999; Hill, 1995). Yet little work has been done to show how context affects the ability of firms to create trust in relationships with key stakeholders. This paper looks at how the institutional environment may affect the performance of different strategies for managing firm-stakeholder relationships, and in turn, how this affects firm performance. The authors put forward propositions that build on these (...) theoretical insights and offer prospects for future empirical work. (shrink)

The frequent occurrence of safety accidents is a global problem, and unsafe behavior is the main cause of accidents, which has been unanimously recognized by academia and industry. However, the previous research on unsafe behavior focused on analyzing the linear effects of variables on the results, and it was difficult to systematically analyze the complex mechanism of the results generated by the coupling of each variable. The problem of how to avoid unsafe behavior of construction workers has not been effectively (...) solved. Based on the configuration perspective, on-site observation is organized, 164 construction workers are taken as case samples, the traditional regression analysis method is abandoned, and the fuzzy set qualitative comparative analysis method is used to integrate the theoretical framework of social cognition. From the perspective of psychological cognition and institutional environment, this paper discusses the differential matching of construction workers’ safety attitude, safety motivation, institutional control, safety training, and safety climate, and exploring the causal complex mechanisms that improve unsafe behavior among construction workers. The results show that: The unsafe behavior of construction workers is the result of multiple factors. A single influencing factor does not constitute a necessary condition for the unsafe behavior of construction workers; the path leading to the unsafe behavior phenomenon is not unique. Therefore, the high and unsafe behavior configuration of construction workers is summarized as “psychological cognition scarcity type,” “institutional environment scarcity type,” and “attitude-climate scarcity type”; compared with “psychological cognitive scarcity type” and “institutional environment scarcity type,” “attitude-climate scarcity type” is more likely to cause unsafe behavior of construction workers; a lower level of safety attitude or safety climate is more likely to cause high and unsafe behavior of construction workers; and the non-high and unsafe behavior driving mechanism for construction workers is “comprehensive,” and there is an asymmetric relationship with the driving mechanism of the unsafe behavior of high construction workers. The research conclusions of this paper can help to broaden the theoretical framework of social cognition and provide new ideas and methods for how to improve unsafe behavior. (shrink)

This study takes the Chinese technology-intensive listed companies from 2009 to 2019 as the research sample to study the relationship between board faultlines and innovation strategy decisions of companies, and examines the impact of property rights background and institutional environment on the above relationship from the perspective of external governance environment of Chinese-listed companies. The results show that social-related faultlines of the board of directors have a negative influence on corporate innovation strategy decisions; cognitive-related faultlines have a positive effect (...) on corporate innovation strategy decisions. At the same time, this research proves that the property rights background and institutional environment have a regulating role in the relationship between board faultlines and innovation strategy decisions, and can play an active role in the board faultlines. (shrink)

This book deals with the theoretical, methodological, and empirical implications of bounded rationality in the operation of institutions. It focuses on decisions made under uncertainty, and presents a reliable strategy of knowledge acquisition for the design and implementation of decision-support systems. Based on the distinction between the inner and outer environment of decisions, the book explores both the cognitive mechanisms at work when actors decide, and the institutional mechanisms existing among and within organizations that make decisions fairly predictable. While (...) a great deal of work has been done on how organizations act as patterns of events for (boundedly) rational decisions, less effort has been devoted to study under which circumstances organizations cease to act as such reliable mechanisms. Through an empirical strategy on open-ended response data from a survey among junior judges, the work pursues two main goals. The first one is to explore the limits of "institutional rationality" of the Spanish lower courts on-call service, an optimal scenario to observe decision-making under uncertainty. The second aim is to achieve a better understanding of the kind of uncertainty under which inexperienced decision-makers work. This entails exploring the demands imposed by problems and the knowledge needed to deal with them, making this book also a study on expertise achievement in institutional environments. This book combines standard multivariate statistical methods with machine learning techniques such as multidimensional scaling and topic models, treating text as data. Doing so, the book contributes to the collaboration between empirical social scientific approaches and the community of scientists that provide the set of tools and methods to make sense of the fastest growing resource of our time: data. (shrink)

There is a lack of research about the political strategies used by firms in emerging countries, mainly because the literature often assumes that Western-oriented corporate political activity has universal application. Drawing on resource-dependency logics, we explore why and how firms orchestrate CPA in the institutionally challenging context of Nigeria. Our findings show that firms deploy four context-fitting but ethically suspect political strategies: affective, financial, pseudo-attribution and kinship strategies. We leverage this understanding to contribute to CPA in emerging countries by arguing (...) that corporate political strategies are shaped by the reciprocity and duality of dependency relationships between firms and politicians, and also by advancing that these strategies reflect institutional weaknesses and unique industry-level opportunities. Importantly, we shed light on the muttered dark side of CPA. We develop a CPA framework and discuss the research, practical and policy implications of our findings. (shrink)

While it is well known that SME owner–managers’ sustainability values and attitudes impact their company’s sustainability activities, they often face profit-driven institutional orders. In a qualitative study, we investigate which identities are critical for their engagement in sustainability and how these identities interrelate with their institutional environment. We applied a qualitative design with narratives from 29 owner–managers of hospitality businesses who belong to a New Zealand-based sustainability network. Our study revealed no single overarching sustainability identity; instead, six identities (...) could be identified as sustainability-related and be linked to different institutional orders. By analyzing the interplay between the identities and the institutional environment, we also found mechanisms on how SME owner–managers impact on their business’ sustainability. We revealed that an adequate institutional environment can foster the development of sustainability-related identities, which in turn can lead to cultural evolution towards more sustainability. By integrating identity theory with organizational institutionalism, we contribute to theoretical development and to further sustainability research at individual and institutional level. (shrink)

Academic literature recognizes that firms in different countries deal with corporate social responsibility (CSR) in different ways. Because of this, analysts presume that variations in national-institutional arrangements affect CSR practices. Literature, however, lacks specificity in determining, first, what parts of national political-economic configurations actually affect CSR practices; second, the precise aspects of CSR affected by national-institutional variables; third, how causal mechanisms between national-institutional framework variables and aspects of CSR practices work. Because of this the literature is not (...) able to address to what extent CSR practices are affected by either global or national policies, discourses and economic pressures; and to what extent CSR evolves as either an alternative to or an extension of national-institutional arrangements. This article proposes an alternative approach that focuses on an exploration of links between disaggregated variables, which can then be the basis for imagining new national-institutional configurations affecting aspects of CSR. It illustrates this approach with an exploration of the importance of development aid policy for CSR practices in global supply chains. (shrink)

A single global authority is not sufficient to regulate heterogenous agents in multiagent systems based on distributed architectures, due to idiosyncratic local situations and to the need to regulate new issues as soon as they arise. On the one hand institutions should be structured as normative systems with a hierarchy of authorities able to cope with the dynamics of local situations, but on the other hand higher authorities should be able to delimit the autonomy of lower authorities to issue valid (...) norms. In this paper, we study the interplay of obligations and strong permissions in the context of hierarchies of authorities using input/output logic, because its explicit norm base facilitates reasoning about norm base maintenance, and it covers a variety of conditional obligations and permissions. We combine the logic with constraints, priorities and hierarchies of authorities. In this setting, we observe that Makinson and van der Torre’s notion of prohibition immunity for permissions is no longer sufficient, and we introduce a new notion of permission as exception and a new distinction between static and dynamic norms. We show how strong permissions can dynamically change an institution by adding exceptions to obligations, provide an explicit representation of what is permitted to the subjects of the normative system and allow higher level authorities to limit the power of lower level authorities to change the normative system. (shrink)

What we know is enabled and constrained by what we are. Extended and enactive approaches to cognitive science explore the ways in which our embodiment enables us to relate to the world. On these accounts, rather than being merely represented in the brain, the world and our activity in it plays an on-going role in our perceptual and cognitive processes. In this chapter I outline some of the key influences on extended and enactive philosophy and cognitive science in order to (...) generate a sense of the conceptual space in which this research is going on. I focus on the concepts of sense-making, Umwelts, affordances, cultural niches, epistemic actions, environmental scaffolding, and mental institutions. Despite differences in focus and detail these influences share an underlying world-view; that cognition is relational and world-involving. This way of thinking has clear resonances with dominant approaches in non-Western philosophy. The purpose of this chapter is thus to generate in the reader a sense of this shared extended-enactive world-view in order to open up a space for communication between approaches. (shrink)

What we know is enabled and constrained by what we are. Extended and enactive approaches to cognitive science explore the ways in which our embodiment enables us to relate to the world. On these accounts, rather than being merely represented in the brain, the world and our activity in it plays an on-going role in our perceptual and cognitive processes. In this chapter I outline some of the key influences on extended and enactive philosophy and cognitive science in order to (...) generate a sense of the conceptual space in which this research is going on. I focus on the concepts of sense-making, Umwelts, affordances, cultural niches, epistemic actions, environmental scaffolding, and mental institutions. Despite differences in focus and detail these influences share an underlying world-view; that cognition is relational and world-involving. This way of thinking has clear resonances with dominant approaches in non-Western philosophy. The purpose of this chapter is thus to generate in the reader a sense of this shared extended-enactive world-view in order to open up a space for communication between approaches. (shrink)

This study shows how institutional work contributes to institutional resilience in extreme operating environments. The authors draw from a longitudinal analysis of the operations of Desjardins International Development, a French Canadian nongovernmental organization that, both before and after the major earthquake of 2010, supported the implementation of cooperative banking in Haiti. Building on a unique access to DID’s internal documents as well as on 49 interviews with DID employees, the authors highlight the ways in which political, technical, (...) and cultural forms of institutional work triggered the emergence of social capital, which in turn supported the rise of new forms of institutional work that enabled institutional resilience. The results show how organizational activities focused on shaping institutions may have unintended effects that enable institutional resilience in EOEs, and demonstrate how the accumulation of institutional work by an organization contributes to the enhancement of its social capital. (shrink)

This article is the guest editors’ introduction to the Special Topic Forum on Extreme Operating Environments appearing in Business & Society. The forum includes two articles accepted after review and revision. The two articles address the macro-level aspects of business’s role in society in terms of accessing resources and markets and in terms of being a change agent or enabler to promote a better or more stable local economy. The articles also provide case studies of businesses developing, getting access (...) to resources and markets, and affecting the larger institutional environment despite great uncertainty and harsh operating environments where the traditional assumptions of stability and security are not available. This Special Topic Forum is published in cooperation with Business & Professional Ethics Journal which, working with the guest editors, has published two other articles that address the more micro-level aspects and the ethical dilemmas business may face in extreme operating environments. (shrink)

Much of the work in professional ethics sees ethical problems as resulting from ethical ignorance, ethical failure or evil intent. While this approach gets at real and valid concerns, it does not capture the whole story because it does not take into account the underlying professional or institutional culture in which moral decision making is imbedded. My argument in this paper is that this culture plays a powerful and sometimes determinant role in establishing the nature of the ethical debate; (...) i.e., it helps to define what are viable action options, what is the organization’s genuine mission, and what behaviors will be rewarded or criticized. Given these conclusions, I also argue that consulting ethicists need more than an understanding of ethics theory, concepts and principles; they also need a sufficiently rich understanding of organizational culture and a willingness and an ability to critique that culture. (shrink)

The purpose of this research is to identify the extent of the efficiency of the internal control environment in the Palestinian higher educational institutions in Gaza Strip from the perspective of employees in the Palestinian universities in Gaza Strip, where researchers used in the study five universities. The researchers adopted in their study the descriptive and analytical approach. The research community consists of administrative employees and academic employees with administrative duties. Senior management or the University Council was excluded. The study (...) population compromises of (392) employees. A stratified random sample was chosen and (197) questionnaires were distributed. (160) questionnaires were received back with a return rate of (81.2%).The researchers used a questionnaire to collect that which then was analyzed using (SPSS) to get the results. The research found the following results: the absence of a fundamental difference between the responses of males and females. The lack of significant difference between the responses of the respondents attributed to the variable age. The lack of significant difference between the responses of the respondents attributed to the variable of years of service. And the existence of a fundamental difference between the responses of the respondents attributed to the university variable. The existence of a fundamental difference between the responses of the respondents attributed to the Qualification variable. The existence of a fundamental difference between the responses of the respondents attributed to the administrative level variable. The research found a group of recommendations including: the need to raise awareness of censorship as the basis for the protection of employees in all administrative levels from making mistake.Updating the systems and instructions of control periodically and parallel with the scientific progress and technology.Benefit from regional and international experiences in the application of internal control standards which commensurate with the administrative system of the institution. (shrink)

The regulation of the activity of multiple autonomous entities represented in a multi-agent system, in environments with no central design (and thus with no cooperative assumption), is gaining much attention in the research community. Approaches to this concern include the use of norms in so-called normative multi-agent systems and the development of electronic institution frameworks. In this paper we describe our approach towards the development of an electronic institution providing an enforceable normative environment. Within this environment, institutional services (...) are provided that assist agents in forming cooperative structures whose commitments are made explicit through contracts. Our normative framework borrows some concepts from contract law theory. Contracts are formalized using norms which are used by the institution while monitoring agents’ activities, thus making our normative environment dynamic. We regard the electronic institution as a means to facilitate both the creation and the enforcement of contracts between agents. A model of “institutional reality” is presented that allows for monitoring the fulfillment of norms. The paper also distinguishes our approach from other developments of the electronic institution concept. We address the application of our proposal in the B2B field, namely regarding the formation of Virtual Organizations. (shrink)

This book brings together emerging perspectives from organization theory and management, environmental sociology, international regime studies, and the social studies of science and technology to provide a starting point for discipline-based studies of environmental policy and corporate environmental behavior. Reflecting the book’s theoretical and empirical focus, the audience is two-fold: organizational scholars working within the institutional tradition, and environmental scholars interested in management and policy. Together this mix forms a creative synthesis for both sets of readers, analyzing how environmental (...) policy and organizational practices are shaped, spread and contested. (shrink)

With the expansion of multinational corporations (MNCs), the alarming upsurge in widely publicized and notable corporate scandals involving MNCs in emerging markets has begun to draw both academic and managerial attention to look beyond home market practices to the pressing concern of CSR in emerging markets. Previous studies on CSR have focused primarily on Western markets, reserving limited discussions in addressing the issue of MNC attitudes and CSR practices in their emerging host markets abroad. Despite this incongruity in academic response (...) to CSR in emerging markets, managers of multinational companies continue to face mounting and most often conflicting pressures to weigh among multiple strategic CSR responses in emerging markets. Such a task is often further complicated by the complexity of varying business norms and standards, regulatory environments, and stakeholder demands for CSR across national boundaries. With such a challenge in mind, I attempt to examine the explanatory factors in leading MNCs, otherwise recognized for accountability and integrity in their home markets, to employ inconsistent or negligent practices under CSR pressure in Chinese emerging economy. Preliminary findings reveal that discrepancies exist in how MNCs perform in CSR in home countries versus in host countries. While MNCs do have much to improve, the institutional environment in the emerging market, including the legal framework and the ethical culture, also needs to be improved by the host country governments, the industry associations, and local firms. Meanwhile, media interest and journalists, NGOs, third party monitors, industry stakeholders as well as consumer advocacy groups can raise the visibility of MNC's contradictory practices between their origin nations and countries with emerging economies and offer the pressures and incentives for MNCs to amend their ethical short-comings. This article also suggests implications for both theory and practice. (shrink)

This article examines the main opportunities that exist in the modern system of secondary vocational education for the multicultural educational environment organization. The first part of the article examines the need for the formation of such an environment at the present stage of education, including secondary vocational education, as well as the main approaches to the interpretation of this concept. The author cites practical mechanisms for the formation of a multicultural educational environment within the framework of educational and extracurricular activities (...) of SPO organizations. The article examines the experience of educational activities of the Educational College of Makhachkala, as an educational organization, successfully implementing the model of creating a multicultural educational environment in the institution of secondary vocational education. (shrink)

In order to understand how the environment influences business owner/managers’ attitudes towards tax morale, we build a theoretical model based on a neo-institutionalist framework. Our model combines three complementary perspectives on institutions—normative, cultural–cognitive and regulatory–instrumental. This enables a broader understanding of factors that influence business owner–managers’ attitudes towards tax evasion. We test the resulting hypotheses using regression analysis on survey data on business owner/managers in Latvia—a transition country, which has undergone massive institutional changes since it was part of the (...) Soviet Union over 25 years ago. We find that legitimacy of the tax authorities and the government, feeling of belonging to the nation and perceptions of the risk and severity of punishment are all associated with higher tax morale for business owners and managers. (shrink)

Study was born in the construction of problem concepts in the deployment of a governance strategy in institutions under digital environments, a technical position of understanding from South America is raised, the initial hypothesis of knowing aspects and determining requirements, an efficient model of governance can be achieved from the use and application of ICT, which allow to argue the as of the process, The use ICT, TAC, TEP as change managers in virtuality, to interact in a disruptive way, (...) the most important achievements of research to recognize the legal, digital and technological resource environment. (shrink)

ABSTRACT:This paper analyzes how national institutional factors affect the adoption of the international environmental management standard ISO 14001, using a panel of 139 countries from 1996 to 2006. The analysis emphasizes that during the emerging phase of the standard, the potential lack of consensus within the constituents of the national institutional environment concerning the value of a new standard could send mixed signals to firms about the standard. The results show that in the early phase of adoption, regulative (...) and normative forces within the institutional environment can work against each other. Results also show that regulative or coercive forces play a relatively more important role in the early phase of adoption of the standard than in the subsequent phases of diffusion. In the later phases of diffusion of ISO 14001, normative forces, such as the diffusion of other management standards, as well as factors related to trade, play a more important role. Because of the similarities between environmental management standards and corporate social responsibility standards, this study can help identify some of the challenges for diffusion of ISO management standards in the area of social responsibility. (shrink)

Health care institutions, including Roman Catholic institutions, are in a time of crisis. This crisis may provide an important opportunity to reinvigorate Roman Catholic health care. The current health care crisis offers Roman Catholic health care institutions a special opportunity to rethink their fundamental commitments and to plan for the future. The author argues that what Catholic health care institutions must first do is articulate the nature of their identity and their commitments. By a renewed commitment to the praxis of (...) health care on their own distinctive terms, Roman Catholic health care institutions may reestablish a vision of human nature and human service in an increasingly secular society. Health care could then reclaim its place as a powerful setting for the expression of Roman Catholic faith, life and witness. (shrink)

Exploring the concept of citizenship from the history of political philosophy provides suggestions about what corporate citizenship could mean. The metaphor of corporate citizenship suggests an institutional approach to corporate social responsibility. Citizenship is a social role, characterized by an orientation towards the social contract, collective and active responsibility, as well as a positive attitude towards the juridical state. By analogy, corporate citizenship is a social role, characterized by the social contract of business, a participatory ethics of business, the (...) precautionary principle and the promotion of just international institutions. It is considered that corporate citizenship depends on a number of interacting institutional conditions that hold society partly responsible for the social performance of their companies. Finally, the problem of the dissolution of corporate social responsibility is reviewed in an institutional environment where everyone is considered responsible. (shrink)

ABSTRACT:Drawing upon John Rawls's framework inThe Law of Peoples,this paper argues that MNEs have a responsibility to promote well-ordered social and political institutions in host countries that lack them. This responsibility is grounded in a negative duty not to cause harm. In addition to addressing the objection that promoting well-ordered institutions represents unjustified interference by MNEs, the paper provides guidance for managers of MNEs operating in host countries that lack just institutions. The paper argues for understanding corporate responsibility in relation (...) to the specific institutional environment in which MNEs operate. (shrink)

Since 1994 and the coming of democracy to South Africa there has been a concerted attempt to develop a coherent, unified educational system that will redress the inequities of the apartheid systems. Significant to this ongoing process is the field of higher education, where relevant legislation has been enacted in order to bring coherence and consistency to the education system in the public and private sectors. Significant issues have arisen with regard to the provision made by private religious educational institutions, (...) especially those who have experienced difficulties in being accredited by statutory bodies. This paper seeks to explore these issues and suggest ways forward that are appropriate within an emerging unitary system of education that is fit for purpose in Africa and particularly South Africa, taking as a case study the formation of the Association of Christian Religious Practitioners. (shrink)

Natural scientists have proposed that humankind has entered a new geologic epoch. Termed the “Anthropocene,” this new reality revolves around the central role of human activity in multiple Earth ecosystems. That challenge requires a rethinking of social science explanations of organization and environment relationships. In this article, we discuss the need to politicize institutional theory as a means understanding “Anthropocene Society,” and in turn what that resultant society means for the Anthropocene in the natural environment. We modify the constitutive (...) elements of institutional orders and a set of main change mechanisms to explore three scenarios around which future Anthropocene Societies might be built—Collapsing Systems, Market Rules, and Cultural Re-Enlightenment. Simultaneously, we use observations from the Anthropocene to expose limitations in present institutional theory and propose extensions to remedy them. Overall, this article challenges organizational scholars to consider a new paradigm under which research in environmental sustainability and social sustainability takes place. (shrink)

Multinational corporations are operating in complex business environments. They are confronted with contradictory institutional demands that often represent mutually incompatible expectations of various audiences. Managing these demands poses new organizational challenges for the corporation. Conducting an empirical case study at the sportswear manufacturer Puma, we explore how multinational corporations respond to institutional complexity and what legitimacy strategies they employ to maintain their license to operate. We draw on the literature on institutional theory, contingency theory, and organizational (...) paradoxes. The results of our qualitative longitudinal study show that managing corporate legitimacy is a dynamic process in which corporations adapt organizational capacities, structures, and procedures. (shrink)

Consumption is essentially an institutional action. While both the formal institutional environment and cultural embeddedness shape consumption, individuals may reciprocally amend the institutional setting through consumption choices that challenge the prevalent institutional constraints. This paper reconciles theoretical and conceptual premises from institutional and practice theory literature to study the sustainability of consumption. Using institutional ethnography as a methodological approach, the study explores the pendulum between embeddedness and agency in shaping the sustainability of day-to-day consumption (...) of necessary goods; and further, how the external institutional environment may interact with human behaviour to contribute towards sustainability. The study finds a hierarchy of informal institutions, each level of which interacts differently with external changes. For example, sustainability is found to be more widespread the more it is embedded in practices, and this is a result of overall institutional development beyond regulation and choice editing. The results also highlight the importance of understanding unintentional sustainability in consumption practices. (shrink)

This paper examines what managers ought to do when confronted with apparent moral conflicts between their managerial responsibilities and the general requirements of morality, specifically when those conflicts are driven by the institutional environment. I examine Google’s decision to enter the Chinese search engine market as an example of such a conflict. I consider the view that Google’s managers engaged in justifiable moral compromise in making the choice to engage in self-censorship and show how this view depends on the (...) idea of genuine moral dilemmas or irresolvable moral conflicts. I argue that there are serious reasons to doubt the existence of genuine moral dilemmas both in the abstract, as well as in the context of managerial responsibility. I propose an alternative account for what Google’s managers ought to do, as well as others who face relevantly similar situations. The account contains two conditions for permissibly contributing to another party’s failure to live up to their moral responsibilities. The first condition is that the manager must intend and act in such a way as to minimize the firm’s complicity in the other entity or actor’s failure, which in most cases will imply a duty for the manager to take actions that aim towards changing the institutional context. Under the second condition, managers ought to communicate to the firm’s constituents that they take seriously the importance of the interests at stake. (shrink)

The goal of our article is to review the widespread anthropological figure, according to which we can achieve a better understanding of humans by contrasting them with animals. This originally Herderian approach was elaborated by Arnold Gehlen, who characterized humans as “deficient beings” who become complete through culture. According to Gehlen, humans, who are insufficiently equipped by instincts, indirectly stabilize their existence by creating institutions, i.e., complexes of habitual actions. On the other hand, Maurice Merleau-Ponty shows that corporeal relationship to (...) the world is already indirect because it is based on preestablished and readjusted “standards” or “norms” of interaction with the environment. Merleau-Ponty then calls these norms “institutions” and views culture as readjustment of institutions which operate already on the level of corporeal existence. The anthropological figure of confronting humans and animals thus cannot produce, as in Gehlen, a contrast between an allegedly “direct” relationship to the world in animals and a supposedly “indirect” relationship to the world in humans. The Herderian approach can be meaningfully retained only if interpreted as an invitation to confront the norms of indirect interaction with the world in animals and in people, that is, if viewed as a comparison of their respective institutions. (shrink)

This paper examines the conditions of trustworthy science advice mechanisms, in which scientists have a mandated role to inform public policymaking. Based on the literature on epistemic trust and public trust in science, we argue that possession of relevant expertise, justified moral and political considerations, as well as proper institutional design are conditions for trustworthy science advice. In order to assess these conditions further, we explore the case of temporary advisory committees in Norway. These committees exemplify a de facto (...) trusted and seemingly well-functioning science advice mechanism. Still, this mechanism turns out to poorly realize some central conditions of trustworthy science advice. From this we draw three lessons. Firstly, it remains crucial to distinguish between well-placed and de facto trust. Secondly, some conditions of trustworthy science advice seem more significant than others and there are thresholds for realizing each condition. Thirdly, not only does the institutional design and organization of science advice matter more than often recognized; the trust and trustworthiness of the broader social and political context and institutional environment make a difference as well. (shrink)