Setting Your Own Standards: Internal Corporate Governance Codes as a Response to Institutional Pressure

Published Online:https://doi.org/10.1287/orsc.1100.0642

References

  • Aguilera R. V., Cuervo-Cazurra A. (2004) Codes of good governance worldwide: What's the trigger? Organ. Stud. 25(3) 415–443.CrossrefGoogle Scholar
  • Aguilera R. V., Cuervo-Cazurra A. (2009) Codes of good governance. Corporate Governance: Internat. Rev. 17(3) 376–387.CrossrefGoogle Scholar
  • Aguilera R. V., Filatotchev I., Gospel H., Jackson G. (2008) An organizational approach to comparative corporate governance: Costs, contingencies, and complementarities. Organ. Sci. 19(3) 475–492.LinkGoogle Scholar
  • Ahmadjian C., Song J. (2004) Corporate governance reform in Japan and South Korea: Two paths of globalization. . Working paper, Center on Japanese Economy and Business, Columbia Business School, Columbia University, New York.Google Scholar
  • Bansal P. (2005) Evolving sustainably: A longitudinal study of corporate sustainable development. Strategic Management J. 26(3) 197–218.CrossrefGoogle Scholar
  • Bartley T. (2007) Institutional emergence in an era of globalization: The rise of transnational private regulation of labor and environmental conditions. Amer. J. Sociol. 113(2) 297–351.CrossrefGoogle Scholar
  • Black B. (2001) The corporate governance behavior and market value of Russian firms. Emerging Markets Rev. 2(2) 89–108.CrossrefGoogle Scholar
  • Black B., Love I., Rachinsky A. (2006) Corporate governance indices and firms' market values: Time series evidence from Russia. Emerging Markets Rev. 7(4) 361–379.CrossrefGoogle Scholar
  • Bonardi J.-P., Holburn G. L. F., Vanden Bergh R. G. (2006) Nonmarket strategy performance: Theory and evidence from U.S. electric utilities. Acad. Management J. 49(6) 1209–1228.CrossrefGoogle Scholar
  • Bondy K., Matten D., Moon J. (2006) MNC codes of conduct: CSR or corporate governance? . Working paper, ICCSR Research Paper Series, University of Nottingham, Nottingham, UK.Google Scholar
  • Boxenbaum E., Jonsson S. (2008) Isomorphism, diffusion and decoupling. , Greenwood R., Oliver C., Sahlin K., Suddaby R., eds. The SAGE Handbook of Organizational Institutionalism. (Sage, London) , 78–98.CrossrefGoogle Scholar
  • Brunsson N. (2002) The Organization of Hypocrisy: Talk, Decisions, and Actions in Organizations, 2nd ed. (Abstrakt Liber, Oslo, Norway) .Google Scholar
  • Brunsson N., Jacobsson B. (2000) A World of Standards. (Oxford University Press, Oxford, UK) .Google Scholar
  • Burns L. R., Wholey D. R. (1993) Adoption and abandonment of matrix management programs: Effects of organizational characteristics and interorganizational networks. Acad. Management J. 36(1) 106–138.CrossrefGoogle Scholar
  • Burt R. S. (1982) Toward a Structural Theory of Action: Network Models of Social Structure, Perception and Action. (Academic Press, New York) .CrossrefGoogle Scholar
  • Cashore B., Auld G., Newsom D. (2003) The United States' race to certify sustainable forestry: Non-state environmental governance and the competition for policy-making authority. Bus. Politics 5(3) 219–259.CrossrefGoogle Scholar
  • Charkham J. (2005) Keeping Better Company: Corporate Governance Ten Years On. (Oxford University Press, Oxford, UK) .Google Scholar
  • Clemens B. W., Douglas T. J. (2005) Understanding strategic responses to institutional pressures. J. Bus. Res. 58(9) 1205–1213.CrossrefGoogle Scholar
  • Connelly B. L., Johnson J. L., Tihanyi L., Ellstrand A. E. (2011) More than adopters: Competing influences in the interlocking directorate. Organ. Sci. 22(3) 688–703.LinkGoogle Scholar
  • Cressy D., Moore C. (1983) Managerial values and corporate codes of ethics. Calif. Management Rev. 25(4) 53–77.CrossrefGoogle Scholar
  • D'Aunno T., Sutton R. I., Price R. H. (1991) Isomorphism and external support in conflicting institutional environments: A study of drug abuse treatment units. Acad. Management J. 34(3) 636–661.CrossrefGoogle Scholar
  • Davis G. F. (1991) Agents without principles? The spread of the poison pill through the intercorporate network. Admin. Sci. Quart. 36(4) 583–613.CrossrefGoogle Scholar
  • Davis G. F. (2005) New directions in corporate governance. Annual Rev. Sociol. 31 143–162.CrossrefGoogle Scholar
  • Davis G. F., Greve H. R. (1997) Corporate elite networks and governance changes in the 1980s. Amer. J. Sociol. 103(1) 1–37.CrossrefGoogle Scholar
  • DiMaggio P. J., Powell W. W. (1983) The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. Amer. Sociol. Rev. 48(2) 147–160.CrossrefGoogle Scholar
  • Djelic M.-L., Sahlin-Andersson K. (2006) Introduction: A world of governance: The rise of transnational regulation. , Djelic M.-L., Sahlin-Andersson K., eds. Transnational Governance: Institutional Dynamics of Regulation. (Cambridge University Press, New York) , 1–28.CrossrefGoogle Scholar
  • Drankina E. (2001) Russian business: Black on white. Ekspert (June 18). . [In Russian.] Google Scholar
  • Durnev A., Kim E. H. (2005) To steal or not to steal: Firm attributes, legal environment, and valuation. J. Finance 60(3) 1461–1493.CrossrefGoogle Scholar
  • Dyck A., Volchkova N., Zingales L. (2008) The corporate governance role of the media: Evidence from Russia. J. Finance 63(3) 1093–1135.CrossrefGoogle Scholar
  • Edelman L. B. (1992) Legal ambiguity and symbolic structures: Organizational mediation of civil rights law. Amer. J. Sociol. 97(6) 1531–1576.CrossrefGoogle Scholar
  • Edelman L. B., Suchman M. (1997) The legal environments of organizations. Annual Rev. Sociol. 23 479–515.CrossrefGoogle Scholar
  • Eden L., Dacin M. T., Wan W. P. (2001) Standards across borders: Adoption of the arm's length standard in North America, 1917–97. Accounting, Organ. Soc. 26(1) 1–23.CrossrefGoogle Scholar
  • Edling C., Sandell R. (2001) Social influence and corporate behavior: A case study of interdependent decision-making in Sweden's publicly traded firms. Eur. Sociol. Rev. 17(4) 389–399.CrossrefGoogle Scholar
  • Enrione A., Mazza C., Zerboni F. (2006) Institutionalizing codes of governance. Amer. Behav. Scientist 49(7) 961–973.CrossrefGoogle Scholar
  • Etzion D., Ferraro F. (2010) The role of analogy in the institutionalization of sustainability reporting. Organ. Sci. 21(5) 1092–1107.LinkGoogle Scholar
  • Fernández-Rodríguez E., Gómez-Ansón S., Cuervo-García Á. (2004) The stock market reaction to the introduction of best practices codes by Spanish firms. Corporate Governance: Internat. Rev. 12(1) 29–46.CrossrefGoogle Scholar
  • Filatotchev I., Wright M., Uhlenbruck K., Tihanyi L., Hoskisson R. E. (2003) Governance, organizational capabilities, and restructuring in transition economies. J. World Bus. 38(4) 331–347.CrossrefGoogle Scholar
  • Fiss P. C. (2008) Institutions and corporate governance. , Greenwood R., Oliver C., Sahlin K., Suddaby R., eds. The SAGE Handbook of Organizational Institutionalism. (Sage, London) , 389–410.CrossrefGoogle Scholar
  • Fiss P. C., Zajac E. J. (2004) The diffusion of ideas over contested terrain: The (non)adoption of a shareholder value orientation among German firms. Admin. Sci. Quart. 49(4) 501–534.CrossrefGoogle Scholar
  • Fligstein N. (1985) The spread of the multidivisional form among large firms, 1919–1979. Amer. Sociol. Rev. 50(3) 377–391.CrossrefGoogle Scholar
  • Fredrickson J. W., Hambrick D. C., Baumrin S. (1988) A model of CEO dismissal. Acad. Management Rev. 13(2) 255–270.CrossrefGoogle Scholar
  • Galaskiewicz J. (1997) An urban grants economy revisited: Corporate charitable contributions in the Twin Cities, 1979–81, 1987–89. Admin. Sci. Quart. 42(3) 445–471.CrossrefGoogle Scholar
  • Garud R., Jain S., Kumaraswamy A. (2002) Institutional entrepreneurship in the sponsorship of common technological standards: The case of Sun Microsystems and Java. Acad. Management J. 45(1) 196–214.CrossrefGoogle Scholar
  • Goetzmann W. N., Spiegel M. I., Ukhov A. (2002) Modeling and measuring Russian corporate governance: The case of Russian preferred and common shares. . Working Paper 278, Yale School of Management, New Haven, CT.Google Scholar
  • Golub G. H., Van Loan C. F. (1996) Matrix Computations, 3rd ed. (John Hopkins University Press, Baltimore) .Google Scholar
  • Goncharov I., Werner J. R., Zimmermann J. (2006) Does compliance with the German Corporate Governance Code have an impact on stock valuation? An empirical analysis. Corporate Governance: Internat. Rev. 14(5) 432–445.CrossrefGoogle Scholar
  • Goodrick E., Salancik G. R. (1996) Organizational discretion in responding to institutional practices: Hospitals and cesarean births. Admin. Sci. Quart. 41(1) 1–28.CrossrefGoogle Scholar
  • Goodstein J. D. (1994) Institutional pressures and strategic responsiveness: Employer involvement in work-family issues. Acad. Management J. 37(2) 350–382.CrossrefGoogle Scholar
  • Guriev S., Rachinsky A. (2005) The role of oligarchs in Russian capitalism. J. Econom. Perspect. 19(1) 131–150.CrossrefGoogle Scholar
  • Haunschild P. R., Beckman C. M. (1998) When do interlocks matter?: Alternate sources of information and interlock influence. Admin. Sci. Quart. 43(4) 815–844.CrossrefGoogle Scholar
  • Haveman H. A. (1993) Follow the leader: Mimetic isomorphism and entry into new markets. Admin. Sci. Quart. 38(4) 593–627.CrossrefGoogle Scholar
  • Heckman J. J. (1979) Sample selection bias as a specification error. Econometrica 47(1) 153–161.CrossrefGoogle Scholar
  • Hermes N., Postma T. J. B. M., Zivkov O. (2007) Corporate governance codes and their contents: An analysis of Eastern European codes. J. East Eur. Management Stud. 12(1) 53–74.CrossrefGoogle Scholar
  • Hoffman A. J. (1996) A strategic response to investor activism. Sloan Management Rev. 37(2) 51–64.Google Scholar
  • Ingram P., Simons T. (1995) Institutional and resource dependence determinants of responsiveness to work-family issues. Acad. Management J. 38(5) 1466–1482.CrossrefGoogle Scholar
  • Jacobsson B., Sahlin-Andersson K. (2006) Dynamics of soft regulations. , Djelic M.-L., Sahlin-Andersson K., eds. Transnational Governance: Institutional Dynamics of Regulation. (Cambridge University Press, New York) , 247–265.Google Scholar
  • JSFC Sistema (2006) Information about compliance with the main requirements of the Code of Corporate Conduct. . Report, JSFC Sistema, Moscow.Google Scholar
  • Julian S. D., Ofori-Dankwa J. C., Justis R. T. (2008) Understanding strategic responses to interest group pressures. Strategic Management J. 29(9) 963–984.CrossrefGoogle Scholar
  • Kalbfleisch J. D., Prentice R. L. (2002) The Statistical Analysis of Failure Time Data, 2nd ed. (Wiley-Interscience, Hoboken, NJ) .CrossrefGoogle Scholar
  • Kostikov I. V. (2002) Problems of corporate governance in Russia. , Kostikov I. V., ed. Board of Directors in the System of Corporate Governance. (Russian Institute of Directors, Moscow) , 9–16.Google Scholar
  • Kostova T., Roth K. (2002) Adoption of an organizational practice by subsidiaries of multinational corporations: Institutional and relational effects. Acad. Management J. 45(1) 215–233.CrossrefGoogle Scholar
  • La Porta R., Lopez-De-Silanes F., Shleifer A., Vishny R. W. (1998) Law and finance. J. Political Econom. 106(6) 1113–1155.CrossrefGoogle Scholar
  • Lee B. H. (2009) The infrastructure of collective action and policy content diffusion in the organic food industry. Acad. Management J. 52(6) 1247–1269.CrossrefGoogle Scholar
  • Lefebvre M., Singh J. B. (1992) The content and focus of Canadian corporate codes of ethics. J. Bus. Ethics 11(10) 799–808.CrossrefGoogle Scholar
  • Leipziger D. (2003) The Corporate Responsibility Code Book. (Greenleaf, Sheffield, UK) .Google Scholar
  • Long J. S., Freese J. (2003) Regression Models for Categorical Dependent Variables Using Stata. (Stata Press, College Station, TX) .Google Scholar
  • Marquis C., Glynn M. A., Davis G. F. (2007) Community isomorphism and corporate social action. Acad. Management Rev. 32(3) 925–945.CrossrefGoogle Scholar
  • McCarthy D. J., Puffer S. M. (2003) Corporate governance in Russia: A framework for analysis. J. World Bus. 38(4) 397–415.CrossrefGoogle Scholar
  • McCarthy D. J., Puffer S. M. (2004) Corporate governance in Russia: Towards a European, US, or Russian model? , McCarthy D. J., Puffer S. M., Shekshnia S. V., eds. Corporate Governance in Russia. (Edward Elgar, Cheltenham, UK) , 394–413.Google Scholar
  • McCarthy D. J., Puffer S. M. (2008) Corporate governance as a foundation for corporate social responsibility in transitioning economies: The Russian experience. Thunderbird Internat. Bus. Rev. 50(4) 231–243.CrossrefGoogle Scholar
  • McNichol J. (2006) Transnational NGO certification programs as new regulatory forms: Lessons from the forestry sector. , Djelic M.-L., Sahlin-Andersson K., eds. Transnational Governance: Institutional Dynamics of Regulation. (Cambridge University Press, New York) , 349–374.Google Scholar
  • Meyer J. W., Rowan B. (1977) Institutionalized organizations: Formal structure as myth and ceremony. Amer. J. Sociol. 83(2) 340–363.CrossrefGoogle Scholar
  • Meyer J. W., Scott R. W. (1983) Organizational Environments: Ritual and Rationality. (Sage, Beverly Hills, CA) .Google Scholar
  • Meyer M. (1979) Organizational structure as signalling. Pacific Sociol. Rev. 22 481–500.CrossrefGoogle Scholar
  • OECD (1999) Principles of Corporation Governance. (OECD Publications, Paris) .CrossrefGoogle Scholar
  • Okhmatovskiy I. (2010) Performance implications of ties to the government and SOEs: A political embeddedness perspective. J. Management Stud. 47(6) 1020–1047.CrossrefGoogle Scholar
  • Oliver C. (1991) Strategic responses to institutional processes. Acad. Management Rev. 16(1) 145–179.CrossrefGoogle Scholar
  • Otten J. A., Heugens P. P. M. A. R., Schenk E. J. J. (2006) Corporate governance reforms and firm ownership around the world. . Discussion Paper Series 06-01, Tjalling C. Koopmans Research Institute, Utrecht University, Utrecht, The Netherlands.Google Scholar
  • Pierce C., Waring K. (2004) Handbook of International Corporate Governance: A Country by Country Guide. (Kogan Page, London) .Google Scholar
  • Rao H., Sivakumar K. (1999) Institutional sources of boundary-spanning structures: The establishment of investor relations departments in the Fortune 500 industrials. Organ. Sci. 10(1) 27–42.LinkGoogle Scholar
  • Ratnikov K. (2002) The Russian Code of Corporate Conduct underwent serious changes with market wishes in mind. Corporate Governance News (January 3), . http://www.corp-gov.org/bd/db.php3?db_id=437&base_id=3.Google Scholar
  • Roberts G. H. (2004) Convergent capitalisms? The internationalisation of financial markets and the 2002 Russian corporate governance code. Eur.-Asia Stud. 56(8) 1235–1248.CrossrefGoogle Scholar
  • Roe M. J. (2003) Political Determinants of Corporate Governance: Political Context, Corporate Impact. (Oxford University Press, New York) .Google Scholar
  • Ruef M., Scott W. R. (1998) A multidimensional model of organizational legitimacy: Hospital survival in changing institutional environments. Admin. Sci. Quart. 43(4) 877–904.CrossrefGoogle Scholar
  • Sahlin K., Wedlin L. (2008) Circulating ideas: Imitation, translation and editing. , Greenwood R., Oliver C., Sahlin K., Suddaby R., eds. The SAGE Handbook of Organizational Institutionalism. (Sage, London) , 218–242.CrossrefGoogle Scholar
  • Sahlin-Andersson K. (1996) Imitating by editing success: The construction of organizational fields. , Czarniawska B., Sevon G., eds. Translating Organizational Change. (Walter de Gruyter, Berlin) , 69–92.CrossrefGoogle Scholar
  • Salancik G. R. (1979) Interorganizational dependence and responsiveness to affirmative action: The case of women and defense contractors. Acad. Management J. 22(2) 375–394.CrossrefGoogle Scholar
  • Sanders W. G., Tuschke A. (2007) The adoption of institutionally contested organizational practices: The emergence of stock option pay in Germany. Acad. Management J. 50(1) 33–56.CrossrefGoogle Scholar
  • Scott J. (1985) Theoretical framework and research design. , Stockman F. N., Ziegler R., Scott J., eds. Networks of Corporate Power: A Comparative Analysis of Ten Countries. (Polity, Cambridge, UK) , 1–19.Google Scholar
  • Seidl D. (2007) Standard setting and following in corporate governance: An observation-theoretical study of the effectiveness of governance codes. Organization 14(5) 705–727.CrossrefGoogle Scholar
  • Sethi S. P. (2003) Setting Global Standards: Guidelines for Creating Codes of Conduct in Multinational Corporations. (John Wiley & Sons, Hoboken, NJ) .Google Scholar
  • Sine W. D., David R. J., Mitsuhashi H. (2007) From plan to plant: Effects of certification on operational start-up in the emergent independent power sector. Organ. Sci. 18(4) 578–594.LinkGoogle Scholar
  • Sine W. D., Tolbert P. S., Park S. (2009) Institutions in action: Tenure systems and faculty employment in colleges and universities. . Working paper, Cornell University, Ithaca, NY.Google Scholar
  • Singh H., Harianto F. (1989) Management-board relationships, takeover risk, and the adoption of golden parachutes. Acad. Management J. 32(1) 7–24.CrossrefGoogle Scholar
  • Terlaak A. (2007) Order without law? The role of certified management standards in shaping socially desired firm behaviors. Acad. Management Rev. 32(3) 968–985.CrossrefGoogle Scholar
  • Tolbert P. S. (1985) Institutional environments and resource dependence: Sources of administrative structure in institutions of higher education. Admin. Sci. Quart. 30(1) 1–13.CrossrefGoogle Scholar
  • Tolbert P. S., Zucker L. G. (1983) Institutional sources of change in the formal structure of organizations: The diffusion of civil service reform, 1880–1935. Admin. Sci. Quart. 28(1) 22–39.CrossrefGoogle Scholar
  • Tuma N. B., Hannan M. T. (1984) Social Dynamics: Models and Methods. (Academic Press, New York) .Google Scholar
  • Weil, Gotshal & Manges (2002) Comparative study of corporate governance codes relevant to the European Union and its member states. . European Commission, Brussels.Google Scholar
  • Werder A. V., Talaulicar T., Kolat G. L. (2005) Compliance with the German corporate governance code: An empirical analysis of the compliance statements by German listed companies. Corporate Governance: Internat. Rev. 13(2) 178–187.CrossrefGoogle Scholar
  • Westphal J. D., Zajac E. J. (1994) Substance and symbolism in CEO's long-term incentive plans. Admin. Sci. Quart. 39(3) 367–390.CrossrefGoogle Scholar
  • Westphal J. D., Zajac E. J. (1998) The symbolic management of stockholders: Corporate government reforms and shareholder reactions. Admin. Sci. Quart. 43(1) 127–153.CrossrefGoogle Scholar
  • Westphal J. D., Zajac E. J. (2001) Decoupling policy from practice: The case of stock repurchase programs. Admin. Sci. Quart. 46(2) 202–228.CrossrefGoogle Scholar
  • Westphal J. D., Gulati R., Shortell S. M. (1997) Customization or conformity? An institutional and network perspective on the content and consequences of TQM adoption. Admin. Sci. Quart. 42(2) 366–394.CrossrefGoogle Scholar
  • Wymeersch E. (2005) Enforcement of corporate governance codes. . European Corporate Governance Institute—Law Working Paper 46/2005, Brussels.CrossrefGoogle Scholar
  • Yakovlev A. (2004) Evolution of corporate governance in Russia: Governmental policy vs. real incentives of economic agents. Post-Communist Econom. 16(4) 387–403.CrossrefGoogle Scholar
  • Yakovlev A. (2006) The evolution of business-state interaction in Russia: From state capture to business capture? Eur.-Asia Stud. 58(7) 1033–1056.CrossrefGoogle Scholar
  • Yoshikawa T., Tsui-Auch L. S., McGuire J. (2007) Corporate governance reform as institutional innovation: The case of Japan. Organ. Sci. 18(6) 973–988.LinkGoogle Scholar
  • Young G. J., Charns M. P., Shortell S. M. (2001) Top manager and network effects on the adoption of innovative management practices: A study of TQM in a public hospital system. Strategic Management J. 22(10) 935–951.CrossrefGoogle Scholar
  • YuTK (2006) Annual report of Yuzhnaya Telekommunikatsionnaya Kompaniya (Southern Telecommunications Company). . Report, YuTK, Moscow.Google Scholar
  • Zattoni A., Cuomo F. (2008) Why adopt codes of good governance? A comparison of institutional and efficiency perspectives. Corporate Governance: Internat. Rev. 16(1) 1–15.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.