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Author:Chua, F.
Rahman, A.
Title:Institutional pressures and ethical reckoning by business corporations
Journal:Journal of Business Ethics
2011 : JAN II, VOL. 98:2, p. 307-329
Index terms:business ethics
institutions
theories
Freeterms:codes of conduct
codes of ethics
social contract
Language:eng
Abstract:Prior research has provided explanations for the presence, use and dissemination of codes of corporate ethics or codes of corporate conduct of business corporations. As these explanations are descriptive and functional in nature, this study aims at more underlying explanations by using two complementary theories: 1. social contract theories explaining the exogenous and endogenous reasons of organizational behaviour, and 2. institutional theory explaining why organizations take same kind of measures in response to institutional pressures. Based on these explanations, it is argued that the codes and their use and dissemination base on underlying social and institutional pressures for firms to continuously validate their existence in the face of recurrent uncertainties and increasing changes.
SCIMA record nr: 276629
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