TY - JOUR

T1 - Exploring the institutionalization of corporate responsibility

T2 - A formal modeling approach

AU - Haack, Patrick

AU - Schoeneborn, Dennis

PY - 2015/1

Y1 - 2015/1

N2 - Organizations often adopt formal policies ceremonially, that is, neither substantively nor in alignment with actual practice. Prior research on practice adoption suggested that opacity stabi-lizes ceremonial adoption and impedes substantive adoption. This paper offers a dynamic view of adoption and re-examines the role of opacity in promoting substantive and widespread adoption. Using a Markov chain model, we demonstrate that if opacity is transitory and succeeded by transparency, opacity can actually promote substantive adoption within an industry. We substantiate the validity of our arguments by drawing on the prominent management practice of corporate responsibility. Our paper contributes to the development of a general theory of decoupling and institutionalization by examining the boundary conditions under which organizations adopt ceremonially or implement substantively a policy. We discuss the implications of our findings for institutional theory and research on corporate responsibility.

AB - Organizations often adopt formal policies ceremonially, that is, neither substantively nor in alignment with actual practice. Prior research on practice adoption suggested that opacity stabi-lizes ceremonial adoption and impedes substantive adoption. This paper offers a dynamic view of adoption and re-examines the role of opacity in promoting substantive and widespread adoption. Using a Markov chain model, we demonstrate that if opacity is transitory and succeeded by transparency, opacity can actually promote substantive adoption within an industry. We substantiate the validity of our arguments by drawing on the prominent management practice of corporate responsibility. Our paper contributes to the development of a general theory of decoupling and institutionalization by examining the boundary conditions under which organizations adopt ceremonially or implement substantively a policy. We discuss the implications of our findings for institutional theory and research on corporate responsibility.

KW - Management studies

UR - http://www.scopus.com/inward/record.url?scp=85026379215&partnerID=8YFLogxK

U2 - 10.5465/AMBPP.2015.141

DO - 10.5465/AMBPP.2015.141

M3 - Conference article in journal

AN - SCOPUS:85026379215

VL - 2015

JO - Academy of Management Proceedings

JF - Academy of Management Proceedings

SN - 0065-0668

M1 - 11508

ER -