institutional perspectives
Post on 07-Apr-2017
174 Views
Preview:
TRANSCRIPT
Tools of the trade
Institutional pressures on business
Institutional viewThis tool seeks to understand the forces which act upon an organisation which establish acceptable behaviours
How does business change?Capture
new sourcesof value
Invest to maintain
competitive
advantage
Conform toexternal pressure
Adopt practices
to comply, defy, or
manipulate
Seekrole models for future
Seek successful examples
to replicate
Evolveleadership practices
Promote professional standards(Consumer behaviours
)
Radical paradigm shift (sustainable business design)
Develop radical new business models, market systems,
governance, and exchange mechanisms
How does business change?
Organisations exist in an environment which is made up of peers, competitors, governments, NGOs and other stakeholder organisations
This environment (or field) is often defined by the type and size of business
Within this ‘field’ there are certain expectations generated about what is normal or acceptable behaviour
The greater the pressure the more likely the organisations in the field will conform
What shapes behaviourDi Maggio & Powell, 1987
What forces shape behaviour?Institutions in society such as Peers, NGOs, and Governments SHAPE business behaviours towards a legitimate norm Businesses pursue legitimacy as an
organisational goal or endorsement which achieve political power…and social fitness
Di Maggio & Powell, 1987
What forces shape behaviour?Where Legitimacy is the generalised perception or assumption that the actions of an organisation are desirable, proper or appropriate within some social constructed system of norms, values, beliefs, and definitions
Suchman, 1995
Explicit coercive pressure on an organisation is that is considered to stem from political influence and the problems of legitimacy and arises from direct dependence on other organisations most importantly those with governments and other rule makers
Regulatory or governmental pressures
8
Di Maggio & Powell, 1987
Implicit coercive processes are assumed to derive from public opinion as represented in the mass media and from the monitoring and advocate activities of Non-Government Organisations (NGOs)
Reputational pressures to conform
9
Di Maggio & Powell, 1987
Uncertainty is a powerful force that encourages imitation are is an important driver for behavioural change
Mimetic processes are used when organisations are uncertain of an appropriate strategyThen model the behaviour of others who are seen as successful, legitimate, or to have adopted a viable solution to a managerial problem
Uncertainty and pressure to follow role modelsDi Maggio & Powell, 1987
Normative or professionalism processes are seen to be largely associated with professionalised networks between individuals or organisations as members of an occupation or through the acquisition of expected norms in the formal education or training of employees
Pressure to conform to professional standards
Which actors exhibit pressure?Waddock 2008
ProfessionNormative MimeticExplicit coercive Implicit coercive
Institutional pressures in CR&S Organisations experience institutional pressure which drives
similar and increasing levels of corporate responsibility Certain factors give rise to higher levels of responsibility
such as media observation, greater prevalence of CSR standards, pressure from supra-national bodies like the UN
Other factors limit the ability of organisations to respond to institutional pressures or reduce organisations’ dependence on institutional support – absence of financial resources, limited competition etc
Summary This perspective on responsible & sustainable
business suggests that businesses are under pressure to conform to expectations
Here external actors (stakeholders) combine to shape those expectations
top related