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Taking Sides: The Interactive Influences of Institutional Mechanisms on the Adoption of Same-Sex Partner Health Benefits by Fortune 500 Corporations, 1990--2003

Author

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  • You-Ta Chuang

    (School of Administrative Studies, York University, Toronto, Ontario M3J 1P3, Canada)

  • Robin Church

    (Ted Rogers School of Business Management, Ryerson University, Toronto, Ontario M5B 2K3, Canada)

  • Ron Ophir

    (School of Administrative Studies, School of Human Resource Management, York University, Toronto, Ontario M3J 1P3, Canada)

Abstract

We draw upon institutional theory to investigate the interactive influences of institutional mechanisms---coercive, mimetic, and normative---on the diffusion of a controversial and socially stigmatized practice, same-sex partner health benefits, in Fortune 500 corporations between 1990 and 2003. Given the social stigma associated with domestic partnerships of lesbians and gay men during the period of the study, the provision of these benefits was highly controversial and induced intense contestation between proponents and opponents of the institution of equal treatment for lesbian and gay employees. We explore the diffusion of theses benefits using data on cumulative adoptions by similar others, state laws forbidding discrimination based on sexual orientation, and overall tenor in press coverage of the benefits. Our analysis shows that the cumulative number of adoptions within industry increased the positive effect of state laws on the corporation's decision to provide the benefits. However, the cumulative number of adoptions in the state of the corporation's headquarters decreased the positive effects of both state laws and overall tenor in press coverage on such a decision. Accordingly, our study contributes to institutional theory by pointing to complex interactive influences of institutional mechanisms on the institutionalization of contested practices, and to the literature on lesbian and gay issues in the workplace by studying factors influencing organizational decisions to adopt policies supportive of lesbian and gay employees.

Suggested Citation

  • You-Ta Chuang & Robin Church & Ron Ophir, 2011. "Taking Sides: The Interactive Influences of Institutional Mechanisms on the Adoption of Same-Sex Partner Health Benefits by Fortune 500 Corporations, 1990--2003," Organization Science, INFORMS, vol. 22(1), pages 190-209, February.
    • Handle: RePEc:inm:ororsc:v:22:y:2011:i:1:p:190-209
    DOI: 10.1287/orsc.1090.0521
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    References listed on IDEAS

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    1. Hayagreeva Rao & Kumar Sivakumar, 1999. "Institutional Sources of Boundary-Spanning Structures: The Establishment of Investor Relations Departments in the Fortune 500 Industrials," Organization Science, INFORMS, vol. 10(1), pages 27-42, February.
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    3. Bryant Ashley Hudson & Gerardo A. Okhuysen, 2009. "Not with a Ten-Foot Pole: Core Stigma, Stigma Transfer, and Improbable Persistence of Men's Bathhouses," Organization Science, INFORMS, vol. 20(1), pages 134-153, February.
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    Cited by:

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    3. Do, Hung X. & Nguyen, Lily & Nguyen, Nhut H. & Nguyen, Quan M.P., 2022. "LGBT policy, investor trading behavior, and return comovement," Journal of Economic Behavior & Organization, Elsevier, vol. 196(C), pages 457-483.
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    5. Hasan, Mostafa Monzur & Cheung, Adrian (Wai Kong) & Marwick, Trevor, 2022. "Corporate sexual orientation equality policies and the cost of equity capital," Journal of Behavioral and Experimental Finance, Elsevier, vol. 34(C).
    6. Ayed, Sabrine & Waxin, Timothée, 2023. "LGBT discrimination and harassment, firm value, and reputation repair," International Review of Financial Analysis, Elsevier, vol. 90(C).
    7. Sivathaasan Nadarajah & Muhammad Atif & Ammar Ali Gull, 2022. "State-Level Culture and Workplace Diversity Policies: Evidence from US Firms," Journal of Business Ethics, Springer, vol. 177(2), pages 443-462, May.
    8. Brahma, Sanjukta & Gavriilidis, Konstantinos & Kallinterakis, Vasileios & Verousis, Thanos & Zhang, Mengyu, 2023. "LGBTQ and finance," International Review of Financial Analysis, Elsevier, vol. 86(C).
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    10. Simone Pulcher & Marco Guerci & Thomas Köllen, 2022. "When stakeholders claim differently for diversity management: Adopting lesbian, gay and bisexual‐inclusive practices in Italy," British Journal of Industrial Relations, London School of Economics, vol. 60(4), pages 815-840, December.

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