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Organizational Susceptibility to Institutional Complexity: Critical Events Driving the Adoption and Implementation of the Ethics and Compliance Officer Position

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  • David Chandler

    (University of Colorado Denver Business School, Denver, Colorado 80202)

Abstract

The institutional environment is complex. This complexity is characterized by forces that ebb and flow in wavelike patterns as societal expectations evolve, with attention coalescing around specific events and then dissipating. Some of these critical events are broad and affect many firms, whereas others are narrow and affect individual firms. In either case, when they occur, these events elevate organizational susceptibility to societal demands but encourage different kinds of behavior in response. This study seeks to model this complexity in an area of growing interest for organization scholars—business ethics. In particular, I examine how firms respond to shifting societal pressures for greater ethical behavior by adopting and implementing the Ethics and Compliance Officer position, from 1990 to 2008. Results demonstrate that although firms decide when to adopt in response to broad fieldwide critical events , it is narrower firm-specific critical events that determine resource commitments in implementation.

Suggested Citation

  • David Chandler, 2014. "Organizational Susceptibility to Institutional Complexity: Critical Events Driving the Adoption and Implementation of the Ethics and Compliance Officer Position," Organization Science, INFORMS, vol. 25(6), pages 1722-1743, December.
    • Handle: RePEc:inm:ororsc:v:25:y:2014:i:6:p:1722-1743
    DOI: 10.1287/orsc.2014.0927
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    4. Sarah Castaldi & Miriam M. Wilhelm & Sjoerd Beugelsdijk & Taco Vaart, 2023. "Extending Social Sustainability to Suppliers: The Role of GVC Governance Strategies and Supplier Country Institutions," Journal of Business Ethics, Springer, vol. 183(1), pages 123-146, February.
    5. Schulz, Ann-Christine & Johann, Sarah, 2018. "Downsizing and the fragility of corporate reputation: An analysis of the impact of contextual factors," Scandinavian Journal of Management, Elsevier, vol. 34(1), pages 40-50.
    6. Pamela R. Haunschild & Francisco Polidoro & David Chandler, 2015. "Organizational Oscillation Between Learning and Forgetting: The Dual Role of Serious Errors," Organization Science, INFORMS, vol. 26(6), pages 1682-1701, December.
    7. Vigneau, Laurence, 2020. "A micro-level perspective on the implementation of corporate social responsibility practices in multinational corporations," Journal of International Management, Elsevier, vol. 26(4).
    8. Anselm Schneider & Christopher Wickert & Emilio Marti, 2017. "Reducing Complexity by Creating Complexity: A Systems Theory Perspective on How Organizations Respond to Their Environments," Journal of Management Studies, Wiley Blackwell, vol. 54(2), pages 182-208, March.
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    10. Andrews, Daniel S. & Fainshmidt, Stav & Ambos, Tina & Haensel, Kira, 2022. "The attention-based view and the multinational corporation: Review and research agenda," Journal of World Business, Elsevier, vol. 57(2).
    11. Aruna Jha & Vijita Singh Aggrawal, 2019. "Institutional pressures for corporate social responsibility implementation: a study of Indian executives," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 16(4), pages 555-577, June.
    12. Daisuke Uchida, 2021. "The consequence of differences: How heterogeneity in practice adaptations affects the diffusion process," Asia Pacific Journal of Management, Springer, vol. 38(1), pages 209-230, March.
    13. Schüßler, Elke & Lohmeyer, Nora & Ashwin, Sarah, 2022. "We can't compete on human rights: creating market-protected spaces to institutionalize the emerging logic of responsible management," LSE Research Online Documents on Economics 115506, London School of Economics and Political Science, LSE Library.
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