Drawing upon institutional and stakeholder theories, we explore the causal mechanisms of institutionalization and their influence on Sustainable Development initiatives. To test our arguments, we study the registration patterns of 394 large corporations from 12 Western European and Latin American countries into the United Nations Global Compact. Results indicate that the normative and mimetic mechanisms of institutionalization (i.e., academe and peer influence) are better indicators of Sustainable Development initiatives than the coercive one (i.e., government regulation). The implications of these findings are consequential if SD practices continue as an ethical choice, and not a mandated obligation, for corporate decision makers.
- Sustainable development
- United Nations Global Compact