“…will act in all possible states of the world+ 31 All organizations, therefore, rely on a combination of governance rules, stated principles, and norms to enable members and leaders to form expectations about how the organization will behave over time+ 32 As leaders repeatedly make observable decisions and take positions consistent with stated principles, the organization develops a cultural reputation+ Both Kreps and Miller emphasize that principled actions or positions apparently contrary to immediate economic interests are particularly important for building and sustaining an organizational culture-so long as organizational performance continues to be strong+ As new members join the union, they will likely view the organization's culture as so many norms of behavior+ Initially, we expect that some combination of sanctions and expectations about others will promote compliance+ Over time, however, there is the possibility that the members may come to reconsider their beliefs and preferences as a result of their organizational exposure and socialization+ In keeping with the "active decision" hypothesis of Stutzer, Goette, and Zehnder, 33 they may begin to develop new normative motivations as the basis for their com- 30+ See Arrow 1974;andCoase 1937+ 31+ See Kreps 1990;and Miller 1992+ 32+ Hermalin 2001+ 33+ See Fehr and Hoff 2011and Stutzer, Goette, and Zehnder 2011+ This notion is consistent with other theorists of "endogenous preferences+" See Bicchieri 2006; Brady, Ferejohn, and Pope 2005;and Weingast 2005+ pliance+ In the ILWU context, members who are asked to form an opinion about issues they had not previously considered-or at least had not considered relevant to their union-can be induced to reconsider their beliefs and preferences in light of the union's performance+ 34 Since its 1937 founding, the ILWU has maintained a vigorous and explicit set of " Ten Guiding Principles+" The most relevant to trade are the following two:…”