Legitimacy

Suddaby, Roy; Bitektine, Alex; Haack, Patrick

doi:10.5465/annals.2015.0101

Cited by 717 publications

(804 citation statements)

References 208 publications

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“…However, this has been criticised on the grounds that culture is presented in a 'diffuse, inconsistent, and often simplistic ways' (Meidinger 1987). There are similar concerns with regard to the over simplification of the construct of legitimacy, and its widespread application resulting in misuse of the construct (Suddaby et al 2017). Compounding the matter further, less has been said from the perspective of the compliance functions, within the firms where the continued dysfunctional cultural issues exist.…”

Section: Introductionmentioning

confidence: 97%

“…Highlighting the role of normative pressures, Duska (2011) contends that being ethical and following the law are not the same, as "It is not an adequate ethical standard to aspire to get through the day without being indicted" (Duska 2011, p. 22). In effect, normative pressures play an active role in the social construction of the legitimation process (Suddaby et al 2017), which affects the professional conduct of individuals and hence the existence of a compliance culture within firms. Here, as Human and Provan (2000) shows, the process of legitimation is "not a monolithic or universal construct but, rather, varied as the field matured and emphasized different aspects of the organizational network over time."…”

Section: Normative and Cultural Pressures Legitimacy And Compliancementioning

confidence: 99%

“…4 This marks a significant shift in defining compliance and hence legitimacy. Here, legitimacy is changing from being a static property, achieved by complying with law/regulations to a more dynamic process socially constructed by the regulator and firms (Suddaby et al 2017).…”

Section: Regulatory Pillar Legitimacy and Compliancementioning

confidence: 99%

“…The resulting model of evolutionary compliance culture evidences the impact of pressures, and the nature of regulatory flux which has advanced the pursuit of legitimacy from a 'property' (measurable) to a 'interactive process' (Suddaby et al 2017) in the contemporary banking industry in the UK.…”

Section: Introductionmentioning

confidence: 99%

“…Drawing on Suddaby et al (2017), this could be interpreted as a shift from perceiving legitimacy as a property (which is simply achieved (or lost) by firms' compliance (or non-compliance) with law and regulations i.e. through coercion), to perceiving legitimacy as a process which socially constructs the terms of reference of legitimacy, as a process that is based on collaboration rather than enforcement.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Institutional Theory and Evolution of ‘A Legitimate’ Compliance Culture: The Case of the UK Financial Service Sector

Burdon

Sorour

2018

J Bus Ethics

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Over the last decade, scandals within the UK Financial Service sector have impacted their legitimacy and raised questions whether a compliance culture exists or not. Several institutional changes at the regulatory and normative levels have targeted stakeholders' concerns regarding compliance culture and led to changes in the legitimation process. This paper attempts to address a gap in the literature by asking the following question: How is the UK financial institutions' compliance culture shaped by the institutional environment and changing legitimacy claims? Towards achieving this objective, the paper draws on the institutional theory and pays attention to the various configurations of the legitimacy notion (property vs process Suddaby et al. Acad Manag Ann 11(1):451-478; 2017). The paper utilises a longitudinal interpretive design and undertakes a qualitative content analysis of fines issued by the UK regulator and the communicated response of violating firms as well as non-sanctioned firms. Our findings indicate that there is a cyclical 'evolutionary compliance' rather than the more widely recognised state of 'compliance culture'. This culture is fuelled by interchangeable isomorphic forces where the majority of violating firms are seen to issue similar responses to the regulators sanction to maintain their reputation and legitimacy in the market. Notably, legitimacy is now defined within an interactive process between the regulator and firms rather than being static and achieved by ticking the box.

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Section: Introductionmentioning

confidence: 97%

Section: Normative and Cultural Pressures Legitimacy And Compliancementioning

confidence: 99%

Section: Regulatory Pillar Legitimacy and Compliancementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Institutional Theory and Evolution of ‘A Legitimate’ Compliance Culture: The Case of the UK Financial Service Sector

Burdon

Sorour

2018

J Bus Ethics

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Public Sector Communication and Organizational Legitimacy

Wæraas¹

2020

The Handbook of Public Sector Communication

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Multinationals and sustainable development: Does internationalization develop corporate sustainability of emerging market multinationals?

Park

2018

Bus Strat Env

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Based on theories of attention and institution, this paper examines how the internationalization of emerging market multinationals (EMNEs) affects their corporate sustainability (CS). A contrasting perspective with respect to the dual effects of internationalization on sustainability strengths (being good) and sustainability concerns (being bad) is developed. On one hand, it is argued that internationalization improves CS strengths because EMNEs that rely on foreign sales are motivated to adopt CS as a global business norm. Such norm‐conformity overcomes the liability of origin and legitimacy challenge in foreign markets. On the other hand, it is contended that internationalization also increases CS concerns because subsidiaries of EMNEs are susceptible to being decoupled from the headquarters' CS policy. The results show that internationalization can be both good and bad for CS. Thus, it can be misleading to simply say that there is either a positive or a negative relationship between internationalization and CS.

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Legitimacy

Cited by 717 publications

References 208 publications

Institutional Theory and Evolution of ‘A Legitimate’ Compliance Culture: The Case of the UK Financial Service Sector

Institutional Theory and Evolution of ‘A Legitimate’ Compliance Culture: The Case of the UK Financial Service Sector

Public Sector Communication and Organizational Legitimacy

Multinationals and sustainable development: Does internationalization develop corporate sustainability of emerging market multinationals?

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