The decision regarding ethics and compliance management (ECM) adoption and its actual implementation is usually deliberated as an important corporate social responsibility (CSR) matter. Building on the strategic choice perspective, this study aims to investigate the forces and mechanisms underlying the link between ECM adoption and its substantial implementation.
The study is based on survey data of multi-national companies (MNCs) in Asia.
The authors find that firms adopt ECM initiatives due to the impact of critical field events coupled with institutional mimesis and the salience of risk reduction. Moreover, reinforced by top management support and ethics transgressions, firms are inclined to engage in sincere ECM implementation.
The study examines important antecedents of ECM adoption and implementation in market MNCs. In doing so, it contributes to the broader CSR literature.
