Institutional isomorphism in Japanese firms' compliance activities

Abstract

Japanese firms' compliance activities have developed and become the norm to a certain extent. However, when we surveyed seven companies in various industries, including two firms that have experienced scandals, through interviews and public documents, we found that these seven firms' compliance systems were surprisingly similar. This is because the institutionalization of compliance activities among Japanese firms has advanced under the influence of the Japan Business Federation and the Japanese government, and in fact, the mechanism of Dimaggio and Powell's institutional isomorphism is at work. We believe that this is because the isomorphism in compliance activities that has developed independently of performance or of the ability to prevent scandals.