The Origins and Institutionalization of Informal Institutions Enabling Managerial Corporate Governance of U.S
This study explores the origins and institutionalization of informal institutions which enables managerial governance mechanism of U.S. to be formed and to work stably. According to this study, it is not the formal institution but the informal institution that constructs the basement of corporate governance system. Formal institution including law and government regulation can affect over the selection of governance methods. According to this study, however, actual corporate governance system of U.S. which allows relatively huge power to top manager has been stemmed from simple isomorphic imitation of informal customs and habits which take it for granted to be honest and industrious.
According to this study, ethical preconditions for managerial corporate governance, such as honesty, industriousness, compliance of contracts, etc., have been coming down from historical origins and experiences of Puritanism, frontier spirit, autonomous organizing tradition of firms, limited government power and absence of feudalism in case of America. Through the internalization of Puritan norms and the learning from voluntary cooperation for business and frontier pioneering, informal institution are formed and institutionalized as the habits of minds. Once established as an informal institution, it develops diverse vehicles inheriting itself. Formal institutions, law, constitution, writings, films, proverbs, medias, organizations, participation, language, and all that affect human mind and behavior can be the means to inherit norms and educate business ethics. As a result of constant and repeated learning, honesty becomes internal and unconscious norm. Therefore, according to this study, corporate governance system of U.S. which allows relatively huge power to top manager could be stemmed or extended naturally and easily from informal institutions.