According to W. Richard Scott, which pillar of institutions corresponds to the power of governments?

According to W. Richard Scott, which pillar of institutions corresponds to the power of governments?

• A. Cognitive pillar
• B. Normative pillar
• C. Regulatory pillar
• D. Ethical pillar

Answer: (C)

The correct answer is the regulatory pillar, as it directly relates to the formal rules and institutions established by governments. W. Richard Scott identifies three pillars of institutions: cognitive, normative, and regulatory. The regulatory pillar pertains to the laws, regulations, and enforcement mechanisms that govern behavior within a society. This includes the power of governments to create and enforce rules that can impact business practices, social behavior, and market dynamics. In this context, the regulatory pillar is fundamental in shaping how organizations operate, as it outlines the legal framework within which businesses must function. Governments derive their authority from this pillar to impose regulations and standards that can influence various sectors, ensuring compliance with legal requirements. The other pillars, while important, do not specifically represent the role of governmental power. The cognitive pillar reflects the shared beliefs and mental models that shape how individuals perceive the world, and the normative pillar pertains to social norms and values that guide behavior and establish expectations. The ethical pillar is not a term commonly used in Scott's model, further clarifying that the regulatory pillar is indeed the one that represents the authority and influence of governments in institutional frameworks.

The correct answer is the regulatory pillar, as it directly relates to the formal rules and institutions established by governments. W. Richard Scott identifies three pillars of institutions: cognitive, normative, and regulatory. The regulatory pillar pertains to the laws, regulations, and enforcement mechanisms that govern behavior within a society. This includes the power of governments to create and enforce rules that can impact business practices, social behavior, and market dynamics.

In this context, the regulatory pillar is fundamental in shaping how organizations operate, as it outlines the legal framework within which businesses must function. Governments derive their authority from this pillar to impose regulations and standards that can influence various sectors, ensuring compliance with legal requirements.

The other pillars, while important, do not specifically represent the role of governmental power. The cognitive pillar reflects the shared beliefs and mental models that shape how individuals perceive the world, and the normative pillar pertains to social norms and values that guide behavior and establish expectations. The ethical pillar is not a term commonly used in Scott's model, further clarifying that the regulatory pillar is indeed the one that represents the authority and influence of governments in institutional frameworks.