Working Paper: CEPR ID: DP10424
Authors: Luigi Guiso; Paola Sapienza; Luigi Zingales
Abstract: While both cultural and legal norms (institutions) help foster cooperation, culture is the more primitive of the two and itself sustains formal institutions. Cultural changes are rarer and slower than changes in legal institutions, which makes it difficult to identify the role played by culture. Cultural changes and their effects are easier to identify in simpler, more controlled, environments, such as corporations. Corporate culture, thus, is not only interesting per se, but also as a laboratory to study the role of societal culture and the way it can be changed.
Keywords: Corporate culture; Cultural economics; Institutions
JEL Codes: K4; Z1
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| cultural norms (Z13) | legal institutions (D02) |
| societal culture (Z13) | legal frameworks (K40) |
| corporate culture (M14) | societal culture (Z13) |
| social norms (Z13) | economic behavior (D22) |
| cultural norms (Z13) | compliance and enforcement of laws (K40) |
| cultural beliefs (Z18) | economic outcomes (F61) |
| cultural norms (Z13) | legal norms (K40) |