Introduction

There is a substantial literature today on the intersection of organizations, institutions, and law. The bulk of this literature falls into the school of thought known as the “new institutionalism” (or “neoinstitutionalism”), which came into play in the sociology of organizations in the late 1970s and early 1980s (Meyer and Rowan 1977; DiMaggio and Powell 1983). This literature has paid surprisingly little attention to an earlier version of institutionalism, often referred to as the “old institutionalism,” which is mostly associated with the work of Philip Selznick. This chapter reconsiders the sociological significance of the old institutionalism, focusing in particular on Selznick's Law, Society, and Industrial Justice (1969). More than half a century after its original publication, this work remains important for how it conceptualizes law, for how it conceptualizes organizations, and for the theory Selznick offers regarding the moral evolution of organizations as they become “institutions,” or living entities infused with values. I explore the place of Law, Society, and Industrial Justice in the sociology of law and the sociology of organizations, consider its argument in light of subsequent developments in the new institutionalism, and finally argue that it is time for a rapprochement between the old and new institutionalisms in the study of organizations, institutions, and law.

Law, Society, and Industrial Justice, parts of which were coauthored by Philippe Nonet and Howard Vollmer, was first published in 1969 by the Russell Sage Foundation and was reissued in 1980 by Transaction Books and again in 2020 by Quid Pro Books. In his distinctive style, Selznick combines both sociological and jurisprudential insights, calling our attention to the importance of understanding the evolution of public legal norms and ideals in private organizational governance. As the first comprehensive examination of the relationship between law and organizations and, perhaps more importantly, of how law operates within organizations, this study addresses complex issues of governance in organizations using a rich blend of history, sociology, politics, management theory, and jurisprudence. Written about a decade before the new institutionalism emerged as a dominant approach to law and organizations, it provides an important complement, showing us how norms and ideals can develop within organizations as well as at the broader organizational field level that is the focus of much contemporary scholarship.