This article focuses on the barriers faced by firms due to non-compliance with European law. Although there is an extensive literature on non-compliance in the European Union, there has not been any systematic assessment of the barriers faced by firms in trying to market their products across different national boundaries. We draw on a comprehensive database of over 2000 cases of business complaints about regulatory and administrative barriers encountered in the single market. Our empirical findings survey the range and type of barriers that affect different industrial sectors, the variation in compliance with European law among member states, and the different solutions used to address business complaints about the functioning of the single market. The data shows that firms continue to face considerable challenges in operating the single market, and that there are still trade and growth dividends to be harnessed from addressing the remaining barriers to trade.

A large literature examines corporate political activity in the United States, but much less is known about firms’ lobbying activities and policy influence in developing countries. I argue that firm-level heterogeneity helps explain firms’ political behavior, while political institutions shape policymakers’ incentives to respond to business interests. The empirical analysis relies on the World Bank's Enterprise Survey, which covers over 20,000 firms operating in 42 developing and transition countries, to examine the determinants of lobbying and perceived policy influence. Multilevel estimates support the hypotheses that lobbying and influence increase with the firm's size and market power. Additionally, I find that firms report greater policy influence in democracies than in non-democracies.

The article seeks to explain how policies affect business groups’ decisions to stay or leave a sector of activity in a liberalized economy. The article utilizes a comparative historical approach to explain how business groups in six Central American countries decided to enter, remain in or leave the banking sector. Using case studies of the main banks belonging to business groups in the region, the article seeks to identify how particular sequences of policies lead to the formation of two major strategies. A portfolio one, characterized by a short-term interest in the banking sector; and an organic one, in which the banking sector plays a more important role for the whole group. Looking at the impact of three policies (nationalization, privatization and liberalization), I show that previous nationalization had contributed to a dominant portfolio strategy in Costa Rica and El Salvador. The absence of nationalization favored the dominance of an organic strategy in Guatemala and Honduras. Additionally, the cases of Nicaragua and Panama are analyzed as examples of how other events, such as early internationalization and early liberalization, can favor a more mixed scenario.

There is a continuing need for an analytical approach to institutional change, especially as applied to incremental, agent-driven change. Important institutional change can be incremental and not necessarily linked to immediate crisis. Institutional adjustments initiated by actors in the course of meeting specific economic and political goals can unblock systemic bottlenecks leading to improved economic performance. Aggregate incremental change could also lead to system evolution that deviates significantly from the original system model. This paper presents an approach that engages agent impact on the institutional system, and the political or social motives for action; the two-tiered approach moves away from the categories described in Varieties of Capitalism, one of the more influential approaches to analyzing institutional impact in an economy. Instead of static national categories, the approach presented in this paper differentiates between defining institutions and instrumental institutions, the differences in ease and speed of change which characterize each institutional tier, and how the system's evolution is impacted by the combined effect of changes in each tier. Differentiating between institutions in this manner, the paper provides an approach that is more flexible in explaining the interactions between agents and institutions, and the changes which may result.

Codes of ethics contain a set of rules of conduct and corporate principles concerning the responsibility of a company to its stakeholders and shareholders. These codes help to guide corporate and employee behavior, and constitute verifiable elements of social responsibility. This study examines the Most Admired Companies of the World, ranked by Fortune magazine in 2009 to find out, first, whether their codes of ethics exhibit greater emphasis on social responsibility and strong implementation processes, and second, whether they could be considered codes of the third generation as elaborated by Stohl et al. in their article in the Journal of Business Ethics. Our results indicate that the codes of ethics of the 2009 Most Admired Companies of the World resemble “codes of conduct” rather than strictly codes of ethics or “codes of corporate social responsibility”. These codes continue to be governed by traditional norms related to immediate economic success, normative compliance, internal management and the pressing effects of their sector. This study thus provides empirical support for the idea that the philosophy of corporate social responsibility (CSR) is scarcely present in the codes of the most reputable companies.