From symbolic gestures to substantive reform: how ethics shape the diffusion of gender quota responses

Drawing on institutional theory and behavioral ethics, we investigate how firms interpret, enact, and respond to gender quota mandates within organizational networks. Based on 6038 firm-year observations from listed firms in France, Germany, and Italy, we find that symbolic compliance is widespread and positively associated with exposure to symbolic peer behavior. We further find that firms with stronger ethics-oriented compliance tendencies are less susceptible to symbolic peer influence and exhibit greater substantive compliance. Exploratory analyses indicate that this moderating effect is most pronounced in France and among larger firms. By integrating institutional diffusion with internal interpretive orientation, this study extends research on symbolic compliance and heterogeneous organizational responses to gender quota policies. The findings suggest that the effectiveness of institutional reforms depends not only on formal regulatory requirements but also on how organizations interpret and enact them within their governance practices.