Integrity is recognised as a key factor of organisational sustainability. The attention given to corporate integrity has become a contentious debate as organisational performance no longer relies on bottom line performance but increasingly integrates ethical aspects. This shift has led to the implementation of corporate integrity practices (CIPs) in government-owned companies (GOCs) as they have direct accountability to public funds and government regulations. However, unsatisfactory performance of integrity compliance requires further analysis focusing on the key issue, the motivating factor of CIPs adoption. Therefore, this study aims to investigate factors that motivate a Malaysian GOC to adopt CIPs, through Institutional Theory perspective. A qualitative study approach was employed, with data gathered through semi-structured interviews. Findings reveal that institutional pressures influence the adoption of CIPs. Government enforcement has been identified as the key determinant that encourages organisations to enhance CIPs within them. The power possessed by the government and legal agencies is used to enhance integrity compliance. Environmental and individual led norms and imitation also play a significant role in motivating the organisation to sustain ethical culture through CIPs, reflecting the influence of normative and mimetic elements. The study significantly contributed to the regulators and management for their further integrity compliance enhancement.

Keywords:
Corporate Integrity Practices
Institutional Theory
Government Owned Company

*Corresponding Author.
E-mail address: norlaila249@uitm.edu.my