Poor payment terms and practices by large businesses to their small suppliers have ignited public backlash, triggering policy makers worldwide to develop regulation that combats the late payment culture. In Australia from 1 January 2021, constitutionally covered entities that meet the criteria of the Payment Times Reporting Act 20201 are required to biannually report on their payment terms and practices related to their small suppliers. Industry associations have introduced further initiatives in support of the regulatory move. For instance, the Business Council of Australia has developed the Australian Supplier Payment Code2, which is a voluntary initiative for signatories to pay eligible Australian small business suppliers on time and within 30 days of receiving a valid invoice. Organisations such as BHP and Rio Tinto are signatories to the Australian Supplier Payment Code.

Assume you are a business consultant, reporting to the Board of Directors of Newcrest Mining Limited (NCM), an Australian-based corporation which engages in the exploration, development, mining and sale of gold and gold-copper concentrate. NCM is listed on the ASX.

Question: Evaluate whether NCM should further signal their commitment to timely payments to suppliers by becoming a signatory to the Australian Supplier Payment Code taking an institutional theory lens. In your response, ensure you explicitly define, explain and apply institutional theory.