A firm is noticing that 10% of its freelance contacts are not being completed on time. They suspect this is because there are no consequences for lateness for the freelancers, but it costs the firm money. The firm decides to implement a penalty for lateness, and guidelines for dealing with contract violations. The firm is:

A. increasing opportunism.

B. focusing on values and beliefs rather than laws and regulations.

C. expanding the range of acceptable actions that firms can take.

D. attempting to reduce transaction costs through institutional frameworks.