Institutionalism is an interdisciplinary approach that uses sciences such as psychology, sociology, anthropology, and law to understand the behavior of economic agents and to make more precise assumptions to describe their behavior. The purpose of this study is to expand the principles and explain the importance of the central role of institutions and institutional approach to economic development and improving the accounting profession. In terms of methodology, this study reviews and evaluates research done in the past. Based on previous research, it can be concluded that new institutionalists, while criticizing neoclassical theories, try to develop and present a theory of development based on organization and change. And institutional transformation aimed at promoting and promoting economic growth. There is also evidence that ideology, as an invisible and ideal part of the institutional order, enables individuals in institutions to choose consistent patterns of behavior. In addition, institutions play an important role in the development of social and environmental accounting.