Norms develop because:

D)  >>>>>>>>>>>>>>>>>>>>>>  people need to predict how others will act.

Absolutely agreed it is Option D.

Norms, in short, are a bundle of do’s and do not's. They are rules of behaviour in particular situations. For example, in all societies, there are norms which define acceptable male and female dress. There are norms about driving. Norms exist in all areas of social life.

I Will Choose Option " D " Sir

Generaly speaking, norms develop because people need to predict how others will react. But in business, norms develop because the company's revenues directly depend on  norm formation

“Norms are part of the culture. They exist whether or not you acknowledge them. They exist whether or not you formalize them,’’. It is a Behaviour Contract, builds ownership and gets assumptions out on the table.

D)    people need to predict how others will act.

I go with option D, please see my reason why below ...

en.wikipedia.org/wiki/Norm_(social

"Norms are cultural products (including values, customs, and traditions) which represent individuals' basic knowledge of what others do and what others think that they should do. Sociologists describe norms as informal understandings that govern individuals' behavior in society.[3] On the other hand, social psychology has adopted a more general definition, recognizing smaller group units, such as a team or an office, may also endorse norms separate or in addition to cultural or societal expectations.[4] In other words, norms are regarded to exist as collective representations of acceptable group conduct as well as individual perceptions of particular group conduct."

The company's revenues directly depend on norm formation.     

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