Examining Corporate Culture and its Enforcement under Australian Law

This essay provides a comprehensive overview of corporate culture, defining it as the workplace environment and management interaction with employees, which influences external commercial transactions and daily operations. It highlights the importance of maintaining a positive corporate culture for a company's success, referencing Google as an example. The essay discusses the evolution of the term and its modern implications, including national culture, economic tradition, and international trade. It further examines the enforcement of corporate culture in Australia through legislation such as the Corporation Act 2001 and the Fair Work Act 2009, emphasizing the duties and responsibilities of company directors to act in the best interest of the company and its shareholders. The essay concludes that a strong corporate culture contributes to Australia's efficiency as a business country. Desklib provides access to similar essays and study resources for students.

Running head: CORPORATION LAW
CORPORATE CULTURE
Name of the Student
Name of the University
Author Note

1CORPORATION LAW
Definition of corporate culture:
The term “Corporate Culture” denotes the environment of the workplace and
management interaction with the employees. Corporate culture helps to identify the resolve
process of outside commercial transaction. Therefore, it can be stated that the term corporate
culture plays an important role. The culture of a corporation can be reflected in the daily
operation of a company. Therefore, the dress code, office time, appointment process of a
company is included under the term corporate culture. According to Harris (2014), a good
corporate culture reveals the standard of a company and it motivates the employee too.
In the modern world, certain competition in the field of corporation can be observed.
Therefore, it should be the utmost duty of the companies to maintain a good corporate culture.
many companies have maintained good ethical consideration while operated the daily transaction
of a company. As an example, Google has able to maintain a good employee-friendly
environment within its office premises. The reasonable corporate atmosphere of the company has
assisted the company to get a highest position in the globe.
The emergence of the term has been observed in the year 1960 and it has been observed
that the development regarding the term has been started in the year 1990. In its inception, the
term used to denote the character of the company. The terms like management strategies,
employment relation and working environment has been inserted in latter stage. The modern
approach to the corporate culture involves certain matters like national culture, economical
tradition, international trade and commerce and quantity of the production. An awareness
regarding the corporate culture results into the growth of the company. According to the
statement of Smith (2017), the value and behavior of a company are governed by the corporate

2CORPORATION LAW
culture. it helps to increase the psychological skills of the corporations and the stakeholders of
the company are able to consider all the commercial approaches for the betterment of the
company. All these positive effects help to promote a motivational outfit in the companies. It
instigates the employees to make all the ethical decisions and walk through the path of ethical
consideration. Considering the nature and workability of the corporate culture, it can be
classified into three parts such as employees, operational tasks and client management.
Enforcement of corporate culture:
In Australia, the government has taken certain steps to enforce the corporate culture for
the overall development of the companies. Much legislation has been enacted for the
enforcement of the corporate culture. Corporation Act 2001 was enacted to settle down all the
issues cropped up in a company. According to the Act, the directors of the companies have the
liability to act for the best interest of the company and the shareholders. This Act helps to compel
the director so that they could not act for their personal interest and in this way, a good corporate
culture can be established. Further, the Courts and the ASIC are empowered to make an
investigation regarding the working capacities of the directors and their daily operation. The laws
applicable in this case are also strict and this forced the directors to keep peace and discipline
within the work premises. Further, Fair Work Act 2009 helps to maintain balance in between the
employees and a good atmosphere can be established in the workplace. Apart from this, it can be
stated that corporate culture helps to establish proper working attitude in the workplace. The
mission, vision and value of the company are regulated by the corporate culture.
Therefore, it is to be stated that a healthy and workable atmosphere can be established by
the good corporate culture. Further, it is to be stated that in Australia, the rules regarding the

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corporation is very strict that helps the director of the company to maintain high standard within
the company. Good corporate culture helps to identify the motivational sources in the company.
The duties and responsibility of the directors have, to certain extent able to maintain a balance
and secure the interest of the company and the shareholders. However, to conclude it can be
stated that corporate culture helps to make Australia one of the most efficient business country in
the world.

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Reference:
Corporation Act 2001
Fair Work Act 2009
The Australian (2018). [online] Available at: https://www.theaustralian.com.au/...sino-australia-
oil-and-gas...fraud/.../ab757958e67dd... [Accessed 18 May 2018].
The Conversation. (2018). Financial advice reform: have we learned enough from Storm?.
[online] Available at: http://theconversation.com/financial-advice-reform-have-we-learned-
enough-from-storm-5299 [Accessed 18 May 2018].