Corporate Culture and Ethics in Business Organizations
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Added on  2023/06/12
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This article discusses the importance of corporate culture and ethics in business organizations. It emphasizes the need for transparency, motivation, and qualified management for the growth and development of a company. The article also highlights the relevant provisions and principles of ASX and APRA for maintaining ethical standards in corporations.
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Running head: LAW OF BUSINESS ORGANIZATION Law of Business Organization Name of the Student Name of the University Author note
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1LAW OF BUSINESS ORGANIZATION Corporate Culture The values and ethics of a company and the way a company functions is referred to as corporate culture. A company must make sure that there is growth, communication and innovation in the organization. The values of the corporation generally have a strong influence on how the individuals will carry out their duties and activities. One of the most significant factors for ensuring the growth of the company is known as corporate culture. The company’s duty is to develop and build the motivation of the business. The value of the companies is preserved by the company itself for helping out the employees and management to manage the challenging times and difficult situations. The employees while carrying out their actions and duties should be ethical in nature. The company’s culture should be driven towards the process of ensuring and developing the company for its betterment. There are ethical lapses that are not that easy to make especially when the corporate culture agrees to the unethical behavior. The finances of the company should be transparent to both the employers and the employees. Every worker associated with the corporation must be aware of the funders and where the money is being used. It can be said that stability plays an essential role in the organization as it acts as an obstacle as well as a success. The concept of culture can be obtained from the kind of work and the way a company works. The employees associated with the company must have the freedom to have a conversation with the management as well as their employers. From the ethical principles, it can be said that every employee and employer requires motivation which can be provided by the management in terms of incentives and other kind of benefits (Zingales and Poterba 2015). Monetary benefits are the general kind of benefits that are given but apart from this appraisal and rewards can also be provided (Liu 2016). Every organization or a corporation needs a body that works in a hierarchy and the management should be qualified and well deserving for managing the activities of the company. Therefore, for the
2LAW OF BUSINESS ORGANIZATION function and managing the company, specific and proper qualified individuals are required. However, ethics and culture in the perspective of the company are linked with each other. For ensuring that the work in the corporation is carried out in a harmonious manner, the moral of the employees and employer must be uplifted. The purpose of corporate culture is to provide a framework of how the company should follow the norms and establish the targets and rules for a necessary development in the corporate sector. Thus, according to the findings of Australian Prudential Regulation Authority (APRA), the corporations are suppose to perform in an ethical manner for keeping a check on every sector of the company including funds. The industries were majorly funded by the APRA that controls and supervises all the spheres. The principles of ASX state that every company must have a solid foundation for overlooking and managing the affairs of the company. The process of ethical decision making manages all the alternatives before concluding the best decision for uploading the principles and ethics of the company. The purpose of it is to take care of the problems for achieving the goals to ensure the environment of the corporation (Koren, Gu and Freiheit 2016). TheAustralian Prudential Regulations Authority (APRA)havestatedformakingsurethattheorganizationalfactorsneedsaproper explanation for the scandals that associate with the name and goodwill of the corporation. However, for the growth and development of the companySection 180 of the Corporations Act, 2001will be applied. This relevant provision state that the directors and employees should act with diligence and care. The ASX of the corporate governance in Australia discusses the structure of the board and the healthy ethics of the organization should be done. Thereafter, there is disclosure and it should be handled with proper responsibility. However, the principles of ASX if followed, then the ethical issues should be maintained in a corporation (Hodges 2015). All the disclosures that are made in the family must be made in good faith.
3LAW OF BUSINESS ORGANIZATION References: Hickman, C.R. and Silva, M.A., 2018.Creating excellence: Managing corporate culture, strategy, and change in the new age. Routledge. Hodges, C., 2015.Law and Corporate Behaviour: Integrating Theories of Regulation, Enforcement, Compliance and Ethics. Bloomsbury Publishing. Koren, Y., Gu, X. and Freiheit, T., 2016. The impact of corporate culture on manufacturing system design.CIRP Annals,65(1), pp.413-416. Liu,X.,2016.Corruptioncultureandcorporatemisconduct.JournalofFinancial Economics,122(2), pp.307-327. Zingales, L., and Poterba, J. 2015. Causes and Consequences of Corporate Culture.NBER Books.