Corporate Culture and Its Importance in Business Organizations

This article discusses the notion of corporate culture, its components, and the importance of maintaining a healthy corporate culture in business organizations. It also highlights the principles that should be followed to promote a good corporate culture, such as ethical values, effective leadership, and transparency in financial reporting.

Running head: CORPORATE CULTURE
Corporate Culture
Name of the Student
Name of the University
Author Note

1CORPORATE CULTURE
The notion of corporate culture can be addressed as a system where there are some
beliefs values and shared assumption among the workforce and the management of the
particular business organisation are present and can effectively steer the behaviour of all the
internal stakeholders of the organisation. The values that get governed in a particular business
organisation may have strong influence on how people can perform their duties in that
particular workplace. In a business concern the opportunities of bonding, the workforce of the
company and the environment; these are the fundamental components of the corporate culture
that is present in that particular organisation. It has been observed that organisation culture is
dependent on the attitude of the entire work force of the company and it is important to
sustain a healthy organisational culture of corporate culture as it significantly contributes to
value the fellow employees who are associated with the organisation and that can give a
major boost to their motivation and productivity. It is a matter of fact that sustaining a healthy
corporate culture can majorly contribute to the profitability productivity and the reputation of
a business organisation as having a good corporate culture the bonding among the workforce
becomes more strong and that helps the performance of the organisation and the quality of
the services are the products that the company offers to the clients to increase. According to
Section 180 of Corporation Act 2001 the employees of a particular business organisation
should perform and act according to their duties with care and diligence. Section 184 of
Corporation Act 2001 reveals that position of the individuals and the information of a
company should be used in good faith. Australian securities exchange controls corporate
governance in the Australian market and the principles of the organisation discusses the
fundamental structure of a business organisation and the members associated with that
concern1. Not only that it is also what why to mention that healthy ethics should be promoted
1Johnson, Gerry. Exploring strategy: text and cases.Pearson Education, 2016.

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in a workplace in order to ensure that the decision making process performed by the
management of the organisation is effective enough to become a contributing factor to the
profitability of the organisation as decision making is one of the most vital aspects of the
organisation to enhance the production and the quality of the production. A balance
disclosure should be created and all the risk factors that are associated with the business
organisation should be negative by the organisations management with responsibility.
Therefore it can be said that all these principles should be maintained in order to promote a
good corporate culture in the organisation which has become vital in today’s world full with
rivalries and competition.
A business concern should be administered with high moral and ethical values and the
fundamental principles should be the process of recruitment leadership and production. An
effective leadership should be present in all the phases of any business organisation as it can
introduce a corporate culture in all the stages of the business concern2. It would be better if
the employees of the business organisations have the idea of what could be the risk factors
that can harm them while the business operations as it can successfully negate the risk factors
and enhance the motivation of the employees and the general production of the company.
Ethical lapses are actually not difficult to make when a business concerns culture notes to any
particular behaviour which is unethical. It is a matter of fact that the finances of a company
should have to be transparent and then management should have knowledge regarding the
expenditure and the income of a company and of course the source of the capital that is being
used for the company. The employees of the organisation should not hesitate to approach the
supervisors regarding any issues that they may face while performing their daily duties or
2Audi, Robert, Tim Loughran, and Bill McDonald. "Trust, but Verify: MD&A Language and
the Role of Trust in Corporate Culture." Journal of business ethics 139.3 (2016): 551-561.

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regarding the things that is bothering them and harming the productivity of the company.
According to APRA Australian Prudential regulation authority, the business operations
should act in an ethical way and should track the funds of the company3. Regulation authority
is funded by the business operations which are operating in the Australian market and the
basics purpose of the institution is to release the facts and Statistics link with the business
operations of the Australian market. ASX principles lay a foundation for the managements of
all the business concerns and oversight. Integrity should be safeguarded for financial
reporting and the rights of the shareholders should be provided with respect4.
To maintain the ethical manner in business organisation principles which have been
mentioned above must be followed and applied to sustain the corporate culture for any
business organisation. The idea of culture or corporate culture plays a vital role in the success
of a business organisation.
3("Pages - Australian Prudential Regulation Authority")
4Guiso, Luigi, Paola Sapienza, and Luigi Zingales."The value of corporate culture." Journal
of Financial Economics 117.1 (2015): 60-76.

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References
Guiso, Luigi, Paola Sapienza, and Luigi Zingales."The value of corporate culture." Journal of
Financial Economics 117.1 (2015): 60-76.
Audi, Robert, Tim Loughran, and Bill McDonald. "Trust, but Verify: MD&A Language and
the Role of Trust in Corporate Culture." Journal of business ethics 139.3 (2016): 551-561.
Johnson, Gerry. Exploring strategy: text and cases.Pearson Education, 2016.
"Pages - Australian Prudential Regulation Authority". Apra.Gov.Au, 2018,
http://www.apra.gov.au/Pages/default.aspx.Accessed 21 May 2018.
1(11), 4690-4698.