Corporate Culture: Importance, Definition, and Role in Business Organizations

This article discusses the importance, definition, and role of corporate culture in business organizations. It explains how corporate culture contributes to the growth and development of a business organization, and how it can ensure innovation and motivation within the workforce. The article also highlights the interrelation between ethics and culture, and the role of decision-making in forming an ethical culture. Additionally, it emphasizes the need for a flexible approach while enforcing organizational culture, and the importance of reinforcing values over rules and regulations.

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Corporate culture
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Corporate culture is the zenith of the ethics, principles and the values of a business
organization, and the way the company functions to make it sure that development, innovation
and effective communication is present in the workplace. Corporate culture or organizational
culture is a method to enhance the healthy ambience of the workplace that can contribute to
motivate the existing workforce of the company. Apart from that good organizational culture can
significantly contribute to the growth and development of a business organization and it can also
be said that organizational culture he is one of the most vital aspect that can ensure the
innovation and the presence of motivation within in the workforce of the company.
Organizational culture is a sustained value that is preserved by the management of the company
in order to help the workforce to overcome the challenges in the most adverse situations.
Organizational culture should be driven to ensure the prosperity along with the development of a
business organization however it can be said that stability is one of the most important growth in
hand size of a particular business organization but at times it also acts as an impediment that can
be used to restrain the transactions and for the development of the company1. Therefore it can be
said that in a business organization the stability of the company can be looked at as a blessing
and a curse as it can help as a barrier and also it can bring in success for the management of the
organization.
To define organizational culture can be said that it is a matter of perception and can be gifted as
an idea that can be perceived from the cultures of the specific group of individuals and how those
individuals perceive the culture2. Culture can be perceived from a particular Tempo of a
1 Helmreich, Robert L., and Ashleigh C. Merritt. Culture at work in aviation and medicine: National, organizational
and professional influences. Routledge, 2017.
2 Hickman, Craig R., and Michael A. Silva. Creating excellence: Managing corporate culture, strategy, and change
in the new age. Routledge, 2018.

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particular work and the way the business organization reacts to humor and tries to solve the
issues and the methods which can be utilized to solve the issues that are affecting the
productivity and the profitability of a business organization. Whether there is a competition in
the operational market of the company and how to simple tries to deal with that situation all the
employees of the organization needs to be motivated and this motivation can only be provided by
the management of the organization by utilizing reward and recognition system. The rewards can
both be monetary or by providing the employees recognition that can effectively increase their
motivation and loyalty towards the organization. In a particular workplace the requirements
should be to govern the organization when a specific had it is present and the individual show at
the top of the hierarchy should be qualified enough to have the capability to manage and develop
the performance of the general work force of the company.
Ethics and culture can be looked at as a perspective of a particular business organization which is
interrelated and combined. It can be said that award girl of a business organization is expected to
act in a specific way that can boost the morale of the general workforce that can also help the
management of the organization to achieve targets for girls of the organization in a harmonious
way. Corporate culture provides a Framework that enables the organization to function abiding
by the specific norms and the values that can determine how the rules and regulations of the
organization will be placed so that the development and the growth of business organization are
sustained3. Every business organizations have different set of values beliefs and culture and none
can be the same and therefore if two business organizations have same set of rules and
regulations they will surely have different organizational culture. In this context it can be said
that decision making plays a vital role in forming an ethical culture in the business organization
3 Guiso, Luigi, Paola Sapienza, and Luigi Zingales. "The value of corporate culture." Journal of Financial
Economics 117.1 (2015): 60-76

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as the decisions taken by the managerial Board of the organization needs to be constructed and
rational and those decisions should be for the best interest of the business organization. The
ethical decision has all the alternatives before concluding that it is the best decision for securing
the best interests of the company along with the organizations principles. In Australia significant
banking enquires have been carried out in relation to ethical operations4.
Organizational culture helps to dodge the issues and also helps to achieve the set targets
of a business organization as it is important to be flexible in the approach as that can make sure a
sustainable corporate environment in the workplace5. While enforcing an organizational culture,
it would be important to reinforce the values more than the rules and regulations as the values are
deep rooted and determine the traditions of a particular business organization. Thus, having a
healthy organizational culture is vital to ensure the development and profitability of the
organization along with sustaining the motivation and loyalty of the existing workforce of the
company.
4 "Australia Begins Landmark Banking Inquiry." BBC News. N.p., 2018. Web. 20 May 2018.
"Pages - Australian Prudential Regulation Authority." Apra.gov.au. N.p., 2018. Web. 20 May 2018.
5 Carlos Pinho, José, Ana Paula Rodrigues, and Sally Dibb. "The role of corporate culture, market orientation and
organisational commitment in organisational performance: the case of non-profit organisations." Journal of
Management Development 33.4 (2014): 374-398.

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References
"Australia Begins Landmark Banking Inquiry." BBC News. N.p., 2018. Web. 20 May 2018.
"Pages - Australian Prudential Regulation Authority." Apra.gov.au. N.p., 2018. Web. 20 May
2018.
Carlos Pinho, José, Ana Paula Rodrigues, and Sally Dibb. "The role of corporate culture, market
orientation and organisational commitment in organisational performance: the case of non-profit
organisations." Journal of Management Development 33.4 (2014): 374-398.
Guiso, Luigi, Paola Sapienza, and Luigi Zingales. "The value of corporate culture." Journal of
Financial Economics 117.1 (2015): 60-76.
Hickman, Craig R., and Michael A. Silva. Creating excellence: Managing corporate culture,
strategy, and change in the new age. Routledge, 2018.
Helmreich, Robert L., and Ashleigh C. Merritt. Culture at work in aviation and medicine:
National, organizational and professional influences. Routledge, 2017.