Corporate Culture and Its Importance in Organizations

This article discusses the importance of corporate culture in shaping the behavior of employees in an organization. It explains the six components of a successful corporate culture and how it impacts the growth of a company. The article also highlights the role of the Australian Prudential Regulatory Authority in ensuring good governance in organizations.

Running Head: CORPORATE CULTURE
Corporate culture
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Author Note

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Culture has been one of the major determinants that show how an employee behaves in
an organization. A positive culture of integrity helps in developing the world-class compliance
program and ethics. Corporate culture can be defined as the behavior and beliefs to determine the
management of a company. Certainly, corporate culture is defined impliedly and not expressly. It
develops naturally over the time and it also depends on the traits of the people that the
organization hires. An organization's culture is reflected by its time of work, setup of the office,
behavior with the clients, their dress code, a satisfaction of the clients and many others. In the
earlier days, corporate culture was used by the sociologists, manager and in the other academics
so that the company’s characters show the value system of the company, strategies of the
management, working environment, communication with an employee and many others. The
most different feature of corporate culture is that as the company grows old, the culture of the
company also changes and evolves. It also helps in making big and small decision in a company.
The most essential factor of corporate culture is it helps in the growth of the company. The shape
of the corporate culture is made intentionally or organically that reaches the ideology of the
company and practice and it also affects every point of business (Guiso, Sapienza and Zingale
2015)..
There are six components or characteristics of a successful corporate culture. They
include vision, values, practices, people, narratives, and place. The term vision means a mission
that a company has and it is the most powerful tool of the corporate culture. Values are a broad
concept that helps in achieving the vision of a company. Practices are methods that are tangible
and are guided by the ethics by which the values of the organization are being implemented.
People means the employees that work in a company and they also reflect the overall culture of
the company. Narrative means the story of the origin of the company and it is also important for

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the growth of the company. Place means the place of business or it can also be the design of the
office. By the year 2015, the creation of corporate culture was not only done by the employees
and the management of the company, but it has also been influenced by the traditions and
national culture, international trade, production of the products, size of the company and
economic trends.
In a company, the corporate culture is responsible for the behavior of the employee and
their interaction with the society. It has a great impact on the social and psychological
environment of the organization and it is one of the ways to represent the collective belief,
principles, and values of those people who seems to be associated with the company. This also
helps in the implementation of the corporate culture in an organization by creating a good
environment where good behavior and values are respected (Eriksson, Movin and Halse 2017).
The role of Australian Prudential regulatory authority is to look out the functioning of the
company like Overseas Bank, credit unions, business societies and insurance company. It helps
in conducting the inquiry that has been reported by any organization that is misconduct of the
employees in Australia. There has been a major inquiry that has been conducted by APRA that
was related to the ANZ Bank in Australia. It has been seen that this regulatory body with
Australian Securities and Investment Commission has seen that this bank was indulged in the
misbehavior by supporting the bank bills swap reference rate. The authorities assured that the
principles of good governance are followed by the company all over Australia and the activities
of those organizations are not similar to the public interest (Guiso, Sapienza and Zingale 2015).
It can be concluded from the discussion that has been aforementioned is that corporate
culture is the main factor for the success of the company. The corporate culture is strongly

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presented in the company and it can be assured that it functions ethically and legally so that the
reputation of the company is enhanced in the society. Implementation of Corporate culture can
be done by following the principles of good governance that have been presented in the
Australian securities exchange. The above-mentioned regulatory body states the behavior of the
employee in the several companies in Australia assures the positive corporate culture has been
implemented in them.

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References
"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.
Eriksson, M., Movin, M. and Halse, A., 2017. The Role of Corporate Culture in Post-Acquisition
Integration: A case study of Gnosjö Laserstans.
Guiso, L., Sapienza, P. and Zingales, L., 2015. The value of corporate culture. Journal of
Financial Economics, 117(1), pp.60-76.