Enforcement of Corporate Culture

This article discusses the importance of corporate culture and its enforcement in organizations. It emphasizes the need for ethical decisions, effective leadership policies, and proper education for employees regarding risks. The article also highlights the provisions of the Corporations Act 2001 and the principles of ASX for efficient financial reporting and safeguarding shareholders' interests.

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

1ENFORCEMENT OF CORPORATE CULTURE
From the beginning, the concept of corporate culture emphasizes upon the systems,
values, beliefs as well as shared assumptions which are associated with the administration of
human behavior. The values associated with the corporate culture have exerted strong influence
over the individuals performing such activities (Bromiley et al. 2015). In this regard, it is worth
noting that, the basic features of a corporate culture are surrounded within its employees,
environment and their bonding with the corporation. Therefore, it is worth mentioning that, the
cultural framework of an organization is created by depending upon the essentials of tangible and
intangible factors. In this context, it is worthwhile to emphasize on the concept of culture. The
term culture denotes those attitudes of the employees which are closely related to the
corporation. In order to promote corporate culture, it is important to enhance efficient and
healthy working environment among the employees (Earnhart, Khanna and Lyon 2014). In such
process, it adds value to the performance of each and every employee working in the
organization which in the long run enhances their quality. It is evident that with the promotion of
a healthy working culture, the performance of the organization can be improved to a great extent.
It is noteworthy to mention here that, the factors associated with retention, quality,
assurance and productivity are all concerned with the preservation of healthy corporate culture.
In this regard, mention can be made about the process of attraction-selection-attrition, award
policies and leadership techniques which contributes immensely towards the cultural
development of the organization (Guiso, Sapienza and Zingales 2015). According to the
provisions of Section 180 of the Corporation Act 2001, it is important on the part of the
employees to exercise their duties with due care and diligence. However, the provisions of
Section 184 of the Corporation Act 2001, is associated with the fact that the employees of the
corporation must utilize the information of the company and the position of the individuals

2ENFORCEMENT OF CORPORATE CULTURE
working in good faith and for the best interests of the company. From the very beginning, the
principles and the recommendations of the ASX has been governing the functioning of corporate
governance in Australia. In such process, the structural framework of the board and the members
and the members associated with it must be given utmost valuation (Liu 2016). Therefore, ethical
decisions must be promoted to the highest degree possible within the organization. Favorable
measures should be implemented for the purpose of efficient management of risk along with fair
responsibility.
The operation of the company must be carried out with the retention of both moral and
ethical values. However, the most important processes associated with the organizational
operation are employee recruitment and hiring. In order to promote corporate culture, effective
leadership policies must be developed in every organization. The employees of the organization
must be provided adequate information regarding the policies and the functioning of the
organization. Proper education should be provided to them regarding the involvement of various
risks. It is evident that, while performing day to day activities, employees often face various
technical and ethical issues (Liu 2016). These ethical issues should be eliminated as early as
possible for the enforcement of corporate culture. It is noteworthy to mention here that, the
nature of the finances must be such that it is transparent in nature. As a result of which, the
organization shall develop appropriate knowledge regarding the financers and in such process
shall be able to understand regarding the transactions involved in the day to day business
operations (Winkler 2015). However, there must be a healthy environment between the managers
and the employees. In case of any misconduct, disruption can occur within the organization.
According to the news report provided by the Australian Prudential Regulation Authority
(APRA), it is important on the part of companies to act ethically by keeping proper check upon

3ENFORCEMENT OF CORPORATE CULTURE
the company funds. However, various industries fund the APRA and in such process is able to
take into account the annual statistics and the release finding of such industries. The principles of
ASX provide information regarding the fact that, in order to ensure efficient financial reporting,
it is important to safeguard integrity as well. The rights and the interests of the shareholders must
be safeguarded.
Lastly, it can be stated that, in order to maintain ethical manner, the principles listed
above should be considered. According to the provisions of the Corporations Act, 2001, the
disclosures made within an organization must be in good faith.

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References:
Bromiley, P., McShane, M., Nair, A. and Rustambekov, E., 2015. Enterprise risk management:
Review, critique, and research directions. Long range planning, 48(4), pp.265-276.
Earnhart, D.H., Khanna, M. and Lyon, T.P., 2014. Corporate environmental strategies in
emerging economies. Review of Environmental Economics and Policy, 8(2), pp.164-185.
Guiso, L., Sapienza, P. and Zingales, L., 2015. The value of corporate culture. Journal of
Financial Economics, 117(1), pp.60-76.
Liu, X., 2016. Corruption culture and corporate misconduct. Journal of Financial
Economics, 122(2), pp.307-327.
Williams, J.W., 2014. The private eyes of corporate culture: The forensic accounting and
corporate investigation industry and the production of corporate financial security. In Corporate
Security in the 21st Century (pp. 56-77). Palgrave Macmillan, London.
Winkler, J.T., 2015. The corporate economy: theory and administration. In Industrial Society
(Routledge Revivals)(pp. 43-58). Routledge.