Corporate Culture: Analysis of Core Principles and Practices

This essay provides a comprehensive overview of corporate culture, defining it as the ethics, values, and principles that govern a company. It emphasizes the importance of a positive corporate culture in motivating employees, fostering a holistic approach to organizational growth, and achieving missions and goals. The essay discusses the impact of corporate culture on employee behavior and performance, including the role of incentive systems, hierarchy, and decision-making processes. It highlights the significance of aligning culture and ethics, leading by example, and adapting to challenges. The essay references academic sources to support its arguments and provides a practical understanding of how corporate culture influences a company's success and its ability to navigate challenges. The analysis includes references to studies and real-world examples, such as the Australian Prudential Regulation Authority's (APRA) investigation into financial scandals, to illustrate the practical implications of corporate culture.

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

1CORPORATE CULTURE
The corporate culture consists of the ethics, values and the principles of the company.
It includes the procedures and the systems that are required to run an organization. It is
important to have a specific culture in all the organizations. This is called the corporate
culture. It is the way to make the working environment inside an organization positive. A
proper corporate culture acts as a motivating factor for the people who work inside the
organization. The corporate culture enables the organization and the employees to develop a
holistic approach towards the growth of the organization. It is because of the corporate
culture that the employees are able to achieve the organizational missions and goals
collectively. The corporate culture acts as a sustained value that is followed by the company
to support the employees in coping up with the challenges and hurdles that might occur inside
the organization. There are however some pitfalls that are associated with the corporate
culture. This enables in the process of growth and development of the company and at the
same time, it acts as an impediment to restrain the trade and the growth in the company
(Dempsey, 2015).
The definition of the corporate culture can be seen as a concept that can be related to
the culture of a person and the way the person perceives that culture. The way the company
tries to solve the issues and assists the employees in tackling the challenges is the
embodiment of corporate culture. It determines the factor of competition in the company and
the way the company tries to tackle the competition (Koren, Gu & Freiheit, 2016). The
system of incentive forms a basic part of the corporate culture. It is the way of motivating the
employees. This can be monetary as well as the reward system. There should be a proper
structure inside the company. The staffs should maintain the hierarchy. The person belonging
to the system of hierarchy should be skilled and qualified enough to manage the systems of
the organization and resolve the issues that the employees might face (Groysberg et al.,
2018).

2CORPORATE CULTURE
Culture and ethics are both sides of one single coin in a corporate organization. They
cannot be separated. An employee should follow the structure of corporate framework under
which he is expected to act in a way that will be helpful in boosting the morals of the
company. It should be such that the employees might be able to achieve the targets of the
company in a harmonious way. The culture of the organizations differs among different
organizations. It is possible for the organizations to have the same rules and regulations but it
is not possible for the organizations to have same culture. One of the most important part of
this is the decision making process. The board members of an organization have the power to
make the decisions of an organization. The decisions made by the organization should be
rational and it should be such that it might help each and every employee must be
comfortable. The decisions should benefit all the members of the organization (Buckley,
2017).
The corporate culture also include the strategies to solve the problems and to achieve
that goals it is necessary to be flexible in the approach in order to ensure a sustainable
corporate environment. The best suited way to enforce the corporate culture is to lead by
example. For example the persons who occupy the managerial post have a huge responsibility
as he will be followed by many employees inside the organization. The approach is the most
important thing in this case (Korsakova et al., 2016). The person taking the initiative have to
be succinct in his approach. It has been found that the government has started to enquire into
the financial scandals that have plagued the banks and by analysing the reports of the enquiry
it can be mentioned that the Australian Prudential regulations authority (APRA) has said that
its target would be to ensure that the organizational and behavioural factors would give a
proper explanation behind the scandals and it would ensure that there is no further fall of
grace of this landmark financial institution (Anthony Wong & Hong Gao, 2014). The panel

3CORPORATE CULTURE
decided to deal the rigging issue separately that have been highlighted by the customers.
They have guaranteed to preserve the rights of the customers.

4CORPORATE CULTURE
References
Anthony Wong, I., & Hong Gao, J. (2014). Exploring the direct and indirect effects of CSR
on organizational commitment: the mediating role of corporate culture. International
Journal of Contemporary Hospitality Management, 26(4), 500-525.
Buckley, R. (2017). Corporate culture: protect idea factories. Nature, 543(7646), 491.
Dempsey, J. (2015). Moral responsibility, shared values, and corporate culture. Business
Ethics Quarterly, 25(3), 319-340.
Groysberg, B. O. R. I. S., Lee, J. E. R. E. M. I. A. H., Price, J. E. S. S. E., & Chung, Y. J.
(2018). The Leader’s Guide to Corporate Culture. Harvard Business Review, 44-52.
Koren, Y., Gu, X., & Freiheit, T. (2016). The impact of corporate culture on manufacturing
system design. CIRP Annals, 65(1), 413-416.
Korsakova, T. V., Chelnokova, E. A., Kaznacheeva, S. N., Bicheva, I. B., Lazutina, A. L., &
Perova, T. V. (2016). Transformation of Corporate Culture in Conditions of
Transition to Knowledge Economics. International Journal of Environmental and
Science Education, 11(11), 4690-4698.