Business Law: Corporate Culture, Acts, and Governance

This report delves into the concept of corporate culture within the context of Australian business law. It begins by defining corporate culture and its various components, including employee relations, operational practices, and client satisfaction. The report highlights the importance of ethical conduct and cooperation between employers and employees, emphasizing the relationship between corporate culture and governance. It then focuses on the Australian legal framework, specifically the Corporation Act 2001, the Australian Securities and Investment Commission Act 2001, and the rules established by the Australian Securities Exchange (ASX). The report discusses the roles of these entities in regulating corporate behavior, ensuring transparency, and addressing potential breaches of regulations. It concludes by stressing the significance of a robust corporate culture for the Australian economy and the need for continuous adherence to legal provisions and ethical standards.

Running head: BUSINESS LAW
Corporate Culture
Name of the Student
Name of the University
Author Note

1BUSINESS LAW
In the words of Harris, Hargovan and Adams (2013), corporate culture is the process that
deals with the managerial interaction between the employees and the employers and also handle
the outside commercial transaction. Many elements reflect the corporate culture of a company
such as employee benefit, turnover, hiring decision and client satisfaction. Further, Quilter
(2014) that certain values and behaviors are comprised in the corporate culture has pointed it out.
According to the author, corporate culture has certain contributions regarding the psychological
and social environment of a company. The core session of the company is regulated by the
corporate culture and helps to categorize the collective belief, employee relation, organizational
value and managerial works for the company. Apart from all of these, the habits, rules, business
language and location of the company are included under the corporate culture. considering the
effects of the corporate culture, its applications can be divided into three parts such as workers or
the employees, operational works and clients. It has been observed that the corporate culture
deals with the business environment and therefore, it can be stated that good corporate culture
provokes the employers to be ethical and cooperative towards the employees. Further, there is a
relation in between the corporate culture and corporate governance, as in both the system ethical
views are considered.
Australia is a corporate country and the economy of the country is based on the company
related affairs. There are number of Acts and regulations that are applied in the country to
maintain a fair relationship with the employers and the employees. The Acts can be categorized
as Corporation Act 2001, Australia Securities and Investment Commission Act 2001 and the
rules and corporate governance principles provided by the Australian Securities Exchange
(ASX). Most of the company related the Corporation Act 2001 regulates affairs. Further, the
Corporation Act 2001 discusses the duties and liabilities of the directors. Further, provisions

2BUSINESS LAW
related to the rights of the shareholders, issuance of share and managerial works of the company
have been discussed under this Act. According to this Act, the director of the company has to act
for the best interest of the company and shareholders and in case of any breach; the company
will have to face penalties. The relation in between the employers and employees care governed
in this way. One authority named Australian Securities and Investment Commission has been
incorporated to regulate the acts of the employers and make investigation regarding the acts of
the directors so they could not involve into any acts adverse to the corporate culture. further rules
has been implemented for the listed companies in Australia and the corporate culture of the listed
companies are governed by the Australian Securities Exchange. According to this authority, the
companies should have to maintain the rules stated by the institution and the companies are
required to disclose all the necessary information to the authority to maintain the corporate
transparency (Hickman and Silva 2018).
Apart from the above authorities, there is one organization called Australian Prudential
Regulation Authority or APRA that deals with the financial validity of the company and the
institution has researched on various subjects of the corporation sector. Various insurances and
company-based information have been published by this organization. Therefore, it has been
observed that many provisions and authorities are there in Australia to retain an ideal corporate
environment in Australia. Further, there are certain penalty provisions that the directors are or
may face if they have made breaches. There are number of cases pending before the court where
the directors have failed to take proper care and made breach regarding the provisions of the
Corporation Act 2001 (Turner, Fiske and Hodge 2016). A good corporate culture depends on the
acts of the employers and employees. Therefore, the provision of the corporate social
responsibilities and ethical ground are required to be widening to achieve the ultimate the aim of

3BUSINESS LAW
the corporate culture. a good corporate culture creates significant effect on the economy of the
country. Therefore, all the necessary provisions are required to be followed accordingly.

4BUSINESS LAW
Reference:
Corporation Act 2001 (Cth)
Harris, J., Hargovan, A., and Adams, M., 2013. Australian Corporate Law. 4th ed. Australia:
Hickman, C.R. and Silva, M.A., 2018. Creating excellence: Managing corporate culture,
strategy, and change in the new age. Routledge.
LexisNexis Butterworths. Law Society of NSW, 2007. A Practitioner’s Guide to Corporate Law.
[online] Available at:
<http://www.lawsociety.com.au/cs/groups/public/documents/internetyounglawyers/026374.pdf>
Quilter M., 2014. Company Law Perspectives. 2nd ed. Australia: Lawbook Co.
Turner, G., Fiske, J. and Hodge, B., 2016. Myths of Oz: reading Australian popular culture.
Routledge.