Corporate Culture: Implementation, Ethics, and Legal Compliance

This essay explores the concept of corporate culture, defining it as a system of values, beliefs, and shared assumptions that influence employee behavior and organizational performance. It highlights the fundamental components of a healthy corporate culture, including environment, bonding opportunities, and workforce dynamics, and emphasizes its importance in contributing to profitability, reputation, and productivity. The essay also examines key aspects for developing an effective organizational culture, such as attraction-selection-attrition, reward and recognition systems, and leadership. Furthermore, it delves into relevant Australian regulations, including Section 180 and 184 of the Corporation Act 2001, and the role of the Australian Securities Exchange in governing corporate governance. The essay underscores the importance of ethical conduct, transparency, and risk management in sustaining a positive corporate culture, referencing the guidance provided by APRA (Australian Prudential Regulation Authority). It concludes by emphasizing that adhering to these principles is essential for fostering a healthy and ethical corporate environment, ultimately contributing to the success of a business organization. Desklib provides access to similar essays and study resources for students.

Running head: CORPORATE CULTURE
Laws of Business
Name of the Student
Name of the University
Author note

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Corporate culture and how well it can be implemented
The idea of corporate culture can be referred to as the system where there are prevalence of some
specific values, beliefs and shared assumption among the employees and the management of the
business organization that can steer the behavior of the every individuals associated with that
organization. in this regard, it can be said that the values that are being governed in a particular
organization can have a string influence on how the individuals can perform in the workplace. In
a particular business concern, the environment, opportunities of bonding, the workforce are the
fundamental components of a corporate culture. Thus it can be said that organizational culture
can be created and dependent on such intangible and tangible essentials. It can surely be said that
the term culture refers to the attitudes of the entire workforce that is associated with a particular
business organization. sustaining a healthy organizational culture is important in today’s world
as it contributes to value each workers engaged with the business concern regardless of their
positions in the workplace and this results in the workforce having a healthy attitude that
improves their performance and enhances the overall organizational productivity. It can surely be
said that sustaining a healthy organizational culture immensely contribute to the profitability,
reputation and the productivity of a business organization. It can be said that to develop an
effective organizational culture, the aspects like attraction-selection-attrition, reward and
recognition system and of course leadership are important. According to Section 180 of
Corporation Act 2001, the workers of a business concern should act and perform their duties
with diligence and care. Section 184 of the above mentioned act discloses that the position of the
individuals and the information of the organization should be used in good faith1. It is seen that
1 Helmreich, Robert L., and Ashleigh C. Merritt. Culture at work in aviation and medicine:
National, organizational and professional influences. Routledge, 2017.

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Australian Securities Exchange governs the corporate governance in the land of Australia. It is
seen that the principles discusses the basic structure of the company and the members linked
with that particular business organization. secondly, it can be said that healthy ethics should be
encouraged in the business organizations and along with that management should ensure that the
decision making process in the organization is effective2. Apart from that it can also be said that
a balanced disclosure should be created and the risk factors should be managed with
responsibility. Thus, it can surely be said that if all these principles are maintained or satisfied a
good corporate culture can surely be sustained in a business organization.
A particular business organization should be operated with high ethical and moral values. The
primary principle should be the process of recruitment. There should be an effective leadership
present in all the layers or the phases of a business organization as it can effectively introduce the
corporate culture in the organization3. Apart from that the employees of a business organization
should have a basic understanding regarding the risk factors associated with the business
concern. This is because the employees of any business organizations have a chance to
encounter risks while carrying out their duties. It can also be said that the ethical lapses are not at
all difficult to make when the corporate culture nods to any behavior that is unethical. The
finances of a copany should be transparent as the company should know regarding the funding
2 Hickman, Craig R., and Michael A. Silva. Creating excellence: Managing corporate culture,
strategy, and change in the new age. Routledge, 2018.
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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and where the expenditure of the company goes. For achieving a bet ter corporate culture, the
workers of a business organization should get in touch with the management and feel free to
discuss the issues that are bothering them. Such ambience in the workplace can effectively help
to negate the risk factors. According to the message of APRA (Australian prudential Regulation
Authority), the business organizations should act in an ethical manner and should track the funds
of the business organization 4. APRA is funded by the industries operating in the market of
Australia and it’s basic purpose is to release statistics and findings associated with the business
organizations operating in Australia. ASX principles on the other hand lay a foundation for the
managements of the organization and oversight. Integrity needs to be safeguarded for financial
reporting and the rights of the shareholders must be provided with sheer respect. The directors of
the companies along with the employees and other stakeholders should also be treated equally.
Finally it can be said that to maintain the ethical manner in a business organization, the
principles which are mentioned above should be followed and applied to develop and sustain a
healthy corporate culture. The disclosures which are made in the organization shoul be made in
utmost good faith as per Corporation Act, 2001. Therefore, it can be said that the idea of culture
plays a vital role in business organizations and is a contributing factor to the success of a
company.
4 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
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.