Impact of Corporate Culture on Law of Business Organization

This essay delves into the intricate relationship between corporate culture and the law of business organizations, emphasizing the crucial role of ethics, communication, and transparency in fostering a healthy and productive corporate environment. It highlights how a strong corporate culture, guided by ethical principles, influences employee behavior and organizational performance. The essay also references the Australian Prudential Regulation Authority (APRA) and the Australian Securities Exchange (ASX) principles, underscoring the importance of regulatory frameworks and ethical decision-making in maintaining corporate integrity and preventing scandals. Furthermore, it mentions Section 180 of the Corporations Act, 2001, which emphasizes the duty of directors and employees to act with diligence and care. The analysis emphasizes that adherence to ethical standards and a well-defined corporate culture are essential for sustainable growth and success in the corporate sector.

Running head: LAW OF BUSINESS ORGANIZATION
Law of Business Organization
Name of the Student
Name of the University
Author note

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Corporate Culture
The values and ethics of a company and the way a company functions is referred to as
corporate culture. A company must make sure that there is growth, communication and
innovation in the organization. The values of the corporation generally have a strong
influence on how the individuals will carry out their duties and activities. One of the most
significant factors for ensuring the growth of the company is known as corporate culture. The
company’s duty is to develop and build the motivation of the business. The value of the
companies is preserved by the company itself for helping out the employees and management
to manage the challenging times and difficult situations. The employees while carrying out
their actions and duties should be ethical in nature. The company’s culture should be driven
towards the process of ensuring and developing the company for its betterment. There are
ethical lapses that are not that easy to make especially when the corporate culture agrees to
the unethical behavior. The finances of the company should be transparent to both the
employers and the employees. Every worker associated with the corporation must be aware
of the funders and where the money is being used.
It can be said that stability plays an essential role in the organization as it acts as an
obstacle as well as a success. The concept of culture can be obtained from the kind of work
and the way a company works. The employees associated with the company must have the
freedom to have a conversation with the management as well as their employers. From the
ethical principles, it can be said that every employee and employer requires motivation which
can be provided by the management in terms of incentives and other kind of benefits
(Zingales and Poterba 2015). Monetary benefits are the general kind of benefits that are given
but apart from this appraisal and rewards can also be provided (Liu 2016). Every organization
or a corporation needs a body that works in a hierarchy and the management should be
qualified and well deserving for managing the activities of the company. Therefore, for the

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function and managing the company, specific and proper qualified individuals are required.
However, ethics and culture in the perspective of the company are linked with each other. For
ensuring that the work in the corporation is carried out in a harmonious manner, the moral of
the employees and employer must be uplifted. The purpose of corporate culture is to provide
a framework of how the company should follow the norms and establish the targets and rules
for a necessary development in the corporate sector. Thus, according to the findings of
Australian Prudential Regulation Authority (APRA), the corporations are suppose to perform
in an ethical manner for keeping a check on every sector of the company including funds.
The industries were majorly funded by the APRA that controls and supervises all the spheres.
The principles of ASX state that every company must have a solid foundation for overlooking
and managing the affairs of the company.
The process of ethical decision making manages all the alternatives before concluding
the best decision for uploading the principles and ethics of the company. The purpose of it is
to take care of the problems for achieving the goals to ensure the environment of the
corporation (Koren, Gu and Freiheit 2016). The Australian Prudential Regulations Authority
(APRA) have stated for making sure that the organizational factors needs a proper
explanation for the scandals that associate with the name and goodwill of the corporation.
However, for the growth and development of the company Section 180 of the Corporations
Act, 2001 will be applied. This relevant provision state that the directors and employees
should act with diligence and care. The ASX of the corporate governance in Australia
discusses the structure of the board and the healthy ethics of the organization should be done.
Thereafter, there is disclosure and it should be handled with proper responsibility. However,
the principles of ASX if followed, then the ethical issues should be maintained in a
corporation (Hodges 2015). All the disclosures that are made in the family must be made in
good faith.

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References:
Hickman, C.R. and Silva, M.A., 2018. Creating excellence: Managing corporate culture,
strategy, and change in the new age. Routledge.
Hodges, C., 2015. Law and Corporate Behaviour: Integrating Theories of Regulation,
Enforcement, Compliance and Ethics. Bloomsbury Publishing.
Koren, Y., Gu, X. and Freiheit, T., 2016. The impact of corporate culture on manufacturing
system design. CIRP Annals, 65(1), pp.413-416.
Liu, X., 2016. Corruption culture and corporate misconduct. Journal of Financial
Economics, 122(2), pp.307-327.
Zingales, L., and Poterba, J. 2015. Causes and Consequences of Corporate Culture. NBER
Books.