Corporate Culture: Analyzing Its Impact on Company Success

This essay provides a comprehensive analysis of corporate culture, emphasizing its significance in fostering communication, growth, and innovation within a company. It defines corporate culture as the embodiment of a company's values, principles, and ethics, highlighting its role in enhancing employee motivation and overall company development. The essay explores how corporate culture influences ethical decision-making, the importance of a structured hierarchy, and the interplay between culture and ethics. It also delves into the methods of enforcing corporate culture, such as leading by example, codifying rules, and hiring suitable employees. The essay underscores the need for aligning company policies with established ethical codes to promote a harmonious and sustainable work environment. References from academic journals and books are also provided to support the arguments and concepts presented in the essay.

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

1CORPORATE CULTURE
Corporate culture is the culmination of the values, principles and ethics of the company
and the way the corporate functions to ensure that there is communication, growth and
innovation in the company. Corporate culture is the way to enhance the atmosphere in the
company that motivates people to work and come together for the holistic growth of the
company. Corporate culture is one of the most important factors in ensuring innovation in a
company and building motivation. The corporate culture is the sustained value that is preserved
by the company to help the employees and the management copes through challenging times and
tough hurdles (Guiso, Sapienza & Zingales, 2015). The culture of the company has to be driven
towards ensuring development and prosperity of the company. Though this stability is a growth
enhancer, there are times when this also acts as an impediment to restrain trade and growth in the
company (Hickman & Silva, 2018). Therefore, the stability of the company can be both a boon
and a bane, that is, it can help as a barrier and also as a success.
The definition of culture is very perceptive and can be seen as a concept which can be
perceived from the culture of the person and how the person perceives that culture. The culture
can be perceived from the tempo of the work; the way the company reacts to humor and tries to
solve problems and what are the methods of solving problems (Liu & Tan, 2017). Whether there
is competition the in the company and how the company tries to tackle the same. For every
employer, there needs to be some motivation and this motivation can be gauged by the way the
management gives incentives to the employees. The incentives can be both monetary and some
other methods, like rewards and appraisals. In a company, there needs to be a proper governing
body that flows in a hierarchy and the ones at the top need to be qualified and well deserving so
that they can manage the functioning of the company (Zingales & Poterba, 2015).

2CORPORATE CULTURE
Culture and ethics in the perspective of the company are combined and interrelated. An
employee under a corporate framework is expected to act in a certain way that boosts the morals
of the company as well as helps in achieving its targets in a harmonious way (Epstein &
Buhovac, 2014). The corporate culture gives a framework as to how a company shall function
and those norms and culture determine how the rules and missions will be placed so that there is
significant development in the corporate culture. No two organizations will have the same
culture and the culture differs from one company to another. Therefore, even though two
companies have the same rules and regulations, they will have different cultures. Decision
making forms an integral part of ethical culture because the decisions taken by the board need to
be rational, constructive and for the best interest of the company (Ramdhani, Ramdhani &
Ainissyifa, 2017). An ethical decision making has to weight all the alternatives before
concluding that it is the best decision for upholding the ethics and principles of the company.
Corporate culture also includes a far sighted approach to tackle problems, and to achieve
that goals, it is important to be flexible in the approach to ensure a sustainable corporate
environment. To enforce corporate culture, it is important to reinforce values more than rules
because these values are deep rooted in tradition which promotes ethics, values and morals.
There are many ways to enforce corporate culture in workplace. The best way to enforce
corporate culture is to lead by example, which is best suited for the people in the high managerial
posts in the company. Therefore, the one taking the initiative of enforcing corporate culture has
to be precise, explicit and succinct in their approach. Codify the rules so that it becomes easier to
follow the rules and hire employees who are best suited to carry forward the already set goals.
These will help in creating a harmonious environment at the workplace and promote

3CORPORATE CULTURE
sustainability, growth and production. The policies of the company need to be in line with the
already established code of ethics and there needs to be strict adherence to the policies.

4CORPORATE CULTURE
References
Epstein, M. J., & Buhovac, A. R. (2014). Making sustainability work: Best practices in
managing and measuring corporate social, environmental, and economic impacts.
Berrett-Koehler Publishers.
Guiso, L., Sapienza, P., & Zingales, L. (2015). The value of corporate culture. Journal of
Financial Economics, 117(1), 60-76.
Hickman, C. R., & Silva, M. A. (2018). Creating excellence: Managing corporate culture,
strategy, and change in the new age. Routledge.
Liu, G., & Tan, J. (2017). Corporate culture: threat to researchers. Nature, 542(7641), 295.
Ramdhani, A., Ramdhani, M. A., & Ainissyifa, H. (2017). Conceptual Framework of Corporate
Culture Influenced on Employees Commitment to Organization. International Business
Management, 11(3), 826-830.
Zingales, L., & Poterba, J. (2015). Causes and Consequences of Corporate Culture. NBER Books.