Examining Corporate Culture and Compliance with the Corporation Act

This essay defines corporate culture, explores its historical context, and examines the enforcement mechanisms in Australia through the Corporation Act 2001, Fair Work Act 2009, and the roles of ASIC and APRA. It highlights the importance of corporate culture in managing employee interactions, commercial transactions, and establishing ethical considerations within companies. The essay also discusses how the Australian government has taken initiatives to maintain good corporate culture in the workplace, ensuring directors act in the best interest of the company and shareholders, and promoting an employee-friendly environment. The paper references key legislations and regulatory bodies to illustrate the framework for corporate governance and ethical conduct in Australia.

Running head: CORPORATION ACT
Corporate Culture
Name of the Student
Name of the University
Author Note

1CORPORATION ACT
Definition:
Behind the development of every business, culture and environment play important role.
It helps to manage the employee interaction and commercial transaction. Employees are the main
source of income for the companies and therefore, it is important to make a good relationship
with them. Corporate culture helps in this case. The ideology of the corporate culture is reflected
in the daily operation of a company. Not only the core subject of the company, the atmosphere
and overall commercial spheres of a company are regulated by the corporate culture. The dress
code, human resource system and financial framework of the company included under the
corporate culture. Further, it can be stated that the mission, vision and value of the company are
developed by the corporate culture. In the words of Harris (2014), the standard of a company
depends on the well-planned corporate culture.
Australia is a business state and for the development of the financial background of the
country, the company should have to maintain a good corporate culture within it. Considering the
importance of corporate culture, it can be stated that the amicable corporate culture motivates the
employees. Therefore, it can be stated that corporate culture helps to boost the economic
condition of a country indirectly, as the production capacity of a company depends on the
employees. Further, corporate culture helps to establish ethical consideration in a company.
There are many companies where good corporate culture has professed and the companies have
able to maintain employee-friendly environment. Apple is an example where good corporate
culture can be observed and this made the company as one of the greatest companies in the
world.

2CORPORATION ACT
The term “corporate culture” is not a new term. The history of the term goes back in the
year of 1960 and the term became popular in the year 1990. However, certain changes have been
observed in the contents of the term. In the early time, the term was used to denote the character
of the company, certain core processes of the companies such as the management structure, and
employment relation was engraved under the term. However, certain changes have been
observed in the modern approach of the term. It has been observed that not only the business
structure or the commercial attire, but the national standard and culture also reflect in the well
corporate structure. Corporate culture helps to secure the monetary tradition, international trade
and developed product. Further, awareness among the employees is also promoted by the
corporate culture. The employees will find them in a secured place and an urge for the work for
the company could be generated in them. Therefore, it is important to keep a close vigil in the
corporate culture and that will help to grow the base of the company and in this process the
overall structure of the corporation world could be developed and for a business country like
Australia, that will help to widen the financial structure of the country.
However, Smith (2017) concentrates on the psychological effect of the corporate culture
over the companies and provides certain plans to understand the commercial approach for the
development of the company.
Enforcement:
It is a well-known fact that Australia is a business country and major part of the economy
of the country relies on the corporative works. Certain initiatives have been taken by the
Australian government to maintain good corporate culture in the workplace. In the year 2001,
Corporation Act has been implemented to regulate the works of the companies and certain duties

3CORPORATION ACT
have been imposed on the directors so that they could not act for their personal interest and tried
their best to secure the interest of the company and the shareholders. Further, certain institutions
have been established to make investigation regarding the acts of the directors. The most popular
establishment is Australian Securities and Investment Commission (ASIC). The role of the
institution regarding maintaining good corporate culture is significant. Further, the provisions of
Fair work Act 2009 are also helpful, the rules are very strict, and penalties are imposed on the
individual who made breach in the provisions state herein. Further, it has been observed that
certain relevant steps have been taken by the APRA [Australian Prudential Regulation
Authority]. The authority in case of any misstatement and misconduct by the banking authority
has submitted the authority has also made certain reports and certain enquiries (Apra.gov.au
2018). These help to maintain a good corporate culture in the workplace. All these provisions
have helped to retain employee-friendly atmosphere in the workplace.

4CORPORATION ACT
Reference:
Apra.gov.au. (2018). Pages - Australian Prudential Regulation Authority. [online] Available at:
http://www.apra.gov.au/ [Accessed 23 May 2018].
Corporation Act 2001
Fair Work Act 2009
The Australian (2018). [online] Available at: https://www.theaustralian.com.au/...sino-australia-
oil-and-gas...fraud/.../ab757958e67dd... [Accessed 18 May 2018].
The Conversation. (2018). Financial advice reform: have we learned enough from Storm?.
[online] Available at: http://theconversation.com/financial-advice-reform-have-we-learned-
enough-from-storm-5299 [Accessed 18 May 2018].