Corporate Culture: Its Impact on Ethics, Values, and Performance

This essay provides a comprehensive overview of corporate culture, defining it as the culmination of beliefs, values, ethics, behavior, and principles that dictate how employees operate within an organization. It emphasizes the importance of corporate culture in fostering communication, innovation, and growth, ultimately enhancing the organizational environment and motivating employees to work collaboratively. The essay discusses how corporate culture is manifested through various aspects such as dress code, office setup, business hours, and client satisfaction, highlighting its role in preserving values during challenging times. It also addresses the potential limitations of corporate culture, noting that while it can drive development, it may also hinder trading and growth. Furthermore, the essay underscores the interrelation between ethics and corporate culture, emphasizing the duty of employees to act ethically to boost organizational morale and achieve targets. It also touches upon the significance of ethical decision-making, referencing the Australian Prudential Regulatory Authority's investigations into unethical organizations. Finally, it advocates for the reinforcement of values to promote morals and ethics, suggesting that managers should lead by example to enforce a sustainable corporate environment.

Running Head: CORPORATE CULTURE
Corporate culture
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Author Note

1CORPORATE CULTURE
The term corporate culture refers to the culmination of beliefs, values, ethics, behaviour, and
principles of the organization to determine how the employee of the company must work (Wook
et al. 2016). It also shows the way of how a company functions and to assure the communication,
innovation, and growth is there in an organization. Corporate culture helps in the enhancement of
the environment of the organization that helps in encouraging and motivating the employees and
the employers to work together in a group for the betterment of the organization. It is the most
important factor that ensures innovation in the organization and also helps in building
motivation. The culture of the organization can be seen in their dress code, setup of the office,
business hours, and satisfaction of clients, hiring decisions, turnover and many other aspects .It is
the persistent valuethat the company preserves to assist the management and the employers to
face the challenge and tough times. The corporate culture must take a turn towards assuring the
prosperity and development of the organization. Though corporate culture helps in the
enhancement and development of the company, sometimes it restrains the company from trading
and growth. Thus, the stability can be a success or a barrier too. Sometimes it is well known for
its employee-friendly corporate culture (Grieser et al. 2016).
The culture's definition can be observed deeply and it is a concept that is observed from a
person’s culture and how a person observes that culture. This culture is observed through the
work speed, company’s reaction to humor, and their way of solving issues that they face, if there
is a competition in the organization and how they try to face them. There are certain ways that
the management must give the employees some motivation and this can be judged by giving
incentives to the workers. It can be monetary or in the way of appraisal or rewards. There must
be a suitable governing body that goes in a hierarchy form and the employees who are at the top

2CORPORATE CULTURE
of it must be well deserved and qualified so that they can manage the company (Yap and Webber
2015).
Ethics and culture, in relation to the company are interrelated and combined. It is the duty of an
employee who is working for a company must act in a proper manner so that it helps to boost the
morale of the organization to achieve their targets.Corporate culture set a framework for the
company for their functioning and helps in determining of how the missions and rules must be
placed for the development of the corporate culture. Even if two companies have the same
regulation and rules, they will always have different cultures. No such companies will be having
the same culture and it will always differ from one organization to another. The term decision
making is an important part of the culture of ethics as the decision that has been taken by the
board must be constructive, rational and for company’s best interest. The term ethical decision
has been considered to be the best decision for maintaining the principles and ethics of the
organization.
The Australian Prudential Regulatory Authority have carried out several investigations across
Australia in relation to organization which do not operate ethically such as the ANZ bank case.
Corporate culture is an approach to face the problems and also helps in achieving goals that have
been set by the company. They must be flexible so that it can assure the sustainable corporate
environment. For the enforcement of the corporate culture, it is essential to reinforce the values.
These values help in the promotion of morals, ethics, and values. Certain ways are there for the
enforcement of corporate culture in the place of work. In order to enforce corporate culture, the
best people that are the managers who are in the high post must set an example for the betterment
of the organization (Pinho, Paula and Dibb 2014). The person who is initiating in the
enforcement of corporate culture must be precise, concise and explicit in their method.

3CORPORATE CULTURE
Codification of rules must be there so that it is easy to hire employees that are suitable for the
goals that are already set. These things help in making the environment of the workplace better
and it also promotes growth, sustainability, and production. The company’s policy must be
related to the code of ethics and the company should strictly adhere to these policies.

4CORPORATE CULTURE
References
Carlos Pinho, J., Paula Rodrigues, A. and Dibb, S., 2014. 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), pp.374-398.
Grieser, W., Kapadia, N., Li, R. and Simonov, A., 2016. Fifty shades of corporate culture.
Pages - Australian Prudential Regulation Authority". Apra.Gov.Au, 2018,
http://www.apra.gov.au/Pages/default.aspx.Accessed 21 May 2018.
Wook, K., Beresford, A.K.C., Pettit, S.J., Mason, R.J. and Sanchez Rodrigues, V., 2016. The
roles of corporate culture in the selection of effective risk management strategies.
Yap, Q.S. and Webber, J.K., 2015. Developing corporate culture in a training department: A
qualitative case study of internal and outsourced staff.