Corporate Culture Case Study

Document Type:Case Study

Subject Area:Finance

Document 1

Corporate culture can be described as the way of executing duties in a company but this appears to be different from one company to another. Therefore, when employees are seeking job opportunities, it is important they understand the corporate culture and ethical climate of their interested company. The paper will discuss the influence of corporate culture on ethical climate of the organization and two scenarios used to find out the whether or not the business should incorporate ethics into their operations. The paper will further discuss the compliance of corporate culture, the processes involved to ensure a smooth transition to corporate culture changes, and lastly the management activities that can be executed in the organizations to demonstrate ethical leadership. Corporate Culture Culture is defined by companies as the behavioral, moral and social norms of organizations that are based on attitudes, priorities, and beliefs of people.

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The companies are judged by people from their appearance and this based on the employees’ tidiness at the workplace and their dressing code. The visual aspect represents a big part of the structure and culture of the company. Companies are required to clearly communicate the behavior boundaries and rules to all employees in order to enhance their understanding of the purpose of creating a positive and working culture. Rules are sometimes forgotten or misinterpreted in most companies which hire employees from diverse cultural backgrounds and experiences. It is important for the management to communicate regularly to their employees in order to clarify various issues that may bring confusion in the organization. Good reputation and image of a company with an outstanding community record play a key role in increasing the sales of the company’s product and services as well as attracting new customers and retaining the existing customers.

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The idea of corporate culture in companies cannot be dismissed or ignored because the companies are focused on achieving financial goals, meeting customer needs, and establishing a positive image and reputation in the community. Therefore, companies should focus on developing a concrete corporate culture. Corporate culture effects on organization’s ethical climate To discuss the influence of corporate culture on ethical climate, it is important first to understand that the primary purpose of every business make a profit and this is a culture developed to suit this business purpose. According to Friedman, businesses carry out its activities that will bring profits and this is supposed to be the main vision of the business firm and as a result, ethics are ignored or discarded (Friedman).

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It focuses on inspiring and motivating all employees to remain passionate about its ethical mission and ensures that all employees’ goals and objectives are aligned with the company’s core values. The values and culture in the Body shop influence the company’s ways of carrying out various operations and its ethical climate. The core values are essential to the operations of the company and all employees are required to conform to the company’s ethical behavior since it’s a requirement by the company to work to together as the team is guided by the same vision statement. The company encourages the ethical value of its employees by involving them in training and development and providing them with schemes like ensuring the payment of all employees is done on the same level and remuneration.

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The second example is Ryanair Company that is known to operate without incorporating moral values and ethics in its operations. The company also allows the employees to use an email to send the concern to the Legal Compliance office. In addition, individuals can fax, call, and email the Director of Compliance. Companies are required to communicate and maintain an open door policy in order to prevent any retaliation and should prevent employees from retaliating against complainants who make the complaints in good faith. All companies should address all the queries by maintaining a high level of confidentiality of the individuals who raise a complaint by obeying the law. Changing an organization’s culture Management and leaders face a big challenge when planning to implement a change of corporate culture (Peters, et al.

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The ever-changing trends in business make the organizations respond quickly by changing their corporate culture in order to adopt the changes taking place. This is supposed to be done through proper planning but the beliefs and values are non-negotiable. It is important to ensure that any strategies developed should reflect the mission statement of the company. The management and leaders in the organizations should ensure the mission and vision are in line in order to promote and enhance corporate culture. It is important to ensure that employees are aware of the values of the company and they understand them fully. , et al. "The building of employee distrust. " Organizational Dynamics, vol.  41, no.  3, 2012, pp. com/en-us/legal/compliance. Nguyen, Shellie. "Organizational Culture, Leadership, and Success: cultural characteristics of thriving organizations.

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