Corporate Culture is…
1. Influenced by national culture and
2. Sustained by corporate leadership

Corporate culture is a manifestation of the informally sanctioned corporate attitude.
It is often referred to as “Organizational
DNA” or the “Organizational Soul.”
It is a fundamental contributor to the success or failure of corporate strategies.

Corporate Culture can evolve from…
• A leader’s vision, policies, and actions
• Influential individuals or work groups
• Policies & Procedures ( Careless, lax, or unclear )
• People management philosophy ( ignoring employee harassment )
•
Employee work-ethic ( hire for attitude; train for skill )
• Organizational policies ( no gifts from suppliers, casual
Fridays, etc.
)

Corporate Culture is reflected in…
A company’s
• Values, business principles, and ethical standards preached and practiced by management
•
Approaches to people management and problem solving
• Relationships with Shareholders, community, customers, suppliers, government agencies, etc.
• Entrenched attitudes toward people from different “national” cultures

Understanding the Relationship between
National Culture and Corporate Culture

Corporate Culture & National Culture

National culture is the mental programming of a group of people. It is comprised of the values, customs, and belief systems shared by a particular group of individuals.

Cultural Understanding can translate to better Business Practices
Contributions of Geert Hofstede
He separated cultures into five dimensions:
•
Power Distance
• Individualism
• Uncertainty Avoidance
•
Masculinity
•
Short and long-term orientation

It can be argued that some dimensions of business ethics are fluid.
Cultural norms can differ between countries. What is unacceptable in one country may be perfectly acceptable in another.
Thus…
A healthy corporate culture will encourage employees to observe, learn, and avoid passing judgment too quickly.


Craft global strategies that nurture a healthy corporate culture

Encourage employees to understand and appreciate other national cultures

Important qualities of strategic leaders
–
Determination to nurture a healthy corporate culture
–
Courage
–
Self-confidence
–
Integrity
–
The capacity to deal with uncertainty and complexity
–
A willingness to hold people (and themselves) accountable for their work

Cultural Core Concepts
It’s not about Magic – It’s about Management

Corporate Culture…
Management’s Responsibility
1. Corporate culture refers to the character of a company’s internal work climate and personality.
2. In a strong-culture company, culturally-approved behaviors and ways of doing things are nurtured while culturally-disapproved behaviors and work practices are discouraged.

3. In adaptive cultures, there is a spirit of doing what is necessary to ensure long-term organizational success.
4. Adaptive cultures are exceptionally well suited to companies with fast-changing strategies and market.
5. The tighter the culture-strategy fit, the more the culture steers company personnel into displaying behaviors and adopting operating practices that lead to successful strategy execution.

6. It is in management’s best interest to dedicate considerable effort to building a corporate culture that encourages behaviors and work practices conducive to good strategy.
7. A company’s culture is grounded in and shaped by its core values and the bar it sets for ethical behavior.
8. A multinational company needs to build its corporate culture around values and operating practices that travel well across borders.