Practices in

Business
Organizations
C_L_U_ _
CULTURE
CULTURE:
culture shapes the people in
the organization, the people
also contribute to shaping the
culture of the organization
 Organizational or corporate
culture is the system of shared
actions, values, and beliefs that
develops within an organization
and guide the behavior of its
members
Corporate culture is built and molded
over time, it may still change
depending on the leaders that move
the company forward. Changes in
policies can alter the way people
behave or feel toward the company.
Functions of Corporate Culture
guides the thinking, behavior, and decisions of its
members according to the company’s beliefs and
values.
two main reasons why culture develops an
organization are:
External Internal
Adaptation integration
External Adaptation
Requires the organizational culture to determine
how the company will reach its goals,
accomplish its tasks, identify methods to
achieve its goals, and place measures to cope
with success or failures. Members of the
organization may develop common views and
goals through their shared experiences.
Internal integration
starts with the establishment of an identity that
is unique to the business organization.
Members acquire this identity through their
interaction with each other.
This enables the members to work in harmony
with each other and to work toward advancing
the company’s goals.
Layers of Cultural
Analysis
Layers of Cultural Analysis

Observable Culture
Shared Values
Common Cultural Assumptions
Observable Culture
Refers to the way things are done in an
organization. This can be observed in daily
activities or in specific instances which
include unique stories according to the
company’s history, ceremonies, and
corporate rituals.
Shared Values

refer to the common values

that are meant to put
together and motivate the
members.
Common cultural assumptions
These assumptions are at the core of
corporate culture and are thus difficult to
discern or understand because they exist at
a largely unconscious level, yet they provide
the key understanding of why things happen
the way they do.
 Types of
Corporate
Culture
Types of Corporate Culture

Compliance-based culture

Values-based culture
Compliance-based culture

focuses on following rules, laws,

policies, and regulations as the primary
responsibility of ethics. It empowers
legal counsel and auditing/ accounting
firms.
Values-based culture
reinforces a particular set of values
rather than a particular set of rules. It
is presumed that a company with
values-based culture adopts its code of
conduct with more regard for ethical
values.
Setting a Corporate Code of Conduct

code of conduct is a list of guidelines and

protocols based on the organization’s
values. It articulates how an employee
should always behave and imbibe the values
of the organization, and it also serves as a
reference when decisions are to be made
Guidelines in Developing a Code of Conduct:

Understand the mission and vision

of the organization.

Identify the values that the

organization lives for.
Guidelines in Developing a Code of Conduct:
Spell out the different behaviors and
values that an employee must follow to
maintain the ethical values of the
organization.
Ensure proper enforcement of the code of
conduct to maintain the ethical culture
within the organization.
Guidelines in Developing a Code of Conduct:

Outsiders, such as suppliers,

distributors, and customers, must
also understand the organization’s
code of conduct to avoid presenting
the employees with actions that go
against the code.
Ethical Issues
identifiable problem, situation, or
opportunity that requires a person to
make an action or decision based on
several options whether right or
wrong, ethical, or unethical
Ethical Issues
Misrepresenting the benefits of a
product
Misuse of company time and
resources
Abusive behavior
Conflict of interest