Corporate culture

Question 1

Explain what is meant by the term ‘corporate culture’.

Answer 1

Corporate culture refers to the way that the beliefs, attitudes and values of the business are visible and shared by all employees.

Question 2

Describe some of the different ways a business might establish or promote a corporate culture.

Answer 2

• Staff uniforms
• The corporate logo and colour scheme
• The organisation’s mission statement and values
• Company policies
• Incentives and rewards for staff
• Training and development programmes for staff
• Teambuilding for employees
• Workspace design and layout
• Open door policy
• Ability to work from home
• Social responsibility

Question 3

The Board of Nguyen Limited believe that the time is right for the company to establish a corporate culture. As the HR Director prepare a short report about the benefits of corporate culture.

Answer 3

• Happier, more contented staff who identify with the organisation.
• Lower staff turnover/absences.
• Values/beliefs/perks can attract quality staff which results in a better quality service.
• Use of relaxed and informal language means staff feel comfortable working there - and perform well.
• Staff can move between branches/departments more easily as
  they will all be using the same policies and practices.
• Open plan/relaxed office layout encourages collaboration which means better communication and idea sharing.
• Brand awareness can improve because the customers associate corporate culture with the brands/logos/ethics they like.
• Can attract new customers if they identify with the aims/values of the organisation.