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Corporate Culture: The Heart of Any Organization
by mleal

08 Mar

Corporate Culture: The Heart of Any Organization

Corporate culture is prevalent in every business environment.  From the first day the organization is running, customs, traditions, and values begin to grow and propagate.  Corporate culture is defined by those traits which constitute the unique style and behaviors of a company.  The culture can include many traits like behavior, dress codes, values, philosophies, and expectations.  Often, corporate culture propagates without any intervention; however, there are many ways to attempt to create a desirable one.

The steps to create a desirable corporate culture sound easy, but in reality are not.  A company must employ a mission statement and/or statement of values.  These statements must be employed and modeled by everyone in the organization including upper management.  The values must be in step with the purpose of the company.  Employees of all levels must feel valued for their opinions and work.  All functional departments, sections and employees must communicate effectively.  Equal and fair treatment of all employees is essential.  I would also add the use of ceremonies like holiday meals and slogans that highlight values are beneficial.

There are many barriers to bringing a desirable corporate culture to maturity.  We must accept that new organizations will be easier to mold and older organizations harder because they are set in their ways.  People who will not grasp the ideals of the newly forming corporate culture will tend to shy away from becoming involved.  Another barrier is with people who resent change.  Also, any faulty business practices that go against the new values will need to be cleaned up.  Any key executives who do not embrace and model the culture desired will prove to be the worst barriers.  Corporate culture is justified by some theories, but not by Utilitarianism.

Utilitarianism is not adequate to justify the use of corporate cultures.  One reason relates to Utilitarianism being interested in the happiness of the many while a corporate culture may not always support the many and may even empower or defend one stakeholder.  Also, a corporate culture’s normal behavior can be predicted while determining a utilitarian action may change depending on the maximizing of overall good in relation to the action.  When the same determining factors influence an action with the only difference being the number of stakeholders on either side, the result can be different.  An example of this might be in a case of an employee who has terrible allergies to pollen.

This employee’s work site actively cultivates and is known for its beautiful honey suckle plants.  The plants are everywhere.   The extraordinary monetary cost and loss of community popularity outweigh removing them to help one employee or stakeholder.  However, imagine if 75% of the employees have the same allergies and customers who came in frequently commented on how bad their allergies bother them after an interaction on site.  I believe that would quickly warrant a change in scenery.

Two other theories of ethics are adequate for justification: Virtue ethics and Deontology.  Virtue ethics is adequate for justification because corporate culture sometimes portrays habits that empower employees to just act without going through an intensive process for determining which action to take.  Deontology is also adequate because it stresses a duty to treat everyone with respect allowing them to live their own life.  Deontology also argues that some decisions are not to be allowed even though the wellbeing is increased through their action.  These allow the code and culture to help determine the actions of employees.

Corporate culture is a vital part of every business.  It has the ability to empower and strengthen the employees of organizations.  The importance of creating or shaping a desirable culture cannot be underestimated.  While Utilitarianism cannot justify its use, Virtue ethics and Deontology can.  This strengthens the idea that employees are stakeholders.  In my opinion, the heart of any company is its culture.

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Works Cited

Desjardins, Joseph. An Introduction to Business Ethics. 3rd ed. New York: McGraw-Hill, 2009.

 

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