1.

Corporate culture, also known as company culture, refers to a set of beliefs

and behaviors that guide how a company's management and employees

interact and handle external business transactions.

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2. Types

#Clan culture, also called a collaborative culture, is mainly focused on

teamwork. In this type of culture, relationships, participation, and company

morale are at the forefront

#Adhocracy culture is primarily focused on innovation and risk-taking. Many

successful startups are considered to have this type of corporate culture.

#In a market culture, the bottom line is the main priority. Everything is

gauged with the company’s profitability in mind.

#A hierarchy culture is okkkne that follows the traditional corporate structure

and has a clear chain of command. It has several management levels

separating executives and employees.

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The six elements of great company culture

3. Community

At Fortune 100 Best Companies to Work For®, employees express a sense of

winning together when times are good—and sticking together when times
are tough.

Top features separating the Best Workplaces from other organizations

include:

1.Celebrating special events

2.Sharing profits

3.Treating layoffs as a last resort

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4. Fairness

Fairness is an area that great workplaces excel at, as our workplace study

revealed. When rating equal compensation and recognition, employees score

these companies 37-42 percentage points higher than the national average.

Employees at these companies also report issues with favoritism and

politicking far less often. On employee surveys, these companies score 38

percentage points higher when asking their people about these experiences.

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5. Trustworthy management

Employees at great workplaces find their people managers and leaders to be

more trustworthy: According to our research, 83% of employees at the 100

Best Companies said management’s actions match its words, versus 42% of

employees at the average workplace.

Trustworthy, credible and personable managers have a significant positive

impact on:

1.Employee retention

2.Overall workplace satisfaction

3.Employees’ willingness to recommend their company

4.Motivation to give extra effort at work.

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6. Innovation

When managers create a safe environment to express ideas and make

suggestions, employees are 31 times (!) more likely to think their workplace is

a breeding ground for innovation. Workplaces that have innovative cultures

inspire employee loyalty, confidence and willingness to give extra.

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7. Trust

We all know this: show people that you consider them trustworthy, and

they'll generally prove you right.

Many of the 100 Best Companies trust their employees to work flexible hours

and from remote places. This flexibility makes employees more dedicated and

engaged because they feel trusted to meet their business goals in a way that

works for their life.

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8. Caring
Every company says it values employees. The 100 Best Companies don't say

it; they show it.

This year, for example, we saw exceptional support for employees during the

COVID-19 pandemic.

DHL went beyond physical safety to ease employees’ minds during the

pandemic. For example, the company sent motivational messages to

employees through their package scanning devices. It also offered virtual

yoga classes and facilitated meditation sessions.

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ETHICAL CULTURE PAYS

Over half of senior executives believe that corporate culture is a top-three

driver of firm value and 92% believe that improving their culture would

increase their firm’s value (Graham, Harvey, Popadak & Rajgopal, 2017).

Evidence from research suggests a strong ethical culture can provide

significant benefits to an organization, such as:

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1. Increased employee job satisfaction, affective commitment, and willingness

to recommend their organization to others.

2. Reduced employee burnout and increased intention to stay.

3. Decreased illegal activity and increased moral behaviors.

4.Improved organizational performance, value, and innovativeness.

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The importance of developing a corporate culture

Culture can shape and influence almost all aspects of an organization,

including organizational effectiveness, overall success and the bottom line.

Researchers have found that organizations that have well-conceived cultures

supported with good policies that attract workers who fit well with the

environment ultimately have more committed and productive employees.

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Need for Corporate Governance

The need for corporate governance was felt because of the increasing non-

compliance of the standards related to the financial reporting and

accountability by the board of directors and management which in turn was

the reason of the huge losses to the investors of the company.

The fall out of big companies was enough to bring about the importance and

need of the corporate governance which is supposed to draw a distinction

between the powers of the management and the board of directors.

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Examples of corporate governance

Specific processes that can be outlined in corporate governance may include

the following:
action plans;

performance measurement;

environmental, social and governance principles;

disclosure practices;

executive compensation decisions;

dividend policies;

decision-making practices;

procedures for reconciling conflicts of interest; and

explicit or implicit contracts between the company and stakeholders.

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