Corporate Culture:Corporate Culture:
A Global PerspectiveA Global Perspective
Corporate Culture is…Corporate Culture is…
1.1.Influenced by national cultureInfluenced by national culture
2. Sustained by corporate leadership2. Sustained by corporate leadership
What is corporate culture?
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.
• 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
Corporate Culture can evolve from…
• 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”
Corporate Culture is reflected in…Corporate Culture is reflected in…
The First Step on the Path toThe First Step on the Path to
Implementing a SuccessfulImplementing a Successful
Global Strategy…Global Strategy…
Understanding the Relationship betweenUnderstanding the Relationship between
National Culture and Corporate CultureNational Culture and Corporate Culture
Corporate Culture & National Culture
Are Symbiotically RelatedAre Symbiotically Related
What is 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 translateCultural Understanding can translate
to better Business Practicesto better Business Practices
He separated cultures into five dimensions:
• Power Distance
• Uncertainty Avoidance
• Short and long-term orientation
Contributions of Geert HofstedeContributions of Geert Hofstede
Business Ethics:Business Ethics:
It can be argued that some dimensions ofIt can be argued that some dimensions of
business ethics are fluid.business ethics are fluid.
Cultural norms can differ betweenCultural norms can differ between
countries. What is unacceptable in one countrycountries. What is unacceptable in one country
may be perfectly acceptable in another.may be perfectly acceptable in another.
A healthy corporate culture will encourageA healthy corporate culture will encourage
employees to observe, learn, and avoid passingemployees to observe, learn, and avoid passing
judgment too quickly.judgment too quickly.
Effective strategic leaders --Effective strategic leaders --
Craft global strategies that nurture a healthyCraft global strategies that nurture a healthy
corporate culturecorporate culture
Encourage employees to understand and appreciateEncourage employees to understand and appreciate
other national culturesother national cultures
– Determination to nurture a healthy corporate cultureDetermination to nurture a healthy corporate culture
– The capacity to deal with uncertainty and complexityThe capacity to deal with uncertainty and complexity
– A willingness to hold people (and themselves)A willingness to hold people (and themselves)
accountable for their workaccountable for their work
Important qualities of strategic leadersImportant qualities of strategic leaders
Cultural Core ConceptsCultural Core Concepts
It’s not about Magic – It’s about Management
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
8. A multinational company needs to build its
corporate culture around values and operating
practices that travel well across borders.