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The Effect of Corporate Behaviour on Company Culture

Corporate behaviour plays a crucial role in shaping and defining a company’s culture. The actions, decisions, and ethical standards of a company’s leadership and employees can have a profound impact on the values and beliefs of the organization, and in turn, the overall corporate culture.

 

A company’s culture is a unique combination of beliefs, values, and behaviour that define the way employees interact with each other, customers, and the wider community. It is often shaped by the company’s history, mission, and leadership style, but it is influenced by the actions and decisions of all employees. The corporate behaviour of a company’s leadership, in particular, has a significant impact on the company culture, as it sets the tone and standards for the rest of the organization.

 

Transparency, fairness, and accountability are examples of good corporate behaviour that can strengthen a company’s ethos. This type of conduct indicates a dedication to ethics and integrity and conveys to employees that the company values these principles. As a result, employees may feel more a part of a cohesive organisation that is committed to doing the right thing, which can boost employee morale, trust, and engagement. By boosting productivity, luring top personnel, and fostering greater customer loyalty, a strong workplace culture can also have a favorable impact on the bottom line.

 

On the other hand, negative corporate behaviour, such as unethical practices or a lack of ethics, can have a damaging consequence on a company’s culture. This type of behaviour can erode employee trust, undermine morale, and damage the company’s reputation. For instance, a business that participates in unethical or unlawful operations may swiftly come under fire from the media and the public, harming the company’s reputation and its capacity to draw in and keep staff and customers.

 

A lot of times companies look at the culture within the Organisation but fail to recognize that corporate culture extends beyond their employees. An example is an agent of an insurance company or a banking correspondent in a bank or a gig worker working for an Organisation should also be acclimatized to the corporate culture as many of them are in fact customer-facing and could cause harm to the company’s reputation. We have all seen this when a person wearing a Swiggy, or a Dunzo T-shirt does something negative it causes harm to the brand as well. The culture of an organization and its values must be imparted to the extended workforce.  In addition to promoting positive behaviour, companies must also have systems in place to address and prevent negative behaviour. This can include having clear policies on issues such as harassment, discrimination, and unethical behaviour, and having processes in place for employees to report concerns and have them investigated. Companies must also be prepared to take swift and appropriate action when negative behaviour is identified, such as disciplinary action or termination of employment.

 

It is important for companies to promote positive behaviour, address and prevent negative behaviour, and have an ecosystem in place to encourage and reward ethical behaviour. By doing so, companies can build a culture that supports employee engagement, productivity, and success, and helps to maintain a positive image and reputation in the wider community.

 

The beliefs, attitudes, and behaviour that make up a company’s culture determine how its employees interact with one another, clients, and the general public. Although the company’s history, mission, and leadership style frequently shape it, all employees’ actions and decisions have the most impact. As they set the tone for the Organisation, a company’s leadership, in particular, has a big impact on the culture of the Organisation.

 

(The author is Mr. Sudhakar Raja – Founder and CEO – TRST Score, an HR tech startup and the views expressed in this article are his own)

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