Corporate Culture:

A Global Perspective

Corporate Culture is…

1. Influenced by national culture
and
2. 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.
Corporate Culture can evolve from…

• 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
Fridays, etc.)
Corporate Culture is reflected in…
A company’s
• 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”
cultures
 The First Step on the Path to
Implementing a Successful Global
Strategy…

Understanding the Relationship between

National Culture and Corporate Culture
Corporate Culture & National Culture
Are 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 translate to
better Business Practices

Contributions of Geert Hofstede

He separated cultures into five dimensions:

• Power Distance
• Individualism
• Uncertainty Avoidance
• Masculinity
• Short and long-term orientation
 Business Ethics:
It can be argued that some dimensions of
business ethics are fluid.
Cultural norms can differ between countries.
What is unacceptable in one country may be
perfectly acceptable in another.
Thus…
A healthy corporate culture will encourage
employees to observe, learn, and avoid passing
judgment too quickly.
 Effective strategic leaders --
 Craft global strategies that nurture a healthy
corporate culture
 Encourage employees to understand and appreciate
other national cultures
Important qualities of strategic leaders

• Determination to nurture a healthy corporate culture

• Courage
• Self-confidence
• Integrity
• The capacity to deal with uncertainty and complexity
• A willingness to hold people (and themselves)
accountable for their work
 Summary
Cultural Core Concepts

It’s not about Magic – It’s about Management

 Corporate Culture…
Management’s Responsibility

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 behavior.

8. A multinational company needs to build its corporate

culture around values and operating practices that
travel well across borders.
A relaxed culture…