4. (a) What is Corporate culture? Where does it come from?

4. (a) Corporate culture refers to a company's values, beliefs, business principles, traditions, ways of operating and internal work environment. Every organisation has a unique culture shaped by its philosophy, history, values, rituals, work climate and ingrained ways of doing things. Corporate culture exerts a powerful influence on the behaviour of managers and employees and guides how decisions are made and work is carried out. Where Does Corporate Culture Come From? Corporate culture is shaped and manifested through the following sources: 1. Values and Business Principles of Management: The values, ethical standards and business principles that management preaches and practices strongly influence organisational culture. 2. Organisational History and Traditions: Past experiences, successes, failures, traditions, stories and legends repeated within the organisation help embed cultural values. 3. Leadership Behaviour and Supervisory Practices: The leadership style, attitudes and behaviour of managers shape employee conduct and work practices. 4. Stakeholder Relationships: Dealings with employees, unions, shareholders, vendors and the community influence beliefs and behavioural norms. 5. Formal and Informal Systems: Policies, procedures, reward systems, communication patterns, peer pressure and organisational politics together define and reinforce culture. Thus, corporate culture emerges over time from multiple sociological forces operating at different levels of the organisation and acts as a guiding force for employee behaviour, strategy execution and organisational performance.