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Corporate Culture

Essay by   •  December 28, 2010  •  1,081 Words (5 Pages)  •  2,044 Views

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Corporate Culture Paper

Introduction

Corporate culture is a term used to refer to an organization's morals, values, business philosophy, customs, ways of operating, and internal work atmosphere (McGraw-Hill Irwin, 2003). Corporate culture includes the integrity and ethics of the company and its staff, along with the philosophy of management and leadership. Many organizations are now focusing on the core values that define their corporate culture instead of concentrating solely on their business processes. This paper will discuss the role of corporate culture in an organization's approach to customer relations and social responsibilities.

Corporate Culture, Customer Relations, and Social Responsibility

For a company to succeed, that organization needs to be dedicated to the satisfaction of their customers. A strong organizational culture plays an important role in the development and retention of relationships with customers. Richard S. Gallagher, in his paper Leadership and Corporate Culture, states that there are seven roles that leadership must take on that are important in the development of a strong corporate culture. These roles are strategist, motivator, team builder, customer champion, visionary, being nimble, and being passionate. These roles focus on powerful operational quality, the formation of a constructive working atmosphere, nurturing and motivating human resources, building an infrastructure for transformation, building a service-driven culture, customer support, and leadership that focuses on the goals of the organization (Gallagher, n.d.). To be successful, the organization has to have values. These values must reverberate with human resources, clientele, and the marketplace.

A customer is more likely to buy your product if they trust you. It has been found that customers may actually even go out of their way to purchase from companies who are perceived to have strong ethical values. Strong ethical values are supported by a positive corporate culture. For a company to be successful, they should earn the trust of customers' and maintain that level of trust. To do this, the organization must have high levels of truthfulness, sincerity, and candidness in all that it does. To develop this sort of culture, leadership must adapt to the same moral standards as they would like to see their employees hold (NFIB, 2003).

Organizations have taken to publishing their mission statements and corporate values on their websites so that their customers are aware of what the organization values and their ethical ideals. Organizations take steps to ensure that their business practices are honest and straightforward, and if issues do arise that they are addressed adequately and appropriately with the public. An organizational misstep can spell disaster for the future health of an organization. Competition is out there and a customer can always turn to another company if they lose faith in the one that they have been dealing with.

By instilling values, morality, and ethical behavior on their staff, the corporate culture promotes honesty and hard work. An organization's human resources are an extremely valuable asset. That asset is also a determining factor in the organization's success. An organization is wise to ensure that their values and ethics are always portrayed positively throughout the organization. Management and leadership must set exemplary examples of how the organization desires its employees to act. The organization must foster an environment that encourages commendable behavior and makes it easy for staff to report undesirable behavior without the threat of retaliation. A positive corporate culture will focus on the satisfaction of the customers and will result in an affirmative experience for the staff and customers.

A positive corporate culture also plays a role in an organization's social responsibility. Organizational social responsibility is the belief that an organization has a duty and responsibility to society. The organization has a duty to take care of all of their stakeholders, meaning anyone that has an interest in that company, including not only staff, management, and owners, but also the community and the organization's customers. Social responsibility is the responsibility of an organization to maximize their positive impact and minimize their negative impact on society (Wikipedia, 2007). By being socially responsible, organizations can strengthen their corporate accountability, respect and preserve the environment, help improve quality of life, empower people, and invest in the communities in which they belong.

Many organizations also publish corporate

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