SANDOVAL,EZEKIEL KEIMER

ST. POLYCARP OF SMYRNA

CORPORATE CULTURE

Corporate culture refers to the values, beliefs, and behaviors that

determine how a company's employees and management interact,
perform, and handle business transactions. Often, corporate culture
is implied, not expressly defined, and develops organically over time
from the cumulative traits of the people that the company hires.

A company's culture will be reflected in its dress code, business

hours, office setup, employee benefits, turnover, hiring decisions,
treatment of employees and clients, client satisfaction, and every
other aspect of operations.

Understanding Corporate Culture

Awareness of corporate or organizational culture in businesses and
other organizations such as universities emerged in the 1960s. The
term "corporate culture" developed in the early 1980s and became
widely known by the 1990s. Corporate culture was used during those
periods by managers, sociologists, and other academics to describe
the character of a company.

Corporate culture emanated from generalized beliefs and behaviors,

company-wide value systems, management strategies, employee
communications and relations, work environment, and attitude. It
would go on to include company origin stories put forth by
charismatic chief executive officers (CEOs), as well as visual symbols
such as logos and trademarks.

By 2015, corporate culture was not only created by the founders,

management, and employees of a company, but was also influenced
by national cultures and traditions, economic trends, international
trade, company size, and products.
There are a variety of terms that relate to companies affected by
multiple cultures, especially in the wake of globalization and the
increased international interaction of today's business environment.
These include:

Types of Corporate Culture

Clan Culture

Clan cultures are about teamwork and collaboration. In such a

culture, those in management function as enthusiastic mentors who
provide guidance to subordinates. Good relationships,
encouragement, trust, and participation are key aspects. The
contribution potential of every employee is a component of a clan
culture. Also, clan culture can easily adapt to change and implement
needed action quickly.

Adhocracy Culture

Adhocracy culture creates an entrepreneurial workplace in which

executives and employees function as innovators and risk-takers. In
this flexible environment, agile thinking is nurtured. Employees are
encouraged to pursue their aspirational ideas and take action to
achieve results that can advance company goals. New and
unconventional products and services are the main outcome of the
adhocracy culture.

Market Culture
Market culture is focused on meeting specific targets and bottom line goals. This
culture creates a working environment that's competitive and demanding.
Management is most interested in business results. Employees are encouraged to
work hard and "get the job done" to enhance a company's market presence,
profits, and stock price. While employees may feel stressed in such a
workplace, they can also feel enthusiastic and excited about their
work.
Hierarchy Culture
A hierarchy culture is a traditional corporate culture that functions
according to a company's executive, management, and staff
organizational structure. That is, it follows the chain of command
from top down, where executives oversee employees and their work
efforts to meet specific goals. The hierarchy culture prizes stability
and conventional methods of operation The work environment can be
seen as more rigid than some other cultures but employees can
clearly understand their roles and objectives. They may also feel a
sense of security because of the more conservative approach to
running a company.

CODE OF ETHICS

A code of ethics is a written set of values, principles, or rules that guides

the behavior and decision-making of an organisation and its people. A
code of ethics is usually based on core values, such as honesty, social
responsibility, or environmental sustainability. A code of ethics is often
adopted by companies and professional groups to ensure they act
ethically in their business or interactions. Some professions, like doctors
and lawyers, are legally required to follow a code of ethics. A code of
ethics is tailored to the specific industry or context

What Are The 12 Principles Of Ethics?

Here are the 12 fundamental principles of ethics:

1. Honesty
Honesty is an essential value required to conduct business in an ethical
manner. Honesty requires you to be candid with your consumers,
business partners and coworkers. An honest company avoids dishonest
business practices like under-measurement, over-invoicing, pushing
substandard products and making misleading statements. To effectively
put the principle of honesty into practice, a company is required to be
honest with its employees first. That sends a strong indication to the
employees that the company really wants them to be honest.

2. Integrity

Integrity refers to moral soundness as reflected by your thoughts and

actions. Maintaining integrity requires you to be principled and
scrupulous even if you lose an opportunity to make quick money. It may
also require inner strength and courage to side with what you think is
right despite great pressure from others. Possessing integrity helps you
gain the trust and respect of others. A company that focuses on
developing integrity in its employees and management often finds it
easy to incorporate other ethical principles in its operations.

Related: What Is a Code of Conduct? Importance and Examples

3. Trustworthiness

Trustworthiness mainly comes from the quality of keeping your promise.

You become trustable when you make sincere efforts to fulfil your
commitments and promises. This also implies that a trustworthy person
tries to comply with an agreement as understood by the parties instead
of looking for loopholes to escape its compliance. Trustworthiness
helps build a healthy relationship with your customers, vendors and
other stakeholders. It can also help a company gain more business over
time.
4. Loyalty

It is common for a company to expect its employees to be loyal to it.

But, companies may also integrate this principle into their code of ethics
with an intention of being loyal to their employees and customers. For
example, a company that is loyal to its employees may consider layoffs
and job cuts as the last option after exploring all other methods of cost-
cutting. Similarly, employees can be loyal to their organisation by
avoiding conflict of interest and maintaining the confidentiality of
sensitive business information.

5. Fairness

Another essential principle of ethics is to be fair in your dealings. It

prevents one from gaining undue advantage from others' unfavourable
situations. Fairness also requires that you treat others equally,
irrespective of their caste, class, creed, gender, religion or belief. An
ethical company treats its employees fairly and provides them with
equal opportunities for advancement. Similarly, the company is also
required to treat its customers fairly.

6. Empathy

Empathy is the quality of understanding others' feelings. In a business

context, it includes caring about employees, customers and other
stakeholders. Ethical businesses consider the impact of their decisions
on all the stakeholders concerned. They try to achieve their business
objectives with minimal negative consequences on others, especially in
terms of emotions, health and finance. For example, if a company
discovers that one of its products is potentially harmful, it would put the
customers' well-being over its profitability and recall the product from
the market.
Related: Empathic Skills: Definition And Examples (With Tips)

7. Respect

Ethical businesses and professionals treat others with respect and

dignity. They are courteous in their behaviour irrespective of who they
are dealing with. They strive to treat others the way they would expect
others to treat them.

8. Compliance

Ethical businesses comply with the law of the land. For example, an
ethical company would avoid making unscrupulous adjustments in the
sales figures to reduce its Goods and Services Tax (GST) liability.
Compliance with the ethical codes may also prevent employees from
taking shortcuts to make quick profits through unethical actions.

9. Pursuit of excellence

Ethical companies are committed to excellence in whatever they do.

They try to add value through their product or service instead of simply
focusing on profits. For example, an ethical company trying to develop a
Covid-19 vaccine would be more concerned about the efficacy of the
vaccine rather than looking at it as yet another opportunity to make
money.

Related: Top Personal Development Skills To Improve Your Career

10. Leadership

Ethical businesses and executives strive to be positive role models for

others. They exemplify honour and accept personal accountability for
their decisions. They try to create an environment of healthy growth and
principled reasoning by helping, guiding and inspiring others.
11. Reputation

Ethical companies value their reputation. They may want their

employees to conduct in a manner that builds and protects their
reputation. While they may be careful about the management's words
and actions, they may also take affirmative steps to improve their
employees' morale and conduct.

12. Responsibility

All businesses have certain obligations towards their employees,

customers, partners and society. An ethical business understands its
responsibilities well. They would want their employees to meet the
expectations others have from the business.

The principle of responsibility pervades all aspects of the company's

operations. For example, it is the responsibility of the company to
protect the visitors to its website. Similarly, the business also needs to
ensure that the customers making advance payments get timely delivery
of goods. As a responsible employee, you are required to think about
how your actions can affect others associated with your company.

ETHICAL ISSEUS IN BUISNESS

Ethical issues in business occur when a decision, activity or scenario

conflicts with the organisation's or society's ethical standards. Both
organisations and individuals can become involved in ethical issues
since others may question their actions from a moral viewpoint.
 Complex ethical issues include diversity, compliance, governance and
empathetic decision-making that align with the organisation's core
values.

Ethical conflicts may pose a risk for an organisation, as they may imply
non-compliance with relevant legislation. In other instances, ethical
issues may not have legal consequences but may cause an adverse
reaction from third parties. It may be challenging to effectively manage
ethical issues when no guidelines exist. For this reason, as an HR or
management professional, you can help develop policies to guide
employees to make the right decision when faced with moral issues.

Examples of ethical issues in business

It's essential to understand what these issues are to manage them when
they arise in the organisation you work for. Knowing how to detect and
deter these issues before they become problematic can help you and
your colleagues focus on business success and growth instead of
remediation. Here are eight examples of ethical issues that can occur in
a business setting:

1. Discrimination and harassment

Two of the most significant ethical issues that HR professionals and

managers face are discrimination and harassment. The consequences
of discrimination and harassment in the workplace can negatively
impact the finances and reputation of the organisation. Many countries
have anti-discrimination laws to protect employees from unfair
treatment. Some anti-discrimination areas include:

● Age: Organisations and internal policies cannot discriminate

against employees who are older.
● Disability: To prevent disability discrimination, it's important to
accommodate and provide equal treatment for employees with
mental or physical disabilities.
● Equal pay: Equal pay focuses on ensuring that all employees
receive equal compensation for similar work, regardless of
religion, gender or race.
● Pregnancy: Pregnant employees have a right not to be
discriminated against on account of their pregnancy.
● Race: Employees should receive equal treatment, regardless of
ethnicity or race.
● Religion: Employees' religious beliefs should not affect how
anyone within the organisation treats them.
● Sex and gender: An employee's sex and gender identity should
not influence their treatment while working at an organisation.

As an HR professional or senior manager, you can educate employees

on these issues and encourage a positive work culture to fight
discrimination. All employees require an understanding of the
disciplinary consequences of discriminative behaviour. You can make
an effort to hire people with different backgrounds, characteristics and
nationalities to ensure a diverse workforce. It's also crucial to consider
factors such as age, religion and culture when developing internal
policies to be more aware and flexible regarding employees' needs.

2. Workplace health and safety

All employees have a right to a safe working environment and work
conditions. Some of the most common employee safety considerations
include:

● Fall protection: This involves measures to protect employees

against falls, such as guard rails.
● Hazard communication: Identify any harmful substances
employees work with and communicate how to handle these
hazardous materials safely.
● Scaffolding: The HR department in construction or maintenance
organisations is obliged to guide employees about the maximum
weight numbers structures can handle.
● Respiratory protection: If relevant, provide guidelines about
emergency procedures and the standards applicable to the use of
respiratory equipment.
● Lockout, tag out: This involves specifying the control procedures
for dangerous machines and hazardous energy sources, such as
gas and oil.
● Industrial trucks: It's important to ensure that the required safety
standards for trucks are in place to protect employees.
● Ladders: Before using ladders, employees must be given an
understanding of the weight that the ladder can support.
● Electrical wiring methods: Create procedures for electrical and
wiring tasks. For example, these guidelines can specify how
employees can create a circuit to reduce electromagnetic
interference.
● Machine guarding: It's important to provide operation guarding
instructions for items such as guillotine cutters, power presses,
shears and other devices where applicable.
● General electrical regulations: Developing general electrical
regulations for employees is critical for safety in work
 environments that require the frequent use of electrical equipment.
For example, employees should never place conductors or
equipment in damp or wet locations.

Health and safety guidelines don't only cover physical harm to

employees. It's also important to consider psychosocial risks, work-
related stress and mental health issues. Factors such as high work
demands, job insecurity, effort-reward imbalance and low levels of
autonomy can contribute to health-related behavioural risks.

Related: How to become a health and safety inspector in 6 steps

3. Whistle-blowing or social media rants

Using social media has become widespread, making employees' online

conduct a critical consideration in their employment status. The
consequences of punishing employees for inappropriate social media
posts remains an ethical issue, and the implications of a negative social
media post may influence the treatment of the employee. When an
employee's social media posts result in a loss of business or give the
organisation a negative reputation, you may decide to fire them.

This is why it's helpful to specify inappropriate social media behaviour

in company policies to ensure employees know what to avoid. As an HR
professional or management figure, you cannot penalise employees
who become whistle-blowers to regulators or authorities. This is also
the case for employees who raise awareness of workplace violations
online unless it reduces the amount of business the organisation
receives.

Related: How to become a social media manager: a step-by-step guide

4. Ethics in accounting practices

Laws require organisations to maintain accurate bookkeeping practices.

Unethical accounting practices are a serious issue, especially for
publicly traded companies. The legislation specifies financial report
requirements aimed at protecting shareholders and consumers. All
organisations have to keep accurate financial records and pay taxes to
attract investment and business partners regardless of the size of the
company.

Related: 9 essential accounting skills for career success

5. Corporate espionage and nondisclosure

Many organisations are at risk that current and former employees may
steal information, such as client data, for use by competitors. Stealing
an organisation's intellectual property or illegally distributing private
client information constitutes corporate espionage. This is why it can be
helpful to require mandatory nondisclosure agreements. As an HR
professional or manager, you may also wish to set strict financial
penalties for violations to discourage these types of ethical violations.

6. Technology and privacy practices

Developments in an organisation's technological security capabilities

may pose privacy concerns for both employees and clients. You can
monitor employees' activity on their work computers and devices
provided by the company. As a manager or HR professional, you can
use this method of electronic surveillance to ensure productivity and
efficiency if it doesn't violate the employee's privacy.

Electronic surveillance includes monitoring Internet connections and

tracking keystrokes, content or time spent using the keyboard. When
implementing these types of surveillance, you can act ethically by being
transparent about it with employees. To ensure that employee
surveillance doesn't become an ethical issue, it's helpful to encourage
all levels of employees to consider the benefits of the surveillance
system.

Related: IT skills: definitions and examples

7. Nepotism or favouritism

As a hiring manager or HR professional, you may want to employ an

acquaintance or family member because of your connection to them.
Even if you adhere to recruitment policies to ensure a fair process,
some employees may still consider this as nepotism or favouritism.
Favouritism occurs when managers treat some employees better than
others for no professional reason. This can reduce productivity and job
satisfaction in other employees, which may negatively impact the entire
organisation.

8. Environmental responsibility

Many organisations are increasing corporate social responsibility

activities. You can help create policies that ensure the organisation you
work for acts in a responsible way towards employees, the community
and the environment.