Business Ethics and Corporate Governance, Second Edition

INSTITUTIONAL CULTURE

Every institution has a distinct culture. Institutional culture reflects the core values of the institution and forms the basis of how people work together. Institutional or corporate culture is a blend of ideas, conventions, customs and practices, company and shared ethical values that define accepted behaviour for every employee in an organization. Culture reflects the informal procedures that emerge in the organization’s operations. Culture is determined by the institution’s vision and core values. The CEO and senior management heavily influence culture. Last but not the least, human resource system and tools are important factors that influence work culture. For developing an ethical culture and shaping an organization’s ...