Corporate culture is receiving increased regulatory attention as a foundation of good governance. But what do we mean by ‘culture’? And how as a business community do we define corporate culture and the elements that create it?
“Corporate culture is the combination of values, attitudes and behaviours that a company exhibits in its operations and relations with those affected by its conduct, eg employees, customers, suppliers and wider society. Others may put it differently. However, what’s undeniable is that around the world, the issue of corporate culture is gaining increasing regulatory attention as a foundation of good governance. As a result, the issue has arguably never been as high up the business agenda as it is today,” said Harish H V, Partner - Grant Thornton India LLP.
In our latest corporate governance report Beyond compliance - The building blocks of strong corporate culture, we outline some practical recommendations for boards to consider so they can play an even more effective role in fostering a successful culture - both today and in the future.
Regulatory pressure is not the only driver of greater attention on the issue of culture. Insights from our International Business Report (IBR) tell us that boards are taking steps already to foster an authentic culture. 80 per cent (50 per cent globally) of the boards in India have culture as a standing item on their board agenda and 85 per cent (71 per cent globally) of the boards in India are establishing internal controls that address culture and employee behaviour.
Other key steps being taken by boards globally to drive corporate culture are considering a business customer’s culture (63 per cent) and considering a supplier’s culture (57 per cent).
“Corporates recognise third party risks and are improving their engagement with those parties to ensure their culture is aligned with their own vision and mission. Customers and suppliers are being considered as partners,” said Bhanu Prakash Kalmath S J, Partner, Grant Thornton India LLP.