Corporate behaviour
Corporate behaviour is the actions of a company or group who are acting as a single body. It defines the company's ethical strategies and describes the image of the company.[1] Studies on corporate behaviour show the link between corporate communication and the formation of its identity.[2]
Role
Not only does corporate behaviour play various roles within different areas of a business, it also enables businesses to overcome any problems they may face. For example, due to an increase in
Importance
Corporate behaviour is important in strengthening relationships within organisations between individuals, teams, and in the organisation as a whole. It is important as it reflects the values of the business and the extent to which it is ethical.[4] Corporate behavior refers to the company values that defines it and makes it different and better than other companies. Portraying positive corporate behavior within a company facilitates strong brand image creation; consequently branding then strengthens the importance associated with corporate behavior.[5]
Influential factors
Political
Political factors such as property rights, the rule of law and the status of governments influence corporate and economic landscapes.[6] Examples of political factors could be changes in government legislation. This could affect an organisation's corporate behaviour as they would have to change the way they operate in order to implement these changes; some employees may not like the new changes made.[7][8][9]
Economic
Recession is an example of an economic factor. If the economy were to be in a recession, businesses may find they have to reduce jobs. This would affect corporate behaviour as business teams would be short of skills and ideas in order to operate effectively.[7][8][9] According to the 2013 National Business Ethics Survey of the US workforce, economy and misconduct are not interdependent, which was the traditional view. The report suggested that even though the economy grew in 2011 and 2013, misconduct in businesses was at its lowest.[10] A mixed economy signifies intersections of interests between the private sector of corporations, and the public sector of government.[6]
Social
Changes in trends and the market is a social factor which affects corporate behaviour. Organisations may have to change their products or services in order to keep up to date with new trends. In order to do this, employees may be required to learn new skills within a short amount of time to make these changes; relationships between employees and management could be at risk due to these changes.[7][8][9] Moral imperatives and expectations are also taken into account. Where social issues are shared by many companies across multiple industries, it may often be addressed most effectively through cooperative models and initiatives.[6]
Technological
Implementing technology within organisations could mean more virtual meetings and fewer face to face meetings. As a result, relationships between management and employees could weaken as a result of less face to face conversations.[7][8][9]
Legal
Legislative rules such as tax may increase which would increase an organisations costs. Changes such as changing the way the organisation operates may have to be made in order to cover these extra costs.[8][9]
Environmental
Corporate Environmental Responsibility aims to create goodwill for corporations in various ways, with regards to society.[6] Environmental factors could be any factors which prevent damage to the environment. For example, remote work may be required to reduce the number of employees physically travelling to offices thus reducing greenhouse gas emissions. However, this may lead to isolation as communication is reduced, weakening corporate behaviour within firms.[8][9]
Stakeholder influence
Businesses have many
See also
- Business ethics
- Corporate crime
- Corporate culture
- Corporate governance
- Corporate law
- Corporation
- Normative ethics
- PESTLE
- Shareholder
- Stakeholder concept
Notes
- ISBN 9781853024139. Retrieved 8 Oct 2014.
- . Retrieved 12 April 2023.
- ^ "Corporate behaviour and political risk" (PDF). Retrieved 9 Oct 2014.
- ISBN 978-1111787998. Retrieved 7 Oct 2014.
- ^ "Does culture define the brand?". the guardian. Retrieved 9 Oct 2014.
- ^ a b c d e f "Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility" (PDF). Harvard Business Review. Retrieved 12 April 2023.
- ^ a b c d "THE MACRO ENVIRONMENT & PEST ANALYSIS". Retrieved 6 Oct 2014.
- ^ a b c d e f "PESTLE Analysis". Retrieved 7 Oct 2014.
- ^ ISBN 1861529481. Retrieved 9 Oct 2014.
- ^ "National Business Ethics Survey" (PDF). IBE.CO.UK. 2013.
- ISBN 9780521151740. Retrieved 6 Oct 2014.
- ISBN 9781136325694. Retrieved 7 Oct 2014.