Do companies with rotten corporate cultures spawn scandals

The dark side of business – Rotten corporate cultures

Do companies with rotten corporate cultures spawn scandals, like the one at Volkswagen where engineers apparently felt at liberty to rig diesel engines to fool pollution-monitoring devices? Or the unconscionable accounting lies at Toshiba, where executives reportedly overstated profits by a stunning $2 billion over seven years? Or the endless numbers of scandals at Deutsche Bank?

A polluted corporate culture that must change

The dark side of business – Do companies with rotten corporate cultures spawn scandals

Corporate culture matters a lot

In a study from Duke University’s Fuqua School of Business, executives say corporate culture drives profitability, acquisition decisions and even whether employees behave in ethical ways:

Executives overwhelmingly indicate that an effective corporate culture is essential for a company to thrive in the modern business world

Among the findings:

• More than 90% said that culture was important at their firms
• 92% said they believed improving their firm’s corporate culture would improve the value of the company
• More than 50% said corporate culture influences productivity, creativity, profitability, firm value and growth rates
• Only 15% said their firm’s corporate culture was where it needed to be

Leadership needs to spend more time to develop the culture

The paper’s bottom line finding reinforces: Corporate culture is an essential element of success. Let’s hope that the fractured corporate culture at VW, Toshiba and Deutsche Bank opens a new discussion about the importance of corporate culture.

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Do companies with rotten corporate cultures spawn scandals — https://www.torbenrick.eu/t/r/oee
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