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