Corporate behaviour: Difference between revisions

'''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.<ref>{{cite book|title=Quality of life|year=1997|publisher=Philip Seed, Greg Lloyd|isbn=9781853024139|url=https://books.google.com/books?id=xPce-i2OO1AC&pg=PA171|access-date=8 Oct 2014}}</ref> Studies on corporate behaviour show the link between [[corporate communication]] and the formation of its [[corporate identity|identity]].<ref>{{cite journal |title=Corporate identity and corporate communications: creating a competitive advantage | year=2000 |url=https://www.emerald.com/insight/content/doi/10.1108/00197850010379811/full/html?fullSc=1&mbSc=1&fullSc=1&fullSc=1&fullSc=1&fullSc=1 |publisher=Emerald Insight | doi=10.1108/00197850010379811 |access-date=12 April 2023 | last1=Balmer | first1=John M.T. | last2=Gray | first2=Edmund R. | journal=Industrial and Commercial Training | volume=32 | issue=7 | pages=256–262 }}</ref>

== 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 [[globalisation]], language barriers are likely to increase for organisations creating major problems as day-to-day business may be disrupted. Corporate behaviour enables managers to overcome this problem by improving flexibility. Also, many businesses are struggling to remain competitive in terms of quality and productivity due to intense competition within markets. However, corporate behaviour is able to fix this issue by allowing managers to empower their employees as they are the ones who are able to make a change.

Positive corporate behaviour can result in employees feeling happy and content at work providing their best outcome. This is beneficial for management as it could lead to effective teams being created thus resulting in innovative ideas which is beneficial for the business. It also helps to decrease [[labour turnover]] enabling the organisation to retain its most valuable employees.<ref>{{cite web|title=Corporate behaviour and political risk|url=https://openaccess.leidenuniv.nl/bitstream/handle/1887/15900/risksbehaviourPUTTEN.pdf?sequence=1|access-date=9 Oct 2014}}</ref>

== 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.<ref>{{cite book|title=Organizational Behaviour|date=January 2010|publisher=Hellriegel, Don & Slocum, John|isbn=978-1111787998|url=https://books.google.com/books?id=aSQFAAAAQBAJ&dq=importance+of+organizational+behavior&pg=PA4|access-date=7 Oct 2014}}</ref> 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.<ref>{{cite news|url=https://www.theguardian.com/media-network/partner-zone-brand-union/does-culture-define-brand|title=Does culture define the brand?|work=the guardian|access-date=9 Oct 2014}}</ref>

== Influential factors ==

[[PESTLE]] factors influence corporate behaviour in many ways. They cause organisations to change the way they operate; however, the size and nature of change is dependent upon which factor is causing the change (political, economic, social, technological, legal, or environmental). External forces are a significant factor of influence over corporate behaviour, hence the term [[corporate personhood|corporate citizenship]].<ref name="CSR">{{cite web |title=Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility |url=http://www.guillaumenicaise.com/wp-content/uploads/2013/10/Strategy-and-Society-the-link-between-competitive-advantage-and-CR.pdf |publisher=Harvard Business Review |access-date=12 April 2023}}</ref>

=== Political ===

Political factors such as [[property rights (economics)|property rights]], the rule of [[law]] and the status of [[central government|governments]] influence corporate and economic landscapes.<ref name="CSR" /> 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.<ref name="test">{{cite web|title=THE MACRO ENVIRONMENT & PEST ANALYSIS.|url=http://www.learnmarketing.net/pestanalysis.htm|access-date=6 Oct 2014}}</ref><ref name="test1">{{cite web|title=PESTLE Analysis.|url=http://www.cipd.co.uk/hr-resources/factsheets/pestle-analysis.aspx|access-date=7 Oct 2014}}</ref><ref name="test 2">{{cite book|title=Organizational Behaviour and Management|year=2005|publisher=Martin, John|isbn=1861529481|url=https://books.google.com/books?id=BUDMDCAuRIoC&dq=PESTLE+company+behaviour&pg=PA30|access-date=9 Oct 2014}}</ref>

=== 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.<ref name="test" /><ref name="test1" /><ref name="test 2" /> 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.<ref>{{Cite web|url=https://www.ibe.org.uk/userassets/surveys/nbes2013.pdf|title=National Business Ethics Survey|date=2013|website=IBE.CO.UK}}</ref> A [[mixed economy]] signifies intersections of interests between the private sector of corporations, and the public sector of government.<ref name="CSR" />

=== 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.<ref name="test" /><ref name="test1" /><ref name="test 2" /> 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.<ref name="CSR" />

=== 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.<ref name="test" /><ref name="test1" /><ref name="test 2" />

=== 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.<ref name="test1" /><ref name="test 2" />

=== Environmental ===

[[Corporate environmental responsibility|Corporate Environmental Responsibility]] aims to create goodwill for corporations in various ways, with regards to society.<ref name="CSR" /> 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.<ref name="test1" /><ref name="test 2" />

== Stakeholder influence ==

Businesses have many [[stakeholder (corporate)|stakeholder]]s who influence corporate behaviour. However, businesses who adopt the [[stakeholder theory]] are likely to appeal more to their stakeholders as they are showing their care and commitment towards them. This helps to strengthen the corporate behaviour within a firm and reduces the need for stakeholders to demand change.<ref>{{cite book|title=Strategic Management: A Stakeholder Approach|date=11 March 2010|publisher=Freeman, R.Edward|isbn=9780521151740|url=https://books.google.com/books?id=NpmA_qEiOpkC&q=stakeholder+approach|access-date=6 Oct 2014}}</ref><ref>{{cite book|title=Strategy for Sustainable Competitive Advantage|date=4 May 2012|publisher=Chaston, Ian|isbn=9781136325694|url=https://books.google.com/books?id=H6DcuJNr79YC&dq=stakeholder+influence+on+organisational+behaviour&pg=PA120|access-date=7 Oct 2014}}</ref> With the various factors affecting society and economy in modern times, stakeholders are increasingly showing an interest in [[Corporate Social Responsibility]] (CSR). ''Strategic CSR'' is also considered a [[marketing strategy]] and therefor a potential source of [[competitive advantage]].<ref name="CSR" />

==See also==

* [[Business ethics]]

* [[Corporate crime]]

* [[Corporate culture]]

* [[Corporate governance]]

* [[Corporate law]]

* [[Corporation]]

* [[Normative ethics]]

* [[PESTLE]]

* [[Shareholder]]

* [[Stakeholder concept]]

==Notes==

{{reflist}}

{{Social accountability}}

{{Anthropogenic effects on the environment}}

[[Category:Corporate governance]]

[[Category:Corporate conduct]]

[[Category:Corporate personhood]]

[[Category:Management cybernetics]]