Ethical Obligations and Decision-Making in Accounting 2nd Edition by Steven Mintz, Roselyn Morris

Exercise 11

In 2005, the Institute of Management Accountants reported the results of a survey of business, academic and regulatory leaders conducted by the Center for Corporate Change that found the corporation’s culture to be the most important factor influencing the attitudes and behavior of executives.  The results also indicate that 88 percent of the representatives who took part in the survey believe that companies devote little management attention to considering the effect of the culture on their executives.  What are the elements of the corporate culture?  Do you think it is possible for a company to control the culture?  Why or why not?

Step 1 of 3

Culture:

Culture is the total of the behavior, values, customs, etc. of the people of a country or region. It is a non-accounting variable because it is not possible to measure this in monetary terms and noncomparable. The culture of every country is different. It affects the management of the organization.

Corporate culture:

It is the sum of behavior, values, customs, etc followed by the employees and management of a company. It impacts the working environment and style of the employees.