Is Your Company Fit to Compete? The Impact of Culture on Your Organization
One emerging risk that has the attention of audit committees and boards of directors is culture and its effect on the organization. Historically, companies have focused primarily on rules to influence workplace behaviours. However, decision-making is also driven by local values and beliefs. Are we talking about tone at the top redefined or something even deeper? Is this purely ethics or do we need to go beyond? No single function in an organisation owns the understanding and management of culture; therefore, this emerging risk requires us to work together and to ask better questions.
- Recognize the importance of understanding culture’s role within the organization
- Relate the influence of corporate culture on the control environment – the yin & yang
- Apply a three-pronged, evidence-based approach to assessing corporate culture (cultural survey, business data and deep dives)