Abstract
This study is aimed at verifying the conception that a strong corporate culture supported with a positive ethical environment is central for directing and guiding the behavior of individuals toward achieving organizational objectives. The rationale for this study stems from the circumstance that formal controls systems suffer from consecutive failures, as the performance of organizations is still suffering from financial collapses. Reasons behind such failures might be related to the insufficient appreciation of the culture-based controls given that formal controls are influenced by the human nature of employees and the affixed moral side.Data subject to analysis are obtained from a judgmental sampling method using a self-completion questionnaire covering the listed companies at Jordan Securities Commission. A factor analysis and a standard multiple regression analysis have been conducted with the aim of proving the hypotheses of the research. The research results show that strong corporate culture supported with a positive ethical environment can direct the behavior of employees for the good of organizations. Results also support the importance of involvement of top management considering its role in filling the gap between the embraced and the workable values and beliefs of an entity.
Highlights
Corporate culture is a product of the organizational setting
Different factors were found to have an effect on directing the behavior of employees, those factors fall under two categories, the ethical environment and the corporate culture of the organization
The fundamental result emphasizes the importance of existing culture-based controls that are able to guide or direct the behavior of employees toward achieving the intended organizational goals
Summary
Corporate culture is a product of the organizational setting. It is basically defined by its elements as the shared basic values, beliefs, assumptions, and accepted practices that characterize the work setting. By that an entity can lessen the burden of formal internal controls It is referred by organizational goals, any strategic or tactical objective the entity aims to achieve respectively in the long or short run, whether financial or non-financial. Consistent with the organizational expectations, so, decisions and behaviors act for the good of organizations It is controlling the emotional and perceptual processes located beyond the reach of formal control systems
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