Abraaj Capital offers its views on best practice when it comes to Corporate Governance.
In Abraaj's view, how does culture influence behaviour?
- The conduct of business of every firm reflects certain ingrained behaviour, traditions and the application of unwritten rules and standards applied continuously over years;
- These factors become embedded and influence what a firm does – and how;
- So corporate culture influences the attitudes and behaviour of employees;
- Similarly, the manner in which employees conduct the business of the firm affects corporate culture – so corporate and personal culture are closely aligned;
- Personal commitment is an intrinsic criterion for good governance.
- Where the corporate culture is based upon sound governance standards and where the attitude and approach of individual employees are based on proper principles - the organisation’s work ethic is compliance oriented - a compliance culture prevails;
- A compliance culture means doing right things right.