Corporate promises and corporate performance

Positive corporate cultures can make a significant contribution to corporate performance. The issue for senior management is how they may be engendered. This paper replies to an earlier paper in EMJ describing Audi's method of tackling the issue, highlighting some more general points and cautioning against a simplistic approach. In particular, it emphasises that corporate performance itself will predominantly determine both the corporate culture and the corporate image. Therefore, whatever slogans and other devices may be employed in efforts to create either, actions speak louder than words. Accordingly, management must create the conditions under which a positive corporate culture can emerge. Management actions, particularly by example and making sure the necessary structures exist within the organisation, ensure that the words take on meaning. As corporate promises are met within the organisation and employee expectations realised, those outside the organisation will find that it is "delivering the goods" and this will be reflected in the corporate image. So corporate performance underlies both the corporate culture and the corporate image. It is all too tempting but unrealistic to think they may be created without due regard to performance.