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How Can a Corporate (Compliance) Culture Be Described and Effectively Measured?

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  • Lucie Andreisova

Abstract

In July 2016, the FRC published a report on corporate culture and the role of boards (see below). This report serves as an important complement to respective provisions of UK Corporate Governance Code ¨C a code which is perceived as a best practice manual for building and maintaining a good level of corporate governance and is therefore adapted by many European lawmakers and regulators. This regulation puts an enhanced emphasis on ¡®corporate (compliance) culture¡¯ as it, among others, states that: ¡®Boards should devote sufficient resource to evaluating culture and consider how they report on it.¡¯ What shall, however, be understood by this term? How can such a term be defined, measured and reported on? The aim of the presented discussion paper is to help answering those theoretical questions, as well as to propose a reliable ¡®culture measurement tool¡¯ which could be effectively used in nowadays business practice.

Suggested Citation

  • Lucie Andreisova, 2018. "How Can a Corporate (Compliance) Culture Be Described and Effectively Measured?," Business and Management Studies, Redfame publishing, vol. 4(3), pages 52-57, September.
    • Handle: RePEc:rfa:bmsjnl:v:4:y:2018:i:3:p:52-57
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