Corporate behaviour

Corporate behaviour is the behaviour of a company or group who are acting as a single body.[1]


Not only does corporate behaviour play various roles within different areas of a business, it also enables businesses to overcome any problems they may face. For example, due to an increase in globalisation, language barriers are likely to increase for organisations creating major problems as day-to-day business may be disrupted. Corporate behaviour enables managers to overcome this problem by improving flexibility. Also, many businesses are struggling to remain competitive in terms of quality and productivity due to intense competition within markets. However, corporate behaviour is able to fix this issue by allowing managers to empower their employees as they are the ones who are able to make a change. Positive corporate behaviour can result in employees feeling happy and content at work. This is beneficial for management as it could lead to effective teams being created thus resulting in innovative ideas which is beneficial for the business. It also helps to decrease labour turnover enabling the organisation to retain its most valuable employees.[2][3]


Corporate behaviour is important in strengthening relationships within organisations between individuals, teams, and in the organisation as a whole. It is important as it reflects the values of the business and the extent to which it is ethical.[4] Portraying positive corporate behavior within a company facilitates strong brand image creation; consequently branding then strengthens the importance associated with corporate behavior.[5]

Influential factors

PESTLE factors influence corporate behaviour in many ways. They cause organisations to change the way they operate, however the size and nature of change is dependent upon which factor is causing the change; (political, economic, social, technological, legal, or environmental).


Examples of political factors could be changes in government legislation. This could affect an organisations Corporate behaviour as they would have to change the way they operate in order to implement these changes; some employees may not like the new changes made.[6][7][8]


Recession is an example of an economic factor. If the economy were to be in a recession, businesses may find they have to reduce jobs. This would affect Corporate behaviour as business teams would be short of skills and ideas in order to operate effectively.[6][7][8]


Changes in trends and the market is a social factor which affects Corporate behaviour. Organisations may have to change their products or services in order to keep up to date with new trends. In order to do this, employees may be required to learn new skills within a short amount of time to make these changes; relationships between employees and management could be at risk due to these changes.[6][7][8]


Implementing technology within organisations could mean more virtual meetings and fewer face to face meetings. As a result, relationships between management and employees could weaken as a result of less face to face conversations.[6][7][8]

Legislative rules such as tax may increase which would increase an organisations costs. Changes such as, changing the way the organisation operates may have to be made in order to cover these extra costs.[7][8]


Environmental factors could be any factors which prevent damage to the environment. For example, more employees may be required to telework to reduce the number of employees physically travelling to offices thus reducing carbon dioxide emissions. However this may lead to isolation as communication is reduced, weakening Corporate behaviour within firms.[7][8]

Stakeholder influence

Businesses have many stakeholders who influence corporate behaviour. However, businesses who adopt the stakeholder theory are likely to appeal more to their stakeholders as they are showing their care and commitment towards them. This helps to strengthen the Corporate behaviour within a firm and reduces the need for stakeholders to demand change.[9][10]

See also


  1. Quality of life. Philip Seed, Greg Lloyd. Retrieved 8 Oct 2014.
  2. Organisational Behaviour and its Role in Management of Business (PDF). Frederick, Prabha Renuka Horo. Retrieved 9 Oct 2014.
  3. "Corporate behaviour and political risk" (PDF). Retrieved 9 Oct 2014.
  4. Organizational Behaviour. Hellriegel, Don & Slocum, John. Retrieved 7 Oct 2014.
  5. "Does culture define the brand?". the guardian. Retrieved 9 Oct 2014.
  6. 1 2 3 4 "THE MACRO ENVIRONMENT & PEST ANALYSIS.". Retrieved 6 Oct 2014.
  7. 1 2 3 4 5 6 "PESTLE Analysis.". Retrieved 7 Oct 2014.
  8. 1 2 3 4 5 6 Organizational Behaviour and Management. Martin, John. Retrieved 9 Oct 2014.
  9. Strategic Management: A Stakeholder Approach. Freeman, R.Edward. Retrieved 6 Oct 2014.
  10. Strategy for Sustainable Competitive Advantage. Chaston, Ian. Retrieved 7 Oct 2014.
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