NPM: 1006010020





Eight Semester
Majoring in English Education
Faculty of Teacher Training and Education
Alwashliyah University Medan




Bismillahirahmannirrahim .

Thank to Allah SWT say the authors . Because for the grace and favor – his , I can finish the preparation of this paper with the title ” Corporate Culture ” . This paper was prepared for obtaining the value of the task groups of subjects ” English For Business ” . Authors say prayers and peace to the Prophet Muhammad SAW who has delivered his message to mankind to guide his people to the path of Allah Almighty blessed .

This paper will describe the problems associated with paper title . Authors hope this paper can be useful for the readers , and hopefully this discussion may be a reference in completing the tasks faced by the students .
The author is fully aware that this paper is not perfect , there are still many irregularities and deficiencies due to lack of insight into the breadth of the author , the author is therefore expect criticism and suggestions or objections that are built from various parties for perfectly this paper .

Finally, with all humility authors would like to thank all those who helped me in completing this paper either directly or indirectly . Hopefully all the help reap the rewards from Allah and to benefit us all .

Medan, 14 April 2014            






Table of Content

Preface  ……………………………………………………………….         i

Table of Content         …………………………………………………        ii

Chapter I Introduction                        …………………………………………        1

              1.1 The background of the study     …………………………        1

              1.2 The Problem of Study ……………………………………       1

              1.3 Purpose of Study            …………………………………………        1


Chapter II Corporate Culture…………………………………………        2

              2.1 Definition of Corporate Culture…………………………        2

              2.2 The Component of Corporate Culture    …………………        4

              2.3 The Example of Using Corporate Culture in Company …        7


Chapter III Conclusion           …………………………………………        14

References      ………………………………………………………….       iii




1.1              The Background of Study

Today, we often hear the word as a layman corporate culture. some of us do not know about that word. What is the corporate culture ..?. For some people, this word gives deep meaning because it will be linked to financial, benefits, activities, supply of raw materials and all activities in the company. But on the other hand, only a few people really understand the philosophy of the corporate culture of the word itself.

1.2              The Problem of Study

            Based on a paper title is “Corporate Culture”, the authors draw several problems, namely:

¢  Definition of Corporate Culture

¢  The Component of Corporate Culture

¢  The Example of Using Corporate Culture in Company

1.3              The Purpose of Study

  1. The General Purpose
  • To complete the tasks eighth semester English for Business courses at the Faculty of Teacher Training and Education English Language Study Program at the University of Alwashliyah Medan 2014.
  • To complete the course value.
  • To add insight and knowledge of English for Business.
  1. Specific objective











2.1 Definition of Corporate Culture

There are some definition about Corporate Culture, they are:

  1. According E. Jacques, Corporate Culture is Conventional or traditional way of thinking and behaving which is shared to some extent by organization members and which has to be, at least partially, accepted by new employees.
  2. According E. Schein, Corporate Culture is A pattern of fundamental shared assumptions which a given group created while solving the problems of adaptation to environment and those of internal integration. It is inculcated in new organization members as a correct method of problems solving.
  3. According H. Schenplein, Corporate Culture is Values, norms and beliefs generally accepted in the organization and creating a system.
  4. According G. Hofstede, Corporate Culture is “Mind programming” in organization members, thus a set of values, norms and organizational rules successfully inculcated by the group.
  5. According R. Deshapande and R. Parasurman, Corporate Culture is Unwritten, often subconsciously perceived, rules which fill a gap between the unwritten and actually happening in the organization.
  6. According L. Smircich, Corporate Culture is Semantic networks created by people in the course of organization.

Corporate culture refers to the shared values, attitudes, standards, and beliefs that characterize members of an organization and define its nature. Corporate culture is rooted in an organization’s goals, strategies, structure, and approaches to labor, customers, investors, and the greater community. As such, it is an essential component in any business’s ultimate success or failure. Closely related concepts, discussed elsewhere in this volume, are corporate ethics (which formally state the company’s values) and corporate image (which is the public perception of the corporate culture). The concept is somewhat complex, abstract, and difficult to grasp. A good way to define it is by indirection. The Hagberg Consulting Group does just that on its Web page on the subject. HCG suggests five questions that, if answered, get at the essence:

  • What 10 words would you use to describe your company?
  • Around here what’s really important?
  • Around here who gets promoted?
  • Around here what behaviors get rewarded?
  • Around here who fits in and who doesn’t?

As these questions suggest, every company has a culture—but not all cultures (or aspects of them) help a company reach its goals. The questions also suggest that that companies may have a “real culture,” discernible by answering these questions, and another one which may sound better but may not be the true one.

The concept of corporate culture emerged as a consciously cultivated reality in the 1960s along-side related developments like the social responsibility movement—itself the consequence of environmentalism, consumerism, and public hostility to multinationals. Awareness of corporate culture was undoubtedly also a consequence of growth, not least expansion overseas—where corporations found themselves competing in other national cultures. The U.S. competition with Japan, with its unique corporate culture, was yet another influence. So was the rise to prominence of management gurus the dean of whom was Peter Drucker. As corporations became aware of themselves as actors on the social scene, corporate culture became yet another aspect of the business to watch and to evaluate—alongside the “hard” measures of assets, revenues, profits, and shareholder return.

Corporate culture by definition affects a firm’s operations. It is also, by definition, something that flows from management downward and outward. In many corporations, the “culture” was set very early on by the charismatic activity and leadership of a founder. But as major tendencies become deeply institutionalized, corporate culture also becomes an institutional habit that newcomers acquire. In actual practice “reinventing” the corporation from the top down, therefore, is difficult to achieve, takes time, and happens only under strong leadership.

Observers and analysts of the phenomenon tend to subdivide culture into its various expressions related either to major constituencies (employees and workers, customers, vendors, government, the community) or to methods or styles of operation (cautious, conservative, risk-taking, aggressive, innovative). A corporate culture may also, by overstepping certain bounds, become suicidal—as the case of Enron Corporation, the energy trader, illustrates. In the Enron culture an aggressive, creative, high-risk style led to fraud and ultimate collapse. Analysis is helpful in understanding how a corporate culture expresses itself in specific areas. However, the concept is social and culture, as the phrase itself implies. It does not lend itself to reorganization by a rearrangement of standard building blocks.

2.2 The Component of Corporate Culture

The benefits of a strong corporate culture are both intuitive and supported by social science. According to James L. Heskett, culture “can account for 20-30% of the differential in corporate performance when compared with ‘culturally unremarkable’ competitors.” And HBR writers have offered advice on navigating different geographic cultures, selecting jobs based on culture, changing cultures, and offering feedback across cultures, among other topics.

But what makes a culture? Each culture is unique and myriad factors go into creating one, but I’ve observed at least six common components of great cultures. Isolating those elements can be the first step to building a differentiated culture and a lasting organization.

  1. Vision: A great culture starts with a vision or mission statement. These simple turns of phrase guide a company’s values and provide it with purpose. That purpose, in turn, orients every decision employees make. When they are deeply authentic and prominently displayed, good vision statements can even help orient customers, suppliers, and other stakeholders. Nonprofits often excel at having compelling, simple vision statements. The Alzheimer’s Association, for example, is dedicated to “a world without Alzheimer’s.” And Oxfam envisions “a just world without poverty.” A vision statement is a simple but foundational element of culture.
  2. Values: A company’s values are the core of its culture. While a vision articulates a company’s purpose, values offer a set of guidelines on the behaviors and mindsets needed to achieve that vision. McKinsey & Company, for example, has a clearly articulated set of values that are prominently communicated to all employees and involve the way that firm vows to serve clients, treat colleagues, and uphold professional standards. Google’s values might be best articulated by their famous phrase, “Don’t be evil.” But they are also enshrined in their “ten things we know to be true.” And while many companies find their values revolve around a few simple topics (employees, clients, professionalism, etc.), the originality of those values is less important than their authenticity.
  3. Practices: Of course, values are of little importance unless they are enshrined in a company’s practices. If an organization professes, “people are our greatest asset,” it should also be ready to invest in people in visible ways. Wegman’s, for example, heralds values like “caring” and “respect,” promising prospects “a job [they’ll] love.” And it follows through in its company practices, ranked by Fortune as the fifth best company to work for. Similarly, if an organization values “flat” hierarchy, it must encourage more junior team members to dissent in discussions without fear or negative repercussions. And whatever an organization’s values, they must be reinforced in review criteria and promotion policies, and baked into the operating principles of daily life in the firm.
  4. People: No company can build a coherent culture without people who either share its core values or possess the willingness and ability to embrace those values. That’s why the greatest firms in the world also have some of the most stringent recruiting policies. According to Charles Ellis, as noted in a recent review of his book What it Takes: Seven Secrets of Success from the World’s Greatest Professional Firms the best firms are “fanatical about recruiting new employees who are not just the most talented but also the best suited to a particular corporate culture.” Ellis highlights that those firms often have 8-20 people interview each candidate. And as an added benefit, Steven Hunt notes at that one study found applicants who were a cultural fit would accept a 7% lower salary, and departments with cultural alignment had 30% less turnover. People stick with cultures they like, and bringing on the right “culture carriers” reinforces the culture an organization already has.
  5. Narrative: Marshall Ganz was once a key part of Caesar Chavez’s United Farm Workers movement and helped structure the organizing platform for Barack Obama’s 2008 presidential campaign. Now a professor at Harvard, one of Ganz’s core areas of research and teaching is the power of narrative. Any organization has a unique history — a unique story. And the ability to unearth that history and craft it into a narrative is a core element of culture creation. The elements of that narrative can be formal — like Coca-Cola, which dedicated an enormous resource to celebrating its heritage and even has a World of Coke museum in Atlanta — or informal, like those stories about how Steve Jobs’ early fascination with calligraphy shaped the aesthetically oriented culture at Apple. But they are more powerful when identified, shaped, and retold as a part of a firm’s ongoing culture.
  6. Place: Why does Pixar have a huge open atrium engineering an environment where firm members run into each other throughout the day and interact in informal, unplanned ways? Why does Mayor Michael Bloomberg prefer his staff sit in a “bullpen” environment, rather than one of separate offices with soundproof doors? And why do tech firms cluster in Silicon Valley and financial firms cluster in London and New York? There are obviously numerous answers to each of these questions, but one clear answer is that place shapes culture. Open architecture is more conducive to certain office behaviors, like collaboration. Certain cities and countries have local cultures that may reinforce or contradict the culture a firm is trying to create. Place — whether geography, architecture, or aesthetic design — impacts the values and behaviors of people in a workplace.

There are other factors that influence culture. But these six components can provide a firm foundation for shaping a new organization’s culture. And identifying and understanding them more fully in an existing organization can be the first step to revitalizing or reshaping culture in a company looking for change.

2.3 The Example of Using Corporate Culture in Company

            There are some companies that use corporate culture and success in doing business. They are:

  1. Hewlett Packard Company

Corporate Culture was formed and implanted by a regular or even a founder leader of each company with the goal of a positive impact on performance and synergy teamwork its employees with the aim of improving the moral and conducive working environment . With such an objective , Corporate Culture can be changed or modified with the purpose of providing an adjustment to the conditions that occur within the company , to how companies – clicking Overcome the problems that occur in the company .

Real example that I will give is a leading multinational information technology company in the world , Hewlett Packard ( HP ) , which was founded by Bill Hewlett and Dave Packard . Bill and Dave since the founding of Hewlett Packard has invested Corporate Culture is very interesting that they call the HP Way . The HP Way include :

  1. We have trust and respect for individuals .
  2. We focus on a high level of achievement and contribution .
  3. We conduct our business with uncompromising integrity .
  4. We Achieve our common objectives through teamwork .
  5. We Encourage flexibility and innovation .

The HP Way is always embedded in all HP employees in all branches around the world . But do not rule out the existence of other cultures adjustment in each individual company , for example in HP which took place in the USA , the manager also implements the entrenched system in which employees are required to determine the 3 personal targets and 3 targets professional working in HP within a period of 1 year , and then the management is able to monitor whether its taget realized or not . This course aims to improve morale and employee morale karyawa Hewlett – Packard ( HP ) itself to improve its productivity .


  1. Wal-Mart Stores, Inc.

Wal-Mart Stores, Inc. is an American public corporation that runs a chain of large discount department stores and a chain of warehouse stores. In 2010 it was the world’s largest public corporation by revenue, according to the Forbes Global 2000 for that year. The company was founded by Sam Walton in 1962.


Learn Our Culture

Open Door

At Walmart, our management believes open communication is critical to understanding and meeting our associates’ and our customers’ needs. They’ll work with you to mutually resolve any issues or problems you may have. We’re all part of the same family —the Walmart family. And like family, we care. The open door has helped solve some of our biggest problems, and it’s generated some of our greatest ideas.

Three Basic Beliefs & Values

  • Respect for the Individual
  • Service to our Customers
  • Striving for Excellence

10-Foot Rule

The 10-foot Rule is one of our secrets to customer service. During his many store visits, Sam Walton encouraged associates (employees) to take this pledge with him: “I promise that whenever I come within 10 feet of a customer, I will look him in the eye, greet him, and ask if I can help him.” “I learned early on that one of the secrets to campus leadership was the simplest thing of all: Speak to people coming down the sidewalk before they speak to you,” Sam once said. “I would always look ahead and speak to the person coming toward me. If I knew them, I would call them by name, but even if I didn’t, I would still speak to them. Before long, I probably knew more students than anybody in the university, and they recognized me and considered me their friend. I ran for every office that came along.”

Servant Leadership

Sam Walton believed that effective leaders do not lead from behind their desks. “It’s more important than ever that we develop leaders who are servants, who listen to their partners – their associates – in a way that creates wonderful morale to help the whole team accomplish an overall goal,” Sam said.


Mutual Support

  • We help each other best serve our customers
  • We each have an opportunity to do something great for the team
    Mutual Respect
  • We look for and expect the best in others
  • We anticipate that everyone wants to be successful and we always looks for ways to improve
  • Our shared diversity is one of our greatest strengths


WalMart Cheer

Give me a W! Give me an A! Give me an L! Give me a squiggly!

Give me an M! Give me an A! Give me an R! Give me a T!

What’s that spell? Walmart!

Whose Walmart is it? It’s my Walmart!

Who’s number one? The customer! Always!

Don’t be surprised if you hear our associates shouting this enthusiastically at your local Walmart store. We take it seriously — it’s one way we show pride in our company and how much we value our customers. And Sam believed work can be fun.



As a world leader in mobile phone technology , Nokia faced with a difficult task when the company decided to significantly expand its operations in Burlington , New England , USA . The rapid growth of the company , combined with Nokia to expand its investment research and development , make them build a 135,000 -square to their new office , and was named The Nokia House Boston .

In place of this new Nokia vigorously rooting for existing Corporate Culture Corporate control . House Boston presents an opportunity to integrate Nokia Cultural Heritage as much as possible .

The company prides itself on four core values ​​and principles that exist in the heart of the philosophy of the Company :

  • ACHIEVEMENT respecting

From the character of the building , House Boston should reflect the physical beauty and climate of Finland ( country of origin NOKIA ) ​​, such as natural wood for the interior as well as natural lighting . Strong corporate image is reflected in the design of buildings that demonstrate achievement as the world technology leader .

Nokia combines elements of Scandinavian and New England to provide an open workspace environment that promotes interaction among co-workers .

House Boston create opportunities for the exchange of ideas empowerment of employees , customers , suppliers and partners for business success , but also expand external relations Nokia .

Corporate culture inculcated even in branches / new operating area so that employees can be more productive and improve customer satisfaction , continue to innovate and to love / have a high sense of belonging to the company .

  1. Nissan Motor Company

NISSAN WAY is the principle which gives direction to every element of the company in running the company’s business . Core message is ” strength comes from within . ” In the Nissan Motor Company , professionalism comes from personal strength , creativity , and dedication . NISSAN WAY is a proven method in creating innovations on a regular basis .

NISSAN WAY is composed of the core messages Strength comes from within , focus is the customer , is creating a force that encourages success and size is an advantage .

Nissan Way consists of the principles of the habit of thinking ( mindset ) and act ( action ) that is expected of all Nissan employees in performing their daily work . These principles are simple and flexible , because it is not based on tradition but is based on knowledge and experience , a strong flow of information from each division , business area , and the alliance with Renault . The principle aims to encourage effective performance of each employee .

10 Principles in NISSAN WAY :


  • Cross – functional , cross – cultural : Be open and show empathy toward different views ; welcome diversity .
  • Transparent : Be clear , be simple , no vagueness and no hiding .
  • Learner : Be passionate . Learn from every opportunity ; create a learning company .
  • Frugal : Achieve maximum results with minimum resources.\
  • Competitive : No Complacency , focus on competition , and continuous benchmarking .


  • Motivate : How are you energizing yourself and others ?
  • Commit & Target : Are you accountable and are you stretching enough toward your potential ?
  • Perform : Are you fully focused on delivering results ?
  • Measure : How do you assess performance ?
  • Challenge : How are you driving a continuous and competitive progress across the company ?

10 supports the principles above handling both inside the company . For example, the principle demands Transparent management and employees to be honest , as well as two-way communication that effective . Internal and external relations based on mutual respect and trust . It is fostered by an exchange of information . The new communications network in the Nissan now allow employees to access company information more quickly , more effectively , and to share what they know with investors , shareholders , suppliers , media and other interested parties .

Employees are evaluated fairly. Companies focus on tangible results and performance as a measure of success . Nissan has been a leader in Japan with moving away from the traditional seniority -based compensation system of work and reward system toward achievement . The company even a step further and appreciate the actions that demonstrate the vision of Nissan .

Another example eg People Control in Nissan Motor ( GB ) Limited ( NMGB is the sales and marketing company responsible for the distribution of all Nissan products in the UK ) , the company will only hire candidates who have a match with the company culture . Anthony Eastwood ( David Clutterbuck , 2003) Personnel & General Manager of Nissan Motor ( GB ) Limited said , ” and the structure should match each other , so we need to recruit people who we feel suits our culture and structure that empowered ” .

As is known to have a structure that flate NMGB , each worker has one and five different kinds of tasks each other , even overlap . Not the enactment of the job description in NMGB system makes each person has an obligation to work without restriction function . The system works so demanding of Personnel to only hire employees who are capable of the corporate culture alone .




            There are some definition about Corporate Culture, they are:

¢  According E. Jacques, Corporate Culture is Conventional or traditional way of thinking and behaving which is shared to some extent by organization members and which has to be, at least partially, accepted by new employees.

¢  According E. Schein, Corporate Culture is A pattern of fundamental shared assumptions which a given group created while solving the problems of adaptation to environment and those of internal integration. It is inculcated in new organization members as a correct method of problems solving.

¢  According H. Schenplein, Corporate Culture is Values, norms and beliefs generally accepted in the organization and creating a system.

            There are six component of corporate culture, they are:

  • Vision
  • Value
  • Practice
  • Narrative
  • People
  • Place

            There are some companies that use corporate culture and success in doing business. They are:

¢  Hewlett Packard Company

¢  Wal-Mart Stores, Inc.


¢  Nissan Motor Company


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