13.5: Corporate Culture and Business Practices
- Page ID
- 22686
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Corporate Culture and Business Practices
- Lack of meaningful long-term corporate planning and focus
- Creation of a “culture of greed” and management self-enrichment: materially more generous compensation pattern for the CEO and senior executives than peers
- “Make the numbers!” corporate culture: untoward pressure on managers to achieve aggressive budgets
- Creation of a “culture of fear,” penalizing internal debate and independent or creative thinking; creation of environment where only “good news” is acceptable to corporate chieftains
- “Take no prisoners!” corporate culture: questionable or heavy-handed strategies and tactics with competitors, customers, employees, suppliers, accountants, bankers, business partners, and regulators or government authorities
- History of litigation in pursuit of business strategies and undue pressure on critics (e.g., lawsuits by company against company customers, employees, suppliers, accountants, bankers, regulators or government entities)
- Lack of transparency: history of lack of openness with external and internal constituencies, including independent directors
- Heavy use of lobbyists and lawyers
- Aggressive corporate communication and image building; heavy use of “spin”
- History of aggressive or questionable sales and/or marketing practices
- Cavalier attitudes toward internal control