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Corporate behaviour

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Title: Corporate behaviour  
Author: World Heritage Encyclopedia
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Subject: Business ethics, Corporate personhood, Accountability, Corporate social responsibility, Clean Clothes Campaign
Collection: Business Ethics, Corporate Governance, Corporate Personhood
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Corporate behaviour

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


  • Role 1
  • Importance 2
  • Influential factors 3
    • Political 3.1
    • Economic 3.2
    • Social 3.3
    • Technological 3.4
    • Legal 3.5
    • Environmental 3.6
  • Stakeholder influence 4
  • See also 5
  • Notes 6


Not only does corporate behaviour play various roles within different areas of a business however it also enables businesses to overcome any problems they may face. For example, due to an increase in

  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. ^ a b c d "THE MACRO ENVIRONMENT & PEST ANALYSIS.". Retrieved 6 Oct 2014. 
  7. ^ a b c d e f "PESTLE Analysis.". Retrieved 7 Oct 2014. 
  8. ^ a b c d e f 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. 


See also

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]

Stakeholder influence

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]


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]


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]


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]


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]


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]


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).

Influential factors

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]



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