Organizational Culture is the core element in driving business toward success.  Robust organizational culture reflects in attitudes, operations, and communication with stakeholders. It has material influence over strategic direction, enhances competitive advantage, and leads to sustainable growth. 

Meanwhile, companies that embedded value to comply with business ethics will make personnel perform their duties transparently.  Robust organizational culture will make staff proud, loyal, and trust in the organization while it will also attract talents to join.

This Guideline on Board’s Role in Organizational Culture emphasizes on Board’s roles including the recognition of significance, being role model, and overseeing the development and maintaining positive organizational culture to pave way for sustainable growth. We sincerely hope contents of this document will help the Board perform their roles more effectively. The guideline divides into two sections including 1. Key Principles and 2. Guidelines. 

Key Principles of this guideline are as follows:

1.     The Board should emphasize organizational culture as crucial part in shaping employees’ behaviors and reflecting in the corporate image.  Organizational culture is developed from the faith in organizational value, adhered and practiced over time, that eventually turns into organizational norm. 

2.     The Board should work with the management to set corporate value.  This will lay clear direction in creating desirable organizational culture, which should comprise of performance culture and ethical culture, and communicate internally and externally.

3.     The Board should build Board culture to demonstrate shared value among directors in terms of behaviors, attitudes, working processes, and healthy relationship with the management.

4.     The Board should promote organizational culture by being role models and ensure the management has mechanism to develop and monitor organization culture.

5.     The Board should set code of conduct in written and ensure the organization has operating process that complies with business ethics, and against all forms of corruption.

6.     The Board should ensure the human resource management system aligns with purpose, strategy, and business model, organizational culture, appropriate financial and non-financial incentives. 

7.     The Board should ensure there are channels to engage and be in touch with stakeholders’ concerns regularly to learn about issues that may affect the organization and oversee that the management resolve the issues in timely manner.

8.     The Board should ensure the organization has organizational culture indicators that fit with the business context to evaluate quality, direction, risks and challenges that could affect the organization’s goals.

9.     The Board should ensure existing indicators can effectively show red flags in organizational culture aspect so that the issues can be appropriately managed.   The indicators should be constantly reviewed and evaluated while the Board should continuously keep eyes on ever-changing situations and trend.

For full "Guideline on Board’s Role in Organizational Culture" please download below