Boards still struggle with understanding the culture of their organisations

A new Board Briefing published today by the Institute of Business Ethics (IBE) reveals the results of a survey into the information boards currently receive, how they consider it and how they report on culture to the outside world.

In Culture Indicators: understanding corporate behaviour, Peter Montagnon – IBE’s Associate Director and author of the report – analyses the survey data and draws on interviews with directors and those that advise them to provide practical and tangible assistance for boards in how to understand the corporate culture of their organisations.

A positive finding is that boards do discuss culture and receive a lot of relevant information – 82% of respondents to the IBE survey said their boards monitored data related to culture.

Yet the survey also suggests that boards appear to pay relatively little attention to some issues that might provide important insights on culture, including customer complaints, supply chain data (including payment terms and grievances), social media records and exit interviews.

Two fifths of boards do not receive information on customer satisfaction, while only 20% receive data on the supply chain relationship.