Governing Corporate Culture
Slovenian Sovereign Holding, d. d. (SSH) has published the Guide for Supervisory Boards of State-Owned Enterprises (SOEs) entitled “Governing Corporate Culture”. A direct goal of this paper is to equip Supervisory Boards with key guidelines, questions and tools to be considered, asked and used when exercising their duties in terms of governing corporate culture. An indirect goal of this Guide is also to empower companies to operate effectively and efficiently through giving culture an appropriate focus within corporate governance practices.
The Guide was developed in cooperation with experts from the Centre of Business Excellence of the Faculty of Economics, Prof. Dr. Miha Škerlavaj and Luka Eržen, external experts and SSH's employees. The content of the Guide was also supported by the Managers' Association of Slovenia and the Slovenian Directors' Association.
One of key strategic themes pursued in activities for the governance of state capital assets in 2022 is sustainable business. Sustainability also includes topics related to enhancing the practices for governing corporate culture, as corporate culture plays an important role for achieving the long-term value of a company.
As stated in the Guide, "corporate culture can best contribute to business performance if it is consistent with the context, strategic goals, leadership, structure, actual treatment of people at work, and other determinants of business performance".
From a governance perspective, it is important that company's core values are observed in its business practices and reflected in its corporate governance system, as this ensures that there is no gap between what is desired and what actual happens in terms of behaviours.
Good corporate culture governance is important for a healthy culture and a more successful business performance and should therefore be a priority topic for the Supervisory Boards of companies. Supervisory Boards are therefore expected to actively monitor and oversee this strategic topic, recognising that it is the management that holds the primary role in building and governing corporate culture.
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